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Professional Privilege Tax

Tennessee levies a professional privilege tax of $400 on all licensed physicians. TN does not have a state income tax, but can I claim this as a deduction on my federal income tax return?

Zip Code: 37211

Re: Professional Privilege Tax

That's a good question. I have other clients who pay a tax like this, and they claim the tax as part of their professional expenses. But you're asking if you can claim it as a tax expense on your Schedule A.

Here is what the IRS says about taxes that are not deductible:

Taxes You Cannot Deduct


Certain state and local taxes, including: tax on gasoline, car inspection fees, assessments for sidewalks or other improvements to your property, tax you paid for someone else, and license fees (marriage, driver's, dog, etc.).

Zip Code: 01801