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1040 Form 2012

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1040 Form 2012

1040 form 2012 Index Symbols 1231 property sale, Sale of property interest. 1040 form 2012 401(k) plans, Elective Deferrals Excess contributions, Excess Contributions 403(b) plans, Elective Deferrals Limit for, Limit for tax-sheltered annuities. 1040 form 2012 457 plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under section 457 plans. 1040 form 2012 501(c)(18)(D) plans, Elective Deferrals Contributions, Section 501(c)(18)(D) contributions. 1040 form 2012 501(c)(3) organizations, Student loans. 1040 form 2012 529 program, Qualified tuition program (QTP). 1040 form 2012 83(b) election, How to make the choice. 1040 form 2012 A Academic health centers Meals and lodging when teaching and research organization, Academic health center. 1040 form 2012 Accelerated death benefits, Accelerated Death Benefits Accident insurance, Accident or Health Plan Accidental death benefits, Accidental death benefits. 1040 form 2012 Accrual method taxpayers, Prepaid income. 1040 form 2012 Accrued leave payment At time of retirement or resignation, Accrued leave payment. 1040 form 2012 Disability retirement, Accrued leave payment. 1040 form 2012 Activity not for profit, Activity not for profit. 1040 form 2012 Adoption Employer assistance, Adoption Assistance Advance commissions, Miscellaneous Compensation Aircraft, Flights on employer-provided aircraft. 1040 form 2012 Airlines No-additional-cost services, No-Additional-Cost Services Valuation of flights on employer-provided aircraft, Flights on employer-provided aircraft. 1040 form 2012 Alaska Permanent Fund dividend, Alaska Permanent Fund dividend. 1040 form 2012 Alien status, waiver of, Waiver of alien status. 1040 form 2012 Aliens Nonresident, Nonresident aliens. 1040 form 2012 Alimony, Alimony. 1040 form 2012 Alternative minimum tax (AMT) Recoveries, refiguring of, Subject to alternative minimum tax. 1040 form 2012 Stock options, Alternative minimum tax (AMT). 1040 form 2012 Annuities Charitable gift, Charitable gift annuities. 1040 form 2012 Railroad retirement, Railroad retirement annuities. 1040 form 2012 Tax-sheltered, Limit for tax-sheltered annuities. 1040 form 2012 Archer MSAs, Archer MSA contributions. 1040 form 2012 , Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 1040 form 2012 Armed forces, Military Combat zone bonus, Veterans' benefits. 1040 form 2012 Disability, Disability. 1040 form 2012 Disability pensions, Military and Government Disability Pensions Health professions scholarship, Tuition Reduction Military action as cause of disability injuries, Terrorist attack or military action. 1040 form 2012 Qualified reservist distribution, Qualified reservist distribution (QRD). 1040 form 2012 Rehabilitative program payments, Veterans' benefits. 1040 form 2012 Retirement pay, Military retirement pay. 1040 form 2012 Veterans benefits, Veterans' benefits. 1040 form 2012 Assistance (see Tax help) Athletic facilities, employer-provided, Athletic Facilities Automobile (see Vehicle, employer-provided) Awards (see Damages from lawsuits) B Babysitting, Babysitting. 1040 form 2012 Back pay, award for, Back pay awards. 1040 form 2012 Backup withholding Barter exchange transactions, Backup withholding. 1040 form 2012 Bankruptcy Canceled debt not deemed to be income, Excluded debt. 1040 form 2012 Barter income, Bartering Below-market loans, Below-market loans. 1040 form 2012 Bequest for services, Bequest for services. 1040 form 2012 Bicycle, Transportation Fringe benefit, Qualified bicycle commuting. 1040 form 2012 Black lung benefit payments, Black lung benefit payments. 1040 form 2012 Bonuses, Bonuses and awards. 1040 form 2012 , Employee awards or bonuses. 1040 form 2012 Breach of contract Damages as income, Court awards and damages. 1040 form 2012 Bribes, Bribes. 1040 form 2012 Business expenses Reimbursements, Allowances and reimbursements. 1040 form 2012 Business income, Business and Investment Income, More information. 1040 form 2012 C Cafeteria plans, Cafeteria plans. 1040 form 2012 Campaign contributions, Campaign contributions. 1040 form 2012 Campus lodging, Qualified campus lodging. 1040 form 2012 , Moving Expense Reimbursements Cancellation of debt, Canceled Debts Cancellation of sales contracts, Canceled sales contract. 1040 form 2012 Capital gains Recoveries, Capital gains. 1040 form 2012 , Capital gains. 1040 form 2012 Capital gains or losses Employee stock option plans (ESOPs), Option granted at a discount. 1040 form 2012 Incentive stock options (ISOs), Incentive stock options (ISOs). 1040 form 2012 Sale of personal property, Sale of personal items. 1040 form 2012 Car (see Vehicle, employer-provided) Car pools, Car pools. 1040 form 2012 Cash or deferred arrangements (CODAs), Elective Deferrals Cash rebates, Cash rebates. 1040 form 2012 Casualty insurance Reimbursements from, Casualty insurance and other reimbursements. 1040 form 2012 Catch-up contributions, Catch-up contributions. 1040 form 2012 , Catch-up contributions. 1040 form 2012 Charitable gift annuities, Charitable gift annuities. 1040 form 2012 Child and Adult Care Food Program Payments to daycare providers, Food program payments to daycare providers. 1040 form 2012 Child support payments, Child support payments. 1040 form 2012 Childcare providers, Childcare providers. 1040 form 2012 , Food program payments to daycare providers. 1040 form 2012 Chronic illness, Chronically ill individual. 1040 form 2012 Accelerated death benefits paid to, Exclusion for chronic illness. 1040 form 2012 Citizens outside U. 1040 form 2012 S. 1040 form 2012 Exclusion of foreign income, Reminders Civil Rights Act of 1964, Title VII Back pay and damages for emotional distress under, Court awards and damages. 1040 form 2012 Clergy, Clergy Coal, Coal and iron ore. 1040 form 2012 Colleges and universities Faculty lodging, Faculty lodging. 1040 form 2012 Scholarships and fellowships, Scholarships and fellowships. 1040 form 2012 Commissions Advance, Miscellaneous Compensation Commuter highway vehicles, Transportation Compensation Employee, Employee Compensation Miscellaneous, Miscellaneous Compensation Unemployment, Unemployment compensation. 1040 form 2012 Workers', Workers' Compensation Compensatory damages, Other compensation. 1040 form 2012 , Court awards and damages. 1040 form 2012 Constructive receipt of income, Constructively received income. 1040 form 2012 Copyrights Infringement damages, Court awards and damages. 1040 form 2012 Royalties, Copyrights and patents. 1040 form 2012 Corporate directors, Corporate director. 1040 form 2012 Cost-of-living allowances, Government cost-of-living allowances. 1040 form 2012 Court awards, Court awards and damages. 1040 form 2012 (see also Damages from lawsuits) Credit card Insurance, Credit card insurance. 1040 form 2012 Credits Recoveries, refiguring of unused credits, Unused tax credits. 1040 form 2012 , Unused tax credits. 1040 form 2012 Currency transactions, foreign, Foreign currency transactions. 1040 form 2012 D Damages from lawsuits, Court awards and damages. 1040 form 2012 Back pay awards, Back pay awards. 1040 form 2012 Breach of contract, Court awards and damages. 1040 form 2012 Compensatory damages, Other compensation. 1040 form 2012 , Court awards and damages. 1040 form 2012 Emotional distress under Title VII, Civil Rights Act of 1964, Court awards and damages. 1040 form 2012 Punitive damages, Court awards and damages. 1040 form 2012 Daycare providers, Childcare providers. 1040 form 2012 (see also Childcare providers) Food program payments to, Food program payments to daycare providers. 1040 form 2012 De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Death benefits, Proceeds not received in installments. 1040 form 2012 (see also Life insurance) Accelerated, Accelerated Death Benefits Debts Canceled, Canceled Debts Excluded debt, Excluded debt. 1040 form 2012 Nonrecourse debts, Mortgage relief upon sale or other disposition. 1040 form 2012 Recourse, Mortgage relief upon sale or other disposition. 1040 form 2012 Stockholder's, Stockholder debt. 1040 form 2012 Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. 1040 form 2012 Deferred compensation Nonqualified plans, Nonqualified deferred compensation plans. 1040 form 2012 , Nonqualified deferred compensation plans of nonqualified entities. 1040 form 2012 Dependent care benefits, Dependent Care Benefits Depletion allowance, Depletion. 1040 form 2012 Differential wage payments, Differential wage payments. 1040 form 2012 Armed forces, Differential wage payments. 1040 form 2012 Directors' fees, Corporate director. 1040 form 2012 Disability Military, Disability. 1040 form 2012 Pensions, Disability Pensions Workers' compensation, Disability pension. 1040 form 2012 Person with, Persons with disabilities. 1040 form 2012 Unemployment compensation, paid as substitute for, Types of unemployment compensation. 1040 form 2012 Disaster relief Disaster mitigation payments, Disaster mitigation payments. 1040 form 2012 Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. 1040 form 2012 Unemployment benefits, Unemployment Benefits Mitigation payments, Reminders Payments, Disaster relief payments. 1040 form 2012 Discounts Employee discounts, Employee Discounts Employee stock purchase plans, Option granted at a discount. 1040 form 2012 Mortgage loan for early payment, Discounted mortgage loan. 1040 form 2012 Dividends Restricted stock, Dividends received on restricted stock. 1040 form 2012 Divorced taxpayers Stock options exercised incident to divorce, Tax form. 1040 form 2012 Down payment assistance, Down payment assistance. 1040 form 2012 E Educational assistance Employer-provided, Educational Assistance Scholarships and fellowships, Scholarships and fellowships. 1040 form 2012 Educational institutions Faculty lodging, Faculty lodging. 1040 form 2012 Elderly persons Nutrition Program for the Elderly, Nutrition Program for the Elderly. 1040 form 2012 Tax Counseling for the Elderly, Volunteer tax counseling. 1040 form 2012 Election precinct officials, Election precinct official. 1040 form 2012 Elective deferrals, Elective Deferrals Catch-up contributions, Catch-up contributions. 1040 form 2012 , Catch-up contributions. 1040 form 2012 Excess annual additions, Excess Annual Additions Excess contributions, Excess Contributions Excess deferrals, Excess deferrals. 1040 form 2012 Increased limit for last 3 years prior to retirement age, Increased limit. 1040 form 2012 Limit on, Elective Deferrals Reporting by employer, Reporting by employer. 1040 form 2012 Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. 1040 form 2012 Emotional distress damages, Emotional distress. 1040 form 2012 Employee achievement awards, Employee achievement award. 1040 form 2012 Employee awards or bonuses, Employee awards or bonuses. 1040 form 2012 Employee compensation, Employee Compensation, Inherited property not substantially vested. 1040 form 2012 Fringe benefits, Fringe Benefits, Special valuation rules. 1040 form 2012 Restricted property, Restricted Property, Inherited property not substantially vested. 1040 form 2012 Retirement plan contributions, Retirement Plan Contributions Stock options, Stock Options, Statutory Stock Options Employee discounts, Employee Discounts Employee stock purchase plans, Statutory Stock Options, Employee stock purchase plan. 1040 form 2012 Employer, foreign, Foreign Employer Employer-owned life insurance, Employer-owned life insurance contract. 1040 form 2012 Employer-provided Educational assistance, Educational Assistance Vehicles, Employer-provided vehicles. 1040 form 2012 Employment Abroad, Employment abroad. 1040 form 2012 Agency fees, Employment agency fees. 1040 form 2012 Contracts Severance pay for cancellation of, Severance pay. 1040 form 2012 Endowment proceeds, Endowment Contract Proceeds Energy Assistance, Payments to reduce cost of winter energy. 1040 form 2012 Conservation Subsidies, Energy conservation subsidies. 1040 form 2012 Utility rebates, Utility rebates. 1040 form 2012 Estate income, Estate and trust income. 1040 form 2012 Estimated tax Unemployment compensation, Tax withholding. 1040 form 2012 Excess Annual additions, Excess Annual Additions Contributions, Excess Contributions Deferrals, Excess deferrals. 1040 form 2012 Expected inheritance, Expected inheritance. 1040 form 2012 Expenses paid by another, Expenses paid by another. 1040 form 2012 Exxon Valdez settlement, Exxon Valdez settlement income. 1040 form 2012 Eligible retirement plan, Contributions to eligible retirement plan. 1040 form 2012 Income averaging, Income averaging. 1040 form 2012 Legal expenses, Legal expenses. 1040 form 2012 Reporting requirement-statement, Statement. 1040 form 2012 F Faculty lodging, Faculty lodging. 1040 form 2012 Fair market value (FMV), Fair market value. 1040 form 2012 Stock options, Grant of option. 1040 form 2012 Farming Qualified farm debt, cancellation of, Excluded debt. 1040 form 2012 Federal employees Accrued leave payment, Accrued leave payment. 1040 form 2012 Cost-of-living allowances, Government cost-of-living allowances. 1040 form 2012 Disability pensions, Military and Government Disability Pensions Thrift Savings Plan for, Elective Deferrals Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). 1040 form 2012 Federal income tax Refunds, Federal income tax refund. 1040 form 2012 Fees for services, Fees for services. 1040 form 2012 Financial counseling fees, Financial Counseling Fees Fellowships, Scholarships and fellowships. 1040 form 2012 FICA withholding Foreign employers, U. 1040 form 2012 S. 1040 form 2012 citizens working for in U. 1040 form 2012 S. 1040 form 2012 , Social security and Medicare taxes. 1040 form 2012 Paid by employer, Social security and Medicare taxes paid by employer. 1040 form 2012 Fiduciaries Fees for services, Fees for services. 1040 form 2012 , Personal representatives. 1040 form 2012 Financial counseling fees, Financial Counseling Fees (see also Retirement planning services) Fitness programs Employer-provided, Athletic Facilities Flights Employer-provided aircraft, Flights on employer-provided aircraft. 1040 form 2012 No-additional-cost services, No-Additional-Cost Services Food benefits Daycare providers, food program payments to, Food program payments to daycare providers. 1040 form 2012 Nutrition Program for the Elderly, Nutrition Program for the Elderly. 1040 form 2012 Foreign Currency transactions, Foreign currency transactions. 1040 form 2012 Employment, Foreign Employer Governments, employees of, Employees of international organizations or foreign governments. 1040 form 2012 Income, Reminders Service, Service-connected disability. 1040 form 2012 Form 1040 Excess contributions to elective deferrals, Excess Contributions Recoveries, Where to report. 1040 form 2012 Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040 or 1040A, Schedule B Restricted stock dividends, Stock you chose to include in your income. 1040 form 2012 Form 1040, Schedule A Outplacement services, deduction for, Outplacement services. 1040 form 2012 Repayment of commissions paid in advance, Advance commissions and other earnings. 1040 form 2012 Form 1040, Schedule C Bartering, Bartering Childcare providers to use, Childcare providers. 1040 form 2012 Personal property rental, reporting income from, Reporting business income and expenses. 1040 form 2012 Royalties, Royalties Form 1040, Schedule C-EZ Bartering, Bartering Childcare Providers to use, Childcare providers. 1040 form 2012 Personal property rental, reporting income from, Reporting business income and expenses. 1040 form 2012 Royalties, Royalties Form 1040, Schedule D Stock options, Sale of the stock. 1040 form 2012 Stock options reported on, Statutory Stock Options Form 1040, Schedule E Partner's return, Partner's return. 1040 form 2012 Royalties, Royalties Form 1040A Recoveries, Where to report. 1040 form 2012 Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040EZ Recoveries, Where to report. 1040 form 2012 Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1041 Estates and trusts, Estate and trust income. 1040 form 2012 Form 1041, Schedule K-1 Beneficiary's share of income, deductions, credits, etc. 1040 form 2012 , Estate and trust income. 1040 form 2012 Form 1065 Partnership return, Partnership return. 1040 form 2012 Form 1065, Schedule K-1 Partner's share of income, Schedule K-1 (Form 1065). 1040 form 2012 , Partnership Income Form 1098 Mortgage interest statement, Mortgage interest refund. 1040 form 2012 Form 1099-B Barter exchange transactions, Form 1099-B from barter exchange. 1040 form 2012 , Backup withholding. 1040 form 2012 Form 1099-C Cancellation of debt, Form 1099-C. 1040 form 2012 Form 1099-DIV Restricted stock dividends, Stock you chose to include in your income. 1040 form 2012 Form 1099-G State tax refunds, State tax refund. 1040 form 2012 Unemployment compensation, Unemployment Benefits Form 1099-MISC Services totaling $600 or more, Fees for services. 1040 form 2012 Stock options exercised incident to divorce, Tax form. 1040 form 2012 Form 1099-R Charitable gift annuities, Charitable gift annuities. 1040 form 2012 Excess annual additions, Excess Annual Additions Excess deferral amounts, Excess distributed to you. 1040 form 2012 Surrender of life insurance policy for cash, Surrender of policy for cash. 1040 form 2012 Form 1120-POL Political organizations, Campaign contributions. 1040 form 2012 Form 1120S S corporation return, S corporation return. 1040 form 2012 Form 1120S, Schedule K-1 Shareholder's share of income, credits, deductions, etc. 1040 form 2012 , Schedule K-1 (Form 1120S). 1040 form 2012 Form 2441 Child and dependent care expenses, Dependent Care Benefits Form 4255 Recapture of investment credit, Amounts Recovered for Credits Form 6251 Alternative minimum tax, Alternative minimum tax (AMT). 1040 form 2012 Form 8839 Adoption assistance, Adoption Assistance Form 8853 Accelerated death benefits, Form 8853. 1040 form 2012 Archer MSAs and long-term care insurance contracts, Archer MSA contributions. 1040 form 2012 Form 8919 Uncollected social security and Medicare tax on wages, Employee Compensation Form RRB-1099 Railroad retirement board payments, Form RRB-1099. 1040 form 2012 Form SSA-1099 Social security benefit statement, Form SSA-1099. 1040 form 2012 Form W-2 501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions. 1040 form 2012 Accrued leave payment at time of retirement or resignation, Accrued leave payment. 1040 form 2012 Back pay awards, Back pay awards. 1040 form 2012 Bonuses or awards, Bonuses and awards. 1040 form 2012 Elective deferrals, reporting by employer, Reporting by employer. 1040 form 2012 Failure to receive from employer, Employee Compensation Fringe benefits reported on, Form W-2. 1040 form 2012 Stock options from employers, Tax form. 1040 form 2012 Wage and tax statement, Employee Compensation Form W-2G Gambling winnings, Form W-2G. 1040 form 2012 Form W-4V Unemployment compensation, voluntary withholding request, Tax withholding. 1040 form 2012 Form W-9 Request for taxpayer identification number, Backup withholding. 1040 form 2012 Foster care, Foster care providers. 1040 form 2012 Foster Grandparent Program, National Senior Service Corps programs. 1040 form 2012 Found property, Found property. 1040 form 2012 Free tax services, Free help with your tax return. 1040 form 2012 Fringe benefits, Fringe Benefits, Special valuation rules. 1040 form 2012 Accident and health insurance, Accident or Health Plan Adoption, employer assistance, Adoption Assistance Athletic facilities, Athletic Facilities Commuter highway vehicles, Transportation De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Dependent care benefits, Dependent Care Benefits Educational assistance, Educational Assistance Employee discounts, Employee Discounts Faculty lodging, Faculty lodging. 1040 form 2012 Financial counseling fees, Financial Counseling Fees Holiday gifts, Holiday gifts. 1040 form 2012 Meals and lodging, Meals and Lodging Moving expenses (see Moving expenses) No-additional-cost services, No-Additional-Cost Services Parking, Transportation Retirement planning (see Retirement planning services) Transit pass, Transportation, Transit pass. 1040 form 2012 Tuition reduction, Tuition Reduction Valuation of, Valuation of Fringe Benefits, Special valuation rules. 1040 form 2012 Vehicle, Employer-provided vehicles. 1040 form 2012 Working condition benefits, Working Condition Benefits Frozen deposits Interest on, Interest on frozen deposits. 1040 form 2012 G Gambling winnings and losses, Gambling winnings. 1040 form 2012 Gas Royalties from, Oil, gas, and minerals. 1040 form 2012 Gifts, Gifts and inheritances. 1040 form 2012 Holiday gifts from employer, Holiday gifts. 1040 form 2012 Government employees (see Federal employees; State employees) Grantor trusts, Grantor trust. 1040 form 2012 Group-term life insurance Worksheets, Figuring the taxable cost. 1040 form 2012 , Worksheet 1. 1040 form 2012 Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Gulf oil spill, Reminders, Gulf oil spill. 1040 form 2012 H HAMP Home affordable modification program Pay-for-performance success payments, Home Affordable Modification Program (HAMP). 1040 form 2012 Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. 1040 form 2012 Health Flexible spending arrangement, Health flexible spending arrangement (health FSA). 1040 form 2012 Insurance, Accident or Health Plan Reimbursement arrangement, Health reimbursement arrangement (HRA). 1040 form 2012 Savings account, Health savings accounts (HSA). 1040 form 2012 Help (see Tax help) Highly compensated employees Excess contributions to elective deferrals, Excess Contributions Historic preservation grants, Historic preservation grants. 1040 form 2012 Hobby losses, Hobby losses. 1040 form 2012 Holding period requirement, Holding period requirement. 1040 form 2012 Holiday gifts, Holiday gifts. 1040 form 2012 Holocaust victims restitution, Holocaust victims restitution. 1040 form 2012 Home, sale of, Sale of home. 1040 form 2012 Host or hostess, Host or Hostess Hotels No-additional-cost services, No-Additional-Cost Services Housing (see Lodging) I Illegal activities, Illegal activities. 1040 form 2012 Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs). 1040 form 2012 Income Assigned, Assignment of income. 1040 form 2012 Business and investment, Business and Investment Income, More information. 1040 form 2012 Constructive receipt of, Constructively received income. 1040 form 2012 Estate and trust, Estate and trust income. 1040 form 2012 Foreign employers, Foreign Employer Illegal, Illegal activities. 1040 form 2012 Miscellaneous, Miscellaneous Income Other, Other Income Partnership, Partnership Income Prepaid, Prepaid income. 1040 form 2012 S corporation, S Corporation Income Indian fishing rights, Indian fishing rights. 1040 form 2012 Indian money account, Indian money account litigation settlement. 1040 form 2012 Individual retirement arrangements (IRAs) Deduction, Benefits may affect your IRA deduction. 1040 form 2012 Inherited IRA, Inherited pension or IRA. 1040 form 2012 Inheritance, Gifts and inheritances. 1040 form 2012 IRA, Inherited pension or IRA. 1040 form 2012 Property not substantially vested, Inherited property not substantially vested. 1040 form 2012 Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. 1040 form 2012 Insurance Credit card, Credit card insurance. 1040 form 2012 Health, Accident or Health Plan Life (see Life insurance) Long-term care (see Long-term care insurance) Interest Canceled debt including, Interest included in canceled debt. 1040 form 2012 Frozen deposits, Interest on frozen deposits. 1040 form 2012 Mortgage refunds, Mortgage interest refund. 1040 form 2012 Option on insurance, Interest option on insurance. 1040 form 2012 Recovery amounts, Interest on recovery. 1040 form 2012 Savings bond, Interest on qualified savings bonds. 1040 form 2012 State and local government obligations, Interest on state and local government obligations. 1040 form 2012 Interference with business operations Damages as income, Court awards and damages. 1040 form 2012 International organizations, employees of, Foreign Employer Interview expenses, Job interview expenses. 1040 form 2012 Investment counseling fees, Financial Counseling Fees (see also Retirement planning services) Investment income, Business and Investment Income, More information. 1040 form 2012 IRAs (see Individual retirement arrangements (IRAs)) Iron ore, Coal and iron ore. 1040 form 2012 Itemized deductions Limited, Itemized deductions limited. 1040 form 2012 Recoveries, Recoveries, Itemized Deduction Recoveries J Job interview expenses, Job interview expenses. 1040 form 2012 Joint returns Social security benefits or railroad retirement payments, Joint return. 1040 form 2012 Joint state/local tax return Recoveries, Joint state or local income tax return. 1040 form 2012 Jury duty pay, Jury duty. 1040 form 2012 K Kickbacks, Kickbacks. 1040 form 2012 L Labor unions Convention expenses, reimbursed, Reimbursed union convention expenses. 1040 form 2012 Dues, Union benefits and dues. 1040 form 2012 Strike and lockout benefits, Strike and lockout benefits. 1040 form 2012 Unemployment benefits paid from, Payments by a union. 1040 form 2012 Last day of tax year, income received on, Constructively received income. 1040 form 2012 Leave (see Accrued leave payment) Length-of-service awards, Employee achievement award. 1040 form 2012 Life insurance Employer-owned, Employer-owned life insurance contract. 1040 form 2012 Proceeds, Life Insurance Proceeds Surrender of policy for cash, Surrender of policy for cash. 1040 form 2012 Loans, Discounted mortgage loan. 1040 form 2012 (see also Mortgage) Below-market, Below-market loans. 1040 form 2012 Student, Student loans. 1040 form 2012 Lockout benefits, Strike and lockout benefits. 1040 form 2012 Lodging Campus lodging, Qualified campus lodging. 1040 form 2012 , Moving Expense Reimbursements Clergy, Housing Employer-paid or reimbursed, Meals and Lodging Faculty lodging, Faculty lodging. 1040 form 2012 Replacement housing payments, Replacement housing payments. 1040 form 2012 Long-term care insurance, Long-term care coverage. 1040 form 2012 , Long-Term Care Insurance Contracts Lotteries and raffles, Lotteries and raffles. 1040 form 2012 Lump-sum distributions Survivor benefits, Lump-sum payments. 1040 form 2012 M Manufacturer incentive payments, Manufacturer incentive payments. 1040 form 2012 Meals Employer-paid or reimbursed, Meals and Lodging Nutrition Program for the Elderly, Nutrition Program for the Elderly. 1040 form 2012 Medical Care reimbursements, Reimbursement for medical care. 1040 form 2012 Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 1040 form 2012 Medicare Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 1040 form 2012 Benefits, Medicare. 1040 form 2012 Tax paid by employer, Social security and Medicare taxes paid by employer. 1040 form 2012 Medicare tax (see Social security and Medicare taxes) Military (see Armed forces) Minerals Royalties from, Oil, gas, and minerals. 1040 form 2012 Miscellaneous Compensation, Miscellaneous Compensation Income, Miscellaneous Income Missing children, photographs of, Reminders Mortgage Assistance payment (under sec. 1040 form 2012 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. 1040 form 2012 Discounted loan, Discounted mortgage loan. 1040 form 2012 Interest refund, Mortgage interest refund. 1040 form 2012 Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI). 1040 form 2012 Relief, Mortgage relief upon sale or other disposition. 1040 form 2012 Motor vehicle, employer-provided, Employer-provided vehicles. 1040 form 2012 Moving expenses Reimbursements, Allowances and reimbursements. 1040 form 2012 , Moving expense reimbursements. 1040 form 2012 MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). 1040 form 2012 N National Health Service Corps Scholarship Program, Tuition Reduction National Oceanic and Atmospheric Administration, Service-connected disability. 1040 form 2012 National Senior Service Corps, National Senior Service Corps programs. 1040 form 2012 No-additional-cost services, No-Additional-Cost Services No-fault car insurance Disability benefits under, Other compensation. 1040 form 2012 Nobel prize, Pulitzer, Nobel, and similar prizes. 1040 form 2012 Nonrecourse debt, Mortgage relief upon sale or other disposition. 1040 form 2012 Nonstatutory stock options, Nonstatutory Stock Options Nontaxable income, Introduction Not-for-profit activities, Activity not for profit. 1040 form 2012 Notary fees, Notary public. 1040 form 2012 Notes received for services, Note received for services. 1040 form 2012 Nutrition Program for the Elderly, Nutrition Program for the Elderly. 1040 form 2012 O Oil Royalties from, Oil, gas, and minerals. 1040 form 2012 Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). 1040 form 2012 Options, stock, Stock Options, Statutory Stock Options Outplacement services, Outplacement services. 1040 form 2012 Overseas work, Reminders P Parking fees Employer-paid or reimbursed, Transportation, Qualified parking. 1040 form 2012 Partner and partnership income, Partnership Income Patents Infringement damages, Court awards and damages. 1040 form 2012 Royalties, Copyrights and patents. 1040 form 2012 Peace Corps, Peace Corps. 1040 form 2012 Pensions Clergy, Pension. 1040 form 2012 Disability pensions, Disability Pensions Inherited pensions, Inherited pension or IRA. 1040 form 2012 Military, Military retirement pay. 1040 form 2012 Personal property Rental income and expense, Rents From Personal Property Sale of, Sale of personal items. 1040 form 2012 Personal representatives (see Fiduciaries) Prepaid income, Prepaid income. 1040 form 2012 Price reduced after purchase, Price reduced after purchase. 1040 form 2012 Prizes and awards, Bonuses and awards. 1040 form 2012 , Prizes and awards. 1040 form 2012 Achievement awards, Employee achievement award. 1040 form 2012 Employee awards or bonuses, Employee awards or bonuses. 1040 form 2012 Length-of-service awards, Employee achievement award. 1040 form 2012 Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes. 1040 form 2012 Safety achievement, Employee achievement award. 1040 form 2012 Scholarship prizes, Prizes. 1040 form 2012 Profit-sharing plan, Retirement and profit-sharing plans. 1040 form 2012 Public assistance benefits, Welfare and Other Public Assistance Benefits Public Health Service, Service-connected disability. 1040 form 2012 Public safety officers killed in line of duty, Public safety officer killed in the line of duty. 1040 form 2012 Public transportation passes, employer-provided, Transportation, Transit pass. 1040 form 2012 Publications (see Tax help) Pulitzer prize, Pulitzer, Nobel, and similar prizes. 1040 form 2012 Punitive damages, Court awards and damages. 1040 form 2012 Q Qualified joint venture, Reminders Qualified tuition program (QTP), Qualified tuition program (QTP). 1040 form 2012 R Raffles, Lotteries and raffles. 1040 form 2012 Railroad Retirement annuities, Railroad retirement annuities. 1040 form 2012 Retirement benefits, Social security and equivalent railroad retirement benefits. 1040 form 2012 Sick pay, Railroad sick pay. 1040 form 2012 Unemployment compensation benefits, Types of unemployment compensation. 1040 form 2012 Real estate Qualified real property business debt, cancellation of, Excluded debt. 1040 form 2012 Rebates Cash, Cash rebates. 1040 form 2012 Utility, Utility rebates. 1040 form 2012 Recovery of amounts previously deducted, Recoveries, Standard deduction for earlier years. 1040 form 2012 Itemized deductions, Recoveries, Itemized Deduction Recoveries Non-itemized deductions, Non-Itemized Deduction Recoveries Unused tax credits, refiguring of, Unused tax credits. 1040 form 2012 , Unused tax credits. 1040 form 2012 Refunds Federal income tax, Federal income tax refund. 1040 form 2012 Mortgage interest, Mortgage interest refund. 1040 form 2012 State tax, State tax refund. 1040 form 2012 Rehabilitative program payments, Veterans' benefits. 1040 form 2012 Reimbursements Business expenses, Allowances and reimbursements. 1040 form 2012 Casualty losses, Casualty insurance and other reimbursements. 1040 form 2012 Meals and lodging, Meals and Lodging Medical expenses, Reimbursement for medical care. 1040 form 2012 Moving expenses, Allowances and reimbursements. 1040 form 2012 , Moving expense reimbursements. 1040 form 2012 Related party transactions Stock option transfer, Transfer in non-arm's-length transaction. 1040 form 2012 Religious order members, Members of Religious Orders Rental income and expenses Personal property rental, Rents From Personal Property Reporting of, Reporting business income and expenses. 1040 form 2012 Repayments, Repayments, Year of deduction (or credit). 1040 form 2012 Repossession, Canceled sales contract. 1040 form 2012 Restricted property, Restricted Property, Inherited property not substantially vested. 1040 form 2012 Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs. 1040 form 2012 Retirement Settlement, Reminders Retirement planning services, Financial Counseling Fees, Retirement Planning Services Retirement plans, Military retirement pay. 1040 form 2012 (see also Pensions) Automatic contribution arrangements, Qualified automatic contribution arrangements. 1040 form 2012 Contributions, Retirement Plan Contributions, Excess Annual Additions, Statutory Stock Options Elective deferrals (see Elective deferrals) Rewards, Rewards. 1040 form 2012 Roth contributions, Designated Roth contributions. 1040 form 2012 Royalties, Royalties S S corporations, S Corporation Income Safety achievement awards, Employee achievement award. 1040 form 2012 Salary reduction simplified employee pension plans (see SARSEPs) Sale of home, Sale of home. 1040 form 2012 Sales contracts Cancellation of, Canceled sales contract. 1040 form 2012 SARSEPs, Elective Deferrals Excess contributions, Excess Contributions Savings bonds, Interest on qualified savings bonds. 1040 form 2012 Savings incentive match plans for employees (see SIMPLE plans) Scholarships and fellowships, Scholarships and fellowships. 1040 form 2012 Self-employed persons U. 1040 form 2012 S. 1040 form 2012 citizens working for foreign employers in U. 1040 form 2012 S. 1040 form 2012 treated as, Social security and Medicare taxes. 1040 form 2012 Senior Companion Program, National Senior Service Corps programs. 1040 form 2012 Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE). 1040 form 2012 Severance pay, Severance pay. 1040 form 2012 Outplacement services, Outplacement services. 1040 form 2012 Sick pay, Sick pay. 1040 form 2012 Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. 1040 form 2012 SIMPLE plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under SIMPLE plans. 1040 form 2012 Smallpox vaccine injuries, Smallpox vaccine injuries. 1040 form 2012 Social security and Medicare taxes Foreign employers, U. 1040 form 2012 S. 1040 form 2012 citizens working for in U. 1040 form 2012 S. 1040 form 2012 , Social security and Medicare taxes. 1040 form 2012 Paid by employer, Social security and Medicare taxes paid by employer. 1040 form 2012 Social security benefits, Social security and equivalent railroad retirement benefits. 1040 form 2012 Standard deduction Recoveries, Standard deduction limit. 1040 form 2012 , Standard deduction for earlier years. 1040 form 2012 State employees Unemployment benefits paid to, State employees. 1040 form 2012 State or local governments Interest on obligations of, Interest on state and local government obligations. 1040 form 2012 State or local taxes Refunds, State tax refund. 1040 form 2012 Statutory stock option holding period, Sale of the stock. 1040 form 2012 Stock appreciation rights, Stock appreciation rights. 1040 form 2012 Stock options, Stock Options, Statutory Stock Options Stock options, nonstatutory Exercise or transfer, Exercise or transfer of option. 1040 form 2012 Grant, Grant of option. 1040 form 2012 Sale, Sale of the stock. 1040 form 2012 Stock options, statutory Exercise, Exercise of option. 1040 form 2012 Grant, Grant of option. 1040 form 2012 Sale, Sale of the stock. 1040 form 2012 Stockholder debts, Stockholder debt. 1040 form 2012 Stolen property, Stolen property. 1040 form 2012 Strike benefits, Strike and lockout benefits. 1040 form 2012 Student loans Cancellation of debt, Student loans. 1040 form 2012 Substantial risk of forfeiture, Substantial risk of forfeiture. 1040 form 2012 Substantially vested property, Substantially vested. 1040 form 2012 Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits. 1040 form 2012 Supplemental unemployment benefits, Supplemental unemployment benefits. 1040 form 2012 Surviving spouse Life insurance proceeds paid to, Surviving spouse. 1040 form 2012 Survivor benefits, Survivor Benefits T Tables and figures Group-term life insurance (Table 1), Group-Term Life Insurance Tax benefit rule, Tax benefit rule. 1040 form 2012 Tax Counseling for the Elderly, Volunteer tax counseling. 1040 form 2012 Tax help, How To Get Tax Help Tax-sheltered annuity plans (403(b) plans), Elective Deferrals Limit for, Limit for tax-sheltered annuities. 1040 form 2012 Terminal illness, Exclusion for terminal illness. 1040 form 2012 Terrorist attacks Disability payments for injuries from, Terrorist attack or military action. 1040 form 2012 Victims of, tax relief, Reminders Thrift Savings Plan, Elective Deferrals Title VII, Civil Rights Act of 1964 Back pay and damages for emotional distress under, Court awards and damages. 1040 form 2012 Tour guides, free tours for, Free tour. 1040 form 2012 Trade Act of 1974 Trade readjustment allowances under, Types of unemployment compensation. 1040 form 2012 , Repayment of benefits. 1040 form 2012 Transferable property, Transferable property. 1040 form 2012 Transit passes, Transportation, Transit pass. 1040 form 2012 Travel agencies Free tour to organizer of group of tourists, Free tour. 1040 form 2012 Travel and transportation expenses Free tours from travel agencies, Free tour. 1040 form 2012 Fringe benefits, Transportation Reimbursements, Allowances and reimbursements. 1040 form 2012 School children, transporting of, Transporting school children. 1040 form 2012 Trusts Grantor trusts, Grantor trust. 1040 form 2012 Income, Estate and trust income. 1040 form 2012 Tuition program, qualified (QTP), Qualified tuition program (QTP). 1040 form 2012 Tuition reduction, Tuition Reduction U Unemployment compensation, Unemployment Benefits Unions (see Labor unions) Unlawful discrimination suits Deduction for costs, Deduction for costs involved in unlawful discrimination suits. 1040 form 2012 V VA payments, VA payments. 1040 form 2012 Valuation Fringe benefits, Valuation of Fringe Benefits, Special valuation rules. 1040 form 2012 Stock options, Nonstatutory Stock Options Vehicle Commuter highway, Commuter highway vehicle. 1040 form 2012 Employer-provided, Employer-provided vehicles. 1040 form 2012 Veterans benefits, Veterans' benefits. 1040 form 2012 Disability compensation, Retroactive VA determination. 1040 form 2012 Retroactive VA determination, Retroactive VA determination. 1040 form 2012 Special statute of limitations. 1040 form 2012 , Special statute of limitations. 1040 form 2012 Viatical settlements, Viatical settlement. 1040 form 2012 Volunteer work, Volunteers Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling. 1040 form 2012 Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA). 1040 form 2012 W W-2 form (see Form W-2) Welfare benefits, Welfare and Other Public Assistance Benefits Whistleblower, Whistleblower's award. 1040 form 2012 Winter energy payments, Payments to reduce cost of winter energy. 1040 form 2012 Withholding Barter exchange transactions, Backup withholding. 1040 form 2012 Unemployment compensation, Tax withholding. 1040 form 2012 Work-training programs, Work-training program. 1040 form 2012 Workers' compensation, Workers' Compensation Working condition benefits, Working Condition Benefits Worksheets Group-term life insurance (Worksheet 1), Figuring the taxable cost. 1040 form 2012 , Worksheet 1. 1040 form 2012 Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Prev  Up     Home   More Online Publications
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Affordable Care Act Tax Provisions for Employers

The Affordable Care Act, or health care law, contains benefits and responsibilities for employers. The size and structure of your workforce – small, large, or part of a group – helps determine what applies to you. However, if you have no employees, the following information does not apply to you.

 Small Employers
 
Large Employers
 
Small employers, generally those with fewer than 50 full-time employees, may be eligible for credits and other benefits.
 
  > More…
 
A large employer has 50 or more full-time employees or equivalents.
 
  > More…

 

How do I know if I am a small or large employer? Why does it matter?

An employer’s size is determined by the number of its employees. Employer benefits, opportunities and requirements are dependent upon the employer’s size and the applicable rules. Generally, an employer with 50 or more full-time employees or equivalents will be considered a large employer.

Employers with:

  • Fewer than 25 full-time equivalent employees may be eligible for a Small Business Health Care Tax Credit to help cover the cost of providing coverage.
  • Generally 50 or fewer employees may be eligible to buy coverage through the Small Business Health Options Program (SHOP). Learn more at HealthCare.gov
  • 50 or more full-time equivalent employees will need to file an annual return reporting whether and what health insurance they offered employees. In addition, they are subject to the Employer Shared Responsibility provisions.

Certain affiliated employers with common ownership or part of a controlled group must aggregate their employees to determine their workforce size. Proposed regulations (pdf) and FAQs provide more information about determining the size of your workforce.

Page Last Reviewed or Updated: 28-Jan-2014

The 1040 Form 2012

1040 form 2012 Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. 1040 form 2012 Computer used in a home office. 1040 form 2012 Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). 1040 form 2012 You can claim the amount of expenses that is more than 2% of your adjusted gross income. 1040 form 2012 You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. 1040 form 2012 Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. 1040 form 2012 Generally, you apply the 2% limit after you apply any other deduction limit. 1040 form 2012 For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. 1040 form 2012 Deductions subject to the 2% limit are discussed in the following three categories. 1040 form 2012 Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). 1040 form 2012 Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). 1040 form 2012 Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). 1040 form 2012 Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. 1040 form 2012 You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. 1040 form 2012 An expense is ordinary if it is common and accepted in your trade, business, or profession. 1040 form 2012 An expense is necessary if it is appropriate and helpful to your business. 1040 form 2012 An expense does not have to be required to be considered necessary. 1040 form 2012 You may be able to deduct the following items as unreimbursed employee expenses. 1040 form 2012 Business bad debt of an employee. 1040 form 2012 Business liability insurance premiums. 1040 form 2012 Damages paid to a former employer for breach of an employment contract. 1040 form 2012 Depreciation on a computer your employer requires you to use in your work. 1040 form 2012 Dues to a chamber of commerce if membership helps you do your job. 1040 form 2012 Dues to professional societies. 1040 form 2012 Educator expenses. 1040 form 2012 Home office or part of your home used regularly and exclusively in your work. 1040 form 2012 Job search expenses in your present occupation. 1040 form 2012 Laboratory breakage fees. 1040 form 2012 Legal fees related to your job. 1040 form 2012 Licenses and regulatory fees. 1040 form 2012 Malpractice insurance premiums. 1040 form 2012 Medical examinations required by an employer. 1040 form 2012 Occupational taxes. 1040 form 2012 Passport for a business trip. 1040 form 2012 Repayment of an income aid payment received under an employer's plan. 1040 form 2012 Research expenses of a college professor. 1040 form 2012 Rural mail carriers' vehicle expenses. 1040 form 2012 Subscriptions to professional journals and trade magazines related to your work. 1040 form 2012 Tools and supplies used in your work. 1040 form 2012 Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. 1040 form 2012 Union dues and expenses. 1040 form 2012 Work clothes and uniforms if required and not suitable for everyday use. 1040 form 2012 Work-related education. 1040 form 2012 Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. 1040 form 2012 Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. 1040 form 2012 A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. 1040 form 2012 Example. 1040 form 2012 You make a bona fide loan to the corporation you work for. 1040 form 2012 It fails to pay you back. 1040 form 2012 You had to make the loan in order to keep your job. 1040 form 2012 You have a business bad debt as an employee. 1040 form 2012 More information. 1040 form 2012   For more information on business bad debts, see chapter 10 in Publication 535. 1040 form 2012 For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. 1040 form 2012 Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. 1040 form 2012 Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. 1040 form 2012 Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. 1040 form 2012 For the convenience of your employer. 1040 form 2012   This means that your use of the computer is for a substantial business reason of your employer. 1040 form 2012 You must consider all facts in making this determination. 1040 form 2012 Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. 1040 form 2012 Required as a condition of your employment. 1040 form 2012   This means that you cannot properly perform your duties without the computer. 1040 form 2012 Whether you can properly perform your duties without it depends on all the facts and circumstances. 1040 form 2012 It is not necessary that your employer explicitly requires you to use your computer. 1040 form 2012 But neither is it enough that your employer merely states that your use of the item is a condition of your employment. 1040 form 2012 Example. 1040 form 2012 You are an engineer with an engineering firm. 1040 form 2012 You occasionally take work home at night rather than work late at the office. 1040 form 2012 You own and use a computer that is similar to the one you use at the office to complete your work at home. 1040 form 2012 Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. 1040 form 2012 Which depreciation method to use. 1040 form 2012   The depreciation method you use depends on whether you meet the more-than-50%-use test. 1040 form 2012 More-than-50%-use test met. 1040 form 2012   You meet this test if you use the computer more than 50% in your work. 1040 form 2012 If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). 1040 form 2012 In addition, you may be able to take the section 179 deduction for the year you place the item in service. 1040 form 2012 More-than-50%-use test not met. 1040 form 2012   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). 1040 form 2012 You also cannot claim the section 179 deduction. 1040 form 2012 (But if you use your computer in a home office, see the exception below. 1040 form 2012 ) Investment use. 1040 form 2012   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. 1040 form 2012 However, you can combine your investment use with your work use in figuring your depreciation deduction. 1040 form 2012 Exception for computer used in a home office. 1040 form 2012   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . 1040 form 2012 You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. 1040 form 2012 You also may be able to take a section 179 deduction for the year you place the computer in service. 1040 form 2012 See Computer used in a home office under How To Report, later. 1040 form 2012 More information. 1040 form 2012   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. 1040 form 2012 Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. 1040 form 2012 Reporting your depreciation deduction. 1040 form 2012    See How To Report, later, for information about reporting a deduction for depreciation. 1040 form 2012 You must keep records to prove your percentage of business and investment use. 1040 form 2012 Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. 1040 form 2012 Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. 1040 form 2012 Lobbying and political activities. 1040 form 2012    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. 1040 form 2012 See Lobbying Expenses under Nondeductible Expenses, later. 1040 form 2012 Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. 1040 form 2012 If you file Form 1040A, you can deduct these expenses on line 16. 1040 form 2012 If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. 1040 form 2012 However, neither spouse can deduct more than $250 of his or her qualified expenses. 1040 form 2012 Eligible educator. 1040 form 2012   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. 1040 form 2012 Qualified expenses. 1040 form 2012   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. 1040 form 2012 An ordinary expense is one that is common and accepted in your educational field. 1040 form 2012 A necessary expense is one that is helpful and appropriate for your profession as an educator. 1040 form 2012 An expense does not have to be required to be considered necessary. 1040 form 2012   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. 1040 form 2012 You must reduce your qualified expenses by the following amounts. 1040 form 2012 Excludable U. 1040 form 2012 S. 1040 form 2012 series EE and I savings bond interest from Form 8815. 1040 form 2012 Nontaxable qualified state tuition program earnings. 1040 form 2012 Nontaxable earnings from Coverdell education savings accounts. 1040 form 2012 Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. 1040 form 2012 Educator expenses over limit. 1040 form 2012   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. 1040 form 2012 Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. 1040 form 2012 You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. 1040 form 2012 The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. 1040 form 2012 Principal place of business. 1040 form 2012   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. 1040 form 2012   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. 1040 form 2012 You should keep records that will give the information needed to figure the deduction according to these rules. 1040 form 2012 Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. 1040 form 2012 More information. 1040 form 2012   See Publication 587 for more detailed information and a worksheet for figuring the deduction. 1040 form 2012 Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. 1040 form 2012 You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. 1040 form 2012 Employment and outplacement agency fees. 1040 form 2012    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. 1040 form 2012 Employer pays you back. 1040 form 2012   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. 1040 form 2012 See Recoveries in Publication 525. 1040 form 2012 Employer pays the employment agency. 1040 form 2012   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. 1040 form 2012 Résumé. 1040 form 2012   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. 1040 form 2012 Travel and transportation expenses. 1040 form 2012   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. 1040 form 2012 You can deduct the travel expenses if the trip is primarily to look for a new job. 1040 form 2012 The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. 1040 form 2012   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. 1040 form 2012    You can choose to use the standard mileage rate to figure your car expenses. 1040 form 2012 The 2013 rate for business use of a vehicle is 56½ cents per mile. 1040 form 2012 See Publication 463 for more information on travel and car expenses. 1040 form 2012 Legal Fees You can deduct legal fees related to doing or keeping your job. 1040 form 2012 Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. 1040 form 2012 Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. 1040 form 2012 If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. 1040 form 2012 Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. 1040 form 2012 If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. 1040 form 2012 Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. 1040 form 2012 You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. 1040 form 2012 However, you cannot deduct the cost of travel as a form of education. 1040 form 2012 Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. 1040 form 2012 See chapter 4 of Publication 463 for more information. 1040 form 2012 Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. 1040 form 2012 You can depreciate the cost of tools that have a useful life substantially beyond the tax year. 1040 form 2012 For more information about depreciation, see Publication 946. 1040 form 2012 Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. 1040 form 2012 Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. 1040 form 2012 Travel expenses. 1040 form 2012   Travel expenses are those incurred while traveling away from home for your employer. 1040 form 2012 You can deduct travel expenses paid or incurred in connection with a temporary work assignment. 1040 form 2012 Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. 1040 form 2012   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. 1040 form 2012 ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. 1040 form 2012   Travel expenses are discussed more fully in chapter 1 of Publication 463. 1040 form 2012 Temporary work assignment. 1040 form 2012    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. 1040 form 2012 Indefinite work assignment. 1040 form 2012   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. 1040 form 2012 If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. 1040 form 2012 Federal crime investigation and prosecution. 1040 form 2012   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. 1040 form 2012 This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. 1040 form 2012   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. 1040 form 2012 Armed Forces reservists traveling more than 100 miles from home. 1040 form 2012   If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. 1040 form 2012 The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. 1040 form 2012 The balance, if any, is reported on Schedule A. 1040 form 2012   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. 1040 form 2012   For more information on travel expenses, see Publication 463. 1040 form 2012 Local transportation expenses. 1040 form 2012   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. 1040 form 2012 They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. 1040 form 2012   You can choose to use the standard mileage rate to figure your car expenses. 1040 form 2012 The 2013 rate for business use of a vehicle is 56½ cents per mile. 1040 form 2012    In general, the costs of commuting between your residence and your place of business are nondeductible. 1040 form 2012 Work at two places in a day. 1040 form 2012   If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. 1040 form 2012 Temporary work location. 1040 form 2012   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. 1040 form 2012 The work location is outside the metropolitan area where you live and normally work. 1040 form 2012 You have at least one regular work location (other than your home) for the same trade or business. 1040 form 2012 (If this applies, the distance between your home and the temporary work location does not matter. 1040 form 2012 )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. 1040 form 2012 It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. 1040 form 2012 If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. 1040 form 2012 For more information, see chapter 1 of Publication 463. 1040 form 2012 Home office. 1040 form 2012   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. 1040 form 2012 (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. 1040 form 2012 ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. 1040 form 2012 Meals and entertainment. 1040 form 2012   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. 1040 form 2012 However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. 1040 form 2012   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. 1040 form 2012 You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. 1040 form 2012 Meals when subject to “hours of service” limits. 1040 form 2012   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. 1040 form 2012 You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. 1040 form 2012 Gift expenses. 1040 form 2012   You can generally deduct up to $25 of business gifts you give to any one individual during the year. 1040 form 2012 The following items do not count toward the $25 limit. 1040 form 2012 Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. 1040 form 2012 Signs, racks, and promotional materials to be displayed on the business premises of the recipient. 1040 form 2012 Local lodging. 1040 form 2012   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. 1040 form 2012   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. 1040 form 2012 Additional information. 1040 form 2012    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. 1040 form 2012 Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. 1040 form 2012 You can also deduct assessments for benefit payments to unemployed union members. 1040 form 2012 However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. 1040 form 2012 Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. 1040 form 2012 You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. 1040 form 2012 See Lobbying Expenses under Nondeductible Expenses, later. 1040 form 2012 Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. 1040 form 2012 You must wear them as a condition of your employment. 1040 form 2012 The clothes are not suitable for everyday wear. 1040 form 2012 It is not enough that you wear distinctive clothing. 1040 form 2012 The clothing must be specifically required by your employer. 1040 form 2012 Nor is it enough that you do not, in fact, wear your work clothes away from work. 1040 form 2012 The clothing must not be suitable for taking the place of your regular clothing. 1040 form 2012 Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. 1040 form 2012 ). 1040 form 2012 Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. 1040 form 2012 However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. 1040 form 2012 Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. 1040 form 2012 Protective clothing. 1040 form 2012   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. 1040 form 2012   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. 1040 form 2012 Military uniforms. 1040 form 2012   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. 1040 form 2012 However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. 1040 form 2012 In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. 1040 form 2012   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. 1040 form 2012   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. 1040 form 2012 However, you can deduct the cost of insignia, shoulder boards, and related items. 1040 form 2012    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. 1040 form 2012 Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. 1040 form 2012 It maintains or improves skills required in your present work. 1040 form 2012 It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. 1040 form 2012 You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. 1040 form 2012 If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. 1040 form 2012 If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. 1040 form 2012 Travel as education. 1040 form 2012   You cannot deduct the cost of travel that in itself constitutes a form of education. 1040 form 2012 For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. 1040 form 2012 More information. 1040 form 2012    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. 1040 form 2012 Education Expenses During Unemployment If you stop working for a year or less in order to get education in order to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. 1040 form 2012 Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. 1040 form 2012 Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. 1040 form 2012 Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. 1040 form 2012 These fees include the cost of tax preparation software programs and tax publications. 1040 form 2012 They also include any fee you paid for electronic filing of your return. 1040 form 2012 See Tax preparation fees under How To Report, later. 1040 form 2012 Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. 1040 form 2012 On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. 1040 form 2012 You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. 1040 form 2012 These other expenses include the following items. 1040 form 2012 Appraisal fees for a casualty loss or charitable contribution. 1040 form 2012 Casualty and theft losses from property used in performing services as an employee. 1040 form 2012 Clerical help and office rent in caring for investments. 1040 form 2012 Depreciation on home computers used for investments. 1040 form 2012 Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. 1040 form 2012 Fees to collect interest and dividends. 1040 form 2012 Hobby expenses, but generally not more than hobby income. 1040 form 2012 Indirect miscellaneous deductions from pass-through entities. 1040 form 2012 Investment fees and expenses. 1040 form 2012 Legal fees related to producing or collecting taxable income or getting tax advice. 1040 form 2012 Loss on deposits in an insolvent or bankrupt financial institution. 1040 form 2012 Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. 1040 form 2012 Repayments of income. 1040 form 2012 Repayments of social security benefits. 1040 form 2012 Safe deposit box rental, except for storing jewelry and other personal effects. 1040 form 2012 Service charges on dividend reinvestment plans. 1040 form 2012 Tax advice fees. 1040 form 2012 Trustee's fees for your IRA, if separately billed and paid. 1040 form 2012 If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. 1040 form 2012 Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. 1040 form 2012 Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. 1040 form 2012 First report the loss in Section B of Form 4684, Casualties and Thefts. 1040 form 2012 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. 1040 form 2012 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. 1040 form 2012 For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. 1040 form 2012 Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. 1040 form 2012 Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. 1040 form 2012 The fees are deductible on the return for the year in which you paid them. 1040 form 2012 For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. 1040 form 2012 Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). 1040 form 2012 You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. 1040 form 2012 But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. 1040 form 2012 For more information on depreciation, see Publication 946. 1040 form 2012 Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. 1040 form 2012 Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. 1040 form 2012 The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. 1040 form 2012 For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. 1040 form 2012 Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. 1040 form 2012 But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. 1040 form 2012 You must add the fee to the cost of the property. 1040 form 2012 You cannot deduct the fee you pay to a broker to sell securities. 1040 form 2012 You can use the fee only to figure gain or loss from the sale. 1040 form 2012 See the instructions for Schedule D (Form 1040) for information on how to report the fee. 1040 form 2012 Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. 1040 form 2012 A hobby is not a business because it is not carried on to make a profit. 1040 form 2012 See Not-for-Profit Activities in chapter 1 of Publication 535. 1040 form 2012 Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. 1040 form 2012 Deductions of pass-through entities are passed through to the partners or shareholders. 1040 form 2012 The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. 1040 form 2012 Example. 1040 form 2012 You are a member of an investment club that is formed solely to invest in securities. 1040 form 2012 The club is treated as a partnership. 1040 form 2012 The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. 1040 form 2012 In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. 1040 form 2012 However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. 1040 form 2012 Publicly offered mutual funds. 1040 form 2012   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. 1040 form 2012 A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. 1040 form 2012   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). 1040 form 2012 This net figure is the amount you report on your return as income. 1040 form 2012 You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. 1040 form 2012 Information returns. 1040 form 2012   You should receive information returns from pass-through entities. 1040 form 2012 Partnerships and S corporations. 1040 form 2012   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. 1040 form 2012 Nonpublicly offered mutual funds. 1040 form 2012   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. 1040 form 2012 You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. 1040 form 2012 Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. 1040 form 2012 Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. 1040 form 2012 You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. 1040 form 2012 You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. 1040 form 2012 You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). 1040 form 2012 See Tax Preparation Fees, earlier. 1040 form 2012 Unlawful discrimination claims. 1040 form 2012   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. 1040 form 2012 S. 1040 form 2012 Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. 1040 form 2012 However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. 1040 form 2012 See Publication 525 for more information. 1040 form 2012 Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. 1040 form 2012 If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. 1040 form 2012 If elected, the casualty loss is subject to certain deduction limitations. 1040 form 2012 The election is made on Form 4684. 1040 form 2012 Once you make this choice, you cannot change it without IRS approval. 1040 form 2012 If none of the deposit is federally insured, you can deduct the loss in either of the following ways. 1040 form 2012 As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). 1040 form 2012 Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. 1040 form 2012 This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. 1040 form 2012 As a casualty loss. 1040 form 2012 Report it on Form 4684 first and then on Schedule A (Form 1040). 1040 form 2012 See Publication 547 for details. 1040 form 2012 As a nonbusiness bad debt. 1040 form 2012 Report it on Schedule D (Form 1040). 1040 form 2012 If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. 1040 form 2012 Exception. 1040 form 2012   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. 1040 form 2012 For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. 1040 form 2012 Actual loss different from estimated loss. 1040 form 2012   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. 1040 form 2012 See Recoveries in Publication 525. 1040 form 2012 If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. 1040 form 2012 Choice not made. 1040 form 2012   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. 1040 form 2012 See Nonbusiness Bad Debts in chapter 4 of Publication 550. 1040 form 2012 Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. 1040 form 2012 For more information, see Publication 590, Individual Retirement Arrangements (IRAs). 1040 form 2012 Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. 1040 form 2012 If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. 1040 form 2012 If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. 1040 form 2012 Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. 1040 form 2012 The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. 1040 form 2012 The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. 1040 form 2012 It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). 1040 form 2012 If the deduction is more than $3,000, you will have to use a special computation to figure your tax. 1040 form 2012 See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. 1040 form 2012 Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. 1040 form 2012 You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. 1040 form 2012 Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. 1040 form 2012 These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. 1040 form 2012 Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. 1040 form 2012 Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. 1040 form 2012 They are not subject to the 2% limit. 1040 form 2012 Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. 1040 form 2012 List of Deductions Amortizable premium on taxable bonds. 1040 form 2012 Casualty and theft losses from income-producing property. 1040 form 2012 Federal estate tax on income in respect of a decedent. 1040 form 2012 Gambling losses up to the amount of gambling winnings. 1040 form 2012 Impairment-related work expenses of persons with disabilities. 1040 form 2012 Loss from other activities from Schedule K-1 (Form 1065-B), box 2. 1040 form 2012 Losses from Ponzi-type investment schemes. 1040 form 2012 Repayments of more than $3,000 under a claim of right. 1040 form 2012 Unrecovered investment in an annuity. 1040 form 2012 Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. 1040 form 2012 You can elect to amortize the premium on taxable bonds. 1040 form 2012 The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. 1040 form 2012 Pre-1998 election to amortize bond premium. 1040 form 2012   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. 1040 form 2012 Bonds acquired after October 22, 1986, and before 1988. 1040 form 2012   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. 1040 form 2012 Bonds acquired before October 23, 1986. 1040 form 2012   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. 1040 form 2012 Deduction for excess premium. 1040 form 2012   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. 1040 form 2012 If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. 1040 form 2012 However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. 1040 form 2012 If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. 1040 form 2012    Pre-1998 choice to amortize bond premium. 1040 form 2012 If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. 1040 form 2012 More information. 1040 form 2012    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. 1040 form 2012 Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). 1040 form 2012 First report the loss in Section B of Form 4684. 1040 form 2012 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. 1040 form 2012 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. 1040 form 2012 For more information on casualty and theft losses, see Publication 547. 1040 form 2012 Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. 1040 form 2012 Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. 1040 form 2012 See Publication 559 for information about figuring the amount of this deduction. 1040 form 2012 Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. 1040 form 2012 You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. 1040 form 2012 You cannot deduct gambling losses that are more than your winnings. 1040 form 2012 Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). 1040 form 2012 You cannot reduce your gambling winnings by your gambling losses and report the difference. 1040 form 2012 You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. 1040 form 2012 Therefore, your records should show your winnings separately from your losses. 1040 form 2012 Diary of winnings and losses. 1040 form 2012 You must keep an accurate diary or similar record of your losses and winnings. 1040 form 2012 Your diary should contain at least the following information. 1040 form 2012 The date and type of your specific wager or wagering activity. 1040 form 2012 The name and address or location of the gambling establishment. 1040 form 2012 The names of other persons present with you at the gambling establishment. 1040 form 2012 The amount(s) you won or lost. 1040 form 2012 Proof of winnings and losses. 1040 form 2012   In addition to your diary, you should also have other documentation. 1040 form 2012 You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. 1040 form 2012   For specific wagering transactions, you can use the following items to support your winnings and losses. 1040 form 2012    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. 1040 form 2012 They are not all-inclusive. 1040 form 2012 Your tax liability depends on your particular facts and circumstances. 1040 form 2012 Keno. 1040 form 2012   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. 1040 form 2012 Slot machines. 1040 form 2012   A record of the machine number and all winnings by date and time the machine was played. 1040 form 2012 Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. 1040 form 2012 ). 1040 form 2012   The number of the table at which you were playing. 1040 form 2012 Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. 1040 form 2012 Bingo. 1040 form 2012   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. 1040 form 2012 Supplemental records include any receipts from the casino, parlor, etc. 1040 form 2012 Racing (horse, harness, dog, etc. 1040 form 2012 ). 1040 form 2012   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. 1040 form 2012 Supplemental records include unredeemed tickets and payment records from the racetrack. 1040 form 2012 Lotteries. 1040 form 2012   A record of ticket purchases, dates, winnings, and losses. 1040 form 2012 Supplemental records include unredeemed tickets, payment slips, and winnings statements. 1040 form 2012 Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. 1040 form 2012 Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. 1040 form 2012 Example. 1040 form 2012 You are blind. 1040 form 2012 You must use a reader to do your work. 1040 form 2012 You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. 1040 form 2012 The reader's services are only for your work. 1040 form 2012 You can deduct your expenses for the reader as impairment-related work expenses. 1040 form 2012 Self-employed. 1040 form 2012   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. 1040 form 2012 See Impairment-related work expenses. 1040 form 2012 , later under How To Report. 1040 form 2012 Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. 1040 form 2012 S. 1040 form 2012 trade or business). 1040 form 2012 It is not subject to the passive activity limitations. 1040 form 2012 Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. 1040 form 2012 See Publication 463 for more information. 1040 form 2012 Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. 1040 form 2012 If you are an employee, complete Form 2106 or Form 2106-EZ. 1040 form 2012 See Publication 463 for more information. 1040 form 2012 Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. 1040 form 2012 You figure the deductible loss in Section B of Form 4684. 1040 form 2012 However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. 1040 form 2012 Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. 1040 form 2012 You do not need to complete Appendix A. 1040 form 2012 See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. 1040 form 2012 Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. 1040 form 2012 See Repayments in Publication 525 for more information. 1040 form 2012 Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. 1040 form 2012 If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. 1040 form 2012 See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. 1040 form 2012 Nondeductible Expenses You cannot deduct the following expenses. 1040 form 2012 List of Nondeductible Expenses Adoption expenses. 1040 form 2012 Broker's commissions. 1040 form 2012 Burial or funeral expenses, including the cost of a cemetery lot. 1040 form 2012 Campaign expenses. 1040 form 2012 Capital expenses. 1040 form 2012 Check-writing fees. 1040 form 2012 Club dues. 1040 form 2012 Commuting expenses. 1040 form 2012 Fees and licenses, such as car licenses, marriage licenses, and dog tags. 1040 form 2012 Fines and penalties, such as parking tickets. 1040 form 2012 Health spa expenses. 1040 form 2012 Hobby losses—but see Hobby Expenses, earlier. 1040 form 2012 Home repairs, insurance, and rent. 1040 form 2012 Home security system. 1040 form 2012 Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. 1040 form 2012 Investment-related seminars. 1040 form 2012 Life insurance premiums paid by the insured. 1040 form 2012 Lobbying expenses. 1040 form 2012 Losses from the sale of your home, furniture, personal car, etc. 1040 form 2012 Lost or misplaced cash or property. 1040 form 2012 Lunches with co-workers. 1040 form 2012 Meals while working late. 1040 form 2012 Medical expenses as business expenses other than medical examinations required by your employer. 1040 form 2012 Personal disability insurance premiums. 1040 form 2012 Personal legal expenses. 1040 form 2012 Personal, living, or family expenses. 1040 form 2012 Political contributions. 1040 form 2012 Professional accreditation fees. 1040 form 2012 Professional reputation, expenses to improve. 1040 form 2012 Relief fund contributions. 1040 form 2012 Residential telephone line. 1040 form 2012 Stockholders' meeting, expenses of attending. 1040 form 2012 Tax-exempt income, expenses of earning or collecting. 1040 form 2012 The value of wages never received or lost vacation time. 1040 form 2012 Travel expenses for another individual. 1040 form 2012 Voluntary unemployment benefit fund contributions. 1040 form 2012 Wristwatches. 1040 form 2012 Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. 1040 form 2012 For details, see Form 8839, Qualified Adoption Expenses. 1040 form 2012 Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. 1040 form 2012 Instead, these fees must be added to the taxpayer's cost of the securities. 1040 form 2012 Commissions paid on the sale are deductible as business expenses only by dealers. 1040 form 2012 Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. 1040 form 2012 These include qualification and registration fees for primary elections. 1040 form 2012 Legal fees. 1040 form 2012   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. 1040 form 2012 Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. 1040 form 2012 If you use such property in your work, you may be able to take a depreciation deduction. 1040 form 2012 See Publication 946. 1040 form 2012 If the property is a car used in your work, also see Publication 463. 1040 form 2012 Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. 1040 form 2012 Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. 1040 form 2012 This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. 1040 form 2012 You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. 1040 form 2012 Dues paid to airline, hotel, and luncheon clubs are not deductible. 1040 form 2012 Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). 1040 form 2012 If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. 1040 form 2012 Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. 1040 form 2012 This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). 1040 form 2012 Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. 1040 form 2012 Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. 1040 form 2012 Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. 1040 form 2012 However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. 1040 form 2012 See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. 1040 form 2012 Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. 1040 form 2012 Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. 1040 form 2012 You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. 1040 form 2012 See Publication 504, Divorced or Separated Individuals, for information on alimony. 1040 form 2012 Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. 1040 form 2012 These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. 1040 form 2012 Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. 1040 form 2012 Covered executive branch official. 1040 form 2012   A covered executive branch official, for the purpose of (4) above, is any of the following officials. 1040 form 2012 The President. 1040 form 2012 The Vice President. 1040 form 2012 Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. 1040 form 2012 Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. 1040 form 2012 Dues used for lobbying. 1040 form 2012   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. 1040 form 2012 Exceptions. 1040 form 2012   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. 1040 form 2012 You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). 1040 form 2012 An Indian tribal government is considered a local council or similar governing body. 1040 form 2012 You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). 1040 form 2012 If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. 1040 form 2012 Payments by the other person to you for lobbying activities cannot be deducted. 1040 form 2012 Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. 1040 form 2012 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. 1040 form 2012 See Publication 547. 1040 form 2012 Example. 1040 form 2012 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. 1040 form 2012 The diamond falls from the ring and is never found. 1040 form 2012 The loss of the diamond is a casualty. 1040 form 2012 Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. 1040 form 2012 See Publication 463 for information on deductible expenses while traveling away from home. 1040 form 2012 Meals While Working Late You cannot deduct the cost of meals while working late. 1040 form 2012 However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. 1040 form 2012 See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. 1040 form 2012 Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. 1040 form 2012 Custody of children. 1040 form 2012 Breach of promise to marry suit. 1040 form 2012 Civil or criminal charges resulting from a personal relationship. 1040 form 2012 Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). 1040 form 2012 For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. 1040 form 2012 Preparation of a title (or defense or perfection of a title). 1040 form 2012 Preparation of a will. 1040 form 2012 Property claims or property settlement in a divorce. 1040 form 2012 You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. 1040 form 2012 Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. 1040 form 2012 Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. 1040 form 2012 Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. 1040 form 2012 Accounting certificate fees paid for the initial right to practice accounting. 1040 form 2012 Bar exam fees and incidental expenses in securing initial admission to the bar. 1040 form 2012 Medical and dental license fees paid to get initial licensing. 1040 form 2012 Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. 1040 form 2012 Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. 1040 form 2012 Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. 1040 form 2012 Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. 1040 form 2012 You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. 1040 form 2012 Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. 1040 form 2012 You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. 1040 form 2012 If you have expenses to p