Suppose I make $100 interest from a bank account and I pay $100 for a safety deposit box in a given tax year where I take the standard deduction. Can the safety deposit box fee reduce my taxes somehow? If so, how?
IRS Publication 17 Your Income Tax says on page 203 (in regard to what you can deduct on Schedule A as an itemized deduction)
You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities.
If you are taking the standard deduction, you get no additional tax advantage from your rental fee even if it is used solely for storage of investment property and documents. The tax advantage is incorporated into the standard deduction.