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1040 Forms

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1040 Forms

1040 forms 7. 1040 forms   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 1040 forms Free help with your tax return. 1040 forms   You can get free help preparing your return nationwide from IRS-certified volunteers. 1040 forms The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 1040 forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040 forms Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 1040 forms In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 1040 forms To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 1040 forms gov, download the IRS2Go app, or call 1-800-906-9887. 1040 forms   As part of the TCE program, AARP offers the Tax-Aide counseling program. 1040 forms To find the nearest AARP Tax-Aide site, visit AARP's website at www. 1040 forms aarp. 1040 forms org/money/taxaide or call 1-888-227-7669. 1040 forms For more information on these programs, go to IRS. 1040 forms gov and enter “VITA” in the search box. 1040 forms Internet. 1040 forms    IRS. 1040 forms gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 1040 forms Download the free IRS2Go app from the iTunes app store or from Google Play. 1040 forms Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 1040 forms Check the status of your 2013 refund with the Where's My Refund? application on IRS. 1040 forms gov or download the IRS2Go app and select the Refund Status option. 1040 forms The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040 forms Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 1040 forms You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040 forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040 forms Use the Interactive Tax Assistant (ITA) to research your tax questions. 1040 forms No need to wait on the phone or stand in line. 1040 forms The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 1040 forms When you reach the response screen, you can print the entire interview and the final response for your records. 1040 forms New subject areas are added on a regular basis. 1040 forms  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 1040 forms gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 1040 forms You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 1040 forms The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 1040 forms When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 1040 forms Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 1040 forms You can also ask the IRS to mail a return or an account transcript to you. 1040 forms Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 1040 forms gov or by calling 1-800-908-9946. 1040 forms Tax return and tax account transcripts are generally available for the current year and the past three years. 1040 forms Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 1040 forms Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 1040 forms If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 1040 forms Check the status of your amended return using Where's My Amended Return? Go to IRS. 1040 forms gov and enter Where's My Amended Return? in the search box. 1040 forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040 forms It can take up to 3 weeks from the date you mailed it to show up in our system. 1040 forms Make a payment using one of several safe and convenient electronic payment options available on IRS. 1040 forms gov. 1040 forms Select the Payment tab on the front page of IRS. 1040 forms gov for more information. 1040 forms Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 1040 forms Figure your income tax withholding with the IRS Withholding Calculator on IRS. 1040 forms gov. 1040 forms Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 1040 forms Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 1040 forms gov. 1040 forms Request an Electronic Filing PIN by going to IRS. 1040 forms gov and entering Electronic Filing PIN in the search box. 1040 forms Download forms, instructions and publications, including accessible versions for people with disabilities. 1040 forms Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 1040 forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 1040 forms An employee can answer questions about your tax account or help you set up a payment plan. 1040 forms Before you visit, check the Office Locator on IRS. 1040 forms gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 1040 forms If you have a special need, such as a disability, you can request an appointment. 1040 forms Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 1040 forms Apply for an Employer Identification Number (EIN). 1040 forms Go to IRS. 1040 forms gov and enter Apply for an EIN in the search box. 1040 forms Read the Internal Revenue Code, regulations, or other official guidance. 1040 forms Read Internal Revenue Bulletins. 1040 forms Sign up to receive local and national tax news and more by email. 1040 forms Just click on “subscriptions” above the search box on IRS. 1040 forms gov and choose from a variety of options. 1040 forms    Phone. 1040 forms You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 1040 forms Download the free IRS2Go app from the iTunes app store or from Google Play. 1040 forms Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 1040 forms gov, or download the IRS2Go app. 1040 forms Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 1040 forms The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 1040 forms Most VITA and TCE sites offer free electronic filing. 1040 forms Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 1040 forms Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 1040 forms Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 1040 forms If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 1040 forms The IRS issues more than 9 out of 10 refunds in less than 21 days. 1040 forms Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 1040 forms Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 1040 forms The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 1040 forms Note, the above information is for our automated hotline. 1040 forms Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 1040 forms Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 1040 forms You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 1040 forms It can take up to 3 weeks from the date you mailed it to show up in our system. 1040 forms Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 1040 forms You should receive your order within 10 business days. 1040 forms Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 1040 forms If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 1040 forms Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 1040 forms The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 1040 forms These individuals can also contact the IRS through relay services such as the Federal Relay Service. 1040 forms    Walk-in. 1040 forms You can find a selection of forms, publications and services — in-person. 1040 forms Products. 1040 forms You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 1040 forms Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 1040 forms Services. 1040 forms You can walk in to your local TAC for face-to-face tax help. 1040 forms An employee can answer questions about your tax account or help you set up a payment plan. 1040 forms Before visiting, use the Office Locator tool on IRS. 1040 forms gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 1040 forms    Mail. 1040 forms You can send your order for forms, instructions, and publications to the address below. 1040 forms You should receive a response within 10 business days after your request is received. 1040 forms Internal Revenue Service 1201 N. 1040 forms Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 1040 forms The Taxpayer Advocate Service (TAS) is your voice at the IRS. 1040 forms Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 1040 forms   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 1040 forms We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 1040 forms You face (or your business is facing) an immediate threat of adverse action. 1040 forms You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 1040 forms   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 1040 forms Here's why we can help: TAS is an independent organization within the IRS. 1040 forms Our advocates know how to work with the IRS. 1040 forms Our services are free and tailored to meet your needs. 1040 forms We have offices in every state, the District of Columbia, and Puerto Rico. 1040 forms   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 1040 forms   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 1040 forms If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 1040 forms Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 1040 forms Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 1040 forms Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. 1040 forms Prev  Up  Next   Home   More Online Publications
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Employment Agencies

Times have changed with job-searching, and there are numerous websites now available that post jobs for private industry. Many companies also offer a way to apply online. However, these sites do not replace traditional and proven job-hunting approaches such as networking, personal contacts, business organizations, and interviewing.

If you're looking for a job, you might come across ads from employment agencies that promise wonderful opportunities. While some companies honestly want to help you, others are more interested in taking your money. Be wary of:

  • Promises to get you a job and a guaranteed income.
  • Up-front fees, even when you are guaranteed a refund if you are dissatisfied.
  • Employment agencies whose ads read like job ads.
  • Promotions of "previously undisclosed" government jobs. All federal jobs are announced to the public on the USAJOBS website.

Get a copy of the employment agency contract and review it carefully before you pay any money. Check with your local consumer protection agency and the Better Business Bureau to see if any complaints have been filed about a company.

The Federal Trade Commission (FTC) sues businesses that fraudulently advertise employment openings and guarantee job placement. Contact the FTC if you have a complaint.

Social Media Profiles and Your Job Search

Are you in the market for a new job? If so, remember that potential employers aren’t just reading your resumé; they are also reviewing your social media profiles, blogs, pictures, and videos. In 2011, the FTC ruled that background investigation companies can keep your social media history for as long as seven years. Even if you clean up your profiles, companies can still have access to older content that you posted publicly. To err on the side of caution:

  • Use the privacy settings to manage who has access to your profile.
  • Refrain from making defamatory comments about current or past employers.
  • Avoid making statements that are discriminatory or demonstrate intolerance.
  • Untag yourself in pictures or posts that are inappropriate.

Unemployment

The government's Unemployment Insurance Program provides benefits to eligible workers who become unemployed through no fault of their own and who meet other eligibility requirements. Each state administers its own program under federal guidelines. Eligibility requirements, benefit amounts, and length of benefits are determined by the states. For more information, contact the Department of Labor.

In addition, some states are extending unemployment benefits for eligible recipients for up to 13 additional weeks. 

The 1040 Forms

1040 forms 2. 1040 forms   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. 1040 forms 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. 1040 forms Deduction may depend on your type of business. 1040 forms Exception for events that benefit charitable organizations. 1040 forms Food and beverages in skybox seats. 1040 forms What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. 1040 forms You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. 1040 forms The rules and definitions are summarized in Table 2-1 . 1040 forms You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. 1040 forms Directly-related test. 1040 forms Associated test. 1040 forms Both of these tests are explained later. 1040 forms An ordinary expense is one that is common and accepted in your trade or business. 1040 forms A necessary expense is one that is helpful and appropriate for your business. 1040 forms An expense does not have to be required to be considered necessary. 1040 forms The amount you can deduct for entertainment expenses may be limited. 1040 forms Generally, you can deduct only 50% of your unreimbursed entertainment expenses. 1040 forms This limit is discussed later under 50% Limit. 1040 forms Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. 1040 forms Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. 1040 forms Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. 1040 forms See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. 1040 forms You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. 1040 forms It is not necessary to devote more time to business than to entertainment. 1040 forms However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. 1040 forms Table 2-1. 1040 forms When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. 1040 forms Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. 1040 forms An ordinary expense is one that is common and accepted in your trade or business. 1040 forms A necessary expense is one that is helpful and appropriate. 1040 forms Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. 1040 forms   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. 1040 forms Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. 1040 forms You cannot deduct expenses that are lavish or extravagant under the circumstances. 1040 forms You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). 1040 forms You do not have to show that business income or other business benefit actually resulted from each entertainment expense. 1040 forms Clear business setting. 1040 forms   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. 1040 forms The following situations are examples of entertainment in a clear business setting. 1040 forms Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. 1040 forms Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). 1040 forms Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. 1040 forms An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. 1040 forms Expenses not considered directly related. 1040 forms   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. 1040 forms The following are examples of situations where there are substantial distractions. 1040 forms A meeting or discussion at a nightclub, theater, or sporting event. 1040 forms A meeting or discussion during what is essentially a social gathering, such as a cocktail party. 1040 forms A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. 1040 forms Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. 1040 forms To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). 1040 forms Associated with trade or business. 1040 forms   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. 1040 forms The purpose may be to get new business or to encourage the continuation of an existing business relationship. 1040 forms Substantial business discussion. 1040 forms   Whether a business discussion is substantial depends on the facts of each case. 1040 forms A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. 1040 forms   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. 1040 forms It is not necessary that you devote more time to business than to entertainment. 1040 forms You do not have to discuss business during the meal or entertainment. 1040 forms Meetings at conventions. 1040 forms   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. 1040 forms However, your reason for attending the convention or meeting must be to further your trade or business. 1040 forms The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. 1040 forms Directly before or after business discussion. 1040 forms   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. 1040 forms   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. 1040 forms Among the facts to consider are the place, date, and duration of the business discussion. 1040 forms If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. 1040 forms Example. 1040 forms A group of business associates comes from out of town to your place of business to hold a substantial business discussion. 1040 forms If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. 1040 forms The expense meets the associated test. 1040 forms 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. 1040 forms (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. 1040 forms See Individuals subject to “hours of service” limits , later. 1040 forms ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. 1040 forms Figure A summarizes the general rules explained in this section. 1040 forms The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. 1040 forms Included expenses. 1040 forms   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. 1040 forms However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. 1040 forms Figure A. 1040 forms Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. 1040 forms See Exceptions to the 50% Limit . 1040 forms Please click here for the text description of the image. 1040 forms Figure A. 1040 forms Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. 1040 forms   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. 1040 forms   The 50% limit also applies to certain meal and entertainment expenses that are not business related. 1040 forms It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. 1040 forms It also applies to the cost of meals included in deductible educational expenses. 1040 forms When to apply the 50% limit. 1040 forms   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. 1040 forms You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. 1040 forms Example 1. 1040 forms You spend $200 for a business-related meal. 1040 forms If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. 1040 forms Your deduction cannot be more than $45 (50% × $90). 1040 forms Example 2. 1040 forms You purchase two tickets to a concert and give them to a client. 1040 forms You purchased the tickets through a ticket agent. 1040 forms You paid $200 for the two tickets, which had a face value of $80 each ($160 total). 1040 forms Your deduction cannot be more than $80 (50% × $160). 1040 forms Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. 1040 forms Figure A can help you determine if the 50% limit applies to you. 1040 forms Expenses not subject to 50% limit. 1040 forms   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. 1040 forms 1 - Employee's reimbursed expenses. 1040 forms   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. 1040 forms Accountable plans are discussed in chapter 6. 1040 forms 2 - Self-employed. 1040 forms   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. 1040 forms You have these expenses as an independent contractor. 1040 forms Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. 1040 forms You provide adequate records of these expenses to your customer or client. 1040 forms (See chapter 5 . 1040 forms )   In this case, your client or customer is subject to the 50% limit on the expenses. 1040 forms Example. 1040 forms You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. 1040 forms You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. 1040 forms If the client can deduct the expenses, the client is subject to the 50% limit. 1040 forms If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. 1040 forms 3 - Advertising expenses. 1040 forms   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. 1040 forms For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. 1040 forms 4 - Sale of meals or entertainment. 1040 forms   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. 1040 forms For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. 1040 forms 5 - Charitable sports event. 1040 forms   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. 1040 forms For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. 1040 forms Individuals subject to “hours of service” limits. 1040 forms   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. 1040 forms The percentage is 80%. 1040 forms   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. 1040 forms Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. 1040 forms Interstate truck operators and bus drivers who are under Department of Transportation regulations. 1040 forms Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. 1040 forms Certain merchant mariners who are under Coast Guard regulations. 1040 forms What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. 1040 forms Entertainment. 1040 forms   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. 1040 forms Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. 1040 forms   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. 1040 forms A meal as a form of entertainment. 1040 forms   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. 1040 forms A meal expense includes the cost of food, beverages, taxes, and tips for the meal. 1040 forms To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. 1040 forms    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. 1040 forms    Meals sold in the normal course of your business are not considered entertainment. 1040 forms Deduction may depend on your type of business. 1040 forms   Your kind of business may determine if a particular activity is considered entertainment. 1040 forms For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. 1040 forms This is because fashion shows are typical in your business. 1040 forms But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. 1040 forms Separating costs. 1040 forms   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. 1040 forms You must have a reasonable basis for making this allocation. 1040 forms For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. 1040 forms Taking turns paying for meals or entertainment. 1040 forms   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. 1040 forms Lavish or extravagant expenses. 1040 forms   You cannot deduct expenses for entertainment that are lavish or extravagant. 1040 forms An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. 1040 forms Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. 1040 forms Allocating between business and nonbusiness. 1040 forms   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. 1040 forms You can deduct only the business part. 1040 forms If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. 1040 forms Example. 1040 forms You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. 1040 forms Only 4/11 of the expense qualifies as a business entertainment expense. 1040 forms You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. 1040 forms Trade association meetings. 1040 forms   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. 1040 forms These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. 1040 forms Entertainment tickets. 1040 forms   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. 1040 forms For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. 1040 forms Exception for events that benefit charitable organizations. 1040 forms   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. 1040 forms You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. 1040 forms The event's main purpose is to benefit a qualified charitable organization. 1040 forms The entire net proceeds go to the charity. 1040 forms The event uses volunteers to perform substantially all the event's work. 1040 forms    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. 1040 forms Example 1. 1040 forms You purchase tickets to a golf tournament organized by the local volunteer fire company. 1040 forms All net proceeds will be used to buy new fire equipment. 1040 forms The volunteers will run the tournament. 1040 forms You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. 1040 forms Example 2. 1040 forms You purchase tickets to a college football game through a ticket broker. 1040 forms After having a business discussion, you take a client to the game. 1040 forms Net proceeds from the game go to colleges that qualify as charitable organizations. 1040 forms However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. 1040 forms Skyboxes and other private luxury boxes. 1040 forms   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. 1040 forms   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. 1040 forms For example, renting a skybox for a series of playoff games is considered renting it for more than one event. 1040 forms All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. 1040 forms   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. 1040 forms Example. 1040 forms You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. 1040 forms The cost of regular nonluxury box seats at each event is $30 a seat. 1040 forms You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). 1040 forms Food and beverages in skybox seats. 1040 forms   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. 1040 forms The amounts separately stated for food and beverages must be reasonable. 1040 forms You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. 1040 forms What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. 1040 forms Club dues and membership fees. 1040 forms   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. 1040 forms This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. 1040 forms   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. 1040 forms You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. 1040 forms Entertainment facilities. 1040 forms   Generally, you cannot deduct any expense for the use of an entertainment facility. 1040 forms This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. 1040 forms   An entertainment facility is any property you own, rent, or use for entertainment. 1040 forms Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. 1040 forms Out-of-pocket expenses. 1040 forms   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. 1040 forms These are not expenses for the use of an entertainment facility. 1040 forms However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. 1040 forms Expenses for spouses. 1040 forms   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. 1040 forms However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. 1040 forms Example. 1040 forms You entertain a customer. 1040 forms The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. 1040 forms The customer's spouse joins you because it is impractical to entertain the customer without the spouse. 1040 forms You can deduct the cost of entertaining the customer's spouse. 1040 forms If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. 1040 forms Gift or entertainment. 1040 forms   Any item that might be considered either a gift or entertainment generally will be considered entertainment. 1040 forms However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. 1040 forms   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. 1040 forms You can treat the tickets as either a gift or entertainment, whichever is to your advantage. 1040 forms   You can change your treatment of the tickets at a later date by filing an amended return. 1040 forms Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. 1040 forms   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. 1040 forms You cannot choose, in this case, to treat the tickets as a gift. 1040 forms Prev  Up  Next   Home   More Online Publications