21 Common Tax Deduction Myths 

1.  Uncle Sam will help me buy that SUV...

Many consumers believe they can get a tax credit just for buying an SUV. This is NOT true.

There was legislation in Washington at one point that would have offered a tax credit to buyers of hybrid SUVs, but it never become law.

2.  Guess what, I can write off the house...

It is an absolute myth that you can write off 100 percent of your home if you have a home business. The real truth is that you can only write off the portion of your home that is used exclusively for your business, if you have a REAL business.

Part-time telecommuters might qualify for a write off. The IRS was asked about this and their answer was just what you would expect, they said 'maybe'.

It is best to consult a tax professional before taking ANY Home Office Deduction. They are best in determining what would apply in your case.

3.  My Medical Expenses are Deductible...

Medical expenses may be deductible if they exceed 7.5% of your adjusted gross income (AGI). The catch then is that you can ONLY deduct the amount of out-of-pocket expenses that exceeds the 7.5% threshold. You need a lot of medical expenses to make this one work.

One caution:  If expenses are reimbursable, they are not deductible even if you did not get reimbursed.

4.  I can deduct my Diet Program...

Your weight-loss program may qualify as a deductible medical expense if it meets certain requirements:

• It must be prescribed by your physician.
  
• It is intended to treat a particular disease.

Obesity is considered a disease, so if it might count if you are legitimately obese. If you're not obese but need to lose weight to lower your blood pressure, that might make the program a deductible expense. But the cost still has to meet the 7.5% requirement as indicated above.

5.  Cops on duty can deduct their food...       

It’s just an old rumor that police and firefighters can deduct their food while on duty. They can’t!  As a plus, they often get a discount but some departments prohibit this practice because it could appear inappropriate.

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