J.K. Lasser's 1001 Deductions and Tax Breaks 2023, 3rd Edition

APPENDIX CChecklist of Nondeductible Items

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:

• Pandemic‐related scams. They included Economic Impact Payment thefts where scammers tried through text messages, phone calls, or email to obtain bank account information.
• Phishing. Scammers purporting to be from the IRS send e‐mails seeking to obtain personal information used for identity theft. Spear phishing is a more sophisticated version aimed at tax professionals. The IRS never contacts taxpayers by e‐mail without prior notice of the communication; the IRS already has taxpayers' personal information.
• Pervasive telephone scams. Callers pretend to be from the IRS in order to steal money or identities (“vishing”). If you know you don't owe money (i.e., you never received a bill from the IRS), don't respond. Instead, call the Treasury ...