Itemized Deductions/Standard Deductions > Interest, Investment, Money Transactions (Alimony, Bad Debts, Applicable Federal Interest Rate, Gambling, Legal Fees, Loans, etc.)

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Frequently Asked Tax Questions

Itemized Deductions/Standard Deductions - Interest, Investment, Money Transactions (Alimony, Bad Debts, Applicable Federal Interest Rate, Gambling, Legal Fees, Loans, etc.)

Rev. date: 1/1/2011

Is the interest amount that we paid to the IRS deductible?

Interest Expense
Tax Bill/Debt/Liability

Interest and penalties paid to the IRS on Federal taxes are not deductible.

For more information, refer to:

Items You Cannot Deduct in the Interest Expense chapter in Publication 17, Your Federal Income Tax for Individuals
Tax Topic 505, Interest Expense
Publication 529 Miscellaneous Deductions

Rev. date: 2/15/2011

Can I deduct separate maintenance paid to my spouse or alimony paid to my former spouse?

If you are separated or divorced, you may generally deduct payments of separate maintenance or alimony paid in cash (including check or money order payable on demand) to, or on behalf of, your spouse or former spouse. See Publication 504 for help in determining whether the payments qualify.

Additional Information

Publication 504 Divorced or Separated Individuals Tax Topic 452 Alimony Paid (this topic covers alimony under decrees or agreements after 1984)

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