Which of the following expenses is generally not tax-deductible?

Which of the following expenses is generally not tax-deductible?

• A. Interest on mortgage
• B. Political contributions
• C. Medical expenses exceeding 7.5% of income
• D. Work-related costs

Answer: (B)

Political contributions are generally not tax-deductible because the Internal Revenue Service (IRS) does not allow deductions for contributions made to political campaigns or candidates. This policy is in place to maintain the integrity of the electoral process by ensuring that individuals are not given tax incentives for political donations, which could potentially influence electoral outcomes. In contrast, other expenses listed, such as mortgage interest, can often be deducted from your taxable income. Homeowners may deduct interest paid on their mortgage, which can significantly reduce their taxable income. Similarly, medical expenses above a certain threshold (currently set at 7.5% of adjusted gross income) can also be deducted, allowing taxpayers to offset some of the financial burden of healthcare costs. Work-related costs, provided they meet certain criteria, can also be deducted, particularly for self-employed individuals or specific employment-related expenses for employees.

Political contributions are generally not tax-deductible because the Internal Revenue Service (IRS) does not allow deductions for contributions made to political campaigns or candidates. This policy is in place to maintain the integrity of the electoral process by ensuring that individuals are not given tax incentives for political donations, which could potentially influence electoral outcomes.

In contrast, other expenses listed, such as mortgage interest, can often be deducted from your taxable income. Homeowners may deduct interest paid on their mortgage, which can significantly reduce their taxable income. Similarly, medical expenses above a certain threshold (currently set at 7.5% of adjusted gross income) can also be deducted, allowing taxpayers to offset some of the financial burden of healthcare costs. Work-related costs, provided they meet certain criteria, can also be deducted, particularly for self-employed individuals or specific employment-related expenses for employees.