What is left to itemize, and what does not count
The catch-all chapter: the few extra itemized deductions that survive, the above-the-line educator deduction, and a list of costs you cannot deduct.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 26, 2026.
Chapter 12 is the catch-all for deductions that fit no other chapter, plus a long list of costs you cannot deduct at all. It matters to employees, educators, investors and anyone who gambles. It is on printed pages 101 to 105 of the 2025 edition (101 to 106 in 2023 and 2024). Think of this page as a friendly summary; the IRS publication has the last word.
- Miscellaneous itemized deductions, once subject to a 2 percent of AGI floor, are not allowed for 2023 to 2025, and the 2025 law ends them for good from 2026.
- For 2023 to 2025, only reservists, qualified performing artists, fee-basis officials and employees with impairment-related work expenses can deduct unreimbursed job costs.
- Eligible educators deduct up to $300 (2023 to 2025) without itemizing.
- Gambling losses need itemizing and never exceed your winnings, which you report in full.
- Tax preparation fees, investment fees, safe-deposit box rent, hobby costs and commuting do not count.
What still counts
For 2023 to 2025, the chapter allows these on Schedule A (line 16 in all three editions): gambling losses up to winnings, casualty or theft losses on income-producing property, repayments of more than $3,000 of income you reported in an earlier year (a claim of right), estate tax on income in respect of a decedent, and unrecovered annuity cost at death. Educators use Schedule 1 line 11 instead. For 2023 to 2025, a qualified performing artist has two employers paying $200 or more each, work expenses above 10 percent of that income, and AGI of $16,000 or less before expenses.
What does not count
Tax preparation fees, investment and custodial fees, safe-deposit box rent, hobby costs, commuting, club dues, health spa fees, personal legal fees and life insurance premiums are out. So are fines paid to a government, with narrow exceptions such as restitution and compliance costs that the order names.
Numbers by year
| Year | Educator limit | Miscellaneous deductions | Gambling losses |
|---|---|---|---|
| 2023 | $300 | not allowed | up to winnings |
| 2024 | $300 | not allowed | up to winnings |
| 2025 | $300 | not allowed | up to winnings |
| 2026 planning | $350 | ended for good, educators aside | 90 percent of losses, up to winnings |
For joint filers who are both educators (2023 to 2025), the limit is $600, with no more than $300 each. For 2026, treat the numbers as planning figures (source: Rev. Proc. 2025-32 and the 2025 law), since the IRS has not issued Pub 17 (2026).
An invented example
Dana itemizes for 2025 (invented). She won $4,200, lost $4,000 and kept a diary. She reports $4,200 on Schedule 1 line 8b and deducts her $4,000 of losses on Schedule A, within the limit of her winnings. Under the 2026 planning rule only 90 percent of losses count: $4,000 times 0.90 = $3,600. Had she taken the standard deduction, no loss would be deductible and all $4,200 would be taxed.
Mistakes people make
- Netting winnings against losses and reporting only the difference.
- Claiming gambling losses without a diary, or without itemizing.
- Deducting unreimbursed work costs as an ordinary employee.
- Deducting parking tickets, fines or tax penalties.
- Claiming a loss on selling a personal car or home.
Quick check
2025 itemizer won $3,000 gambling and lost $5,000: largest loss deduction?
Answer: $3,000, because losses can only offset winnings. The full $3,000 is still reported as income.
2025, joint filers, both educators: one spent $450 and the other $120 on supplies. Deduction?
Answer: $420. The first is capped at $300, and $300 + $120 = $420, below the $600 maximum.
2025: an office employee paid $800 for work supplies that were not reimbursed. Deductible?
Answer: No. Unreimbursed job costs count only for reservists, performing artists, fee-basis officials and employees with impairment-related work expenses.
Common questions
What should a gambling diary show?
The date and type of each wager, the name and location of the venue, who was with you, and the amounts won or lost. Winnings are covered in [Chapter 8](/publication-17/chapter-8-other-income/).
Can I deduct a loss on selling my car?
No. Losses on selling a personal car, home or furniture are not deductible.
Where do educator expenses go?
For 2023 to 2025, on Schedule 1 line 11, an adjustment to income, so you get it without itemizing.
Official sources
- IRS Publication 17 (2025), chapter 12
- IRS Publication 17 (2024), chapter 12
- IRS Publication 17 (2023), chapter 12
- IRS Revenue Procedure 2025-32, 2026 inflation adjustments
- Public Law 119-21 (2025), sections 70110 and 70114
Keep reading
- Standard Deduction 2023 to 2026: Pub 17 Chapter 10
- Deductible Taxes and SALT Cap: Pub 17 Chapter 11
- Other Income: Pub 17 Chapter 8 in Plain English
- Key Tax Numbers by Year, 2023 to 2026
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