Tax Deductions That Are Not Tax Deductions – Do Not Make These Mistakes

With all the talk about what is tax deductible because it is tax time once again, it is important to address not only tax write offs, but what tax write off mistakes are made by "do it yourselfer" tax preparers as they put together their tax deduction itemization schedules. The last thing that anyone wants is to have the IRS knock on your door for mistakes on your tax return.

Common Non Deductible Expenses That Get Deducted By Mistake

Employer Reimbursed Business Expenses

A home phone line

Home internet access – unless used for business purposes and can be substantiated

Non business dry cleaning and laundry bills

Country club dues, dues to golf clubs and other athletic clubs

Dues to hotel and travel clubs

Non job required business clothing

Finanical losses due to a hobby

Inheritance Taxes paid

Professional licensing exam fees such as the bar and mortgage broker licensing exam fees

Penalties or fines paid due to violating the law – late tax return filing penalties, child labor, traffic tickets

Expenses paid to a lobbyist

Tax penalty payments

Life Insurance Policy Premiums if business is beneficiary of said policy

Job or employment search expenses if not in same line of work

This is a short list non deductible items that get incorrectly deducted from many personal and business tax returns. There are many resources available online to check to see whether an item is tax deductible or not. If you are looking to stay out of trouble with the IRS it is always best to check with a tax preparation professional to provide guidance in preparing your annual IRS personal or business tax return.
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