Non-Deductible Expenses
By FindLaw Staff | Legally reviewed by J.P. Finet, J.D. | Last updated April 01, 2021
Non-Deductible Expenses Overview
Determining which expenses are deductible on your personal federal income tax return can be a frustrating experience, especially after the 2017 Tax Cuts and Jobs Act did away with many itemized deductions. Adding to the frustration is the fact that making the wrong determination about whether an expense is deductible could result in an audit, interest, and penalties.
Fortunately, the IRS has published a list of non-deductible expenses. The checklist we have included below is not all-inclusive, but contains what the IRS believes to be among the most common nondeductible expenses. In other words, when preparing your taxes, do not assume that an expense is deductible just because it's not on this list.
| _______ | Adoption expenses |
| _______ | Broker's commissions |
| _______ | Burial or funeral expenses, including the cost of a cemetery plot |
| _______ | Campaign expenses |
| _______ | Capital expenses |
| _______ | Check-writing fees |
| _______ | Club dues |
| _______ | Commuting expenses |
| _______ | Fees and licenses, including car licenses, marriage licenses, and dog tags |
| _______ | Fines or penalties |
| _______ | Health spa expenses |
| _______ | Hobby losses |
| _______ | Home repair, insurance, and rent |
| _______ | Home security systems |
| _______ | Illegal bribes or kickbacks |
| _______ | Investment-related seminars |
| _______ | Life insurance premiums paid by the insured |
| _______ | Lobbying expenses |
| _______ | Losses from the sale of your home or other property |
| _______ | Lost or misplaced property or cash |
| _______ | Lunches with co-workers |
| _______ | Meals while working late |
| _______ | Medical expenses claimed as business expenses, unless required by an employer |
| _______ | Personal disability insurance premiums |
| _______ | Personal legal expenses |
| _______ | Personal, living, or family expenses |
| _______ | Political contributions |
| _______ | Residential telephone lines |
| _______ | Expenses for attending a stockholder meeting |
| _______ | Tax-exempt income earning and/or collecting expenses |
| _______ | The value of unpaid wages or lost vacation time |
| _______ | Travel expenses for another individual |
| _______ | Voluntary unemployment benefit fund contributions |
| _______ | Wristwatches |
Get in Touch With an Attorney to Learn More About Non-Deductible Expenses
While expense deductions can reduce the amount of tax you owe, they're only helpful if they are actually deductible. When you're preparing your taxes, you may want to enlist the help of an expert tax attorney to ensure you are not claiming any non-deductible expenses that could get you into trouble with the IRS.
Next Steps
Contact a qualified tax attorney to help you navigate your federal and/or state tax issues.