What expenses are NOT tax deductible
Many clients ask me what they can deduct and what they can’t deduct? So I am providing the following lists of NON deductible expenses:
- Expenses that were reimbursed by your employer.
- Apartment Rent, unless qualified to claim away from home expenses for a business trip expected to last one year or less, or if a portion is used as a home office (special rules apply to both cases).
- Apartment Rent, may be deductible if maintained for the sole purpose of going to school if your education expenses qualify for the business deduction.
- Clothing that is adaptable to everyday wear (this includes suits, evening wear, etc.).
- Commuting costs (subways and rail fares, and vehicle use including tolls, gasoline, and parking). Exception if qualified as being away from home or on business.
- Dues to country clubs, golf and athletic clubs, and airline and hotel clubs.
- Home phone line
- Job hunting expenses if you’re looking for your first job, or changing professions.
- Dry cleaning and laundry (unless you’re on a business trip)
- Legal fees and closing costs involved in purchasing a property
- Fees for taking an exam to qualify you in a profession (e.g., Bar Exam, GRE, etc.)
- Immigration visa expenses, such as for obtaining a Green Card or H-1B visa.
- Moving expenses that were not associated with your job and were less than 50 miles.
- Moving expenses if you are claiming temporary living expenses.
- Meals, unless for business meetings, or while away from home on business.
- Lunch on the job.
- Personal expenses, such as grooming and maintenance (gym membership) unless they are directly related to your business (like models, actors).
- Any other personal expenses for which there is no provision for a deduction in the Tax Code.
- Interest on personal loans.
- Support of family members, unless they qualify as your dependents.
- Personal vacations.
- Cosmetic surgery to improve personal appearance
- Contributions made to individuals or foreign charities. (Charities must be registered with the IRS)
- Student loan interest over the income limit.
Student loan principal (unless used as educational expenses by claiming HOPE or Life Time Learning credit, or Tuition and Fees Deduction).Posted in:Personal Tax ArticlesThis article was written by TaxBizPro, LLC 2020, all rights reserved ©.
IRS Circular 230 Legend: Any advice contained herein was not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax payments or penalties. Unless otherwise specifically indicated, you should assume that any statement in this website or articles that relating to any U.S. federal, state, or local tax matter was written in connection with the promotion or marketing. Disclaimer: Any articles herein is designed for general information only. The information presented at this site should not be construed to be formal legal or tax advice. Each taxpayer should seek advice based on the taxpayer's particular circumstances.