There are many items that you consider legitimate to claim as a deduction. However, the IRS has established some specific rules under which these items are NOT deductible. Let’s go over the important items on the list:
- Adoption Expenses: You cannot deduct the expenses of adopting a child on your tax return. However, you can claim a credit for those expenses by filing Form 8839, Qualified Adoption Expenses.
- Burial or funeral expenses, including the cost of the cemetery lot.
- Campaign Expenses: You cannot deduct campaign expenses for a candidate for any office even if the candidate is running for re-election for that position.
- Certain Capital Expenses – If you spend some money to purchase a property that has a useful life substantially beyond the tax year, those expenses are treated as capital expenses and should be added to the cost of the property.
- Club Dues: The cost of membership in any club organized for business, pleasure, recreation, or any other social purpose is not deductible. This includes business, social, sports, lunch, sports, airline, hotel, golf and country clubs.
- Commuting Costs – The cost of commuting from your home to your main or usual place of work is not deductible.
- Parking tickets: Parking tickets are issued for violation of traffic rules. You cannot claim such charges as a deduction.
- Health Spa Costs – You can try to claim these costs under the reason: Essential to keeping your health in excellent condition as a job requirement. However, these are personal costs and cannot be claimed as a deduction.
- Home security system – If you install a home security system, you cannot claim these costs as a deduction. However, if you have a home office, you can claim that cost as a business expense.
- Life Insurance Premiums: The premiums you pay on your life insurance are not deductible. However, if you pay the premiums for the life insurance policies assigned to your ex-spouse, you can deduct them as alimony.
- Lobbying Amounts Spent – You cannot deduct amounts paid for lobbying, including expenses to influence legislation or to participate in any political campaign.
- Personal Legal Costs – Child custody costs, will preparation expenses, and personal injury damages are all personal and therefore not deductible.
- Political Contributions: Contributions made to a political candidate or campaign committee are not deductible.
- Professional Accreditation Fees – Fees paid for your initial right to practice accounting, bar exam fees, medical and dental license fees to obtain the initial license are all non-deductible items.
- Home Phone Service – You cannot deduct any charges for basic local phone service for the first phone line to your residence, even if the line is used in a trade or business.
- Expenses Related to Tax-Exempt Income: You cannot deduct expenses related to earning tax-exempt income such as tax-exempt interest.
- Wristwatches: The cost of the wristwatch cannot be deducted even though there is a work requirement where you must know the correct time to perform your tasks.
If you claim any of the above items on your tax return as a deduction, they will certainly not be allowed and you will be charged additional taxes, as well as penalties for underpayment of taxes. Therefore, it is always advisable to stay away from all these deductions on your tax return.