Can You Tell If These Tax Deductions Are Legit?
Not all write-offs pass muster with the IRS.
Take a look at these frequently asked tax questions from our readers. See if you can separate the legitimate deductions from the ones that would trigger a "no" from the IRS.
1. You accept a new job that requires you to move. Can you write off moving costs even if you don't itemize?
TRUE: But, to qualify, your new workplace has to be at least 50 miles farther from your old home than your old job was.
2. You are volunteering as a carpenter to a non-profit community home-builder. Nice tax deduction, right?
FALSE: There is no deduction for the value of your time or labor donated to a charity.
3. Your children attend private elementary and high schools. Is their tuition tax-deductible?
NO: You can't deduct the cost of elementary or secondary school tuition. But Coverdell Educational Savings Accounts offer a tax break to help.