Non-Deductible Miscellaneous Expenses
- Expenses that were reimbursed by your employer
- Clothing that is adaptable to everyday wear (this includes suits, evening wear, etc.)
- Commuting costs (subways and rail fares, and vehicle use including tolls, gasoline, and parking). Exception if qualified as being away from home on business or as part of Temporary Living Expenses.
- Dues to country clubs, golf and athletic clubs, and airline and hotel clubs
- Job hunting expenses if you’re looking for your first job, or changing professions
- Dry cleaning and laundry (unless you’re on a business trip)
- Immigration visa expenses, such as for obtaining a Green Card or H-1B visa
- Moving expenses that were not associated with your job
- Moving expenses if you are claiming temporary living expenses
- Meals, unless for business meetings, or while away from home on business. Also, allowable as part of Temporary Living Expenses
- Lunch on the job
- Personal expenses, such as grooming and maintenance (gym membership) unless they are directly related to your business (e.g., models, actors)
- Any other personal expenses for which there is no provision for a deduction in the Tax Code
- Interest on personal loans
- Support of family members, with the exception of specific expenses, such as dependent care, for qualifying dependents
- Personal vacations
- Cosmetic surgery to improve personal appearance
- Contributions made to individuals or foreign charities
- Student loan interest if adjusted gross income is greater than $75,000 (single) or $150,000 (married)
- Student loan principal
Nondeductible Home Expenses.
Some exceptions for rental properties.
- Mortgage principal payments
- Homeowner’s association fees
- Apartment rent, unless qualified to claim away from home expenses for a business trip expected to last one year or less (Temporary Living Expenses), or if a portion is used as a home office (special rules apply to both cases). Also, may be deductible if maintained for the sole purpose of going to school if your education expenses qualify for the business deduction. Exception: Some states provide a deduction for rent (e.g., New Jersey and Massachusetts).
- Insurance (other than mortgage insurance premiums), including fire and comprehensive coverage, and title insurance
- Wages you pay for domestic help
- The cost of utilities, such as gas, electricity, or water
- Most settlement fees, closing costs, and legal fees involved in purchasing a property
- Forfeited deposits, down payments, or earnest money
- Home phone line
Nondeductible Taxes and Fees.
- Fees for taking an exam to qualify you in a profession (e.g., Bar Exam, GRE, etc.)
- Personal purpose license fees (e.g., marriage, driver’s license, dog, etc.)
- Employment taxes.This includes social security, Medicare, and railroad retirement taxes withheld from your pay. However, one-half of self-employment tax you pay is deductible. In addition, the social security and other employment taxes you pay on the wages of a household worker may be included in medical expenses that you can deduct or child care expenses that allow you to claim the child and dependent care credit.
- Estate, inheritance, legacy, or succession taxes.However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit.
- Federal income taxes.This includes income taxes withheld from your pay.
- Fines and penalties.You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits.
- Gift taxes.