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What expenses are not deductible?

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Question
What expenses are not deductible?

Answer

Examples of Medical and Dental Payments You Cannot Deduct

  • The cost of diet food
  • Cosmetic surgery unless it was necessary to improve a deformity related to a congenital abnormality, an injury from an accident or trauma, or a disfiguring disease
  • Life insurance or income protection policies
  • The medicare tax on your wages and tips or the Medicare tax paid as part of the self-employment tax or household employment taxes
  • Nursing care for a healthy baby. But you may be able to take a credit for the amount you paid. See instructions for Form 2441.
  • Illegal operations or drugs
  • Imported drugs not approved by the US Food and Drug Administration (FDA). This includes foreign-made versions of US-approved drugs manufactured without FDA approval.
  • Nonprescription medicines, other than insulin  (including nicotine patches and gum)
  • Travel your doctor told you to take for rest or a change
  • Funeral, burial, or cremation costs.

Taxes You Can't Deduct

Federal income and most excise taxes.

Social security, Medicare, federal unemployment (FUTA), and railroad re-tirement (RRTA) taxes.

Customs duties.

Federal estate and gift taxes.

Certain state and local taxes, in-cluding: tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, tax you paid for someone else, and license fees (marriage, driver's, dog, etc.).

Foreign personal or real property tax.

Amounts You Can't Deduct (Charitable Contributions)

Certain contributions that result in a credit against the taxes owed to a state or local government. See Pub. 526 for more details and exceptions.

An amount paid to or for the benefit of a college or university in exchange for the right to purchase tickets to an athletic event in the college or university's stadium.

Travel expenses (including meals and lodging) while away from home, unless there was no significant element of personal pleasure, recreation, or vaca-tion in the travel.

Political contributions.

Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups.

Cost of raffle, bingo, or lottery tickets. But you may be able to deduct these expenses on line 28 (Line 16 for 2018). See the in-structions for Line 28 for more information on gambling losses.

Value of your time or services.

Value of blood given to a blood bank.

The transfer of a future interest in tangible personal property (generally, until the entire interest has been transfer-red).

Gifts to individuals and groups that are run for personal profit.

Gifts to foreign organizations. But you may be able to deduct gifts to certain U.S. organizations that transfer funds to foreign charities and certain Canadian, Israeli, and Mexican charities. See Pub. 526 for details.

Gifts to organizations engaged in certain political activities that are of di-rect financial interest to your trade or business. See section 170(f)(9).

Gifts to groups whose purpose is to lobby for changes in the laws.

Gifts to civic leagues, social and sports clubs, labor unions, and chambers of commerce.

Value of benefits received in connection with a contribution to a charita-ble organization. See Pub. 526 for exceptions.

Cost of tuition. But you may be able to deduct this as a job education ex-pense on line 21; as a tuition and fees deduction on Form 1040, line 34; or take or take an education credit (see Form 8863).

Examples of Expenses You Can't Deduct (Job expenses and Misc Deductions)

Political contributions.

Legal expenses for personal matters that don't produce taxable income.

Lost or misplaced cash or property.

Expenses for meals during regular or extra work hours.

The cost of entertaining friends.

Commuting expenses. See Pub. 529 for the definition of commuting.

Travel expenses for employment away from home if that period of employment exceeds 1 year. See Pub. 529 for an exception for certain federal employees.

Travel as a form of education.

Expenses of attending a seminar, convention, or similar meeting unless it is related to your employment.

Club dues.

Expenses of adopting a child. But you may be able to take a credit for adoption expenses. See Form 8839 and its instructions for details.

Fines and penalties.

Expenses of producing tax-exempt income.

 

 

 

 

 


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Views: 3265 Created on: Jun 15, 2013
Date updated: Nov 30, 2021

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