Tax Day: Seven Unusual Deductions
If you are one of those people
who waited until the very last minute to complete and send in
your taxes, you want to make sure you take all of the deductions
you're entitled to. Last month, I wrote a blog post with some often overlooked deductions. Today, I will share some of the wackiest deductions
you can take this year:
- Bingo: Bingo-playing taxpayers can
deduct the amount lost in a given year, up to the amount that was won.
The Internal Revenue Service (IRS) allows taxpayers to deduct losses
for other types of wagering, too. To do so, they must keep a detailed diary of
the kind of wager, where they placed it, who they were with, and how much they
won or lost.
- Pet
Moving: If you are moving and you'd prefer to hire a
service to move your pet, rather than bring your pup along for the moving ride,
you can deduct that expense from your taxes.
- Clarinet
Lessons: A clarinet and lessons can be considered tax
deductible if a doctor has recommended playing the instrument as a method of
correcting an overbite.
- Uniforms: Work clothing must meet two
conditions to qualify as deductible: It must be worn as a condition of
employment, and it must not be a suitable substitute for everyday clothing.
Examples cited by the IRS include the garb of delivery workers, firefighters,
health care workers, police, transportation workers, letter carriers, and
professional athletes.
- Business
gifts (under $25): You're allowed to deduct up to $25 in costs spent on
business gifts for any individual person. You can also widely distribute gifts
under $4 that have your name on them. Examples can include pens, desk
sets, and bags. In this case, the sum total can be deducted, even if it's
over the $25 limit.
- Wigs: The IRS allows
patients with hair loss traced to a disease to write off the cost of a wig, if
a doctor recommends buying one. However, deductions for hair transplants
are a lot harder to get. Regardless of the reason for the hair loss - age,
illness. etc. - the IRS categorizes hair transplants as cosmetic
surgery, which is usually nondeductible.
- Weight
Loss Programs: Some people who enrolled in weight-loss programs last
year can deduct the money they paid in fees, according to the IRS. To be
eligible, taxpayers must have enrolled to treat specific conditions diagnosed
by doctors. Even when recommended by a health care professional, the cost of
dance lessons, swim lessons, and health-club dues are not deductible.
These aren't the only strange
medical write-offs; others include support stockings and many
more, according to IRS
publication 502.
Don't forget that if you met
with an estate planning attorney within the past year, some of your legal fees
may be tax deductible. We suggest that 20% of the total fees that you paid to
our firm can appropriately be considered deductible tax advice.
Please read Part 4 of our Tax Time Series for more details.
Please
note that getting a tax refund might affect your Medicaid or Social Security
benefits. However, since everyone's situation is different, it is wise to
contact a Certified Elder Law Attorney such as myself to walk you through this
process and ensure that you are not doing anything to affect Medicaid
eligibility. Call us today at the Fairfax and Fredericksburg
Elder Law Firm of Evan H. Farr, P.C.at 703-691-1888 in
Fairfax or 540-479-1435 in
Fredericksburg to make an appointment for an introductory consultation. |
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10640 Main Street
Suite 200
Fairfax, VA 22030
703-691-1888
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