Deductible vs. non-deductible common expenses

When it comes to making deductions during filing season, consumers may be aware of the large items they are allowed to write-off, such as their mortgage taxes and charitable contributions. But there are a number of other items that may appear tax-deductible at first glance, when in fact they are not.

For example, school uniforms, summer camps related to sports and private school costs are generally not considered deductible expenses, according to Reuters. In some cases, individuals who use funds from an Educational Savings Account to pay for qualified education expenses may be allowed to deduct uniform costs, the news source explains.

Additionally, taxpayers may write off a large number of services, fees and equipment related to medical expenses, but certain costs related to health and wellness may not qualify under current tax laws. For example, individuals may not deduct personal workout equipment, such as treadmills, elliptical machines or weights, the news source reports. Although health equipment may be beneficial to a consumer's health, it does not fall under the tax guidelines, which only allow individuals to write off medical expenses related to the diagnoses, cure, treatment, mitigation or prevention of disease.

Individuals who plan to make deductions for common expenses should consider consulting with a tax preparer before doing so, in order to ensure the write-off is valid.

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Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs. 
Posted To: Tax Ranger's Blog By: Tax Ranger On: Thursday, July 28, 2011
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