Taxpayer asks:
Thank you for an interesting blog.
The dictionary defines tolls as taxes. Are they deductible like property taxes, or only for business purposes?
Taxgirl says:
What a really interesting question! I did a little bit of research and tolls seem to be treated by the IRS as user fees and therefore, not deductible as a state or local tax. I couldn’t find one instance of any toll treated as a local tax. From a policy perspective, this makes sense since most “individual” or “personal” taxes and fees (driver’s license fees and trash fees are good examples) are not deductible while more “public” taxes (like real estate taxes) are deductible. Tolls would be, I believe, considered a personal expense/tax/fee.
Of course, with respect to other areas of income tax deductions, you can clearly deduct the cost of tolls as they relate to business (but not commuting), medical, moving and charitable expenses on the respective schedules.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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Fun fact – Massachusetts allows a “commuter deduction” for amounts paid for public transportion and/or tolls related to one’s commute. The deduction is capped at $750 per taxpayer and the first $250 is not deductible.
found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
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