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 2023, all rights reserved ©.
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