J.K. Lasser's 1001 Deductions and Tax Breaks 2015: Your Complete Guide to Everything Deductible

APPENDIX C Checklist of Nondeductible Items

Alert

At the time this book was printed, Congress had not extended numerous breaks for 2014 that had expired at the end of 2013. Check the online supplement in February 2015 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2014 returns.

Unfortunately, not everything you spend your money on gives rise to a tax deduction. Most of your personal expenses, such as food, clothing, and recreation, are nondeductible items. The tax law also specifically bans certain write-offs. Of course, in some cases, while a deduction may be banned as a general rule, there may be circumstances under which it becomes deductible (so check throughout the book for exceptions to the general rule).

The IRS has identified a number of scams (the IRS calls them the “Dirty Dozen”) in which sharp promoters incorrectly advise taxpayers to claim certain types of write-offs. Here are some types of situations that the IRS has over the years cautioned taxpayers against:

• Identity theft. This has topped the list of scams in the past several years, despite considerable IRS efforts to thwart it where taxes are concerned. Thieves are looking for ways to use a legitimate taxpayer's identity and personal information to file a tax return and claim a fraudulent refund.  Avoid problems with obtaining your legitimate refund by safeguarding your tax information; contact the IRS Identity Protection Specialized Unit.
• Pervasive telephone scams ...