I went to do my taxes and I want to know if this is true: I had a medical procedure done, but it is consider plastic surgery..I can't report it. I paid my lawyer to do 2 procedures..can't report it either (they told me it personal) and the bank, I paid a lot of fees in my checking account, they told me no.
Does anyone know why? If you hire a Secretary or a nanny, you claim them..don't you. weather it is on payroll or social security number. Why not a doctor or lawyer. And bank fees, they are making money off you, just like an interest, even though there is no contract. Please explain
Steve D
When you hire a nanny/secretary, you are acting as an employer. The three things you cite (lawyer, doctor, and fees) are service charges and as such, are not deductible (you could make the same argument for deducting trash pickup, the guy who fixes your computer, etc.)
MavistheMaven
The first answerer explains it well about employees vs. buying services.
Plastic surgery is an elective medical procedure. Taxpayers aren't going to subsidize your quest for youth and beauty. However, if the surgery was to repair an injury (such as from a car accident) or damage from an illness (such as post-cancer), then it might qualify as a medically necessary procedure.
As for bank fees, there is just no reason to ever incur them. Many banks offer no-fee checking and savings accounts, and if you manage them responsibly, you shouldn't have late fees or penalties. If you're charged a fee as the result of a misunderstanding, many banks will "forgive" one of these a year or forgive it without even counting it if you can show it's not your fault. Again, fees due to your mismanagement shouldn't be the burden of the government or taxpayers.
hrblockerrolquinn
Dear W 76: The IRS philosophy is if an expense is incurred in producing income it is deductible. Your fees paid to your broker to manage your money are deductible, because if your broker produces more income you and the IRS benefit. If you hire an attorney to preserve or increase your income or potential income those fees are deductible. A medical procedure to save your life is deductible because if you live both you and the IRS benefit by being able to produce more income. Now lets consider a face lift, not deductible to you but probably deductible to Meryl Streep for the same logic.
This advice was prepared based on our understanding of the tax law in effect at the time it was written and it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor
yourtabo
Medical expenses are deductible IF you paid the expenses AND the expenses are for the prevention or alleviation of a physical or mental defect or illness.
Lawyer fees are deductible IF the fees paid were related to income-producing transactions.
Bank fees are generally NOT deductible unless the fees were for safe deposit box or for certain types of loans.
When you hire a nanny, there is an employer/employee relationship. Now when you hire a lawyer, do you think you can call the lawyer your employee?
CarVolunteer
If you hire a secretary, it is not deductible unless it is for your business. I don't know anyone who would hire a secretary for any other reason, but if you did hire one just to keep track of your social commitments and calendar, it would not be deductible. If you hire a gardener for your home it is not deductible. The nanny is only deductible as a child care expense with certain rules.
Orignal From: Doing your taxes: Claiming Medical, lawyer and Bank fees?
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