You mean I can't write-off my cat's medical bills?
Thu, 07 Mar 2013 00:16:50 GMT —
As people try to squeeze every last drop from their tax returns they can get creative in terms of tax write-offs, a lot times trying to claim things that are simply not allowed.
"Many of our clients come in and they have cats or dogs and vet bills can be very high so they think they can take off those expenses under medical," said Tatian Tucker, a Liberty Tax Office Supervisor.
Tax experts also find people trying to sneak elective surgeries under medical expenses as, and sometimes even hobbies, like remote controlled cars, find themselves on that list of deductions, "You know there's expense in that but they try to claim it as a business expense but it's not, it's just a hobby," said Tucker.
It's not just deductions that can get interesting, it also happens when claiming dependent, "We've had customers come in that wanted to claim their neighbor because they mow their lawns and they thought they could claim them as a dependent because they worked on their property," said Eric Parsons with American Tax Service.
If you have a question on whether or not something is deductable you might want to ask a tax expert, if not, you could be hearing from the IRS.
"If they write off the wrong thing and the IRS audits that, they're going to have to pay the money back," says Tucker.
Now this could be a problem, especially if the money is already spent.