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1040ez 2012 Instructions

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1040ez 2012 Instructions

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

The 1040ez 2012 Instructions

1040ez 2012 instructions 12. 1040ez 2012 instructions   Business Deduction for Work-Related Education Table of Contents What's New Introduction Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. 1040ez 2012 instructions Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. 1040ez 2012 instructions  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013, is 56. 1040ez 2012 instructions 5 cents per mile. 1040ez 2012 instructions For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. 1040ez 2012 instructions Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. 1040ez 2012 instructions To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. 1040ez 2012 instructions What is the tax benefit of taking a business deduction for work-related education. 1040ez 2012 instructions   If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. 1040ez 2012 instructions Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. 1040ez 2012 instructions An itemized deduction reduces the amount of your income subject to tax. 1040ez 2012 instructions   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. 1040ez 2012 instructions This reduces the amount of your income subject to both income tax and self-employment tax. 1040ez 2012 instructions   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. 1040ez 2012 instructions You may qualify for these other benefits even if you do not meet the requirements listed above. 1040ez 2012 instructions   Also, your work-related education expenses may qualify you to claim more than one tax benefit. 1040ez 2012 instructions Generally, you may claim any number of benefits as long as you use different expenses to figure each one. 1040ez 2012 instructions Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. 1040ez 2012 instructions This is education that meets at least one of the following two tests. 1040ez 2012 instructions The education is required by your employer or the law to keep your present salary, status, or job. 1040ez 2012 instructions The required education must serve a bona fide business purpose of your employer. 1040ez 2012 instructions The education maintains or improves skills needed in your present work. 1040ez 2012 instructions However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. 1040ez 2012 instructions You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. 1040ez 2012 instructions Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. 1040ez 2012 instructions Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. 1040ez 2012 instructions This additional education is qualifying work-related education if all three of the following requirements are met. 1040ez 2012 instructions It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. 1040ez 2012 instructions When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. 1040ez 2012 instructions See Education To Maintain or Improve Skills , later. 1040ez 2012 instructions Example. 1040ez 2012 instructions You are a teacher who has satisfied the minimum requirements for teaching. 1040ez 2012 instructions Your employer requires you to take an additional college course each year to keep your teaching job. 1040ez 2012 instructions If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. 1040ez 2012 instructions This image is too large to be displayed in the current screen. 1040ez 2012 instructions Please click the link to view the image. 1040ez 2012 instructions Figure 12-1 Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. 1040ez 2012 instructions This could include refresher courses, courses on current developments, and academic or vocational courses. 1040ez 2012 instructions Example. 1040ez 2012 instructions You repair televisions, radios, and stereo systems for XYZ Store. 1040ez 2012 instructions To keep up with the latest changes, you take special courses in radio and stereo service. 1040ez 2012 instructions These courses maintain and improve skills required in your work. 1040ez 2012 instructions Maintaining skills vs. 1040ez 2012 instructions qualifying for new job. 1040ez 2012 instructions   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. 1040ez 2012 instructions Education during temporary absence. 1040ez 2012 instructions   If you stop working for a year or less in order to get education 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. 1040ez 2012 instructions Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. 1040ez 2012 instructions Example. 1040ez 2012 instructions You quit your biology research job to become a full-time biology graduate student for 1 year. 1040ez 2012 instructions If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. 1040ez 2012 instructions Education during indefinite absence. 1040ez 2012 instructions   If you stop work for more than a year, your absence from your job is considered indefinite. 1040ez 2012 instructions Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. 1040ez 2012 instructions Therefore, it is not qualifying work-related education. 1040ez 2012 instructions Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. 1040ez 2012 instructions The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. 1040ez 2012 instructions Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. 1040ez 2012 instructions This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. 1040ez 2012 instructions You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. 1040ez 2012 instructions Example 1. 1040ez 2012 instructions You are a full-time engineering student. 1040ez 2012 instructions Although you have not received your degree or certification, you work part time as an engineer for a firm that will employ you as a full-time engineer after you finish college. 1040ez 2012 instructions Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. 1040ez 2012 instructions The education is not qualifying work-related education. 1040ez 2012 instructions Example 2. 1040ez 2012 instructions You are an accountant and you have met the minimum educational requirements of your employer. 1040ez 2012 instructions Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. 1040ez 2012 instructions These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. 1040ez 2012 instructions Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. 1040ez 2012 instructions The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. 1040ez 2012 instructions If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. 1040ez 2012 instructions The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. 1040ez 2012 instructions You generally will be considered a faculty member when one or more of the following occurs. 1040ez 2012 instructions You have tenure. 1040ez 2012 instructions Your years of service count toward obtaining tenure. 1040ez 2012 instructions You have a vote in faculty decisions. 1040ez 2012 instructions Your school makes contributions for you to a retirement plan other than social security or a similar program. 1040ez 2012 instructions Example 1. 1040ez 2012 instructions The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. 1040ez 2012 instructions In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. 1040ez 2012 instructions If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. 1040ez 2012 instructions However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. 1040ez 2012 instructions Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. 1040ez 2012 instructions If you have all the required education except the fifth year, you have met the minimum educational requirements. 1040ez 2012 instructions The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. 1040ez 2012 instructions Example 2. 1040ez 2012 instructions Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. 1040ez 2012 instructions The additional four education courses can be qualifying work-related education. 1040ez 2012 instructions Although you do not have all the required courses, you have already met the minimum educational requirements. 1040ez 2012 instructions Example 3. 1040ez 2012 instructions Assume the same facts as in Example 1 except that you are hired with only 3 years of college. 1040ez 2012 instructions The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. 1040ez 2012 instructions They are needed to meet the minimum educational requirements for employment as a teacher. 1040ez 2012 instructions Example 4. 1040ez 2012 instructions You have a bachelor's degree and you work as a temporary instructor at a university. 1040ez 2012 instructions At the same time, you take graduate courses toward an advanced degree. 1040ez 2012 instructions The rules of the university state that you can become a faculty member only if you get a graduate degree. 1040ez 2012 instructions Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. 1040ez 2012 instructions You have not met the minimum educational requirements to qualify you as a faculty member. 1040ez 2012 instructions The graduate courses are not qualifying work-related education. 1040ez 2012 instructions Certification in a new state. 1040ez 2012 instructions   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. 1040ez 2012 instructions This is true even if you must get additional education to be certified in another state. 1040ez 2012 instructions Any additional education you need is qualifying work-related education. 1040ez 2012 instructions You have already met the minimum requirements for teaching. 1040ez 2012 instructions Teaching in another state is not a new trade or business. 1040ez 2012 instructions Example. 1040ez 2012 instructions You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. 1040ez 2012 instructions You move to State B and are promptly hired as a teacher. 1040ez 2012 instructions You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. 1040ez 2012 instructions These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. 1040ez 2012 instructions Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. 1040ez 2012 instructions This is true even if you do not plan to enter that trade or business. 1040ez 2012 instructions If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. 1040ez 2012 instructions Example 1. 1040ez 2012 instructions You are an accountant. 1040ez 2012 instructions Your employer requires you to get a law degree at your own expense. 1040ez 2012 instructions You register at a law school for the regular curriculum that leads to a law degree. 1040ez 2012 instructions Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. 1040ez 2012 instructions Example 2. 1040ez 2012 instructions You are a general practitioner of medicine. 1040ez 2012 instructions You take a 2-week course to review developments in several specialized fields of medicine. 1040ez 2012 instructions The course does not qualify you for a new profession. 1040ez 2012 instructions It is qualifying work- related education because it maintains or improves skills required in your present profession. 1040ez 2012 instructions Example 3. 1040ez 2012 instructions While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. 1040ez 2012 instructions The program will lead to qualifying you to practice psychoanalysis. 1040ez 2012 instructions The psychoanalytic training does not qualify you for a new profession. 1040ez 2012 instructions It is qualifying work-related education because it maintains or improves skills required in your present profession. 1040ez 2012 instructions Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. 1040ez 2012 instructions They are part of a program of study that can qualify you for a new profession. 1040ez 2012 instructions Teaching and Related Duties All teaching and related duties are considered the same general kind of work. 1040ez 2012 instructions A change in duties in any of the following ways is not considered a change to a new business. 1040ez 2012 instructions Elementary school teacher to secondary school teacher. 1040ez 2012 instructions Teacher of one subject, such as biology, to teacher of another subject, such as art. 1040ez 2012 instructions Classroom teacher to guidance counselor. 1040ez 2012 instructions Classroom teacher to school administrator. 1040ez 2012 instructions What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education you can generally deduct your education expenses as business expenses. 1040ez 2012 instructions If you are not self-employed, you can deduct business expenses only if you itemize your deductions. 1040ez 2012 instructions You cannot deduct expenses related to tax-exempt and excluded income. 1040ez 2012 instructions Deductible expenses. 1040ez 2012 instructions   The following education expenses can be deducted. 1040ez 2012 instructions Tuition, books, supplies, lab fees, and similar items. 1040ez 2012 instructions Certain transportation and travel costs. 1040ez 2012 instructions Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. 1040ez 2012 instructions Nondeductible expenses. 1040ez 2012 instructions   You cannot deduct personal or capital expenses. 1040ez 2012 instructions For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. 1040ez 2012 instructions This amount is a personal expense. 1040ez 2012 instructions Unclaimed reimbursement. 1040ez 2012 instructions   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. 1040ez 2012 instructions Example. 1040ez 2012 instructions Your employer agrees to pay your education expenses if you file a voucher showing your expenses. 1040ez 2012 instructions You do not file a voucher and you do not get reimbursed. 1040ez 2012 instructions Because you did not file a voucher, you cannot deduct the expenses on your tax return. 1040ez 2012 instructions Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. 1040ez 2012 instructions If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. 1040ez 2012 instructions Temporary basis. 1040ez 2012 instructions   You go to school on a temporary basis if either of the following situations applies to you. 1040ez 2012 instructions Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. 1040ez 2012 instructions Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. 1040ez 2012 instructions Your attendance is temporary up to the date you determine it will last more than 1 year. 1040ez 2012 instructions If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. 1040ez 2012 instructions Attendance not on a temporary basis. 1040ez 2012 instructions   You do not go to school on a temporary basis if either of the following situations apply to you. 1040ez 2012 instructions Your attendance at school is realistically expected to last more than 1 year. 1040ez 2012 instructions It does not matter how long you actually attend. 1040ez 2012 instructions Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. 1040ez 2012 instructions Your attendance is not temporary after the date you determine it will last more than 1 year. 1040ez 2012 instructions Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. 1040ez 2012 instructions This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. 1040ez 2012 instructions Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. 1040ez 2012 instructions Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. 1040ez 2012 instructions Example 1. 1040ez 2012 instructions You regularly work in a nearby town, and go directly from work to home. 1040ez 2012 instructions You also attend school every work night for 3 months to take a course that improves your job skills. 1040ez 2012 instructions Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. 1040ez 2012 instructions This is true regardless of the distance traveled. 1040ez 2012 instructions Example 2. 1040ez 2012 instructions Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. 1040ez 2012 instructions You can deduct your transportation expenses from your regular work site to school and then home. 1040ez 2012 instructions Example 3. 1040ez 2012 instructions Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. 1040ez 2012 instructions Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. 1040ez 2012 instructions Example 4. 1040ez 2012 instructions Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. 1040ez 2012 instructions Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. 1040ez 2012 instructions If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. 1040ez 2012 instructions If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. 1040ez 2012 instructions Using your car. 1040ez 2012 instructions    If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. 1040ez 2012 instructions The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. 1040ez 2012 instructions 5 cents per mile. 1040ez 2012 instructions Whichever method you use, you can also deduct parking fees and tolls. 1040ez 2012 instructions See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. 1040ez 2012 instructions Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. 1040ez 2012 instructions Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. 1040ez 2012 instructions For more information, see chapter 1 of Publication 463. 1040ez 2012 instructions You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. 1040ez 2012 instructions Mainly personal travel. 1040ez 2012 instructions   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. 1040ez 2012 instructions You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. 1040ez 2012 instructions   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. 1040ez 2012 instructions An important factor is the comparison of time spent on personal activities with time spent on educational activities. 1040ez 2012 instructions If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. 1040ez 2012 instructions Example 1. 1040ez 2012 instructions John works in Newark, New Jersey. 1040ez 2012 instructions He traveled to Chicago to take a deductible 1-week course at the request of his employer. 1040ez 2012 instructions His main reason for going to Chicago was to take the course. 1040ez 2012 instructions While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. 1040ez 2012 instructions Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. 1040ez 2012 instructions He cannot deduct his transportation expenses of going to Pleasantville. 1040ez 2012 instructions He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. 1040ez 2012 instructions Example 2. 1040ez 2012 instructions Sue works in Boston. 1040ez 2012 instructions She went to a university in Michigan to take a course for work. 1040ez 2012 instructions The course is qualifying work-related education. 1040ez 2012 instructions She took one course, which is one-fourth of a full course load of study. 1040ez 2012 instructions She spent the rest of the time on personal activities. 1040ez 2012 instructions Her reasons for taking the course in Michigan were all personal. 1040ez 2012 instructions Sue's trip is mainly personal because three-fourths of her time is considered personal time. 1040ez 2012 instructions She cannot deduct the cost of her round-trip train ticket to Michigan. 1040ez 2012 instructions She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. 1040ez 2012 instructions Example 3. 1040ez 2012 instructions Dave works in Nashville and recently traveled to California to take a 2-week seminar. 1040ez 2012 instructions The seminar is qualifying work-related education. 1040ez 2012 instructions While there, he spent an extra 8 weeks on personal activities. 1040ez 2012 instructions The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. 1040ez 2012 instructions Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. 1040ez 2012 instructions He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. 1040ez 2012 instructions Cruises and conventions. 1040ez 2012 instructions   Certain cruises and conventions offer seminars or courses as part of their itinerary. 1040ez 2012 instructions Even if the seminars or courses are work related, your deduction for travel may be limited. 1040ez 2012 instructions This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. 1040ez 2012 instructions   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. 1040ez 2012 instructions 50% limit on meals. 1040ez 2012 instructions   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. 1040ez 2012 instructions If you were reimbursed for the meals, see How To Treat Reimbursements , later. 1040ez 2012 instructions   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. 1040ez 2012 instructions Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. 1040ez 2012 instructions Example. 1040ez 2012 instructions You are a French language teacher. 1040ez 2012 instructions While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. 1040ez 2012 instructions You chose your itinerary and most of your activities to improve your French language skills. 1040ez 2012 instructions You cannot deduct your travel expenses as education expenses. 1040ez 2012 instructions This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. 1040ez 2012 instructions No Double Benefit Allowed You cannot do either of the following. 1040ez 2012 instructions Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. 1040ez 2012 instructions Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. 1040ez 2012 instructions See Adjustments to Qualifying Work-Related Education Expenses, next. 1040ez 2012 instructions Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. 1040ez 2012 instructions You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. 1040ez 2012 instructions Tax-free educational assistance. 1040ez 2012 instructions   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). 1040ez 2012 instructions Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. 1040ez 2012 instructions Amounts that do not reduce qualifying work-related education expenses. 1040ez 2012 instructions   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. 1040ez 2012 instructions Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. 1040ez 2012 instructions How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. 1040ez 2012 instructions There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. 1040ez 2012 instructions You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. 1040ez 2012 instructions Note. 1040ez 2012 instructions The following rules about reimbursement arrangements also apply to expense allowances received from your employer. 1040ez 2012 instructions Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. 1040ez 2012 instructions Your expenses must have a business connection. 1040ez 2012 instructions This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. 1040ez 2012 instructions You must adequately account to your employer for your expenses within a reasonable period of time. 1040ez 2012 instructions You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. 1040ez 2012 instructions If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. 1040ez 2012 instructions If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. 1040ez 2012 instructions Accountable plan rules not met. 1040ez 2012 instructions   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. 1040ez 2012 instructions Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). 1040ez 2012 instructions Expenses equal reimbursement. 1040ez 2012 instructions   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. 1040ez 2012 instructions Because your expenses and reimbursements are equal, you do not have a deduction. 1040ez 2012 instructions Excess expenses. 1040ez 2012 instructions   If your expenses are more than your reimbursement, you can deduct your excess expenses. 1040ez 2012 instructions This is discussed later, under Deducting Business Expenses . 1040ez 2012 instructions Allocating your reimbursements for meals. 1040ez 2012 instructions   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. 1040ez 2012 instructions If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. 1040ez 2012 instructions Make the allocation as follows. 1040ez 2012 instructions Divide your meal expenses by your total expenses. 1040ez 2012 instructions Multiply your total reimbursement by the result from (1). 1040ez 2012 instructions This is the allocated reimbursement for your meal expenses. 1040ez 2012 instructions Subtract the amount figured in (2) from your total reimbursement. 1040ez 2012 instructions The difference is the allocated reimbursement for your other expenses of qualifying work-related education. 1040ez 2012 instructions Example. 1040ez 2012 instructions Your employer paid you an expense allowance of $2,000 under an accountable plan. 1040ez 2012 instructions The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. 1040ez 2012 instructions There was no indication of how much of the reimbursement was for each type of expense. 1040ez 2012 instructions Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). 1040ez 2012 instructions Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. 1040ez 2012 instructions   1. 1040ez 2012 instructions $425 meal expenses  $2,500 total expenses = . 1040ez 2012 instructions 17   2. 1040ez 2012 instructions $2,000 (reimbursement)×. 1040ez 2012 instructions 17     =$340 (allocated reimbursement for meal expenses)   3. 1040ez 2012 instructions $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). 1040ez 2012 instructions After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). 1040ez 2012 instructions Nonaccountable Plans Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2. 1040ez 2012 instructions You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. 1040ez 2012 instructions This is discussed later under Deducting Business Expenses . 1040ez 2012 instructions An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. 1040ez 2012 instructions Reimbursements for nondeductible expenses. 1040ez 2012 instructions   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. 1040ez 2012 instructions You must include them in your income. 1040ez 2012 instructions For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. 1040ez 2012 instructions   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. 1040ez 2012 instructions Deducting Business Expenses Self-employed persons and employees report their business expenses differently. 1040ez 2012 instructions The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. 1040ez 2012 instructions Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). 1040ez 2012 instructions If your education expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. 1040ez 2012 instructions See the instructions for the form you file for information on how to complete it. 1040ez 2012 instructions Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. 1040ez 2012 instructions If either (1) or (2) applies, you can deduct the total qualifying cost. 1040ez 2012 instructions If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. 1040ez 2012 instructions In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. 1040ez 2012 instructions (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. 1040ez 2012 instructions ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. 1040ez 2012 instructions Form 2106 or 2106-EZ. 1040ez 2012 instructions   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. 1040ez 2012 instructions Form not required. 1040ez 2012 instructions   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. 1040ez 2012 instructions   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. 1040ez 2012 instructions (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. 1040ez 2012 instructions ) Using Form 2106-EZ. 1040ez 2012 instructions   This form is shorter and easier to use than Form 2106. 1040ez 2012 instructions Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. 1040ez 2012 instructions   If you do not meet both of these requirements, use Form 2106. 1040ez 2012 instructions Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. 1040ez 2012 instructions Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. 1040ez 2012 instructions You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. 1040ez 2012 instructions You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . 1040ez 2012 instructions For more information on qualified performing artists, see chapter 6 of Publication 463. 1040ez 2012 instructions Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. 1040ez 2012 instructions They are not subject to the 2%-of-adjusted-gross-income limit. 1040ez 2012 instructions To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . 1040ez 2012 instructions For more information on impairment-related work expenses, see chapter 6 of Publication 463. 1040ez 2012 instructions Recordkeeping You must keep records as proof of any deduction claimed on your tax return. 1040ez 2012 instructions Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. 1040ez 2012 instructions If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. 1040ez 2012 instructions However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. 1040ez 2012 instructions Examples of records to keep. 1040ez 2012 instructions   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. 1040ez 2012 instructions You should keep adequate records or have sufficient evidence that will support your expenses. 1040ez 2012 instructions Estimates or approximations do not qualify as proof of an expense. 1040ez 2012 instructions Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. 1040ez 2012 instructions , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. 1040ez 2012 instructions Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. 1040ez 2012 instructions Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. 1040ez 2012 instructions Complete information about any scholarship or fellowship grants, including amounts you received during the year. 1040ez 2012 instructions Illustrated Example Victor Jones teaches math at a private high school in North Carolina. 1040ez 2012 instructions He was selected to attend a 3-week math seminar at a university in California. 1040ez 2012 instructions The seminar will improve his skills in his current job and is qualifying work-related education. 1040ez 2012 instructions He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. 1040ez 2012 instructions Victor will file Form 1040. 1040ez 2012 instructions His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. 1040ez 2012 instructions He shows his expenses for the seminar in Part I of the form. 1040ez 2012 instructions He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. 1040ez 2012 instructions He enters $400 on line 4 for his tuition and books. 1040ez 2012 instructions On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. 1040ez 2012 instructions He multiplies that amount by 50% and enters the result, $263, on line 5. 1040ez 2012 instructions On line 6, Victor totals the amounts from lines 3 through 5. 1040ez 2012 instructions He carries the total, $2,313, to Schedule A (Form 1040), line 21. 1040ez 2012 instructions Since he does not claim any vehicle expenses, Victor leaves Part II blank. 1040ez 2012 instructions His filled-in form is shown on the next page. 1040ez 2012 instructions This image is too large to be displayed in the current screen. 1040ez 2012 instructions Please click the link to view the image. 1040ez 2012 instructions Form 2106-EZ for V. 1040ez 2012 instructions Jones Prev  Up  Next   Home   More Online Publications