Strange Tax Deductions You Might Not Know About
While most of us are familiar with the usual tax deductions such as mortgage interest, charitable donations and retirement contributions, there are many surprise deductions and other little-known ways to use your pre-tax money.
Tax deductions you might not know about
Andy Phillips , director of the H&R Block Tax Institute, says that with the April 15 deadline fast approaching , his tax experts are receiving a lot of non-traditional questions from filers looking to maximize all the deductions available to them. Phillips shared some of the weirdest tax deductions people have claimed and actually gotten away with:
-
Gambling losses. Although gambling winnings are taxable income, the IRS allows taxpayers to deduct their gambling losses up to the amount of their winnings. This deduction is often claimed by professional gamblers and those who frequent casinos.
-
Snacks. Day care centers may deduct specified amounts for breakfast, lunch, and snacks provided to children in their care.
-
Your pool or hot tub. If you’re self-employed and use your backyard pool or hot tub to entertain clients or employees, you may be able to deduct a portion of your operating costs and even the initial installation. Just be sure to carefully document business use.
-
Tampons. Menstrual care products like tampons and pads are qualified expenses that you can pay from your savings account .
-
Pet food. For the most part, deducting medical expenses for pets is not allowed as a medical expense on your tax return. The only exception is if the animal is a certified service animal, such as a guide dog, to assist you. However, service animals are not generally considered pets. If you are physically disabled or have hearing or vision impairments, you can deduct medical expenses for your pets if they are certified service animals. Expenses that may be covered include purchasing, training and maintaining the animal, including food, care and medical care.
-
Some cosmetic surgeries. A taxpayer may deduct as medical expenses amounts paid for cosmetic surgery necessary to correct a deformity resulting from or directly attributable to a congenital anomaly, an injury resulting from an accident or injury, or a disfiguring disease. Breast reconstruction after cancer is an example of a deductible procedure. Vision correction surgery is another example of a deductible procedure.
-
Clarinet lessons. Believe it or not, the IRS has allowed deductions for clarinet lessons as medical expenses under certain circumstances when the lessons were recommended by a doctor to treat conditions such as stuttering or neurological problems. To obtain this permission, you will need a letter from your doctor.
-
Chargers for electric vehicles . If you install an electric vehicle charger in your home, you may be eligible for a tax credit.
-
Construction costs. If you ‘re building a home , construction costs you may want to include in the foundation of your home include land, materials, architect’s fees, building inspection fees, and building permit fees.
Phillips shares a few more surprising facts about deductions; for example, people who are wrongfully imprisoned may be entitled to exclude from the calculation the money they receive in compensation. If you are at least 65 years old or blind, you can claim the additional standard deduction on your tax return. And if you’re just starting to pay off your student loans for the first time, you may not know that most taxpayers can deduct up to $2,500 in student loan interest each year.
Be sure to keep accurate records and consult a tax professional if you have any questions or concerns. While the above deductions may not apply to you, there are many deductions you can take advantage of , such as home office benefits or retirement contributions . And if you want to avoid the rush on April 15th, be sure to check out the best filing services for 2024 .