Are Probation Fees Tax Deductible?

Are Probation Fees Tax Deductible?
Probation fees are not tax deductible.

Necessary Business Fees

The IRS does not consider probation fees to be necessary business fees. The IRS allows a taxpayer to deduct legal fees paid to local and state governments for licenses related to his trade or business. Probation fees are not tax deductible and cannot be itemized on Schedule A of federal tax Form 1040.

Code 162

According to IRS Code 162, "No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law." Since a probation fee is a penalty for violating the law, it is not tax deductible. Even if a friend or a family member pays the probation fee on behalf of the offender, the fee is not tax deductible.

Work-Related Legal Fees

The IRS allows taxpayers to deduct legal fees directly related to running and maintaining a business. Even though an individual on probation can be employed, the probation fee is not directly related to the employer's business. Probation fees are not work-related legal fees and are not tax deductible.

Personal Fees

The IRS considers probation fees to be personal in nature. Personal expenses cannot be disguised as work expenses for the purposes of tax deductions. Probation fees, government fines, bribes, political contributions and payments to social organizations are not tax deductible.