3 Ways to Dodge Taxes Legally & Crazy Loopholes People Used!

6. An iPhone incurred as a medical expense

A serious car accident left one taxpayer with severe brain injuries. Her doctors prescribed her an iPhone (!) in order to help her with day-to-day activities, remind her of tasks and errands and allow her to ask questions via Siri. The phone was included on the tax return claim as a medical expense, according to CNN Money.

That might have been strange in the past, but as of 2020, taxpayers who itemize their deductions can deduct their overall qualified unreimbursed medical expenses if such expenses exceed 10% of their AGI.

7. Bribes can also count as business expenses

A questionable businessman by the name of William D. Zack found himself in a difficult predicament after faking his invoices. He was sued by the US government for unpaid taxes on unreported income. In total, he owed $311,601 for the tax years 1985 and 1986.

However, Zack claimed that $90,286 should be deducted from the unreported income because that money was used for bribes meant to improve his business. Believe it or not, the judge rules in his favor and he paid less than the IRS requested.