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2011 Tax Forms 1040 Ez

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2011 Tax Forms 1040 Ez

2011 tax forms 1040 ez Index A Accounting method Accrual, Accrual Method, Accrual method. 2011 tax forms 1040 ez Automatic procedures, Automatic change procedures. 2011 tax forms 1040 ez Cash, Cash Method, Cash method. 2011 tax forms 1040 ez Change in, Change in Accounting Method Combination, Combination Method Special, Special Methods Accounting periods, Accounting Periods Accrual method Income - general rule, Income—General Rule Income - special rules, Income—Special Rules Of accounting, Accrual Method Adjusted basis, Adjusted basis. 2011 tax forms 1040 ez Administrator, Executor or administrator. 2011 tax forms 1040 ez Alternative fuel vehicle refueling property credit, Alternative fuel vehicle refueling property credit (Form 8911). 2011 tax forms 1040 ez Alternative motor vehicle credit, Alternative motor vehicle credit (Form 8910). 2011 tax forms 1040 ez Appeal rights, Appeals. 2011 tax forms 1040 ez Appreciation, Appreciation. 2011 tax forms 1040 ez Audits, Examinations (audits). 2011 tax forms 1040 ez Automobile (see Car expenses) B Bad debts, Bad Debts Barter income, Bartering for Property or Services Basis of property, Basis. 2011 tax forms 1040 ez Bribes, Expenses You Cannot Deduct Business expenses, Business Expenses Business income, Business Income Business use of your home, Business Use of Your Home C Canceled debt, Canceled Debt Cancellation of qualified real property business debt, Cancellation of qualified real property business debt. 2011 tax forms 1040 ez Capital gain or loss, Is My Gain or Loss Ordinary or Capital? Car expenses, Car and Truck Expenses, Methods for Deducting Car and Truck Expenses Carbon dioxide sequestration credit, Carbon dioxide sequestration credit (Form 8933). 2011 tax forms 1040 ez Cash discount, Cash discounts. 2011 tax forms 1040 ez , Cash discounts. 2011 tax forms 1040 ez Cash method Expenses, Expenses Income, Income Changing accounting method, Changing accounting method. 2011 tax forms 1040 ez Charitable contributions, Expenses You Cannot Deduct Child employed by parent, Child employed by parent. 2011 tax forms 1040 ez Claim for refund, Refunds. 2011 tax forms 1040 ez Collection of tax, Collections. 2011 tax forms 1040 ez Combination method of accounting, Combination Method Comments on publication, Comments and suggestions. 2011 tax forms 1040 ez Condemned property, Condemned property. 2011 tax forms 1040 ez Consignments, Consignments. 2011 tax forms 1040 ez Construction allowances, Construction allowances. 2011 tax forms 1040 ez Cost of goods sold, How To Figure Cost of Goods Sold Credit Alternative fuel vehicle refueling property, Alternative fuel vehicle refueling property credit (Form 8911). 2011 tax forms 1040 ez Alternative motor vehicle, Alternative motor vehicle credit (Form 8910). 2011 tax forms 1040 ez Carbon dioxide sequestration, Carbon dioxide sequestration credit (Form 8933). 2011 tax forms 1040 ez Disabled access, Disabled access credit (Form 8826). 2011 tax forms 1040 ez Distilled spirits, Distilled spirits credit (Form 8906). 2011 tax forms 1040 ez Employer-provided childcare, Credit for employer-provided childcare facilities and services (Form 8882). 2011 tax forms 1040 ez How to claim, How To Claim the Credit Indian coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 tax forms 1040 ez Investment, Investment credit (Form 3468). 2011 tax forms 1040 ez Low sulfur diesel fuel production, Low sulfur diesel fuel production credit (Form 8896). 2011 tax forms 1040 ez Low-income housing, Low-income housing credit (Form 8586). 2011 tax forms 1040 ez New markets, New markets credit (Form 8874). 2011 tax forms 1040 ez Nonconventional source fuel, Nonconventional source fuel credit (Form 8907). 2011 tax forms 1040 ez Orphan drug, Orphan drug credit (Form 8820). 2011 tax forms 1040 ez Qualified plug-in electric drive motor vehicle, Qualified plug-in electric drive motor vehicle credit (Form 8936). 2011 tax forms 1040 ez Refined coal, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 tax forms 1040 ez Renewable electricity, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 tax forms 1040 ez Small employer health insurance premiums, Credit for small employer health insurance premiums (Form 8941). 2011 tax forms 1040 ez Small employer pension plan startup costs, Credit for small employer pension plan startup costs (Form 8881). 2011 tax forms 1040 ez Taxes paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 2011 tax forms 1040 ez Work opportunity, Work opportunity credit (Form 5884). 2011 tax forms 1040 ez D Damages, Damages. 2011 tax forms 1040 ez Debt Bad, Bad Debts Canceled, Canceled Debt Qualified real property business, Qualified real property business debt. 2011 tax forms 1040 ez Refund offset against, Offset against debts. 2011 tax forms 1040 ez Definitions Accounting methods, Accounting Methods Accounting periods, Accounting Periods Barter, Bartering for Property or Services Basis, Basis. 2011 tax forms 1040 ez Business bad debt, Business bad debt. 2011 tax forms 1040 ez Calendar tax year, Calendar tax year. 2011 tax forms 1040 ez Cash discount, Cash discounts. 2011 tax forms 1040 ez , Cash discounts. 2011 tax forms 1040 ez Disposition of property, What Is a Disposition of Property? Drawing account, Merchandise withdrawn from sale. 2011 tax forms 1040 ez Entertainment expenses, Entertainment expenses. 2011 tax forms 1040 ez Fair market value, Fair market value. 2011 tax forms 1040 ez Fiscal tax year, Fiscal tax year. 2011 tax forms 1040 ez Fringe benefit, Fringe benefits. 2011 tax forms 1040 ez Local transportation expenses, Local transportation expenses. 2011 tax forms 1040 ez Necessary expense, Introduction Net operating loss, Net Operating Losses (NOLs) Nonbusiness bad debt, Nonbusiness bad debts. 2011 tax forms 1040 ez Ordinary expense, Introduction Principal place of business, Principal place of business. 2011 tax forms 1040 ez Qualified long-term real property, Qualified long-term real property. 2011 tax forms 1040 ez Qualified real property business debt, Cancellation of qualified real property business debt. 2011 tax forms 1040 ez Rent, Rent Expense Restricted property, Other Income Retail space, Retail space. 2011 tax forms 1040 ez Self-employment (SE) tax, Self-Employment (SE) Tax Sole proprietor, Sole proprietor. 2011 tax forms 1040 ez Tax home, Local transportation expenses. 2011 tax forms 1040 ez Trade discount, Trade discounts. 2011 tax forms 1040 ez , Cash discounts. 2011 tax forms 1040 ez Travel expenses, Travel, Meals, and Entertainment Depreciation Deduction, Depreciation Listed property, Listed property. 2011 tax forms 1040 ez Depreciation, recapture, Recapture of depreciation. 2011 tax forms 1040 ez Direct seller, Direct seller. 2011 tax forms 1040 ez , Real estate agent or direct seller. 2011 tax forms 1040 ez Disabled access credit, Disabled access credit (Form 8826). 2011 tax forms 1040 ez Disposition of property Business property, Introduction Installment sale, Installment sales. 2011 tax forms 1040 ez , Installment sales. 2011 tax forms 1040 ez Like-kind exchange, Like-kind exchanges. 2011 tax forms 1040 ez , Like-kind exchanges. 2011 tax forms 1040 ez , Exchange of like-kind property. 2011 tax forms 1040 ez Nontaxable exchange, Nontaxable exchanges. 2011 tax forms 1040 ez Sale of a business, Sale of a business. 2011 tax forms 1040 ez Distilled spirits credit, Distilled spirits credit (Form 8906). 2011 tax forms 1040 ez Dividend income, Interest and Dividend Income Donation of inventory, Donation of inventory. 2011 tax forms 1040 ez Drawing account, Merchandise withdrawn from sale. 2011 tax forms 1040 ez Due date of return, When Is My Tax Return Due? E e-file, IRS e-file (Electronic Filing) Economic injury, Economic injury. 2011 tax forms 1040 ez EFTPS, EFTPS Electronic filing, IRS e-file (Electronic Filing) Employee, Employee. 2011 tax forms 1040 ez Employee benefit programs, Fringe benefits. 2011 tax forms 1040 ez Employees' pay, Employees' Pay Employer identification number (EIN), Employer identification number (EIN). 2011 tax forms 1040 ez Employment taxes About, Employment Taxes Deduction for, Employment taxes. 2011 tax forms 1040 ez Entertainment expenses, Entertainment expenses. 2011 tax forms 1040 ez (see Travel expenses) Escrow, payments placed in, Payment placed in escrow. 2011 tax forms 1040 ez Estimated tax, How Do I Pay Income Tax? Examinations (audits), Examinations (audits). 2011 tax forms 1040 ez Excise taxes About, Excise Taxes Deduction for, Excise taxes. 2011 tax forms 1040 ez Executor, Executor or administrator. 2011 tax forms 1040 ez Expenses, Business Expenses Bad debts, Bad Debts Car, Car and Truck Expenses Depreciation, Depreciation Employees' pay, Employees' Pay Entertainment, Travel, Meals, and Entertainment Home, business use, Business Use of Your Home Insurance, Insurance Interest, Interest Legal and professional fees, Legal and Professional Fees Meals, Travel, Meals, and Entertainment Nondeductible, Expenses You Cannot Deduct Other, Other Expenses You Can Deduct Pension plans, Pension Plans Rent, Rent Expense Taxes, Taxes Travel, Travel, Meals, and Entertainment Truck, Car and Truck Expenses F Fair market value, Fair market value. 2011 tax forms 1040 ez Filing business taxes, Filing and Paying Business Taxes Fishing crew member, Fishing crew member. 2011 tax forms 1040 ez , Fishing crew member. 2011 tax forms 1040 ez Form 1040 (tax return), How Do I File? 1040-ES (estimated tax), How Do I Pay Income Tax? 1040-V (voucher), Balance due. 2011 tax forms 1040 ez 1099-B (barter), Information returns. 2011 tax forms 1040 ez 1099-MISC (miscellaneous), Form 1099-MISC. 2011 tax forms 1040 ez , Information returns. 2011 tax forms 1040 ez 1128 (change tax year), Change in tax year. 2011 tax forms 1040 ez 2210 (underpayment of estimated tax), Penalty for underpayment of tax. 2011 tax forms 1040 ez 2290 (excise tax for heavy trucks), Form 2290. 2011 tax forms 1040 ez 3115 (change accounting method), Change in Accounting Method 3468 (investment credit), Investment credit (Form 3468). 2011 tax forms 1040 ez 3800 (general business credit), Useful Items - You may want to see: 4562 (depreciation), Form 4562. 2011 tax forms 1040 ez 4684 (casualty and theft), Casualties and thefts. 2011 tax forms 1040 ez 4797 (sale of business property), Dispositions of business property and depreciable property. 2011 tax forms 1040 ez , Condemned property. 2011 tax forms 1040 ez , Listed property. 2011 tax forms 1040 ez 4868 (extension), When Is My Tax Return Due? 5884 (work opportunity credit), Work opportunity credit (Form 5884). 2011 tax forms 1040 ez 6251 (alternative minimum tax), Useful Items - You may want to see: 6252 (installment sale), Installment sales. 2011 tax forms 1040 ez 720 (excise tax return), Form 720. 2011 tax forms 1040 ez 8300 (cash payments over $10,000), Form 8300. 2011 tax forms 1040 ez 8586 (low-income housing), Low-income housing credit (Form 8586). 2011 tax forms 1040 ez 8594 (asset acquisition), Sale of a business. 2011 tax forms 1040 ez 8820 (orphan drug credit), Orphan drug credit (Form 8820). 2011 tax forms 1040 ez 8824 (like-kind exchange), Like-kind exchanges. 2011 tax forms 1040 ez , Like-kind exchanges. 2011 tax forms 1040 ez 8826 (disabled access credit), Disabled access credit (Form 8826). 2011 tax forms 1040 ez 8829 (business in home), Deduction limit. 2011 tax forms 1040 ez 8835 (renewable electricity, coal credit), Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 tax forms 1040 ez 8846 (credit for social security on tip income), Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 2011 tax forms 1040 ez 8857 (innocent spouse), Innocent spouse relief. 2011 tax forms 1040 ez 8874 (new markets credit), New markets credit (Form 8874). 2011 tax forms 1040 ez 8879 (self-selected PIN), Using an Authorized IRS e-file Provider 8881 (pension plan startup costs credit), Credit for small employer pension plan startup costs (Form 8881). 2011 tax forms 1040 ez 8882 (employer-provided childcare credit), Credit for employer-provided childcare facilities and services (Form 8882). 2011 tax forms 1040 ez 8886 (transaction statement), Reminders 8896 (low sulfur diesel fuel production credit), Low sulfur diesel fuel production credit (Form 8896). 2011 tax forms 1040 ez 8906 (distilled spirits credit), Distilled spirits credit (Form 8906). 2011 tax forms 1040 ez 8907 (nonconventional fuel credit), Nonconventional source fuel credit (Form 8907). 2011 tax forms 1040 ez 8910 (alternative vehicle credit), Alternative motor vehicle credit (Form 8910). 2011 tax forms 1040 ez , Car and Truck Expenses 8911 (alternative fuel refueling property credit), Alternative fuel vehicle refueling property credit (Form 8911). 2011 tax forms 1040 ez 8933 (carbon dioxide sequestration credit), Carbon dioxide sequestration credit (Form 8933). 2011 tax forms 1040 ez 8936 (qualified plug-in electric drive motor vehicle), Qualified plug-in electric drive motor vehicle credit (Form 8936). 2011 tax forms 1040 ez 8941 (small employer health insurance premiums), Credit for small employer health insurance premiums (Form 8941). 2011 tax forms 1040 ez 982 (discharge of indebtedness), Exclusions Schedule C (sole proprietor), How Do I File? Schedule C-EZ (sole proprietor), How Do I File? Schedule SE (self-employment tax), Who must pay self-employment tax. 2011 tax forms 1040 ez SS-4 (application for EIN), Employer identification number (EIN). 2011 tax forms 1040 ez SS-5 (application for SSN), Social security number (SSN). 2011 tax forms 1040 ez W-2 (report wages), Form W-2. 2011 tax forms 1040 ez W-4 (employee withholding), Employee. 2011 tax forms 1040 ez W-7 (application for ITIN), Individual taxpayer identification number (ITIN). 2011 tax forms 1040 ez W-9 (request for TIN), Other payee. 2011 tax forms 1040 ez Fringe benefits, Fringe benefits. 2011 tax forms 1040 ez Fuel taxes, Fuel taxes. 2011 tax forms 1040 ez G Gains and losses, Gains and losses. 2011 tax forms 1040 ez General business credits, General Business Credits, Business Credits Gross profit Accuracy, Testing Gross Profit Accuracy Additions to, Additions to Gross Profit Guidelines for selected occupations, Guidelines for Selected Occupations (see also Occupations, selected) H Health insurance, deduction for self-employed, Self-employed health insurance deduction. 2011 tax forms 1040 ez Home, business use of, Business Use of Your Home Hotels, boarding houses, and apartments, Hotels, boarding houses, and apartments. 2011 tax forms 1040 ez Husband and wife business, Business owned and operated by spouses. 2011 tax forms 1040 ez I Identification numbers, Identification Numbers Income, Items That Are Not Income (see also Not income) Accounting for your, Accounting for Your Income Barter, Bartering for Property or Services Business, Business Income Damages, Damages. 2011 tax forms 1040 ez Gains and losses, Gains and losses. 2011 tax forms 1040 ez Kickbacks, Kickbacks. 2011 tax forms 1040 ez Kinds of income, Kinds of Income Lost income payments, Lost income payments. 2011 tax forms 1040 ez Other, Other Income Paid to a third party, Income paid to a third party. 2011 tax forms 1040 ez Personal property rent, Personal Property Rents Promissory notes, Promissory notes. 2011 tax forms 1040 ez Recapture of depreciation, Recapture of depreciation. 2011 tax forms 1040 ez Recovery of items previously deducted, Recovery of items previously deducted. 2011 tax forms 1040 ez Rental, Real Estate Rents, Personal Property Rents Restricted property, Restricted property. 2011 tax forms 1040 ez Income tax About, Income Tax Deduction for, Income taxes. 2011 tax forms 1040 ez How to pay, How Do I Pay Income Tax? Underpayment penalty, Penalty for underpayment of tax. 2011 tax forms 1040 ez Income tax return, who must file, Do I Have To File an Income Tax Return? Independent contractor, Independent contractor. 2011 tax forms 1040 ez , Employment Taxes, Sole proprietor or independent contractor. 2011 tax forms 1040 ez Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). 2011 tax forms 1040 ez Information returns, Information Returns Information, How to get more, How To Get More Information Innocent spouse relief, Innocent spouse relief. 2011 tax forms 1040 ez Installment sales, Installment sales. 2011 tax forms 1040 ez Insurance Expense, Insurance Nondeductible premiums, Nondeductible premiums. 2011 tax forms 1040 ez Prepayment, Prepayment. 2011 tax forms 1040 ez Proceeds, Insurance proceeds. 2011 tax forms 1040 ez Self-employed health, Self-employed health insurance deduction. 2011 tax forms 1040 ez Insurance agent Former, Insurance agent, former. 2011 tax forms 1040 ez Retired, Insurance agent, retired. 2011 tax forms 1040 ez Interest Expenses, Interest Income, Interest and Dividend Income Inventories, Inventories Investment credit, Investment credit (Form 3468). 2011 tax forms 1040 ez K Kickbacks, Kickbacks. 2011 tax forms 1040 ez , Expenses You Cannot Deduct L Lease bonus, Lease bonus. 2011 tax forms 1040 ez Lease cancellation payments, Lease cancellation payments. 2011 tax forms 1040 ez Legal fees, Legal and Professional Fees Like-kind exchanges, Like-kind exchanges. 2011 tax forms 1040 ez , Exchange of like-kind property. 2011 tax forms 1040 ez Limited liability company, Limited liability company (LLC). 2011 tax forms 1040 ez Listed property, Listed property. 2011 tax forms 1040 ez Lobbying expense, Expenses You Cannot Deduct Local transportation expenses, Local transportation expenses. 2011 tax forms 1040 ez Lodging, Meals and lodging. 2011 tax forms 1040 ez Long-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Lost income payments, Lost income payments. 2011 tax forms 1040 ez Low sulfur diesel fuel production credit, Low sulfur diesel fuel production credit (Form 8896). 2011 tax forms 1040 ez Low-income housing credit, Low-income housing credit (Form 8586). 2011 tax forms 1040 ez M Meals, Meals and lodging. 2011 tax forms 1040 ez (see Travel expenses) Methods for figuring net earnings, Methods for Figuring Net Earnings Mileage rate for vehicles, Standard mileage rate. 2011 tax forms 1040 ez Motor vehicle, alternative credit, Alternative motor vehicle credit (Form 8910). 2011 tax forms 1040 ez N Net operating losses, Net Operating Losses (NOLs) Net profit or loss, Introduction New markets credit, New markets credit (Form 8874). 2011 tax forms 1040 ez Newspaper carrier or distributor, Newspaper carrier or distributor. 2011 tax forms 1040 ez Newspaper or magazine vendor, Newspaper or magazine vendor. 2011 tax forms 1040 ez Nonbusiness bad debt, Nonbusiness bad debts. 2011 tax forms 1040 ez Nonconventional source fuel credit, Nonconventional source fuel credit (Form 8907). 2011 tax forms 1040 ez Nondeductible insurance premiums, Nondeductible premiums. 2011 tax forms 1040 ez Nonemployee compensation, Introduction Nontaxable exchanges, Nontaxable exchanges. 2011 tax forms 1040 ez Not income Appreciation, Appreciation. 2011 tax forms 1040 ez Consignments, Consignments. 2011 tax forms 1040 ez Constructions allowances, Construction allowances. 2011 tax forms 1040 ez Exchange of like-kind property, Exchange of like-kind property. 2011 tax forms 1040 ez Leasehold improvements, Leasehold improvements. 2011 tax forms 1040 ez Loans, Loans. 2011 tax forms 1040 ez Sales tax, Sales tax. 2011 tax forms 1040 ez Not-for-profit activities, Not-for-Profit Activities Notary public, Notary public. 2011 tax forms 1040 ez , Notary public. 2011 tax forms 1040 ez O Occupations, selected Administrator, Executor or administrator. 2011 tax forms 1040 ez Direct seller, Direct seller. 2011 tax forms 1040 ez , Real estate agent or direct seller. 2011 tax forms 1040 ez Executor, Executor or administrator. 2011 tax forms 1040 ez Fishing crew member, Fishing crew member. 2011 tax forms 1040 ez Insurance agent, former, Insurance agent, former. 2011 tax forms 1040 ez Insurance agent, retired, Insurance agent, retired. 2011 tax forms 1040 ez Newspaper carrier or distributor, Newspaper carrier or distributor. 2011 tax forms 1040 ez Newspaper or magazine vendor, Newspaper or magazine vendor. 2011 tax forms 1040 ez Notary public, Notary public. 2011 tax forms 1040 ez Public official, Public official. 2011 tax forms 1040 ez Real estate agent, Real estate agent or direct seller. 2011 tax forms 1040 ez Securities dealer, Securities dealer. 2011 tax forms 1040 ez Securities trader, Securities trader. 2011 tax forms 1040 ez Office in the home, Office in the home. 2011 tax forms 1040 ez (see also Business use of your home) Optional methods, using both, Using Both Optional Methods Ordinary gain or loss, Is My Gain or Loss Ordinary or Capital? Orphan drug credit, Orphan drug credit (Form 8820). 2011 tax forms 1040 ez P Parking fees, Parking fees and tolls. 2011 tax forms 1040 ez Partners, husband and wife, Business owned and operated by spouses. 2011 tax forms 1040 ez Pay, kinds of, Kinds of pay. 2011 tax forms 1040 ez Paying Business taxes, Filing and Paying Business Taxes Income tax, How Do I Pay Income Tax? Payments to third parties, Payments to third parties. 2011 tax forms 1040 ez Penalties and fines, Expenses You Cannot Deduct Penalty Failure to file Form 8300, Penalties. 2011 tax forms 1040 ez Failure to file information returns, Penalties. 2011 tax forms 1040 ez Failure to furnish correct payee statements, Penalties. 2011 tax forms 1040 ez Underpayment of tax, Penalty for underpayment of tax. 2011 tax forms 1040 ez Waiver of, Waiver of penalties. 2011 tax forms 1040 ez Pension plans, Pension Plans Personal property tax, Personal property tax. 2011 tax forms 1040 ez Prepaid expense Extends useful life, Prepayment. 2011 tax forms 1040 ez Rent, Rent paid in advance. 2011 tax forms 1040 ez Professional fees, Legal and Professional Fees Promissory notes, Promissory notes. 2011 tax forms 1040 ez Public official, Public official. 2011 tax forms 1040 ez Punitive damages, Punitive damages. 2011 tax forms 1040 ez Q Qualified plug-in electric drive motor vehicle credit, Qualified plug-in electric drive motor vehicle credit (Form 8936). 2011 tax forms 1040 ez Qualified real property business debt, Qualified real property business debt. 2011 tax forms 1040 ez R Real estate Agent, Real estate agent or direct seller. 2011 tax forms 1040 ez Dealer, Real estate dealer. 2011 tax forms 1040 ez Rent, Real Estate Rents Taxes, Real estate taxes. 2011 tax forms 1040 ez Recovery of items previously deducted, Recovery of items previously deducted. 2011 tax forms 1040 ez Refund Inquiries, Refund inquiries. 2011 tax forms 1040 ez Offsets against debts, Offset against debts. 2011 tax forms 1040 ez Related persons Unreasonable rent, Unreasonable rent. 2011 tax forms 1040 ez Renewable electricity, refined coal, and Indian coal production credit, Renewable electricity, refined coal, and Indian coal production credit (Form 8835). 2011 tax forms 1040 ez Rent expense, Rent Expense Rental income, Real Estate Rents Repayment of income, Repayment of income. 2011 tax forms 1040 ez Reportable transaction disclosure statement, Reminders Reporting self-employment tax, Reporting Self-Employment Tax Restricted property, Restricted property. 2011 tax forms 1040 ez Retirement plans (see Pension plans) S Salaries, Employees' Pay Sale of a business, Sale of a business. 2011 tax forms 1040 ez Sale of property, What Is a Disposition of Property? (see also Disposition of property) Sales of assets, Introduction Sales tax, Sales tax. 2011 tax forms 1040 ez Schedule C, How Do I File? Schedule C-EZ, How Do I File? Schedule SE (Form 1040), Who must pay self-employment tax. 2011 tax forms 1040 ez Schedule SE, filing requirement, Reporting Self-Employment Tax SE tax About, Self-Employment (SE) Tax Aliens, Aliens. 2011 tax forms 1040 ez Child employed by parent, Child employed by parent. 2011 tax forms 1040 ez Church employee, Church employee. 2011 tax forms 1040 ez Community property income, Community Property Income Deduction for, Self-employment tax. 2011 tax forms 1040 ez Earning credits, Earning credits in 2013 and 2014. 2011 tax forms 1040 ez Effects of using an optional method, Effects of using an optional method. 2011 tax forms 1040 ez Farm optional method, Farm Optional Method Fiscal year filer, Fiscal Year Filer Fishing crew member, Fishing crew member. 2011 tax forms 1040 ez Gain or loss, Gain or Loss Government employee, State or local government employee. 2011 tax forms 1040 ez , Foreign government or international organization employee. 2011 tax forms 1040 ez Joint return, Joint return. 2011 tax forms 1040 ez Lost income payments, Lost Income Payments Maximum earnings For 2011, What's New for 2013, Maximum earnings subject to SE tax. 2011 tax forms 1040 ez Subject to, Maximum earnings subject to self-employment tax. 2011 tax forms 1040 ez Methods for figuring net earnings, Methods for Figuring Net Earnings More than one business, More Than One Business, More than one business. 2011 tax forms 1040 ez Nonfarm optional method, Nonfarm Optional Method Notary public, Notary public. 2011 tax forms 1040 ez Optional methods Farm, Farm Optional Method Nonfarm, Nonfarm Optional Method Rate, SE tax rate. 2011 tax forms 1040 ez Regular method, Regular Method Residing abroad, U. 2011 tax forms 1040 ez S. 2011 tax forms 1040 ez citizen or resident alien residing abroad. 2011 tax forms 1040 ez Special rules and exceptions, Special Rules and Exceptions Tax rate, SE tax rate. 2011 tax forms 1040 ez Time limit for posting income, The Social Security Administration (SSA) time limit for posting self-employment income. 2011 tax forms 1040 ez Who must pay, Who Must Pay SE Tax? Why use an optional method, Why use an optional method? Section 179 Deduction, Section 179 deduction. 2011 tax forms 1040 ez Property, Section 179 property. 2011 tax forms 1040 ez Securities Dealer, Securities dealer. 2011 tax forms 1040 ez Trader, Securities trader. 2011 tax forms 1040 ez Self-employed health insurance deduction, Self-employed health insurance deduction. 2011 tax forms 1040 ez Self-employment tax (see SE tax) Settlement payments, Settlement payments. 2011 tax forms 1040 ez Short-term capital gain or loss, Is My Capital Gain or Loss Short Term or Long Term? Signature, electronic, Electronic signatures. 2011 tax forms 1040 ez Small Business Administration, Small Business Administration Small employer health insurance premiums credit, Credit for small employer health insurance premiums (Form 8941). 2011 tax forms 1040 ez Social security coverage, Social security coverage. 2011 tax forms 1040 ez Social security number (SSN), Social security number (SSN). 2011 tax forms 1040 ez Sole proprietor, Sole proprietor. 2011 tax forms 1040 ez , Sole proprietor or independent contractor. 2011 tax forms 1040 ez Sport utility vehicle, Section 179 deduction. 2011 tax forms 1040 ez Standard mileage rate, Standard mileage rate. 2011 tax forms 1040 ez For 2011, What's New for 2013 Statutory employee, Statutory employee. 2011 tax forms 1040 ez Suggestions for publication, Comments and suggestions. 2011 tax forms 1040 ez SUV, Section 179 deduction. 2011 tax forms 1040 ez T Tax home, Local transportation expenses. 2011 tax forms 1040 ez , Travel expenses. 2011 tax forms 1040 ez Tax preparation fees, Tax preparation fees. 2011 tax forms 1040 ez Tax refund Claim for, Refunds. 2011 tax forms 1040 ez Offset against debts, Offset against debts. 2011 tax forms 1040 ez Tax return How to file, How Do I File? Who must file, Do I Have To File an Income Tax Return? Tax year, Accounting Periods Calendar, Calendar tax year. 2011 tax forms 1040 ez Change in, Change in tax year. 2011 tax forms 1040 ez Fiscal, Fiscal tax year. 2011 tax forms 1040 ez Taxes Deduction for, Taxes Employment, Employment Taxes, Employment taxes. 2011 tax forms 1040 ez Excise, Excise Taxes, Excise taxes. 2011 tax forms 1040 ez Fuel, Fuel taxes. 2011 tax forms 1040 ez Income, Income Tax, Income taxes. 2011 tax forms 1040 ez Paid on certain employee tips, Credit for employer social security and Medicare taxes paid on certain employee tips (Form 8846). 2011 tax forms 1040 ez Personal property, Personal property tax. 2011 tax forms 1040 ez Real estate, Real estate taxes. 2011 tax forms 1040 ez Sales, Sales tax. 2011 tax forms 1040 ez Self-employment, Self-Employment (SE) Tax, Self-employment tax. 2011 tax forms 1040 ez Taxpayer rights, Declaration of Taxpayer Rights Third parties, Payments to, Payments to third parties. 2011 tax forms 1040 ez Tolls, Parking fees and tolls. 2011 tax forms 1040 ez Trade discount, Trade discounts. 2011 tax forms 1040 ez , Trade discounts. 2011 tax forms 1040 ez Trade or business, Trade or business. 2011 tax forms 1040 ez Trailer park owner, Trailer park owner. 2011 tax forms 1040 ez Transportation expenses, Local transportation expenses. 2011 tax forms 1040 ez Travel expenses, Travel expenses. 2011 tax forms 1040 ez U Underpayment of tax penalty, Penalty for underpayment of tax. 2011 tax forms 1040 ez Uniform capitalization rules, Uniform Capitalization Rules W Wages, Employees' Pay Work opportunity credit, Work opportunity credit (Form 5884). 2011 tax forms 1040 ez Prev  Up     Home   More Online Publications
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The 2011 Tax Forms 1040 Ez

2011 tax forms 1040 ez 2. 2011 tax forms 1040 ez   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. 2011 tax forms 1040 ez 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. 2011 tax forms 1040 ez Deduction may depend on your type of business. 2011 tax forms 1040 ez Exception for events that benefit charitable organizations. 2011 tax forms 1040 ez Food and beverages in skybox seats. 2011 tax forms 1040 ez What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. 2011 tax forms 1040 ez You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. 2011 tax forms 1040 ez The rules and definitions are summarized in Table 2-1 . 2011 tax forms 1040 ez You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. 2011 tax forms 1040 ez Directly-related test. 2011 tax forms 1040 ez Associated test. 2011 tax forms 1040 ez Both of these tests are explained later. 2011 tax forms 1040 ez An ordinary expense is one that is common and accepted in your trade or business. 2011 tax forms 1040 ez A necessary expense is one that is helpful and appropriate for your business. 2011 tax forms 1040 ez An expense does not have to be required to be considered necessary. 2011 tax forms 1040 ez The amount you can deduct for entertainment expenses may be limited. 2011 tax forms 1040 ez Generally, you can deduct only 50% of your unreimbursed entertainment expenses. 2011 tax forms 1040 ez This limit is discussed later under 50% Limit. 2011 tax forms 1040 ez Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. 2011 tax forms 1040 ez Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. 2011 tax forms 1040 ez Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. 2011 tax forms 1040 ez See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. 2011 tax forms 1040 ez You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. 2011 tax forms 1040 ez It is not necessary to devote more time to business than to entertainment. 2011 tax forms 1040 ez However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. 2011 tax forms 1040 ez Table 2-1. 2011 tax forms 1040 ez When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. 2011 tax forms 1040 ez Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. 2011 tax forms 1040 ez An ordinary expense is one that is common and accepted in your trade or business. 2011 tax forms 1040 ez A necessary expense is one that is helpful and appropriate. 2011 tax forms 1040 ez Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. 2011 tax forms 1040 ez   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. 2011 tax forms 1040 ez Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. 2011 tax forms 1040 ez You cannot deduct expenses that are lavish or extravagant under the circumstances. 2011 tax forms 1040 ez You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). 2011 tax forms 1040 ez You do not have to show that business income or other business benefit actually resulted from each entertainment expense. 2011 tax forms 1040 ez Clear business setting. 2011 tax forms 1040 ez   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. 2011 tax forms 1040 ez The following situations are examples of entertainment in a clear business setting. 2011 tax forms 1040 ez Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. 2011 tax forms 1040 ez Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). 2011 tax forms 1040 ez Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. 2011 tax forms 1040 ez An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. 2011 tax forms 1040 ez Expenses not considered directly related. 2011 tax forms 1040 ez   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. 2011 tax forms 1040 ez The following are examples of situations where there are substantial distractions. 2011 tax forms 1040 ez A meeting or discussion at a nightclub, theater, or sporting event. 2011 tax forms 1040 ez A meeting or discussion during what is essentially a social gathering, such as a cocktail party. 2011 tax forms 1040 ez A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. 2011 tax forms 1040 ez Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. 2011 tax forms 1040 ez To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). 2011 tax forms 1040 ez Associated with trade or business. 2011 tax forms 1040 ez   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. 2011 tax forms 1040 ez The purpose may be to get new business or to encourage the continuation of an existing business relationship. 2011 tax forms 1040 ez Substantial business discussion. 2011 tax forms 1040 ez   Whether a business discussion is substantial depends on the facts of each case. 2011 tax forms 1040 ez A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. 2011 tax forms 1040 ez   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. 2011 tax forms 1040 ez It is not necessary that you devote more time to business than to entertainment. 2011 tax forms 1040 ez You do not have to discuss business during the meal or entertainment. 2011 tax forms 1040 ez Meetings at conventions. 2011 tax forms 1040 ez   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. 2011 tax forms 1040 ez However, your reason for attending the convention or meeting must be to further your trade or business. 2011 tax forms 1040 ez The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. 2011 tax forms 1040 ez Directly before or after business discussion. 2011 tax forms 1040 ez   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. 2011 tax forms 1040 ez   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. 2011 tax forms 1040 ez Among the facts to consider are the place, date, and duration of the business discussion. 2011 tax forms 1040 ez If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. 2011 tax forms 1040 ez Example. 2011 tax forms 1040 ez A group of business associates comes from out of town to your place of business to hold a substantial business discussion. 2011 tax forms 1040 ez If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. 2011 tax forms 1040 ez The expense meets the associated test. 2011 tax forms 1040 ez 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. 2011 tax forms 1040 ez (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. 2011 tax forms 1040 ez See Individuals subject to “hours of service” limits , later. 2011 tax forms 1040 ez ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. 2011 tax forms 1040 ez Figure A summarizes the general rules explained in this section. 2011 tax forms 1040 ez The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. 2011 tax forms 1040 ez Included expenses. 2011 tax forms 1040 ez   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. 2011 tax forms 1040 ez However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. 2011 tax forms 1040 ez Figure A. 2011 tax forms 1040 ez Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. 2011 tax forms 1040 ez See Exceptions to the 50% Limit . 2011 tax forms 1040 ez Please click here for the text description of the image. 2011 tax forms 1040 ez Figure A. 2011 tax forms 1040 ez Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. 2011 tax forms 1040 ez   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. 2011 tax forms 1040 ez   The 50% limit also applies to certain meal and entertainment expenses that are not business related. 2011 tax forms 1040 ez It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. 2011 tax forms 1040 ez It also applies to the cost of meals included in deductible educational expenses. 2011 tax forms 1040 ez When to apply the 50% limit. 2011 tax forms 1040 ez   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. 2011 tax forms 1040 ez You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. 2011 tax forms 1040 ez Example 1. 2011 tax forms 1040 ez You spend $200 for a business-related meal. 2011 tax forms 1040 ez If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. 2011 tax forms 1040 ez Your deduction cannot be more than $45 (50% × $90). 2011 tax forms 1040 ez Example 2. 2011 tax forms 1040 ez You purchase two tickets to a concert and give them to a client. 2011 tax forms 1040 ez You purchased the tickets through a ticket agent. 2011 tax forms 1040 ez You paid $200 for the two tickets, which had a face value of $80 each ($160 total). 2011 tax forms 1040 ez Your deduction cannot be more than $80 (50% × $160). 2011 tax forms 1040 ez Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. 2011 tax forms 1040 ez Figure A can help you determine if the 50% limit applies to you. 2011 tax forms 1040 ez Expenses not subject to 50% limit. 2011 tax forms 1040 ez   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. 2011 tax forms 1040 ez 1 - Employee's reimbursed expenses. 2011 tax forms 1040 ez   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. 2011 tax forms 1040 ez Accountable plans are discussed in chapter 6. 2011 tax forms 1040 ez 2 - Self-employed. 2011 tax forms 1040 ez   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. 2011 tax forms 1040 ez You have these expenses as an independent contractor. 2011 tax forms 1040 ez Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. 2011 tax forms 1040 ez You provide adequate records of these expenses to your customer or client. 2011 tax forms 1040 ez (See chapter 5 . 2011 tax forms 1040 ez )   In this case, your client or customer is subject to the 50% limit on the expenses. 2011 tax forms 1040 ez Example. 2011 tax forms 1040 ez You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. 2011 tax forms 1040 ez You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. 2011 tax forms 1040 ez If the client can deduct the expenses, the client is subject to the 50% limit. 2011 tax forms 1040 ez If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. 2011 tax forms 1040 ez 3 - Advertising expenses. 2011 tax forms 1040 ez   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. 2011 tax forms 1040 ez For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. 2011 tax forms 1040 ez 4 - Sale of meals or entertainment. 2011 tax forms 1040 ez   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. 2011 tax forms 1040 ez For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. 2011 tax forms 1040 ez 5 - Charitable sports event. 2011 tax forms 1040 ez   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. 2011 tax forms 1040 ez For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. 2011 tax forms 1040 ez Individuals subject to “hours of service” limits. 2011 tax forms 1040 ez   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. 2011 tax forms 1040 ez The percentage is 80%. 2011 tax forms 1040 ez   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. 2011 tax forms 1040 ez Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. 2011 tax forms 1040 ez Interstate truck operators and bus drivers who are under Department of Transportation regulations. 2011 tax forms 1040 ez Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. 2011 tax forms 1040 ez Certain merchant mariners who are under Coast Guard regulations. 2011 tax forms 1040 ez What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. 2011 tax forms 1040 ez Entertainment. 2011 tax forms 1040 ez   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. 2011 tax forms 1040 ez Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. 2011 tax forms 1040 ez   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. 2011 tax forms 1040 ez A meal as a form of entertainment. 2011 tax forms 1040 ez   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. 2011 tax forms 1040 ez A meal expense includes the cost of food, beverages, taxes, and tips for the meal. 2011 tax forms 1040 ez To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. 2011 tax forms 1040 ez    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. 2011 tax forms 1040 ez    Meals sold in the normal course of your business are not considered entertainment. 2011 tax forms 1040 ez Deduction may depend on your type of business. 2011 tax forms 1040 ez   Your kind of business may determine if a particular activity is considered entertainment. 2011 tax forms 1040 ez For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. 2011 tax forms 1040 ez This is because fashion shows are typical in your business. 2011 tax forms 1040 ez But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. 2011 tax forms 1040 ez Separating costs. 2011 tax forms 1040 ez   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. 2011 tax forms 1040 ez You must have a reasonable basis for making this allocation. 2011 tax forms 1040 ez For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. 2011 tax forms 1040 ez Taking turns paying for meals or entertainment. 2011 tax forms 1040 ez   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. 2011 tax forms 1040 ez Lavish or extravagant expenses. 2011 tax forms 1040 ez   You cannot deduct expenses for entertainment that are lavish or extravagant. 2011 tax forms 1040 ez An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. 2011 tax forms 1040 ez Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. 2011 tax forms 1040 ez Allocating between business and nonbusiness. 2011 tax forms 1040 ez   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. 2011 tax forms 1040 ez You can deduct only the business part. 2011 tax forms 1040 ez If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. 2011 tax forms 1040 ez Example. 2011 tax forms 1040 ez You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. 2011 tax forms 1040 ez Only 4/11 of the expense qualifies as a business entertainment expense. 2011 tax forms 1040 ez You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. 2011 tax forms 1040 ez Trade association meetings. 2011 tax forms 1040 ez   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. 2011 tax forms 1040 ez These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. 2011 tax forms 1040 ez Entertainment tickets. 2011 tax forms 1040 ez   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. 2011 tax forms 1040 ez For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. 2011 tax forms 1040 ez Exception for events that benefit charitable organizations. 2011 tax forms 1040 ez   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. 2011 tax forms 1040 ez You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. 2011 tax forms 1040 ez The event's main purpose is to benefit a qualified charitable organization. 2011 tax forms 1040 ez The entire net proceeds go to the charity. 2011 tax forms 1040 ez The event uses volunteers to perform substantially all the event's work. 2011 tax forms 1040 ez    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. 2011 tax forms 1040 ez Example 1. 2011 tax forms 1040 ez You purchase tickets to a golf tournament organized by the local volunteer fire company. 2011 tax forms 1040 ez All net proceeds will be used to buy new fire equipment. 2011 tax forms 1040 ez The volunteers will run the tournament. 2011 tax forms 1040 ez You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. 2011 tax forms 1040 ez Example 2. 2011 tax forms 1040 ez You purchase tickets to a college football game through a ticket broker. 2011 tax forms 1040 ez After having a business discussion, you take a client to the game. 2011 tax forms 1040 ez Net proceeds from the game go to colleges that qualify as charitable organizations. 2011 tax forms 1040 ez However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. 2011 tax forms 1040 ez Skyboxes and other private luxury boxes. 2011 tax forms 1040 ez   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. 2011 tax forms 1040 ez   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. 2011 tax forms 1040 ez For example, renting a skybox for a series of playoff games is considered renting it for more than one event. 2011 tax forms 1040 ez All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. 2011 tax forms 1040 ez   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. 2011 tax forms 1040 ez Example. 2011 tax forms 1040 ez You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. 2011 tax forms 1040 ez The cost of regular nonluxury box seats at each event is $30 a seat. 2011 tax forms 1040 ez You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). 2011 tax forms 1040 ez Food and beverages in skybox seats. 2011 tax forms 1040 ez   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. 2011 tax forms 1040 ez The amounts separately stated for food and beverages must be reasonable. 2011 tax forms 1040 ez You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. 2011 tax forms 1040 ez What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. 2011 tax forms 1040 ez Club dues and membership fees. 2011 tax forms 1040 ez   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. 2011 tax forms 1040 ez This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. 2011 tax forms 1040 ez   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. 2011 tax forms 1040 ez You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. 2011 tax forms 1040 ez Entertainment facilities. 2011 tax forms 1040 ez   Generally, you cannot deduct any expense for the use of an entertainment facility. 2011 tax forms 1040 ez This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. 2011 tax forms 1040 ez   An entertainment facility is any property you own, rent, or use for entertainment. 2011 tax forms 1040 ez Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. 2011 tax forms 1040 ez Out-of-pocket expenses. 2011 tax forms 1040 ez   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. 2011 tax forms 1040 ez These are not expenses for the use of an entertainment facility. 2011 tax forms 1040 ez However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. 2011 tax forms 1040 ez Expenses for spouses. 2011 tax forms 1040 ez   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. 2011 tax forms 1040 ez However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. 2011 tax forms 1040 ez Example. 2011 tax forms 1040 ez You entertain a customer. 2011 tax forms 1040 ez The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. 2011 tax forms 1040 ez The customer's spouse joins you because it is impractical to entertain the customer without the spouse. 2011 tax forms 1040 ez You can deduct the cost of entertaining the customer's spouse. 2011 tax forms 1040 ez If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. 2011 tax forms 1040 ez Gift or entertainment. 2011 tax forms 1040 ez   Any item that might be considered either a gift or entertainment generally will be considered entertainment. 2011 tax forms 1040 ez However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. 2011 tax forms 1040 ez   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. 2011 tax forms 1040 ez You can treat the tickets as either a gift or entertainment, whichever is to your advantage. 2011 tax forms 1040 ez   You can change your treatment of the tickets at a later date by filing an amended return. 2011 tax forms 1040 ez Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. 2011 tax forms 1040 ez   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. 2011 tax forms 1040 ez You cannot choose, in this case, to treat the tickets as a gift. 2011 tax forms 1040 ez Prev  Up  Next   Home   More Online Publications