The recipient, in turn, is supposed to declare this as miscellaneous income when filing his federal tax returns.

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Form 1099-MISC reporting miscellaneous income like consulting fees.

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The foundation of fraud detection is what professionals call "information matching"--reconciling all the information supplied by the taxpayer (including Social Security numbers) with the information on W-2s and 1099 (miscellaneous income) forms, not to mention investment income and bank transactions.

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But such losses are not subject to the same floor (2% of adjusted gross income) that limits other miscellaneous deductions.

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Individual taxpayers can only deduct these miscellaneous items to the extent they exceed 2% of their adjusted gross income.

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The study took into consideration the relative corporate income tax, capital tax, sales tax, property tax and miscellaneous local business tax burdens of those countries, along with the statutory labor costs.

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Qualifying tuition is grouped with other miscellaneous itemized deductions, subject to a disallowance equal to 2% of adjusted gross income.

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First, most costs (other than the purchase price of items and repair materials) become miscellaneous itemized deductions, usable only to the extent they exceed 2% of his adjusted gross income.

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