What is the applicable miscellaneous deduction for an individual who has to repay $6,000 in incorrectly reported commissions?

When an individual is required to repay income that they previously reported, such as incorrectly reported commissions, they may deduct that repayment as a miscellaneous deduction under certain circumstances.

In this scenario, the individual repays $6,000 in commissions that were incorrectly reported as income. According to IRS guidelines, if the repayment is made in a subsequent year and it was more than $3,000, the individual is generally allowed to deduct the full amount of the repayment. This means that since the repayment amount is $6,000, the individual can take the entire amount as a miscellaneous deduction.

Deductions such as these are subject to certain limitations, but in this case, the repayment is straightforward, allowing for the full deduction of the amount repaid. Therefore, the correct answer reflects that the individual can deduct the full $6,000 when calculating their total miscellaneous deductions.