10 Wacky Tax Deductions You’re Likely to Miss

Brianna Ehley for The Fiscal Times writes: The 2013 tax season is in full swing and taxpayers are busy looking for creative ways to save money through tax deductions ahead of the April 15 deadline. Most taxpayers are aware of common tax write offs like business travel expenses and charitable donations, but there are plenty of less obvious deductions that can save you a lot of cash. A few crafty – and brazen – taxpayers have successfully managed to deduct expenses for swimming pools, breast implants, gym memberships and even drug rehab – all deemed legal by the IRS (though some required lengthy court cases to prove it). But remember, not everyone qualifies for every deduction. Medical write-offs, for example, must be above 7.5 percent of adjusted gross income; miscellaneous deductions above 2 percent of AGI.  There are many exceptions to every tax rule, and the IRS considers each situation individually. If your deductions are rejected, you could be subject to penalties and interest charges, so before you get too fancy, it’s best to consult a tax expert.

The Babysitter 

Thinking of doing some volunteer work but worry about who will watch the kids? You might be able to write off your childcare expenses as a charitable deduction, as long as the costs occur while you’re doing charity work for a qualified organization.

Clarinet Lessons

Thinking about enrolling your child in music lessons? Consider the clarinet (especially if your kid is in need of some dental work). The IRS approved one parent’s write-off for her son’s clarinet lessons after she claimed the woodwind was therapeutic: it fixed the child’s overbite. Both the instrument and lessons can be written off as a medical expense as long as you have an orthodontist’s approval.

Guard Dogs

If you’re a business owner, your security system is tax deductable, but most people don’t realize the deduction can apply to a four-legged friend if you use the animal to protect your business. You may be able to write off the costs of caring for the animal as a business expense.

Getting in Shape

Abandoned your New Year’s resolutions? No problem. Tax season might be the next best time to join a gym. As long as you have a note from your doctor claiming that weight loss is imperative to your health, you may be able to deduct the cost of dropping a few pounds or lowering your cholesterol by writing it off as a medical expense.

Breast Implants

In 1988, a stripper named “Chesty Love” claimed a $2,088 deduction for breast enlargement surgery as a business expense.  Since then, the IRS accepts this practice, as long as you can reasonably claim that it will help you make more money in your business venture.

Legal Fees for Criminals

The IRS doesn’t discriminate against criminals. Yes, the tax man requires crooks like drug dealers to pay taxes on their earnings, but they’re also allowed to deduct the cost of the illegal product. And if they’re caught, they may be able to write off their legal defense.

Pet Moving

If you’ve relocated or plan to relocate for a job, you’re probably aware that you can write off moving expenses. But don’t forget about your pet. Under IRS Publication #521, pet moving is also considered a tax-deductible relocation expense.

Drug Rehab

Amy Winehouse had a point when she said, “If they try to make you go to rehab, you should go, go, go…,” because it might be tax deductable. Inpatient treatment at a therapeutic center for alcohol or drug addiction – even at the swanky facilities with celebrity patients – can be written off as a medical expense. And if you go to Alcoholics Anonymous per your doctor’s advice, you can deduct transportation costs to meetings as well.

Swimming Pool

One man successfully deducted $4,000 to build an indoor swimming pool in his home because he said it would help alleviate his arthritis symptoms, according to TurboTax. If you have a medical condition or injury and a dip in the pool could help, you may be able to write off a swimming pool as a tax deduction. Not everyone attempting to use this deduction has been successful, however. The IRS has denied other taxpayers the deduction when their medical necessity was not as clear. 

Quitting Smoking

Thinking about kicking your smoking habit? The IRS can help. Nicotine patches, aides and other cessation programs can be written off as a medical expense, though the IRS draws the line at some over-the-counter products like nicotine gum.