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Amend 2011 Federal Tax Return

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Amend 2011 Federal Tax Return

Amend 2011 federal tax return Publication 4492 - Main Contents Table of Contents DefinitionsHurricane Katrina Disaster Area Katrina Covered Disaster Area Gulf Opportunity (GO) Zone (Core Disaster Area) Hurricane Rita Disaster Area (Rita Covered Disaster Area) Rita GO Zone Hurricane Wilma Disaster Area Wilma Covered Disaster Area Wilma GO Zone Extended Tax Deadlines Charitable Giving IncentivesTemporary Suspension of Limits on Charitable Contributions Standard Mileage Rate for Charitable Use of Vehicles Mileage Reimbursements to Charitable Volunteers Charitable Deduction for Contributions of Food Inventory Charitable Deduction for Contributions of Book Inventories to Public Schools Casualty and Theft LossesTime limit for making election. Amend 2011 federal tax return Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Hurricane Distributions Repayment of Qualified Hurricane Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for IndividualsEarned Income Credit and Child Tax Credit Additional Exemption for Housing Individuals Displaced by Hurricane Katrina Education Credits Recapture of Federal Mortgage Subsidy Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Tax Relief for Temporary Relocation Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Work Opportunity Credit Employee Retention Credit Hurricane Katrina Housing Credit Reforestation Costs Demolition and Clean-up Costs Increase in Rehabilitation Tax Credit Request for Copy or Transcript of Tax Return How To Get Tax Help Definitions The following definitions are used throughout this publication. Amend 2011 federal tax return Hurricane Katrina Disaster Area The Hurricane Katrina disaster area covers the area for which the President declared a major disaster before September 14, 2005, because of Hurricane Katrina. Amend 2011 federal tax return The Hurricane Katrina disaster area covers the entire states of Alabama, Florida, Louisiana, and Mississippi. Amend 2011 federal tax return Katrina Covered Disaster Area A portion of the Hurricane Katrina disaster area has been designated by the IRS as a covered disaster area. Amend 2011 federal tax return The Katrina covered disaster area covers the following areas in four states. Amend 2011 federal tax return Alabama. Amend 2011 federal tax return   The counties of Baldwin, Bibb, Choctaw, Clarke, Colbert, Cullman, Greene, Hale, Jefferson, Lamar, Lauderdale, Marengo, Marion, Mobile, Monroe, Perry, Pickens, Sumter, Tuscaloosa, Washington, Wilcox, and Winston. Amend 2011 federal tax return Florida. Amend 2011 federal tax return   The counties of Bay, Broward, Collier, Escambia, Franklin, Gulf, Miami-Dade, Monroe, Okaloosa, Santa Rosa, and Walton. Amend 2011 federal tax return Louisiana. Amend 2011 federal tax return   All parishes. Amend 2011 federal tax return Mississippi. Amend 2011 federal tax return   All counties. Amend 2011 federal tax return Gulf Opportunity (GO) Zone (Core Disaster Area) The GO Zone (also called the core disaster area) covers the portion of the Hurricane Katrina disaster area determined by the Federal Emergency Management Agency (FEMA) to be eligible for either individual only or both individual and public assistance from the Federal Government. Amend 2011 federal tax return The GO Zone covers the following areas in three states. Amend 2011 federal tax return Alabama. Amend 2011 federal tax return   The counties of Baldwin, Choctaw, Clarke, Greene, Hale, Marengo, Mobile, Pickens, Sumter, Tuscaloosa, and Washington. Amend 2011 federal tax return Louisiana. Amend 2011 federal tax return   The parishes of Acadia, Ascension, Assumption, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Amend 2011 federal tax return Bernard, St. Amend 2011 federal tax return Charles, St. Amend 2011 federal tax return Helena, St. Amend 2011 federal tax return James, St. Amend 2011 federal tax return John the Baptist, St. Amend 2011 federal tax return Martin, St. Amend 2011 federal tax return Mary, St. Amend 2011 federal tax return Tammany, Tangipahoa, Terrebonne, Vermilion, Washington, West Baton Rouge, and West Feliciana. Amend 2011 federal tax return Mississippi. Amend 2011 federal tax return   The counties of Adams, Amite, Attala, Choctaw, Claiborne, Clarke, Copiah, Covington, Forrest, Franklin, George, Greene, Hancock, Harrison, Hinds, Holmes, Humphreys, Jackson, Jasper, Jefferson, Jefferson Davis, Jones, Kemper, Lamar, Lauderdale, Lawrence, Leake, Lincoln, Lowndes, Madison, Marion, Neshoba, Newton, Noxubee, Oktibbeha, Pearl River, Perry, Pike, Rankin, Scott, Simpson, Smith, Stone, Walthall, Warren, Wayne, Wilkinson, Winston, and Yazoo. Amend 2011 federal tax return Hurricane Rita Disaster Area (Rita Covered Disaster Area) The Hurricane Rita disaster area (also designated by the IRS as the Rita covered disaster area) covers the area for which the President declared a major disaster before October 6, 2005, because of Hurricane Rita. Amend 2011 federal tax return This area covers the entire states of Louisiana and Texas. Amend 2011 federal tax return Rita GO Zone The Rita GO Zone covers the portion of the Hurricane Rita disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Amend 2011 federal tax return The Rita GO Zone covers the following areas in two states. Amend 2011 federal tax return Louisiana. Amend 2011 federal tax return   The parishes of Acadia, Allen, Ascension, Beauregard, Calcasieu, Cameron, Evangeline, Iberia, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Plaquemines, Sabine, St. Amend 2011 federal tax return Landry, St. Amend 2011 federal tax return Martin, St. Amend 2011 federal tax return Mary, St. Amend 2011 federal tax return Tammany, Terrebonne, Vermilion, Vernon, and West Baton Rouge. Amend 2011 federal tax return Texas. Amend 2011 federal tax return   The counties of Angelina, Brazoria, Chambers, Fort Bend, Galveston, Hardin, Harris, Jasper, Jefferson, Liberty, Montgomery, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Trinity, Tyler, and Walker. Amend 2011 federal tax return Hurricane Wilma Disaster Area The Hurricane Wilma disaster area covers the area for which the President declared a major disaster before November 14, 2005, because of Hurricane Wilma. Amend 2011 federal tax return The Hurricane Wilma disaster area covers the entire state of Florida. Amend 2011 federal tax return Wilma Covered Disaster Area A portion of the Hurricane Wilma disaster area has been designated by the IRS as a covered disaster area. Amend 2011 federal tax return The Wilma covered disaster area covers the following counties. Amend 2011 federal tax return Florida. Amend 2011 federal tax return   Brevard, Broward, Charlotte, Collier, DeSoto, Glades, Hardee, Hendry, Highlands, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Osceola, Palm Beach, Polk, St. Amend 2011 federal tax return Lucie, and Sarasota. Amend 2011 federal tax return Wilma GO Zone The Wilma GO Zone covers the portion of the Hurricane Wilma disaster area determined by FEMA to be eligible for either individual only or both individual and public assistance from the Federal Government. Amend 2011 federal tax return The Wilma GO Zone covers the following counties. Amend 2011 federal tax return Florida. Amend 2011 federal tax return   Brevard, Broward, Collier, Glades, Hendry, Indian River, Lee, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. Amend 2011 federal tax return Lucie. Amend 2011 federal tax return Extended Tax Deadlines The IRS has extended deadlines that apply to filing returns, paying taxes, and performing certain other time-sensitive acts for certain taxpayers affected by Hurricane Katrina, Rita, or Wilma, until February 28, 2006. Amend 2011 federal tax return The extension applies to deadlines (either an original or extended due date) that occur during the following periods. Amend 2011 federal tax return After August 28, 2005 (August 23, 2005, for Florida affected taxpayers), and before February 28, 2006, for taxpayers affected by Hurricane Katrina. Amend 2011 federal tax return After September 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Rita. Amend 2011 federal tax return After October 22, 2005, and before February 28, 2006, for taxpayers affected by Hurricane Wilma. Amend 2011 federal tax return Affected taxpayer. Amend 2011 federal tax return   The following taxpayers are eligible for the extension. Amend 2011 federal tax return Any individual whose main home is located in a covered disaster area. Amend 2011 federal tax return Any business entity or sole proprietor whose principal place of business is located in a covered disaster area. Amend 2011 federal tax return Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained or whose tax professional's office is in a covered disaster area. Amend 2011 federal tax return The main home or principal place of business does not have to be located in the covered area. Amend 2011 federal tax return Any individual visiting a county or parish in the Hurricane Katrina or Hurricane Rita covered disaster area that was injured or killed (and the estate of an individual killed) as a result of the hurricane or its aftermath. Amend 2011 federal tax return Any estate or trust whose tax records needed to meet a filing or payment deadline are maintained in a covered disaster area. Amend 2011 federal tax return Generally, any individual who is a worker assisting in the relief activities in a covered disaster area. Amend 2011 federal tax return However, a relief worker assisting in the Wilma covered disaster area is not an affected taxpayer unless the worker is affiliated with a recognized government or philanthropic organization assisting in the relief activities. Amend 2011 federal tax return The spouse of an affected taxpayer, solely with regard to a joint income tax return with that taxpayer. Amend 2011 federal tax return   To ensure correct processing, affected taxpayers should write the assigned disaster designation (for example, “Hurricane Katrina”) in red ink at the top of any forms or documents filed with the IRS. Amend 2011 federal tax return Affected taxpayers can also identify themselves to the IRS or ask hurricane-related questions by calling the special IRS disaster hotline at 1-866-562-5227. Amend 2011 federal tax return Acts extended. Amend 2011 federal tax return   Deadlines for performing the following acts are extended. Amend 2011 federal tax return Filing any return of income, estate, gift, generation-skipping transfer, excise, or employment tax. Amend 2011 federal tax return Paying any income, estate, gift, generation-skipping transfer, excise, or employment tax. Amend 2011 federal tax return This includes making estimated tax payments. Amend 2011 federal tax return Making certain contributions, distributions, recharacterizing contributions, or making a rollover to or from a qualified retirement plan. Amend 2011 federal tax return Filing certain petitions with the Tax Court. Amend 2011 federal tax return Filing a claim for credit or refund of any tax. Amend 2011 federal tax return Bringing suit upon a claim for credit or refund. Amend 2011 federal tax return Certain other acts described in Revenue Procedure 2005-27. Amend 2011 federal tax return You can find Revenue Procedure 2005-27 on page 1050 of Internal Revenue Bulletin 2005-20 at www. Amend 2011 federal tax return irs. Amend 2011 federal tax return gov/pub/irs-irbs/irb05-20. Amend 2011 federal tax return pdf. Amend 2011 federal tax return Forgiveness of interest and penalties. Amend 2011 federal tax return   The IRS may forgive the interest and penalties on any underpaid income, estate, gift, employment, or excise tax for the length of any extension. Amend 2011 federal tax return Charitable Giving Incentives Temporary Suspension of Limits on Charitable Contributions Individuals. Amend 2011 federal tax return   Qualified contributions are not subject to the overall limit on itemized deductions or the 50% adjusted gross income (AGI) limit. Amend 2011 federal tax return A qualified contribution is a charitable contribution paid in cash or by check after August 27, 2005, and before January 1, 2006, to a 50% limit organization (other than certain private foundations described in section 509(a)(3)) if you make an election to have the 50% limit not apply to these contributions. Amend 2011 federal tax return   Your deduction for qualified contributions is limited to your AGI minus your deduction for all other charitable contributions. Amend 2011 federal tax return You can carry over any contributions you are not able to deduct for 2005 because of this limit. Amend 2011 federal tax return In 2006, treat the carryover of your unused qualified contributions as a carryover of contributions subject to the 50% limit. Amend 2011 federal tax return Exception. Amend 2011 federal tax return   Qualified contributions do not include a contribution to a segregated fund or account for which you (or any person you appoint or designate) have or expect to have advisory privileges with respect to distributions or investments based on your contribution. Amend 2011 federal tax return Corporations. Amend 2011 federal tax return   A corporation may elect to deduct qualified cash contributions without regard to the 10% taxable income limit if the contributions were made after August 27, 2005, and before January 1, 2006, to a qualified charitable organization (other than certain private foundations described in section 509(a)(3)), for Hurricane Katrina, Rita, or Wilma relief efforts. Amend 2011 federal tax return The corporation's deduction for these qualified contributions is limited to 100% of taxable income (as modified for the 10% limit) minus the corporation's deduction for all other charitable contributions. Amend 2011 federal tax return Any qualified contributions over this limit can be carried over to the next 5 years, subject to the 10% limit. Amend 2011 federal tax return Partners and shareholders. Amend 2011 federal tax return   Each partner in a partnership and each shareholder in an S corporation makes a separate election to have the appropriate limit not apply. Amend 2011 federal tax return More information. Amend 2011 federal tax return   For more information, see Publication 526 or Publication 542, Corporations. Amend 2011 federal tax return Publication 526 includes a worksheet you can use to figure your deduction if any limits apply to your charitable contributions. Amend 2011 federal tax return Standard Mileage Rate for Charitable Use of Vehicles The following are special standard mileage rates in effect in 2005 and 2006 for the cost of operating your automobile for providing charitable services solely related to Hurricane Katrina. Amend 2011 federal tax return 29 cents per mile for the period August 25 through August 31, 2005. Amend 2011 federal tax return 34 cents per mile for the period September 1 through December 31, 2005. Amend 2011 federal tax return 32 cents per mile for the period January 1 through December 31, 2006. Amend 2011 federal tax return Mileage Reimbursements to Charitable Volunteers You can exclude from income amounts you receive as mileage reimbursements for the use of a private passenger automobile for the benefit of a qualified charitable organization in providing relief related to Hurricane Katrina during the period beginning on August 25, 2005, and ending on December 31, 2006. Amend 2011 federal tax return You cannot claim a deduction or credit for amounts you receive as a mileage reimbursement. Amend 2011 federal tax return You must keep records of miles driven, time, place (or use), and purpose of the mileage. Amend 2011 federal tax return The amount you can exclude from income cannot exceed the standard business mileage rate (shown below) for expenses incurred during the following periods. Amend 2011 federal tax return 40. Amend 2011 federal tax return 5 cents per mile for the period August 25 through August 31, 2005. Amend 2011 federal tax return 48. Amend 2011 federal tax return 5 cents per mile for the period September 1 through December 31, 2005. Amend 2011 federal tax return 44. Amend 2011 federal tax return 5 cents per mile for the period January 1 through December 31, 2006. Amend 2011 federal tax return Charitable Deduction for Contributions of Food Inventory Any taxpayer engaged in a trade or business is eligible to claim a deduction for a contribution of “apparently wholesome food” inventory to a qualified charitable organization described in section 501(c)(3) (except for private nonoperating foundations) after August 27, 2005, and before January 1, 2006. Amend 2011 federal tax return “Apparently wholesome food” is food that meets all quality and labeling standards imposed by federal, state, and local laws and regulations even though the food may not be readily marketable due to appearance, age, freshness, grade, size, surplus, or other conditions. Amend 2011 federal tax return The deduction is equal to the lesser of: The basis of the donated food plus one-half of the gain that would have been realized if the donated food had been sold at fair market value on the date of the donation, or Two times the basis of the donated food. Amend 2011 federal tax return The taxpayer must receive written certification from the donee stating: The donated food is related to the purpose or function of the donee's basis for exemption under section 501(c)(3) and is to be used solely for the care of the ill, the needy, or infants; and The food was not given in exchange for money, other property, or services. Amend 2011 federal tax return For a taxpayer other than a C corporation, the deduction is limited to 10% of the taxpayer's total net income from all trades or businesses from which the food contributions were made (figured without regard to the deduction for charitable contributions). Amend 2011 federal tax return For example, if a taxpayer is a sole proprietor, a shareholder in an S corporation, and a partner in a partnership, and each made a contribution of apparently wholesome food inventory, the taxpayer's deduction is limited to 10% of the taxpayer's total net income from the sole proprietorship, S corporation, and partnership (figured without regard to the deduction for charitable contributions). Amend 2011 federal tax return Charitable Deduction for Contributions of Book Inventories to Public Schools A corporation (other than an S corporation) may be allowed a charitable deduction for a qualified book contribution made after August 27, 2005, and before January 1, 2006, to a public school that: Provides elementary or secondary education (kindergarten through grade 12), and Normally maintains a regular faculty and curriculum and has a regular enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. Amend 2011 federal tax return . Amend 2011 federal tax return The deduction is equal to the lesser of: The basis of the donated books plus one-half of the gain that would have been realized if the donated books had been sold at fair market value on the date of the donation, or Two times the basis of the donated books. Amend 2011 federal tax return The corporation must receive written certification from the school stating that the donated books are suitable for the organization's educational programs and will be used for such programs. Amend 2011 federal tax return Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that were caused by Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return For more information, see Publication 547. Amend 2011 federal tax return Limits on personal casualty or theft losses caused by Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return   The following losses to personal use property are not subject to the $100 or 10% of adjusted gross income limits. Amend 2011 federal tax return Losses that arose in the Hurricane Katrina disaster area after August 24, 2005, and that were caused by Hurricane Katrina. Amend 2011 federal tax return Losses that arose in the Hurricane Rita disaster area after September 22, 2005, and that were caused by Hurricane Rita. Amend 2011 federal tax return Losses that arose in the Hurricane Wilma disaster area after October 22, 2005, and that were caused by Hurricane Wilma. Amend 2011 federal tax return Qualifying losses include losses from flooding or other casualty, and from theft, that arose in the hurricane disaster area and that were caused by the hurricane. Amend 2011 federal tax return Special instructions for individuals who elect to claim a Hurricane Katrina, Rita, or Wilma casualty or theft loss for 2004. Amend 2011 federal tax return   Casualty and theft losses are generally deductible only in the year the casualty occurred or theft was discovered. Amend 2011 federal tax return However, Hurricane Katrina, Rita, and Wilma are Presidentially declared disasters. Amend 2011 federal tax return Therefore, you can elect to deduct losses from these hurricanes on your tax return for the previous year. Amend 2011 federal tax return If you make this election, use the following additional instructions to complete your forms. Amend 2011 federal tax return   Individuals filing or amending their 2004 tax return whose only casualty or theft losses to personal use property claimed on that return were caused by Hurricane Katrina, Rita, or Wilma should write “Hurricane Katrina,” “Hurricane Rita,” or “Hurricane Wilma” at the top of Form 1040 or 1040X. Amend 2011 federal tax return They must also complete and attach the 2004 Form 4684 and write “Hurricane Katrina,”“Hurricane Rita,” or “Hurricane Wilma” on the dotted line next to line 11 and enter -0- on lines 11 and 17. Amend 2011 federal tax return   Individuals filing or amending their 2004 tax return who also have casualty or theft losses to personal use property not related to Hurricane Katrina, Rita, or Wilma should disregard the caution directing taxpayers to use only one Form 4684, located above line 13, and complete lines 13 through 18 on two Forms 4684. Amend 2011 federal tax return The Form 1040 or 1040X and the first Form 4684 should be prepared as explained above for Hurricane Katrina, Rita, or Wilma losses only. Amend 2011 federal tax return The second Form 4684 should be prepared in the normal manner for all gains and non-Hurricane Katrina, Rita or Wilma losses. Amend 2011 federal tax return If both Forms 4684 have a loss on line 18, they should carry the combined losses from that line to Schedule A (Form 1040), line 19. Amend 2011 federal tax return If there is a gain on line 15 of the second Form 4684, disregard the instruction to enter it on Schedule D (Form 1040), and instead enter on Schedule A (Form 1040), line 19, the excess of the loss from the first Form 4684 over the gain on line 15 of the second Form 4684. Amend 2011 federal tax return , Time limit for making election. Amend 2011 federal tax return   You must make this election to claim your casualty or theft loss in 2004 by the later of the following dates. Amend 2011 federal tax return The due date (without extensions) for filing your 2005 income tax return. Amend 2011 federal tax return The due date (with extensions) for filing your 2004 income tax return. Amend 2011 federal tax return Example. Amend 2011 federal tax return If you are a calendar year individual taxpayer, you have until April 17, 2006, to amend your 2004 tax return to claim a casualty or theft loss that occurred during 2005. Amend 2011 federal tax return Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Amend 2011 federal tax return Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). Amend 2011 federal tax return However, for property that was involuntarily converted after August 24, 2005, as a result of Hurricane Katrina, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Hurricane Katrina disaster area. Amend 2011 federal tax return For more information, see the Instructions for Form 4684. Amend 2011 federal tax return Net Operating Losses Qualified GO Zone loss. Amend 2011 federal tax return   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Amend 2011 federal tax return However, the portion of an NOL that is a qualified GO Zone loss can be carried back to the 5 tax years before the NOL year. Amend 2011 federal tax return In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Amend 2011 federal tax return   A qualified GO Zone loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified GO Zone casualty loss (as defined below), Moving expenses paid or incurred after August 27, 2005, and before January 1, 2008, for the employment of an individual whose main home was in the GO Zone before August 28, 2005, who was unable to remain in that home because of Hurricane Katrina, and whose main job location (after the move) is in the GO Zone, Temporary housing expenses paid or incurred after August 27, 2005, and before January 1, 2008, to house employees of the taxpayer whose main job location is in the GO Zone, Depreciation or amortization allowable for any qualified GO Zone property (even if you elected not to claim the special GO Zone depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after August 27, 2005, and before January 1, 2008, for any damage from Hurricane Katrina to property located in the GO Zone. Amend 2011 federal tax return Qualified GO Zone casualty loss. Amend 2011 federal tax return   A qualified GO Zone casualty loss is any deductible section 1231 loss of property located in the GO Zone if the loss was caused by Hurricane Katrina. Amend 2011 federal tax return For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by Hurricane Katrina of property located in the GO Zone. Amend 2011 federal tax return Any such loss taken into account in figuring your qualified GO Zone loss is not eligible for the election to be treated as having occurred in the previous tax year. Amend 2011 federal tax return 5-year NOL carryback of certain timber losses. Amend 2011 federal tax return   Generally, you can carry the portion of an NOL due to income and deductions attributable to a farming business back to the 5 tax years before the NOL year. Amend 2011 federal tax return You can treat income and deductions attributable to qualified timber property as attributable to a farming business if any portion of the property is located in the GO Zone, Rita GO Zone, or Wilma GO Zone, and the income and deductions are allocable to the part of your tax year which is after the applicable date below. Amend 2011 federal tax return August 27, 2005, if any portion of the property is located in the GO Zone. Amend 2011 federal tax return September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Amend 2011 federal tax return October 22, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the RITA GO Zone). Amend 2011 federal tax return   These rules will not apply after 2006. Amend 2011 federal tax return   However, these rules apply only to a timber producer who: Held qualified timber property (defined in Publication 535, Business Expenses) on the applicable date below: August 28, 2005, if any portion of the property is located in the GO Zone, September 23, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone), or October 23, 2005, if any portion of the property is located in the Wilma GO Zone (but not in the GO Zone or the Rita GO Zone); Is not a corporation with stock publicly traded on an established securities market; Is not a real estate investment trust; and Did not hold more than 500 acres of qualified timber property on the applicable date above. Amend 2011 federal tax return More information. Amend 2011 federal tax return   For more information on NOLs, see Publication 536 or Publication 542, Corporations. Amend 2011 federal tax return IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for taxpayers who suffered economic losses as a result of Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return Definitions Qualified hurricane distribution. Amend 2011 federal tax return   A qualified hurricane distribution is any distribution you received from an eligible retirement plan if all of the following apply. Amend 2011 federal tax return The distribution was made: After August 24, 2005, and before January 1, 2007, for Hurricane Katrina; After September 22, 2005, and before January 1, 2007, for Hurricane Rita; or After October 22, 2005, and before January 1, 2007, for Hurricane Wilma. Amend 2011 federal tax return Your main home was located in a hurricane disaster area listed below on the date shown for that area. Amend 2011 federal tax return August 28, 2005, for the Hurricane Katrina disaster area. Amend 2011 federal tax return September 23, 2005, for the Hurricane Rita disaster area. Amend 2011 federal tax return October 23, 2005, for the Hurricane Wilma disaster area. Amend 2011 federal tax return You sustained an economic loss because of Hurricane Katrina, Rita, or Wilma and your main home was in that hurricane disaster area on the date shown in (2) above for that hurricane. Amend 2011 federal tax return Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Amend 2011 federal tax return   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified hurricane distribution, regardless of whether the distribution was made on account of Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return Qualified hurricane distributions are permitted without regard to your need or the actual amount of your economic loss. Amend 2011 federal tax return   The total of your qualified hurricane distributions from all plans is limited to $100,000. Amend 2011 federal tax return If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. Amend 2011 federal tax return   A reduction or offset (after August 24, 2005, for Katrina; after September 22, 2005, for Rita; or after October 22, 2005, for Wilma) of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified hurricane distribution. Amend 2011 federal tax return Eligible retirement plan. Amend 2011 federal tax return   An eligible retirement plan can be any of the following. Amend 2011 federal tax return A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Amend 2011 federal tax return A qualified annuity plan. Amend 2011 federal tax return A tax-sheltered annuity contract. Amend 2011 federal tax return A governmental section 457 deferred compensation plan. Amend 2011 federal tax return A traditional, SEP, SIMPLE, or Roth IRA. Amend 2011 federal tax return Main home. Amend 2011 federal tax return   Generally, your main home is the home where you live most of the time. Amend 2011 federal tax return A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Amend 2011 federal tax return Taxation of Qualified Hurricane Distributions Qualified hurricane distributions are included in income in equal amounts over three years. Amend 2011 federal tax return However, if you elect, you can include the entire distribution in your income in the year it was received. Amend 2011 federal tax return Qualified hurricane distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Amend 2011 federal tax return However, any distributions you receive in excess of the $100,000 qualified hurricane distribution limit may be subject to the additional tax on early distributions. Amend 2011 federal tax return For more information, see Form 8915. Amend 2011 federal tax return Repayment of Qualified Hurricane Distributions If you choose, you generally can repay any portion of a qualified hurricane distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Amend 2011 federal tax return Also, you can repay a qualified hurricane distribution made on account of a hardship from a retirement plan. Amend 2011 federal tax return However, see Exceptions below for qualified hurricane distributions you cannot repay. Amend 2011 federal tax return You have three years from the day after the date you received the distribution to make a repayment. Amend 2011 federal tax return Amounts that are repaid are treated as a qualified rollover and are not included in income. Amend 2011 federal tax return Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Amend 2011 federal tax return See Form 8915 for more information on how to report repayments. Amend 2011 federal tax return Exceptions. Amend 2011 federal tax return   You cannot repay the following types of distributions. Amend 2011 federal tax return Qualified hurricane distributions received as a beneficiary (other than a surviving spouse). Amend 2011 federal tax return Required minimum distributions. Amend 2011 federal tax return Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Amend 2011 federal tax return Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area, you can repay that distribution before March 1, 2006, to an eligible retirement plan after August 24, 2005 (Katrina); after September 22, 2005 (Rita); or after October 22, 2005 (Wilma). Amend 2011 federal tax return For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Amend 2011 federal tax return To be a qualified distribution, the distribution must meet all of the following requirements. Amend 2011 federal tax return The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Amend 2011 federal tax return The distribution was received in 2005 after February 28 and before: August 29 for Hurricane Katrina; September 24 for Hurricane Rita; or October 24 for Hurricane Wilma. Amend 2011 federal tax return The distribution was to be used to purchase or construct a main home in the Hurricane Katrina, Rita, or Wilma disaster area that was not purchased or constructed because of Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return Amounts that are repaid before March 1, 2006, are treated as a qualified rollover and are not included in income. Amend 2011 federal tax return Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Amend 2011 federal tax return A qualified distribution not repaid before March 1, 2006, may be taxable for 2005 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Amend 2011 federal tax return You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before March 1, 2006. Amend 2011 federal tax return Loans From Qualified Plans The following benefits are available to qualified individuals. Amend 2011 federal tax return Increases to the limits for distributions treated as loans from employer plans. Amend 2011 federal tax return A 1-year suspension for payments due on plan loans. Amend 2011 federal tax return Qualified individual. Amend 2011 federal tax return   You are a qualified individual if any of the following apply. Amend 2011 federal tax return Your main home on August 28, 2005, was located in the Hurricane Katrina disaster area and you had an economic loss because of Hurricane Katrina. Amend 2011 federal tax return Your main home on September 23, 2005, was located in the Hurricane Rita disaster area and you had an economic loss because of Hurricane Rita. Amend 2011 federal tax return Your main home on October 23, 2005, was located in the Hurricane Wilma disaster area and you had an economic loss because of Hurricane Wilma. Amend 2011 federal tax return Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Amend 2011 federal tax return Limits on plan loans. Amend 2011 federal tax return   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Amend 2011 federal tax return In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Amend 2011 federal tax return The higher limits apply only to loans received during the following period. Amend 2011 federal tax return If your main home was located in the Hurricane Katrina disaster area, the period began on September 24, 2005, and ends on December 31, 2006. Amend 2011 federal tax return If your main home was located in the Hurricane Rita or Wilma disaster area, the period began on December 21, 2005, and ends on December 31, 2006. Amend 2011 federal tax return If you are a qualified individual based on Hurricane Katrina and another hurricane, use the period based on Hurricane Katrina. Amend 2011 federal tax return One-year suspension of loan payments. Amend 2011 federal tax return   Payments on plan loans due before 2007 may be suspended for 1 year by the plan administrator. Amend 2011 federal tax return To qualify for the suspension, the due date for any loan payment must occur during the period beginning on: August 28, 2005, if your main home was located in the Hurricane Katrina disaster area. Amend 2011 federal tax return September 23, 2005, if your main home was located in the Hurricane Rita disaster area. Amend 2011 federal tax return October 23, 2005, if your main home was located in the Hurricane Wilma disaster area. Amend 2011 federal tax return If you are a qualified individual based on more than one hurricane, use the period with the earliest beginning date. Amend 2011 federal tax return Additional Tax Relief for Individuals Earned Income Credit and Child Tax Credit You can elect to use your 2004 earned income to figure your earned income credit (EIC) and additional child tax credit for 2005 if: Your 2005 earned income is less than your 2004 earned income, and At least one of the following statements is true. Amend 2011 federal tax return Your main home on August 25, 2005, was in the Gulf Opportunity (GO) Zone. Amend 2011 federal tax return Your main home on August 25, 2005, was in the Hurricane Katrina disaster area and you were displaced from that home because of Hurricane Katrina. Amend 2011 federal tax return Your main home on September 23, 2005, was in the Rita GO Zone. Amend 2011 federal tax return Your main home on September 23, 2005, was in the Hurricane Rita disaster area and you were displaced from that home because of Hurricane Rita. Amend 2011 federal tax return Your main home on October 23, 2005, was in the Wilma GO Zone. Amend 2011 federal tax return Your main home on October 23, 2005, was in the Hurricane Wilma disaster area and you were displaced from that home because of Hurricane Wilma. Amend 2011 federal tax return Earned income. Amend 2011 federal tax return    For the purpose of this election, your earned income for both the EIC and the additional child tax credit is the amount of earned income used to figure your EIC, even if you did not take the EIC and even if that amount is different than your earned income for the additional child tax credit. Amend 2011 federal tax return If you are claiming only the additional child tax credit, you must figure the amount of your earned income for EIC purposes to determine your eligibility to make the election and the amount of the credit. Amend 2011 federal tax return Joint returns. Amend 2011 federal tax return   If you file a joint return, you qualify to make this election even if only one spouse meets the requirements. Amend 2011 federal tax return If you make the election, your 2004 earned income is the sum of your 2004 earned income and your spouse's 2004 earned income. Amend 2011 federal tax return Making the election. Amend 2011 federal tax return   If you make the election to use your 2004 earned income, the election applies for figuring both the EIC and the additional child tax credit. Amend 2011 federal tax return However, you can make the election for the additional child tax credit even if you do not take the EIC. Amend 2011 federal tax return   Electing to use your 2004 earned income may increase or decrease your EIC. Amend 2011 federal tax return Take the following steps to decide whether to make the election. Amend 2011 federal tax return Figure your 2005 EIC using your 2004 earned income. Amend 2011 federal tax return Figure your 2005 additional child tax credit using your 2004 earned income for EIC purposes. Amend 2011 federal tax return Add the results of (1) and (2). Amend 2011 federal tax return Figure your 2005 EIC using your 2005 earned income. Amend 2011 federal tax return Figure your 2005 additional child tax credit using your 2005 earned income for additional child tax credit purposes. Amend 2011 federal tax return Add the results of (4) and (5). Amend 2011 federal tax return Compare the results of (3) and (6). Amend 2011 federal tax return If (3) is larger than (6), it is to your benefit to make the election. Amend 2011 federal tax return If (3) is equal to or smaller than (6), making the election will not help you. Amend 2011 federal tax return   If you elect to use your 2004 earned income and you are claiming the EIC, enter “PYEI” and the amount of your 2004 earned income on the dotted line next to line 66a of Form 1040, on the line next to line 41a of Form 1040A, or in the space to the left of line 8a of Form 1040EZ. Amend 2011 federal tax return   If you elect to use your 2004 earned income and you are claiming the additional child tax credit, enter your 2004 earned income for EIC purposes (even if you did not claim the EIC) on Form 8812, Additional Child Tax Credit, line 4a, and check the box on that line. Amend 2011 federal tax return   Because Form 8812 was released before the GO Zone legislation was enacted, the instructions refer only to individuals whose main home was in the Hurricane Katrina disaster area. Amend 2011 federal tax return When completing Form 8812, line 4a, use the above rules to determine your eligibility to make the election (instead of the Form 8812 instructions). Amend 2011 federal tax return Getting your 2004 tax return information. Amend 2011 federal tax return   If you do not have your 2004 tax records, you can get the amount of earned income used to figure your 2004 EIC by calling 1-866-562-5227. Amend 2011 federal tax return You can also get this information by visiting the IRS website at www. Amend 2011 federal tax return irs. Amend 2011 federal tax return gov. Amend 2011 federal tax return   If you prefer to figure your 2004 earned income yourself, copies or transcripts of your filed and processed tax returns can help you reconstruct your tax records. Amend 2011 federal tax return See Request for Copy or Transcript of Tax Return on page 16. Amend 2011 federal tax return Additional Exemption for Housing Individuals Displaced by Hurricane Katrina You may be able to claim an additional exemption amount of $500 for providing housing in your main home for each individual displaced by Hurricane Katrina. Amend 2011 federal tax return The additional exemption amount is claimed on new Form 8914. Amend 2011 federal tax return The additional exemption amount is allowable once per taxpayer for a specific individual in 2005 or 2006, but not in both years. Amend 2011 federal tax return The maximum additional exemption amount you can claim for all displaced individuals is $2,000 ($1,000 if married filing separately). Amend 2011 federal tax return The additional exemption amount you claim for displaced individuals in 2005 will reduce the $2,000 maximum for 2006. Amend 2011 federal tax return If two or more taxpayers share the same main home, only one taxpayer in that main home can claim the additional exemption amount for a specific displaced individual. Amend 2011 federal tax return If married filing separately, only one spouse may claim the additional exemption amount for a specific displaced individual. Amend 2011 federal tax return In order for you to be considered to have provided housing, you must have a legal interest in the main home (that is, own or rent the home). Amend 2011 federal tax return To qualify as a displaced individual, the individual: Must have had his or her main home in the Hurricane Katrina disaster area on August 28, 2005, and he or she must have been displaced from that home. Amend 2011 federal tax return If the individual's main home was located outside the core disaster area, that home must have been damaged by Hurricane Katrina or the individual must have been evacuated from that home because of Hurricane Katrina, Must have been provided housing in your main home for a period of at least 60 consecutive days ending in the tax year in which the exemption is claimed, and Cannot be your spouse or dependent. Amend 2011 federal tax return You cannot claim the additional exemption amount if you received rent (or any other amount) from any source for providing the housing. Amend 2011 federal tax return You are permitted to receive payments or reimbursements that do not relate to normal housing costs, including the following. Amend 2011 federal tax return Food, clothing, or personal items consumed or used by the displaced individual. Amend 2011 federal tax return Reimbursement for the cost of any long distance telephone calls made by the displaced individual. Amend 2011 federal tax return Reimbursement for the cost of gasoline for the displaced individual's use of your vehicle. Amend 2011 federal tax return However, you cannot claim the additional exemption amount if you received any reimbursement for the extra costs of heat, electricity, or water used by the displaced individual. Amend 2011 federal tax return Also, you must report on Form 8914 the displaced individual's social security number or individual taxpayer identification number to claim an additional exemption amount. Amend 2011 federal tax return For more information, see Form 8914. Amend 2011 federal tax return Education Credits The education credits have been expanded for students attending an eligible educational institution located in the Gulf Opportunity Zone (GOZ students) for any tax year beginning in 2005 or 2006. Amend 2011 federal tax return The Hope credit for a GOZ student is increased to 100% of the first $2,000 in qualified education expenses and 50% of the next $2,000 of qualified education expenses for a maximum credit of $3,000 per student. Amend 2011 federal tax return The lifetime learning credit rate for a GOZ student is increased from 20% to 40%. Amend 2011 federal tax return The definition of qualified education expenses for a GOZ student also has been expanded. Amend 2011 federal tax return In addition to tuition and fees required for the student's enrollment or attendance at an eligible educational institution, qualified education expenses for a GOZ student include the following. Amend 2011 federal tax return Books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. Amend 2011 federal tax return For a special needs student, expenses that are necessary for that person's enrollment or attendance at an eligible educational institution. Amend 2011 federal tax return For a student who is at least a half-time student, the reasonable costs of room and board, but only to the extent that the costs are not more than the greater of the following two amounts. Amend 2011 federal tax return The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. Amend 2011 federal tax return The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution. Amend 2011 federal tax return You will need to contact the eligible educational institution for qualified room and board costs. Amend 2011 federal tax return For more information, see Form 8863. Amend 2011 federal tax return Recapture of Federal Mortgage Subsidy Generally, if you financed your home under a federally subsidized program (loans from tax-exempt qualified mortgage bonds or loans with mortgage credit certificates), you may have to recapture all or part of the benefit you received from that program when you sell or otherwise dispose of your home. Amend 2011 federal tax return However, you do not have to recapture any benefit if your mortgage loan was a qualified home improvement loan of not more than $15,000. Amend 2011 federal tax return This amount is increased to $150,000 if the loan was provided before 2011 and was used to: Repair damage caused by Hurricane Katrina to a residence in the Hurricane Katrina disaster area, or Alter, repair, or improve an existing owner-occupied residence in the GO Zone, Rita GO Zone, or Wilma GO Zone. Amend 2011 federal tax return Exclusion of Certain Cancellations of Indebtedness by Reason of Hurricane Katrina Generally, discharges of nonbusiness debts (such as mortgages) made after August 24, 2005, and before January 1, 2007, are excluded from income for individuals whose main home was in the Hurricane Katrina disaster area on August 25, 2005. Amend 2011 federal tax return If the individual's main home was located outside the core disaster area, the individual also must have had an economic loss because of Hurricane Katrina. Amend 2011 federal tax return Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Amend 2011 federal tax return This relief does not apply to any debt secured by real property located outside the Hurricane Katrina disaster area. Amend 2011 federal tax return You may also have to reduce certain tax attributes by the amount excluded. Amend 2011 federal tax return For more information, see Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Amend 2011 federal tax return Tax Relief for Temporary Relocation Under the Gulf Opportunity Zone Act of 2005, the IRS may adjust the internal revenue laws to ensure that taxpayers do not lose a deduction or credit or experience a change of filing status in 2005 or 2006 as a result of a temporary relocation caused by Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return However, any such adjustment must ensure that an individual is not taken into account by more than one taxpayer for the same tax benefit. Amend 2011 federal tax return The IRS has exercised this authority as follows. Amend 2011 federal tax return In determining whether you furnished over one-half of the cost of maintaining a household, you can exclude from total household costs any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return In determining whether you provided more than one-half of an individual's support, you can disregard any assistance received from the government or charitable organizations because you were temporarily relocated as a result of Hurricane Katrina, Rita, or Wilma. Amend 2011 federal tax return You can treat as a student an individual who enrolled in school before August 25, 2005, and who is unable to attend classes because of Hurricane Katrina, for each month of the enrollment period that individual is prevented by Hurricane Katrina from attending school as planned. Amend 2011 federal tax return You can treat as a student an individual who enrolled in school before September 23, 2005, and who is unable to attend classes because of Hurricane Rita, for each month of the enrollment period that individual is prevented by Hurricane Rita from attending school as planned. Amend 2011 federal tax return You can treat as a student an individual who enrolled in school before October 23, 2005, and who is unable to attend classes because of Hurricane Wilma, for each month of the enrollment period that individual is prevented by Hurricane Wilma from attending school as planned. Amend 2011 federal tax return Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified Gulf Opportunity (GO) Zone property (as defined below) you place in service after August 27, 2005. Amend 2011 federal tax return The allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). Amend 2011 federal tax return The special allowance applies only for the first year the property is placed in service. Amend 2011 federal tax return The allowance is deductible for both the regular tax and the alternative minimum tax (AMT). Amend 2011 federal tax return There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Amend 2011 federal tax return You can elect not to deduct the special GO Zone depreciation allowance for qualified property. Amend 2011 federal tax return If you make this election for any property, it applies to all property in the same class placed in service during the year. Amend 2011 federal tax return Qualified GO Zone property. Amend 2011 federal tax return   Property that qualifies for the special GO Zone depreciation allowance includes the following. Amend 2011 federal tax return Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Amend 2011 federal tax return Water utility property. Amend 2011 federal tax return Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Amend 2011 federal tax return (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Amend 2011 federal tax return ) Qualified leasehold improvement property. Amend 2011 federal tax return Nonresidential real property and residential rental property. Amend 2011 federal tax return   For more information on this property, see Publication 946. Amend 2011 federal tax return Other tests to be met. Amend 2011 federal tax return   To be qualified GO Zone property, the property must also meet all of the following tests. Amend 2011 federal tax return You must have acquired the property, by purchase, after August 27, 2005, but only if no binding written contract for the acquisition was in effect before August 28, 2005. Amend 2011 federal tax return The property must be placed in service before 2008 (2009 in the case of nonresidential real property and residential rental property). Amend 2011 federal tax return Substantially all of the use of the property must be in the GO Zone and in the active conduct of your trade or business in the GO Zone. Amend 2011 federal tax return The original use of the property in the GO Zone must begin with you after August 27, 2005. Amend 2011 federal tax return Used property can be qualified GO Zone property if it has not previously been used within the GO Zone. Amend 2011 federal tax return Also, additional capital expenditures you incurred after August 27, 2005, to recondition or rebuild your property meet the original use test if the original use of the property in the GO Zone began with you. Amend 2011 federal tax return Excepted property. Amend 2011 federal tax return   Qualified GO Zone property does not include any of the following. Amend 2011 federal tax return Property required to be depreciated using the Alternative Depreciation System (ADS). Amend 2011 federal tax return Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. Amend 2011 federal tax return Property for which you are claiming a commercial revitalization deduction. Amend 2011 federal tax return Any property used in connection with any private or commercial golf course, country club, massage parlor, hot tub facility, suntan facility, or any store, the principal business of which is the sale of alcoholic beverages for consumption off premises. Amend 2011 federal tax return Any gambling or animal racing property (as defined below). Amend 2011 federal tax return Property in the same class as that for which you elected not to claim the special GO Zone depreciation allowance. Amend 2011 federal tax return   Gambling or animal racing property is: Any equipment, furniture, software, or other property used directly in connection with gambling, the racing of animals, or the on-site viewing of such racing, and The portion of any real property (determined by square footage) that is dedicated to gambling, the racing of animals, or the on-site viewing of such racing, unless this portion is less than 100 square feet. Amend 2011 federal tax return Recapture of special allowance. Amend 2011 federal tax return   If, in any year after the year you claim the special allowance, the property ceases to be qualified GO Zone property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. Amend 2011 federal tax return Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 Gulf Opportunity (GO) Zone property (as defined later) placed in service in the GO Zone. Amend 2011 federal tax return Increased dollar limit. Amend 2011 federal tax return   The limit on the section 179 deduction ($105,000 for 2005, $108,000 for 2006) for qualified section 179 GO Zone property acquired after August 27, 2005, is increased by the smaller of: $100,000, or The cost of qualified section 179 GO Zone property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). Amend 2011 federal tax return   The amount for which you can make the election is reduced if the cost of all qualified section 179 GO Zone property you placed in service during the year exceeds $420,000 for 2005 ($430,000 for 2006) increased by the smaller of: $600,000, or The cost of qualified section 179 GO Zone property placed in service during the year. Amend 2011 federal tax return Qualified section 179 GO Zone property. Amend 2011 federal tax return   Qualified section 179 GO Zone property is section 179 property that is qualified GO Zone property (explained earlier under Special Depreciation Allowance). Amend 2011 federal tax return Section 179 property does not include nonresidential real property or residential rental property. Amend 2011 federal tax return For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. Amend 2011 federal tax return Work Opportunity Credit For the work opportunity credit, the definition of “targeted group employee” has been expanded to include a Hurricane Katrina employee. Amend 2011 federal tax return Hurricane Katrina employee. Amend 2011 federal tax return   A Hurricane Katrina employee is: A person who, on August 28, 2005, had a main home in the core disaster area and, within a two-year period beginning on that date, is hired to perform services principally in the core disaster area; or A person who, on August 28, 2005, had a main home in the core disaster area, was displaced from that main home as a result of Hurricane Katrina, and was hired during the period beginning on August 28, 2005, and ending on December 31, 2005. Amend 2011 federal tax return Qualified wages. Amend 2011 federal tax return   Generally, qualified wages do not include wages you paid to a targeted group employee who worked for you previously. Amend 2011 federal tax return However, wages will qualify if: You paid them to an employee who is a Hurricane Katrina employee, The employee was not in your employment on August 28, 2005, and This is your first hire of the employee as a Hurricane Katrina employee after August 28, 2005. Amend 2011 federal tax return   For more information, see Form 5884. Amend 2011 federal tax return Certification requirements. Amend 2011 federal tax return   An employee must provide to the employer reasonable evidence that he or she is a Hurricane Katrina employee. Amend 2011 federal tax return An employer may accept a completed Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity and Welfare-to-Work Credits, as such evidence. Amend 2011 federal tax return The certification requirements described in Form 8850 do not apply to a Hurricane Katrina employee. Amend 2011 federal tax return Do not send any Forms 8850 that have only box 1 checked to the state employment security agency. Amend 2011 federal tax return Instead, the employer should keep these Forms 8850 with the employer's other records. Amend 2011 federal tax return For more information, see Form 8850 and its instructions. Amend 2011 federal tax return Employee Retention Credit An eligible employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone, the Rita GO Zone, or the Wilma GO Zone can claim the employee retention credit. Amend 2011 federal tax return The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Amend 2011 federal tax return Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Amend 2011 federal tax return Use Form 5884-A to claim the credit. Amend 2011 federal tax return See the following rules and definitions for each hurricane. Amend 2011 federal tax return Employers affected by Hurricane Katrina. Amend 2011 federal tax return   The following definitions apply to employers affected by Hurricane Katrina. Amend 2011 federal tax return Eligible employer. Amend 2011 federal tax return   For this purpose, an eligible employer is any employer who conducted an active trade or business on August 28, 2005, in the GO Zone and whose trade or business was inoperable on any day after August 28, 2005, and before January 1, 2006, because of damage caused by Hurricane Katrina. Amend 2011 federal tax return Eligible employee. Amend 2011 federal tax return   For this purpose, an eligible employee is an employee whose principal place of employment on August 28, 2005, with such eligible employer was in the GO Zone. Amend 2011 federal tax return An employee is not an eligible employee for purposes of Hurricane Katrina if the employee is treated as an eligible employee for the work opportunity credit. Amend 2011 federal tax return Employers affected by Hurricane Rita. Amend 2011 federal tax return   The following definitions apply to employers affected by Hurricane Rita. Amend 2011 federal tax return Eligible employer. Amend 2011 federal tax return   For this purpose, an eligible employer is any employer who conducted an active trade or business on September 23, 2005, in the Rita GO Zone and whose trade or business was inoperable on any day after September 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Rita. Amend 2011 federal tax return Eligible employee. Amend 2011 federal tax return   For this purpose, an eligible employee is an employee whose principal place of employment on September 23, 2005, with such eligible employer was in the Rita GO Zone. Amend 2011 federal tax return An employee is not an eligible employee for purposes of Hurricane Rita if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina employee retention credit. Amend 2011 federal tax return Employers affected by Hurricane Wilma. Amend 2011 federal tax return   The following definitions apply to employers affected by Hurricane Wilma. Amend 2011 federal tax return Eligible employer. Amend 2011 federal tax return   For this purpose, an eligible employer is any employer who conducted an active trade or business on October 23, 2005, in the Wilma GO Zone and whose trade or business was inoperable on any day after October 23, 2005, and before January 1, 2006, because of damage caused by Hurricane Wilma. Amend 2011 federal tax return Eligible employee. Amend 2011 federal tax return   For this purpose, an eligible employee is an employee whose principal place of employment on October 23, 2005, with such eligible employer was in the Wilma GO Zone. Amend 2011 federal tax return An employee is not an eligible employee for purposes of Hurricane Wilma if the employee is treated as an eligible employee for the work opportunity credit or the Hurricane Katrina or Rita employee retention credit. Amend 2011 federal tax return Qualified wages. Amend 2011 federal tax return   Qualified wages are wages you paid or incurred before January 1, 2006, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before the applicable hurricane, and ending on the date your trade or business resumed significant operations at that place. Amend 2011 federal tax return In addition, the wages must have been paid or incurred after the following date. Amend 2011 federal tax return August 28, 2005, for Hurricane Katrina. Amend 2011 federal tax return September 23, 2005, for Hurricane Rita. Amend 2011 federal tax return October 23, 2005, for Hurricane Wilma. Amend 2011 federal tax return    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Amend 2011 federal tax return    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Amend 2011 federal tax return Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Amend 2011 federal tax return Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Amend 2011 federal tax return   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Amend 2011 federal tax return For a special rule that applies to railroad employees, see section 51(h)(1)(B). Amend 2011 federal tax return   Qualified wages do not include the following. Amend 2011 federal tax return Wages paid to your dependent or a related individual. Amend 2011 federal tax return See section 51(i)(1). Amend 2011 federal tax return Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Amend 2011 federal tax return Wages for services of replacement workers during a strike or lockout. Amend 2011 federal tax return   For more information, see Form 5884-A. Amend 2011 federal tax return Hurricane Katrina Housing Credit An employer who conducted an active trade or business in the Gulf Opportunity (GO) Zone can claim the Hurricane Katrina housing credit. Amend 2011 federal tax return The credit is equal to 30% of the value (up to $600 per month per employee) of in-kind lodging furnished to a qualified employee (and the employee's spouse or dependents) from January 1, 2006, through July 1, 2006. Amend 2011 federal tax return The value of the lodging is excluded from the income of the qualified employee but is treated as wages for purposes of taxes imposed under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). Amend 2011 federal tax return Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Amend 2011 federal tax return The employer must use Form 5884-A to claim the credit. Amend 2011 federal tax return A qualified employee is an individual who had a main home in the GO Zone on August 28, 2005, and who performs substantially all employment services in the GO Zone for the employer furnishing the lodging. Amend 2011 federal tax return The employee cannot be your dependent or a related individual. Amend 2011 federal tax return See section 51(i)(1). Amend 2011 federal tax return For more information, see Form 5884-A. Amend 2011 federal tax return Reforestation Costs You may be able to elect to deduct a limited amount of reforestation costs for each qualified timber property. Amend 2011 federal tax return The deduction for any tax year generally is limited to $10,000 ($5,000 if married filing separately, $0 for a trust). Amend 2011 federal tax return However, this limit is increased if you paid or incurred reforestation costs after the applicable date below and any portion of the qualified timber property is located in one of the following areas. Amend 2011 federal tax return August 27, 2005, if any portion of the property is located in the GO Zone. Amend 2011 federal tax return September 22, 2005, if any portion of the property is located in the Rita GO Zone (but not in the GO Zone). Amend 2011 federal tax return October 22, 2005, if any portion of the property is located in the Wilma GO Zone. Amend 2011 federal tax return The limit for each qualified timber property is increased by the smaller of: $10,000 ($5,000 if married filing separately, $0 for a trust), or The amount of reforestation costs you paid or incurred after the applicable date for the qualified timber property, any portion of which is located in the zone described above. Amend 2011 federal tax return The increase in the limit applies only to costs paid or incurred before 2008. Amend 2011 federal tax return However, these rules do not apply to any timber producer who: Held more than 500 acres of qualified timber property at any time during the tax year, Is a corporation with stock publicly traded on an established securities market, or Is a real estate investment trust. Amend 2011 federal tax return For more information about the election to deduct reforestation costs, see chapter 8 in Publication 535, Business Expenses. Amend 2011 federal tax return Demolition and Clean-up Costs You can elect to deduct 50% of any qualified GO Zone clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Amend 2011 federal tax return Qualified GO Zone clean-up costs are any amounts paid or incurred after August 27, 2005, and before January 1, 2008, for the removal of debris from, or the demolition of structures on, real property located in the GO Zone that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Amend 2011 federal tax return Increase in Rehabilitation Tax Credit The rehabilitation credit is increased for qualified rehabilitation expenditures paid or incurred after August 27, 2005, and before January 1, 2009, on buildings located in the GO Zone as follows. Amend 2011 federal tax return For pre-1936 buildings (other than certified historic structures), the credit percentage is increased from 10% to 13%. Amend 2011 federal tax return For certified historic structures, the credit percentage is increased from 20% to 26%. Amend 2011 federal tax return For more information, see Form 3468, Investment Credit. Amend 2011 federal tax return Request for Copy or Transcript of Tax Return Request for copy of tax return. Amend 2011 federal tax return   You can use Form 4506 to order a copy of your tax return. Amend 2011 federal tax return Generally, there is a $39. Amend 2011 federal tax return 00 fee for requesting each copy of a tax return. Amend 2011 federal tax return If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Hurricane Katrina”) is written in red across the top of the form when filed. Amend 2011 federal tax return Request for transcript of tax return. Amend 2011 federal tax return   You can use Form 4506-T to order a free transcript of your tax return. Amend 2011 federal tax return A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Amend 2011 federal tax return You can also call 1-800-829-1040 to order a transcript. Amend 2011 federal tax return How To Get Tax Help Special IRS assistance. Amend 2011 federal tax return   The IRS is providing special help for those affected by Hurricane Katrina, Rita, or Wilma, as well as survivors and personal representatives of the victims. Amend 2011 federal tax return We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by Hurricane Katrina, Rita, or Wilma, or who have other tax issues related to the hurricanes. Amend 2011 federal tax return Call 1-866-562-5227 Monday through Friday In English-7 a. Amend 2011 federal tax return m. Amend 2011 federal tax return to 10 p. Amend 2011 federal tax return m. Amend 2011 federal tax return local time In Spanish-8 a. Amend 2011 federal tax return m. Amend 2011 federal tax return to 9:30 p. Amend 2011 federal tax return m. Amend 2011 federal tax return local time   The IRS website at www. Amend 2011 federal tax return irs. Amend 2011 federal tax return gov has notices and other tax relief information. Amend 2011 federal tax return Check it periodically for any new guidance. Amend 2011 federal tax return Other help from the IRS. Amend 2011 federal tax return   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Amend 2011 federal tax return By selecting the method that is best for you, you will have quick and easy access to tax help. Amend 2011 federal tax return Contacting your Taxpayer Advocate. Amend 2011 federal tax return   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Amend 2011 federal tax return   The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Amend 2011 federal tax return While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Amend 2011 federal tax return   To contact your Taxpayer Advocate: Call the Taxpayer Advocate toll free at 1-877-777-4778. Amend 2011 federal tax return Call, write, or fax the Taxpayer Advocate office in your area. Amend 2011 federal tax return Call 1-800-829-4059 if you are a TTY/TDD user. Amend 2011 federal tax return Visit www. Amend 2011 federal tax return irs. Amend 2011 federal tax return gov/advocate. Amend 2011 federal tax return   For more information, see Publication 1546, How To Get Help With Unresolved Tax Problems (now available in Chinese, Korean, Russian, and Vietnamese, in addition to English and Spanish). Amend 2011 federal tax return Free tax services. Amend 2011 federal tax return   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Amend 2011 federal tax return It contains a list of free tax publications and an index of tax topics. Amend 2011 federal tax return It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Amend 2011 federal tax return Internet. Amend 2011 federal tax return You can access the IRS website 24 hours a day, 7 days a week, at www. Amend 2011 federal tax return irs. Amend 2011 federal tax return gov to: E-file your return. Amend 2011 federal tax return Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Amend 2011 federal tax return Check the status of your refund. Amend 2011 federal tax return Click on Where's My Refund. Amend 2011 federal tax return Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Amend 2011 federal tax return Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Amend 2011 federal tax return Download forms, instructions, and publications. Amend 2011 federal tax return Order IRS products online. Amend 2011 federal tax return Research your tax questions online. Amend 2011 federal tax return Search publications online by topic or keyword. Amend 2011 federal tax return View Internal Revenue Bulletins (IRBs) published in the last few years. Amend 2011 federal tax return Figure your withholdin
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The Amend 2011 Federal Tax Return

Amend 2011 federal tax return 26. Amend 2011 federal tax return   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. Amend 2011 federal tax return Parking fees. Amend 2011 federal tax return Advertising display on car. Amend 2011 federal tax return Car pools. Amend 2011 federal tax return Hauling tools or instruments. Amend 2011 federal tax return Union members' trips from a union hall. Amend 2011 federal tax return Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. Amend 2011 federal tax return Statutory employees. Amend 2011 federal tax return Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. Amend 2011 federal tax return  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Amend 2011 federal tax return Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. Amend 2011 federal tax return Depreciation limits on cars, trucks, and vans. Amend 2011 federal tax return  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Amend 2011 federal tax return For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Amend 2011 federal tax return For more information, see Depreciation limits in Publication 463. Amend 2011 federal tax return Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. Amend 2011 federal tax return An ordinary expense is one that is common and accepted in your trade or business. Amend 2011 federal tax return A necessary expense is one that is helpful and appropriate for your business. Amend 2011 federal tax return An expense does not have to be required to be considered necessary. Amend 2011 federal tax return This chapter explains the following. Amend 2011 federal tax return What expenses are deductible. Amend 2011 federal tax return How to report your expenses on your return. Amend 2011 federal tax return What records you need to prove your expenses. Amend 2011 federal tax return How to treat any expense reimbursements you may receive. Amend 2011 federal tax return Who does not need to use this chapter. Amend 2011 federal tax return   If you are an employee, you will not need to read this chapter if all of the following are true. Amend 2011 federal tax return You fully accounted to your employer for your work-related expenses. Amend 2011 federal tax return You received full reimbursement for your expenses. Amend 2011 federal tax return Your employer required you to return any excess reimbursement and you did so. Amend 2011 federal tax return There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. Amend 2011 federal tax return If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. Amend 2011 federal tax return See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. Amend 2011 federal tax return    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. Amend 2011 federal tax return Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. Amend 2011 federal tax return This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. Amend 2011 federal tax return It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. Amend 2011 federal tax return Travel expenses defined. Amend 2011 federal tax return   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. Amend 2011 federal tax return   You will find examples of deductible travel expenses in Table 26-1 . Amend 2011 federal tax return Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Amend 2011 federal tax return This rest requirement is not satisfied by merely napping in your car. Amend 2011 federal tax return You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Amend 2011 federal tax return Example 1. Amend 2011 federal tax return You are a railroad conductor. Amend 2011 federal tax return You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Amend 2011 federal tax return During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Amend 2011 federal tax return You are considered to be away from home. Amend 2011 federal tax return Example 2. Amend 2011 federal tax return You are a truck driver. Amend 2011 federal tax return You leave your terminal and return to it later the same day. Amend 2011 federal tax return You get an hour off at your turnaround point to eat. Amend 2011 federal tax return Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Amend 2011 federal tax return Members of the Armed Forces. Amend 2011 federal tax return   If you are a member of the U. Amend 2011 federal tax return S. Amend 2011 federal tax return Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Amend 2011 federal tax return You cannot deduct your expenses for meals and lodging. Amend 2011 federal tax return You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Amend 2011 federal tax return If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Amend 2011 federal tax return    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. Amend 2011 federal tax return Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Amend 2011 federal tax return Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Amend 2011 federal tax return It includes the entire city or general area in which your business or work is located. Amend 2011 federal tax return If you have more than one regular place of business, your tax home is your main place of business. Amend 2011 federal tax return See Main place of business or work , later. Amend 2011 federal tax return If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Amend 2011 federal tax return See No main place of business or work , later. Amend 2011 federal tax return If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Amend 2011 federal tax return As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Amend 2011 federal tax return Main place of business or work. Amend 2011 federal tax return   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. Amend 2011 federal tax return The total time you ordinarily spend in each place. Amend 2011 federal tax return The level of your business activity in each place. Amend 2011 federal tax return Whether your income from each place is significant or insignificant. Amend 2011 federal tax return Example. Amend 2011 federal tax return You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Amend 2011 federal tax return You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Amend 2011 federal tax return Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Amend 2011 federal tax return No main place of business or work. Amend 2011 federal tax return   You may have a tax home even if you do not have a regular or main place of business or work. Amend 2011 federal tax return Your tax home may be the home where you regularly live. Amend 2011 federal tax return Factors used to determine tax home. Amend 2011 federal tax return   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Amend 2011 federal tax return You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Amend 2011 federal tax return You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Amend 2011 federal tax return You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Amend 2011 federal tax return   If you satisfy all three factors, your tax home is the home where you regularly live. Amend 2011 federal tax return If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Amend 2011 federal tax return If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Amend 2011 federal tax return Example. Amend 2011 federal tax return You are single and live in Boston in an apartment you rent. Amend 2011 federal tax return You have worked for your employer in Boston for a number of years. Amend 2011 federal tax return Your employer enrolls you in a 12-month executive training program. Amend 2011 federal tax return You do not expect to return to work in Boston after you complete your training. Amend 2011 federal tax return During your training, you do not do any work in Boston. Amend 2011 federal tax return Instead, you receive classroom and on-the-job training throughout the United States. Amend 2011 federal tax return You keep your apartment in Boston and return to it frequently. Amend 2011 federal tax return You use your apartment to conduct your personal business. Amend 2011 federal tax return You also keep up your community contacts in Boston. Amend 2011 federal tax return When you complete your training, you are transferred to Los Angeles. Amend 2011 federal tax return You do not satisfy factor (1) because you did not work in Boston. Amend 2011 federal tax return You satisfy factor (2) because you had duplicate living expenses. Amend 2011 federal tax return You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Amend 2011 federal tax return Therefore, you have a tax home in Boston. Amend 2011 federal tax return Tax home different from family home. Amend 2011 federal tax return   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Amend 2011 federal tax return You also cannot deduct the cost of meals and lodging while at your tax home. Amend 2011 federal tax return See Example 1 . Amend 2011 federal tax return   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Amend 2011 federal tax return See Example 2 . Amend 2011 federal tax return Example 1. Amend 2011 federal tax return You are a truck driver and you and your family live in Tucson. Amend 2011 federal tax return You are employed by a trucking firm that has its terminal in Phoenix. Amend 2011 federal tax return At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Amend 2011 federal tax return You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Amend 2011 federal tax return This is because Phoenix is your tax home. Amend 2011 federal tax return Example 2. Amend 2011 federal tax return Your family home is in Pittsburgh, where you work 12 weeks a year. Amend 2011 federal tax return The rest of the year you work for the same employer in Baltimore. Amend 2011 federal tax return In Baltimore, you eat in restaurants and sleep in a rooming house. Amend 2011 federal tax return Your salary is the same whether you are in Pittsburgh or Baltimore. Amend 2011 federal tax return Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Amend 2011 federal tax return You cannot deduct any expenses you have for meals and lodging there. Amend 2011 federal tax return However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Amend 2011 federal tax return You can deduct the cost of your round trip between Baltimore and Pittsburgh. Amend 2011 federal tax return You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Amend 2011 federal tax return Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Amend 2011 federal tax return It may not be practical to return to your tax home from this other location at the end of each work day. Amend 2011 federal tax return Temporary assignment vs. Amend 2011 federal tax return indefinite assignment. Amend 2011 federal tax return   If your assignment or job away from your main place of work is temporary, your tax home does not change. Amend 2011 federal tax return You are considered to be away from home for the whole period you are away from your main place of work. Amend 2011 federal tax return You can deduct your travel expenses if they otherwise qualify for deduction. Amend 2011 federal tax return Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Amend 2011 federal tax return   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Amend 2011 federal tax return An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Amend 2011 federal tax return   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Amend 2011 federal tax return You may be able to deduct the cost of relocating to your new tax home as a moving expense. Amend 2011 federal tax return See Publication 521 for more information. Amend 2011 federal tax return Exception for federal crime investigations or prosecutions. Amend 2011 federal tax return   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Amend 2011 federal tax return This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. Amend 2011 federal tax return   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. Amend 2011 federal tax return Determining temporary or indefinite. Amend 2011 federal tax return   You must determine whether your assignment is temporary or indefinite when you start work. Amend 2011 federal tax return If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Amend 2011 federal tax return An assignment or job that is initially temporary may become indefinite due to changed circumstances. Amend 2011 federal tax return A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Amend 2011 federal tax return Going home on days off. Amend 2011 federal tax return   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Amend 2011 federal tax return You cannot deduct the cost of your meals and lodging there. Amend 2011 federal tax return However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Amend 2011 federal tax return You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Amend 2011 federal tax return   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Amend 2011 federal tax return In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Amend 2011 federal tax return Probationary work period. Amend 2011 federal tax return   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Amend 2011 federal tax return You cannot deduct any of your expenses for meals and lodging during the probationary period. Amend 2011 federal tax return What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Amend 2011 federal tax return You can deduct ordinary and necessary expenses you have when you travel away from home on business. Amend 2011 federal tax return The type of expense you can deduct depends on the facts and your circumstances. Amend 2011 federal tax return Table 26-1 summarizes travel expenses you may be able to deduct. Amend 2011 federal tax return You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Amend 2011 federal tax return When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Amend 2011 federal tax return You can use a log, diary, notebook, or any other written record to keep track of your expenses. Amend 2011 federal tax return The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. Amend 2011 federal tax return Separating costs. Amend 2011 federal tax return   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Amend 2011 federal tax return You must have a reasonable basis for making this allocation. Amend 2011 federal tax return For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Amend 2011 federal tax return Travel expenses for another individual. Amend 2011 federal tax return   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Amend 2011 federal tax return Employee. Amend 2011 federal tax return   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Amend 2011 federal tax return Business associate. Amend 2011 federal tax return   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. Amend 2011 federal tax return A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. Amend 2011 federal tax return A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Amend 2011 federal tax return Bona fide business purpose. Amend 2011 federal tax return   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Amend 2011 federal tax return Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Amend 2011 federal tax return Example. Amend 2011 federal tax return Jerry drives to Chicago on business and takes his wife, Linda, with him. Amend 2011 federal tax return Linda is not Jerry's employee. Amend 2011 federal tax return Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Amend 2011 federal tax return The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Amend 2011 federal tax return Her expenses are not deductible. Amend 2011 federal tax return Jerry pays $199 a day for a double room. Amend 2011 federal tax return A single room costs $149 a day. Amend 2011 federal tax return He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Amend 2011 federal tax return If he uses public transportation, he can deduct only his fare. Amend 2011 federal tax return Table 26-1. Amend 2011 federal tax return Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Amend 2011 federal tax return IF you have expenses for. Amend 2011 federal tax return . Amend 2011 federal tax return . Amend 2011 federal tax return THEN you can deduct the cost of. Amend 2011 federal tax return . Amend 2011 federal tax return . Amend 2011 federal tax return transportation travel by airplane, train, bus, or car between your home and your business destination. Amend 2011 federal tax return If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Amend 2011 federal tax return If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. Amend 2011 federal tax return taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Amend 2011 federal tax return baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Amend 2011 federal tax return car operating and maintaining your car when traveling away from home on business. Amend 2011 federal tax return You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. Amend 2011 federal tax return If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Amend 2011 federal tax return lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Amend 2011 federal tax return Meals include amounts spent for food, beverages, taxes, and related tips. Amend 2011 federal tax return See Meals and Incidental Expenses for additional rules and limits. Amend 2011 federal tax return cleaning dry cleaning and laundry. Amend 2011 federal tax return telephone business calls while on your business trip. Amend 2011 federal tax return This includes business communication by fax machine or other communication devices. Amend 2011 federal tax return tips tips you pay for any expenses in this chart. Amend 2011 federal tax return other other similar ordinary and necessary expenses related to your business travel. Amend 2011 federal tax return These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Amend 2011 federal tax return Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. Amend 2011 federal tax return It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Amend 2011 federal tax return The meal is business-related entertainment. Amend 2011 federal tax return Business-related entertainment is discussed under Entertainment Expenses , later. Amend 2011 federal tax return The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. Amend 2011 federal tax return Lavish or extravagant. Amend 2011 federal tax return   You cannot deduct expenses for meals that are lavish or extravagant. Amend 2011 federal tax return An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Amend 2011 federal tax return Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Amend 2011 federal tax return 50% limit on meals. Amend 2011 federal tax return   You can figure your meal expenses using either of the following methods. Amend 2011 federal tax return Actual cost. Amend 2011 federal tax return The standard meal allowance. Amend 2011 federal tax return Both of these methods are explained below. Amend 2011 federal tax return But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Amend 2011 federal tax return   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Amend 2011 federal tax return If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Amend 2011 federal tax return The 50% limit is explained later under Entertainment Expenses . Amend 2011 federal tax return Accountable and nonaccountable plans are discussed later under Reimbursements . Amend 2011 federal tax return Actual cost. Amend 2011 federal tax return   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Amend 2011 federal tax return If you use this method, you must keep records of your actual cost. Amend 2011 federal tax return Standard meal allowance. Amend 2011 federal tax return   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Amend 2011 federal tax return It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Amend 2011 federal tax return The set amount varies depending on where and when you travel. Amend 2011 federal tax return In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Amend 2011 federal tax return If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Amend 2011 federal tax return See Recordkeeping , later. Amend 2011 federal tax return Incidental expenses. Amend 2011 federal tax return   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Amend 2011 federal tax return Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Amend 2011 federal tax return Incidental expenses only method. Amend 2011 federal tax return   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Amend 2011 federal tax return The amount of the deduction is $5 a day. Amend 2011 federal tax return You can use this method only if you did not pay or incur any meal expenses. Amend 2011 federal tax return You cannot use this method on any day that you use the standard meal allowance. Amend 2011 federal tax return    Federal employees should refer to the Federal Travel Regulations at  www. Amend 2011 federal tax return gsa. Amend 2011 federal tax return gov. Amend 2011 federal tax return Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Amend 2011 federal tax return 50% limit may apply. Amend 2011 federal tax return   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Amend 2011 federal tax return If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Amend 2011 federal tax return The 50% limit is explained later under Entertainment Expenses . Amend 2011 federal tax return Accountable and nonaccountable plans are discussed later under Reimbursements . Amend 2011 federal tax return There is no optional standard lodging amount similar to the standard meal allowance. Amend 2011 federal tax return Your allowable lodging expense deduction is your actual cost. Amend 2011 federal tax return Who can use the standard meal allowance. Amend 2011 federal tax return   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Amend 2011 federal tax return   Use of the standard meal allowance for other travel. Amend 2011 federal tax return    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Amend 2011 federal tax return You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Amend 2011 federal tax return You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Amend 2011 federal tax return Amount of standard meal allowance. Amend 2011 federal tax return   The standard meal allowance is the federal M&IE rate. Amend 2011 federal tax return For travel in 2013, the daily rate for most small localities in the United States is $46. Amend 2011 federal tax return   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Amend 2011 federal tax return You can find this information (organized by state) on the Internet at www. Amend 2011 federal tax return gsa. Amend 2011 federal tax return gov. Amend 2011 federal tax return Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. Amend 2011 federal tax return However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. Amend 2011 federal tax return You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. Amend 2011 federal tax return   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Amend 2011 federal tax return If you work in the transportation industry, however, see Special rate for transportation workers , later. Amend 2011 federal tax return Standard meal allowance for areas outside the continental United States. Amend 2011 federal tax return    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Amend 2011 federal tax return The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Amend 2011 federal tax return S. Amend 2011 federal tax return Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Amend 2011 federal tax return The Department of State establishes per diem rates for all other foreign areas. Amend 2011 federal tax return    You can access per diem rates for non-foreign areas outside the continental United States at: www. Amend 2011 federal tax return defensetravel. Amend 2011 federal tax return dod. Amend 2011 federal tax return mil/site/perdiemCalc. Amend 2011 federal tax return cfm. Amend 2011 federal tax return You can access all other foreign per diem rates at www. Amend 2011 federal tax return state. Amend 2011 federal tax return gov/travel/. Amend 2011 federal tax return Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. Amend 2011 federal tax return Special rate for transportation workers. Amend 2011 federal tax return   You can use a special standard meal allowance if you work in the transportation industry. Amend 2011 federal tax return You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Amend 2011 federal tax return If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). Amend 2011 federal tax return   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. Amend 2011 federal tax return If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Amend 2011 federal tax return Travel for days you depart and return. Amend 2011 federal tax return   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Amend 2011 federal tax return You can do so by one of two methods. Amend 2011 federal tax return Method 1: You can claim 3/4 of the standard meal allowance. Amend 2011 federal tax return Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Amend 2011 federal tax return Example. Amend 2011 federal tax return Jen is employed in New Orleans as a convention planner. Amend 2011 federal tax return In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Amend 2011 federal tax return She left her home in New Orleans at 10 a. Amend 2011 federal tax return m. Amend 2011 federal tax return on Wednesday and arrived in Washington, DC, at 5:30 p. Amend 2011 federal tax return m. Amend 2011 federal tax return After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Amend 2011 federal tax return m. Amend 2011 federal tax return Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Amend 2011 federal tax return Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Amend 2011 federal tax return Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Amend 2011 federal tax return For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Amend 2011 federal tax return Travel in the United States The following discussion applies to travel in the United States. Amend 2011 federal tax return For this purpose, the United States includes only the 50 states and the District of Columbia. Amend 2011 federal tax return The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Amend 2011 federal tax return See Part of Trip Outside the United States , later. Amend 2011 federal tax return Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. Amend 2011 federal tax return If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. Amend 2011 federal tax return These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Amend 2011 federal tax return Example. Amend 2011 federal tax return You work in Atlanta and take a business trip to New Orleans in May. Amend 2011 federal tax return On your way home, you stop in Mobile to visit your parents. Amend 2011 federal tax return You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Amend 2011 federal tax return If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. Amend 2011 federal tax return You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. Amend 2011 federal tax return The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Amend 2011 federal tax return Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Amend 2011 federal tax return However, you can deduct any expenses you have while at your destination that are directly related to your business. Amend 2011 federal tax return A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Amend 2011 federal tax return The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Amend 2011 federal tax return Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. Amend 2011 federal tax return For the part of your trip that is inside the United States, use the rules for travel in the United States. Amend 2011 federal tax return Travel outside the United States does not include travel from one point in the United States to another point in the United States. Amend 2011 federal tax return The following discussion can help you determine whether your trip was entirely within the United States. Amend 2011 federal tax return Public transportation. Amend 2011 federal tax return   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Amend 2011 federal tax return Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Amend 2011 federal tax return Example. Amend 2011 federal tax return You fly from New York to Puerto Rico with a scheduled stop in Miami. Amend 2011 federal tax return You return to New York nonstop. Amend 2011 federal tax return The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Amend 2011 federal tax return Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Amend 2011 federal tax return Private car. Amend 2011 federal tax return   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. Amend 2011 federal tax return Example. Amend 2011 federal tax return You travel by car from Denver to Mexico City and return. Amend 2011 federal tax return Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Amend 2011 federal tax return The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Amend 2011 federal tax return Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Amend 2011 federal tax return For this purpose, the United States includes only the 50 states and the District of Columbia. Amend 2011 federal tax return How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Amend 2011 federal tax return See chapter 1 of Publication 463 for information on luxury water travel. Amend 2011 federal tax return Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Amend 2011 federal tax return Travel entirely for business. Amend 2011 federal tax return   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Amend 2011 federal tax return Travel considered entirely for business. Amend 2011 federal tax return   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Amend 2011 federal tax return Exception 1 - No substantial control. Amend 2011 federal tax return   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Amend 2011 federal tax return The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Amend 2011 federal tax return   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. Amend 2011 federal tax return    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . Amend 2011 federal tax return   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Amend 2011 federal tax return    A self-employed person generally has substantial control over arranging business trips. Amend 2011 federal tax return Exception 2 - Outside United States no more than a week. Amend 2011 federal tax return   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Amend 2011 federal tax return One week means 7 consecutive days. Amend 2011 federal tax return In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Amend 2011 federal tax return Exception 3 - Less than 25% of time on personal activities. Amend 2011 federal tax return   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Amend 2011 federal tax return For this purpose, count both the day your trip began and the day it ended. Amend 2011 federal tax return Exception 4 - Vacation not a major consideration. Amend 2011 federal tax return   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Amend 2011 federal tax return Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. Amend 2011 federal tax return You can only deduct the business portion of your cost of getting to and from your destination. Amend 2011 federal tax return You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. Amend 2011 federal tax return These travel allocation rules are discussed in chapter 1 of Publication 463. Amend 2011 federal tax return You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. Amend 2011 federal tax return In those cases, you can deduct the total cost of getting to and from your destination. Amend 2011 federal tax return Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Amend 2011 federal tax return If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Amend 2011 federal tax return Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Amend 2011 federal tax return You cannot deduct the travel expenses for your family. Amend 2011 federal tax return If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Amend 2011 federal tax return Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Amend 2011 federal tax return You can deduct your travel expenses only if your attendance is connected to your own trade or business. Amend 2011 federal tax return Convention agenda. Amend 2011 federal tax return   The convention agenda or program generally shows the purpose of the convention. Amend 2011 federal tax return You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Amend 2011 federal tax return The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Amend 2011 federal tax return Conventions held outside the North American area. Amend 2011 federal tax return    See chapter 1 of Publication 463 for information on conventions held outside the North American area. Amend 2011 federal tax return Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Amend 2011 federal tax return You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. Amend 2011 federal tax return Directly-related test. Amend 2011 federal tax return Associated test. Amend 2011 federal tax return Both of these tests are explained in chapter 2 of Publication 463. Amend 2011 federal tax return The amount you can deduct for entertainment expenses may be limited. Amend 2011 federal tax return Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Amend 2011 federal tax return This limit is discussed next. Amend 2011 federal tax return 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Amend 2011 federal tax return (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. Amend 2011 federal tax return See Individuals subject to “hours of service” limits , later. Amend 2011 federal tax return ) 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. Amend 2011 federal tax return Figure 26-A summarizes the general rules explained in this section. Amend 2011 federal tax return 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. Amend 2011 federal tax return Included expenses. Amend 2011 federal tax return   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. Amend 2011 federal tax return However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Amend 2011 federal tax return Application of 50% limit. Amend 2011 federal tax return   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 in this section. Amend 2011 federal tax return   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Amend 2011 federal tax return It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. Amend 2011 federal tax return It also applies to the cost of meals included in deductible educational expenses. Amend 2011 federal tax return When to apply the 50% limit. Amend 2011 federal tax return   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Amend 2011 federal tax return You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. Amend 2011 federal tax return Example 1. Amend 2011 federal tax return You spend $200 for a business-related meal. Amend 2011 federal tax return If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Amend 2011 federal tax return Your deduction cannot be more than $45 (. Amend 2011 federal tax return 50 × $90). Amend 2011 federal tax return Example 2. Amend 2011 federal tax return You purchase two tickets to a concert and give them to a client. Amend 2011 federal tax return You purchased the tickets through a ticket agent. Amend 2011 federal tax return You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Amend 2011 federal tax return Your deduction cannot be more than $80 (. Amend 2011 federal tax return 50 × $160). Amend 2011 federal tax return Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Amend 2011 federal tax return Figure 26-A can help you determine if the 50% limit applies to you. Amend 2011 federal tax return Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Amend 2011 federal tax return Employee's reimbursed expenses. Amend 2011 federal tax return   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. Amend 2011 federal tax return Accountable plans are discussed later under Reimbursements . Amend 2011 federal tax return Individuals subject to “hours of service” limits. Amend 2011 federal tax return   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. Amend 2011 federal tax return The percentage is 80%. Amend 2011 federal tax return   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Amend 2011 federal tax return Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Amend 2011 federal tax return Interstate truck operators and bus drivers who are under Department of Transportation regulations. Amend 2011 federal tax return Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Amend 2011 federal tax return Certain merchant mariners who are under Coast Guard regulations. Amend 2011 federal tax return Other exceptions. Amend 2011 federal tax return   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. Amend 2011 federal tax return These are discussed in Publication 463. Amend 2011 federal tax return Figure 26-A. Amend 2011 federal tax return Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Amend 2011 federal tax return See Exceptions to the 50% Limit . Amend 2011 federal tax return Please click here for the text description of the image. Amend 2011 federal tax return Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Amend 2011 federal tax return Entertainment. Amend 2011 federal tax return    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Amend 2011 federal tax return Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. Amend 2011 federal tax return A meal as a form of entertainment. Amend 2011 federal tax return   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. Amend 2011 federal tax return A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Amend 2011 federal tax return To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Amend 2011 federal tax return You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Amend 2011 federal tax return Separating costs. Amend 2011 federal tax return   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. Amend 2011 federal tax return You must have a reasonable basis for making this allocation. Amend 2011 federal tax return For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Amend 2011 federal tax return Taking turns paying for meals or entertainment. Amend 2011 federal tax return   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Amend 2011 federal tax return Lavish or extravagant expenses. Amend 2011 federal tax return   You cannot deduct expenses for entertainment that are lavish or extravagant. Amend 2011 federal tax return An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Amend 2011 federal tax return 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. Amend 2011 federal tax return Trade association meetings. Amend 2011 federal tax return    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. Amend 2011 federal tax return These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Amend 2011 federal tax return Entertainment tickets. Amend 2011 federal tax return   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Amend 2011 federal tax return 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. Amend 2011 federal tax return What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Amend 2011 federal tax return Club dues and membership fees. Amend 2011 federal tax return   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Amend 2011 federal tax return 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. Amend 2011 federal tax return   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Amend 2011 federal tax return 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. Amend 2011 federal tax return Entertainment facilities. Amend 2011 federal tax return   Generally, you cannot deduct any expense for the use of an entertainment facility. Amend 2011 federal tax return This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Amend 2011 federal tax return   An entertainment facility is any property you own, rent, or use for entertainment. Amend 2011 federal tax return 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. Amend 2011 federal tax return Out-of-pocket expenses. Amend 2011 federal tax return   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. Amend 2011 federal tax return These are not expenses for the use of an entertainment facility. Amend 2011 federal tax return However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. Amend 2011 federal tax return Additional information. Amend 2011 federal tax return   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. Amend 2011 federal tax return Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Amend 2011 federal tax return This section explains the limits and rules for deducting the costs of gifts. Amend 2011 federal tax return $25 limit. Amend 2011 federal tax return   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. Amend 2011 federal tax return A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. Amend 2011 federal tax return   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. Amend 2011 federal tax return This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. Amend 2011 federal tax return   If you and your spouse both give gifts, both of you are treated as one taxpayer. Amend 2011 federal tax return It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. Amend 2011 federal tax return If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. Amend 2011 federal tax return Incidental costs. Amend 2011 federal tax return   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. Amend 2011 federal tax return   A cost is incidental only if it does not add substantial value to the gift. Amend 2011 federal tax return For example, the cost of customary gift wrapping is an incidental cost. Amend 2011 federal tax return However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. Amend 2011 federal tax return Exceptions. Amend 2011 federal tax return   The following items are not considered gifts for purposes of the $25 limit. Amend 2011 federal tax return An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. Amend 2011 federal tax return Examples include pens, desk sets, and plastic bags and cases. Amend 2011 federal tax return Signs, display racks, or other promotional material to be used on the business premises of the recipient. Amend 2011 federal tax return Gift or entertainment. Amend 2011 federal tax return   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Amend 2011 federal tax return However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. Amend 2011 federal tax return    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. Amend 2011 federal tax return You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. Amend 2011 federal tax return    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Amend 2011 federal tax return You cannot choose, in this case, to treat the cost of the tickets as a gift expense. Amend 2011 federal tax return Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . Amend 2011 federal tax return These expenses include the cost of transportation by air, rail, bus, taxi, etc. Amend 2011 federal tax return , and the cost of driving and maintaining your car. Amend 2011 federal tax return Transportation expenses include the ordinary and necessary costs of all of the following. Amend 2011 federal tax return Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. Amend 2011 federal tax return (Tax home is defined earlier under Travel Expenses . Amend 2011 federal tax return ) Visiting clients or customers. Amend 2011 federal tax return Going to a business meeting away from your regular workplace. Amend 2011 federal tax return Getting from your home to a temporary workplace when you have one or more regular places of work. Amend 2011 federal tax return These temporary workplaces can be either within the area of your tax home or outside that area. Amend 2011 federal tax return Transportation expenses do not include expenses you have while traveling away from home overnight. Amend 2011 federal tax return Those expenses are travel expenses, discussed earlier. Amend 2011 federal tax return However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Amend 2011 federal tax return See Car Expenses , later. Amend 2011 federal tax return Illustration of transportation expenses. Amend 2011 federal tax return    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. Amend 2011 federal tax return You may want to refer to it when deciding whether you can deduct your transportation expenses. Amend 2011 federal tax return Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Amend 2011 federal tax return However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. Amend 2011 federal tax return Temporary work location. Amend 2011 federal tax return   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Amend 2011 federal tax return   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Amend 2011 federal tax return   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Amend 2011 federal tax return   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Amend 2011 federal tax return It will not be treated as temporary after the date you determine it will last more than 1 year. Amend 2011 federal tax return   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Amend 2011 federal tax return You may have deductible travel expenses as discussed earlier in this chapter. Amend 2011 federal tax return No regular place of work. Amend 2011 federal tax return   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Amend 2011 federal tax return   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Amend 2011 federal tax return   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Amend 2011 federal tax return These are nondeductible commuting expenses. Amend 2011 federal tax return Two places of work. Amend 2011 federal tax return   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Amend 2011 federal tax return However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Amend 2011 federal tax return   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Amend 2011 federal tax return You cannot deduct them. Amend 2011 federal tax return Armed Forces reservists. Amend 2011 federal tax return   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Amend 2011 federal tax return You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. Amend 2011 federal tax return   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Amend 2011 federal tax return In this case, your transportation generally is a nondeductible commuting expense. Amend 2011 federal tax return However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Amend 2011 federal tax return   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Amend 2011 federal tax return   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Amend 2011 federal tax return These expenses are discussed earlier under Travel Expenses . Amend 2011 federal tax return   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. Amend 2011 federal tax return See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. Amend 2011 federal tax return Commuting expenses. Amend 2011 federal tax return   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Amend 2011 federal tax return These costs are personal commuting expenses. Amend 2011 federal tax return You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Amend 2011 federal tax return You cannot deduct commuting expenses even if you work during the commuting trip. Amend 2011 federal tax return Example. Amend 2011 federal tax return You sometimes use your cell phone to make business calls while commuting to and from work. Amend 2011 federal tax return Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Amend 2011 federal tax return These activities do not change the trip from personal to business. Amend 2011 federal tax return You cannot deduct your commuting expenses. Amend 2011 federal tax return Parking fees. Amend 2011 federal tax return   Fees you pay to park your car at your place of business are nondeductible commuting expenses. Amend 2011 federal tax return You can, however, deduct business-related parking fees when visiting a customer or client. Amend 2011 federal tax return Advertising display on car. Amend 2011 federal tax return   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Amend 2011 federal tax return If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Amend 2011 federal tax return Car pools. Amend 2011 federal tax return   You cannot deduct the cost of using your car in a nonprofit car pool. Amend 2011 federal tax return Do not include payments you receive from the passengers in your income. Amend 2011 federal tax return These payments are considered reimbursements of your expenses. Amend 2011 federal tax return However, if you operate a car pool for a profit, you must include payments from passengers in your income. Amend 2011 federal tax return You can then deduct your car expenses (using the rules in this chapter). Amend 2011 federal tax return Hauling tools or instruments. Amend 2011 federal tax return   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Amend 2011 federal tax return However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Amend 2011 federal tax return Union members' trips from a union hall. Amend 2011 federal tax return   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Amend 2011 federal tax return Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Amend 2011 federal tax return Office in the home. Amend 2011 federal tax return   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Amend 2011 federal tax return (See chapter 28 for information on determining if your home office qualifies as a principal place of business. Amend 2011 federal tax return ) Figure 26-B. Amend 2011 federal tax return When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. Amend 2011 federal tax return (Do not use this chart if your home is your principal place of business. Amend 2011 federal tax return See Office in the home . Amend 2011 federal tax return ) Please click here for the text description of the image. Amend 2011 federal tax return Figure 26-B. Amend 2011 federal tax return Local Transportation Examples of deductible transportation. Amend 2011 federal tax return   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Amend 2011 federal tax return Example 1. Amend 2011 federal tax return You regularly work in an office in the city where you live. Amend 2011 federal tax return Your employer sends you to a 1-week training session at a different office in the same city. Amend 2011 federal tax return You travel directly from your home to the training location and return each day. Amend 2011 federal tax return You can deduct the cost of your daily round-trip transportation between your home and the training location. Amend 2011 federal tax return Example 2. Amend 2011 federal tax return Your principal place of business is in your home. Amend 2011 federal tax return You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Amend 2011 federal tax return Example 3. Amend 2011 federal tax return You have no regular office, and you do not have an office in your home. Amend 2011 federal tax return In this case, the location of your first business contact inside the metropolitan area is considered your office. Amend 2011 federal tax return Transportation expenses between your home and this first contact are nondeductible commuting expenses. Amend 2011 federal tax return Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Amend 2011 federal tax return While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. Amend 2011 federal tax return With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. Amend 2011 federal tax return Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. Amend 2011 federal tax return You generally can use one of the two following methods to figure your deductible expenses. Amend 2011 federal tax return Standard mileage rate. Amend 2011 federal tax return Actual car expenses. Amend 2011 federal tax return If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Amend 2011 federal tax return See Leasing a car under Actual Car Expenses, later. Amend 2011 federal tax return In this chapter, “car” includes a van, pickup, or panel truck. Amend 2011 federal tax return Rural mail carriers. Amend 2011 federal tax return   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. Amend 2011 federal tax return Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. Amend 2011 federal tax return   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Amend 2011 federal tax return You must complete Form 2106 and attach it to your Form 1040. Amend 2011 federal tax return   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Amend 2011 federal tax return It is given as an equipment maintenance allowance (EMA) to employees of the U. Amend 2011 federal tax return S. Amend 2011 federal tax return Postal Service. Amend 2011 federal tax return It is at the rate contained in the 1991 collective bargaining agreement. Amend 2011 federal tax return Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Amend 2011 federal tax return See your employer for information on your reimbursement. Amend 2011 federal tax return If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Amend 2011 federal tax return Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Amend 2011 federal tax return For 2013, the standard mileage rate for business use is 56½ cents per mile. Amend 2011 federal tax return If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. Amend 2011 federal tax return You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Amend 2011 federal tax return See Reimbursements under How To Report, later. Amend 2011 federal tax return Choosing the standard mileage rate. Amend 2011 federal tax return   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Amend 2011 federal tax return Then in later years, you can choose to use either the standard mileage rate or actual expenses. Amend 2011 federal tax return   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Amend 2011 federal tax return   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Amend 2011 federal tax return You cannot revoke the choice. Amend 2011 federal tax return However, in a later year, you can switch from the standard mileage rate to the actual expenses method. Amend 2011 federal tax return If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Amend 2011 federal tax return Example. Amend 2011 federal tax return Larry is an employee who occasionally uses his own car for business purposes. Amend 2011 federal tax return He purchased the car in 2011, but he did not claim any unreimburse