Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Federal Tax Forms

2012 Taxes OnlineH & R Block Free Tax FilingIrs 2012 Tax Return FormsIs There A Way To File State Taxes For FreeWhere Can I Get State Tax FormsFree TaxTurbotax Free State File2007 Tax Software Free DownloadFile An Amended Tax Return For 2010H&r Block Free ReturnState Income Tax TablesTax Forms 20111040 Ez Tax FormForm 1040 2012How To File Form 1040xFiling State Taxes For FreeHow To File Amended Tax Return For 2011Free 2012 Tax Software DownloadAmend Tax Return 2011I Need Prior Year 1040ez Form 2010 I Caot Access Anywhere Anyone2012 Ez Tax Form2012 1040ez Tax FormIrs Tax Form 1040xAmendment For TaxesIrs Online 1040ezFiling Income Tax ReturnFiling Income Tax OnlineHow Do I Amend My Tax ReturnFree File State Income TaxWhere's My Amended ReturnHow To File Tax AmendmentState ReturnOrder 2012 Tax Forms From IrsFiling State Income Taxes OnlineTax Cut SoftwareFile State Taxes OnlineHow To Amend Federal Tax Return 2012Nj 1040nr 2012Self Employment Tax FilingTax Filing Extension Deadline 2012

Federal Tax Forms

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

Performance Dashboards

Track government performance.

  • Performance.gov
    Track progress on making government more effective and efficient
  • USASpending.gov
    How the government spends your tax dollars
  • RegInfo.gov
    Track proposed agency rules through the rulemaking process
  • Recovery.gov
    Track the spending of money allocated in the Reinvestment Act of 2009
  • Foreign Assistance
    Examine U.S. government foreign assistance spending
  • FederalTransparency.gov
    Track spending and jobs financed by the $10 billion Education Jobs Fund program.
  • Improper Payments
    How accurate is the government when paying the bills? See current and historical rates and amounts of improper payments, learn why improper payments occur, and discover what agencies are doing to reduce and recover improper payments.
  • Past Performance of Government Contractors
    Past Performance Information Retrieval System

The Federal Tax Forms

Federal tax forms Publication 1544 - Main Content Table of Contents Why Report These Payments? Who Must File Form 8300?What Payments Must Be Reported? What Is Cash? Taxpayer Identification Number (TIN) What Is a Related Transaction? What About Suspicious Transactions? When, Where, and What To File Examples Penalties How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Federal tax forms Why Report These Payments? Drug dealers and smugglers often use large cash payments to “launder” money from illegal activities. Federal tax forms Laundering means converting “dirty” or illegally-gained money to “clean” money. Federal tax forms The government can often trace this laundered money through the payments you report. Federal tax forms Laws passed by Congress require you to report these payments. Federal tax forms Your compliance with these laws provides valuable information that can stop those who evade taxes and those who profit from the drug trade and other criminal activities. Federal tax forms The USA PATRIOT Act of 2001 increased the scope of these laws to help trace funds used for terrorism. Federal tax forms Who Must File Form 8300? Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300. Federal tax forms For example, you may have to file Form 8300 if you are a dealer in jewelry, furniture, boats, aircraft, or automobiles; a pawnbroker; an attorney; a real estate broker; an insurance company; or a travel agency. Federal tax forms Special rules for clerks of federal or state courts are discussed later under Bail received by court clerks. Federal tax forms However, you do not have to file Form 8300 if the transaction is not related to your trade or business. Federal tax forms For example, if you own a jewelry store and sell your personal automobile for more than $10,000 in cash, you would not submit a Form 8300 for that transaction. Federal tax forms Transaction defined. Federal tax forms    A “transaction” occurs when: Goods, services, or property are sold; Property is rented; Cash is exchanged for other cash; A contribution is made to a trust or escrow account; A loan is made or repaid; or Cash is converted to a negotiable instrument, such as a check or a bond. Federal tax forms Person defined. Federal tax forms   A “person” includes an individual, a company, a corporation, a partnership, an association, a trust, or an estate. Federal tax forms   Exempt organizations, including employee plans, are also “persons. Federal tax forms ” However, exempt organizations do not have to file Form 8300 for a more-than-$10,000 charitable cash contribution they receive since it is not received in the course of a trade or business. Federal tax forms Foreign transactions. Federal tax forms   You do not have to file Form 8300 if the entire transaction (including the receipt of cash) takes place outside of: The 50 states, The District of Columbia, Puerto Rico, or A possession or territory of the United States. Federal tax forms However, you must file Form 8300 if any part of the transaction (including the receipt of cash) occurs in Puerto Rico or a possession or territory of the United States and you are subject to the Internal Revenue Code. Federal tax forms Bail received by court clerks. Federal tax forms   Any clerk of a federal or state court who receives more than $10,000 in cash as bail for an individual charged with any of the following criminal offenses must file Form 8300: Any federal offense involving a controlled substance, Racketeering, Money laundering, and Any state offense substantially similar to (1), (2), or (3) above. Federal tax forms For more information about the rules that apply to court clerks, see Section 1. Federal tax forms 6050I-2 of the Income Tax Regulations. Federal tax forms What Payments Must Be Reported? You must file Form 8300 to report cash paid to you if it is: Over $10,000, Received as: One lump sum of over $10,000, Installment payments that cause the total cash received within 1 year of the initial payment to total more than $10,000, or Other previously unreportable payments that cause the total cash received within a 12-month period to total more than $10,000, Received in the course of your trade or business, Received from the same buyer (or agent), and Received in a single transaction or in related transactions (defined later). Federal tax forms What Is Cash? Cash is: The coins and currency of the United States (and any other country), and A cashier's check, bank draft, traveler's check, or money order you receive, if it has a face amount of $10,000 or less and you receive it in: A designated reporting transaction (defined later), or Any transaction in which you know the payer is trying to avoid the reporting of the transaction on Form 8300. Federal tax forms Cash may include a cashier's check even if it is called a “treasurer's check” or “bank check. Federal tax forms ” Cash does not include a check drawn on an individual's personal account. Federal tax forms A cashier's check, bank draft, traveler's check, or money order with a face amount of more than $10,000 is not treated as cash. Federal tax forms These items are not defined as cash and you do not have to file Form 8300 when you receive them because, if they were bought with currency, the bank or other financial institution that issued them must file a report on FinCEN Form 104. Federal tax forms Example 1. Federal tax forms You are a coin dealer. Federal tax forms Bob Green buys gold coins from you for $13,200. Federal tax forms He pays for them with $6,200 in U. Federal tax forms S. Federal tax forms currency and a cashier's check having a face amount of $7,000. Federal tax forms The cashier's check is treated as cash. Federal tax forms You have received more than $10,000 cash and must file Form 8300 for this transaction. Federal tax forms Example 2. Federal tax forms You are a retail jeweler. Federal tax forms Mary North buys an item of jewelry from you for $12,000. Federal tax forms She pays for it with a personal check payable to you in the amount of $9,600 and traveler's checks totaling $2,400. Federal tax forms Because the personal check is not treated as cash, you have not received more than $10,000 cash in the transaction. Federal tax forms You do not have to file Form 8300. Federal tax forms Example 3. Federal tax forms You are a boat dealer. Federal tax forms Emily Jones buys a boat from you for $16,500. Federal tax forms She pays for it with a cashier's check payable to you in the amount of $16,500. Federal tax forms The cashier's check is not treated as cash because its face amount is more than $10,000. Federal tax forms You do not have to file Form 8300 for this transaction. Federal tax forms Designated Reporting Transaction A designated reporting transaction is the retail sale of any of the following: A consumer durable, such as an automobile or boat. Federal tax forms A consumer durable is property, other than land or buildings, that: Is suitable for personal use, Can reasonably be expected to last at least 1 year under ordinary use, Has a sales price of more than $10,000, and Can be seen or touched (tangible property). Federal tax forms For example, a $20,000 car is a consumer durable, but a $20,000 dump truck or factory machine is not. Federal tax forms The car is a consumer durable even if you sell it to a buyer who will use it in a business. Federal tax forms A collectible (for example, a work of art, rug, antique, metal, gem, stamp, or coin). Federal tax forms Travel or entertainment, if the total sales price of all items sold for the same trip or entertainment event in one transaction (or related transactions) is more than $10,000. Federal tax forms To figure the total sales price of all items sold for a trip or entertainment event, you include the sales price of items such as airfare, hotel rooms, and admission tickets. Federal tax forms Example. Federal tax forms You are a travel agent. Federal tax forms Ed Johnson asks you to charter a passenger airplane to take a group to a sports event in another city. Federal tax forms He also asks you to book hotel rooms and admission tickets for the group. Federal tax forms In payment, he gives you two money orders, each for $6,000. Federal tax forms You have received more than $10,000 cash in this designated reporting transaction. Federal tax forms You must file Form 8300. Federal tax forms Retail sale. Federal tax forms   The term “retail sale” means any sale made in the course of a trade or business that consists mainly of making sales to ultimate consumers. Federal tax forms   Thus, if your business consists mainly of making sales to ultimate consumers, all sales you make in the course of that business are retail sales. Federal tax forms This includes any sales of items that will be resold. Federal tax forms Broker or intermediary. Federal tax forms   A designated reporting transaction includes the retail sale of items (1), (2), or (3) of the preceding list, even if the funds are received by a broker or other intermediary, rather than directly by the seller. Federal tax forms Exceptions to Definition of Cash A cashier's check, bank draft, traveler's check, or money order you received in a designated reporting transaction is not treated as cash if one of the following exceptions applies. Federal tax forms Exception for certain bank loans. Federal tax forms   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is the proceeds from a bank loan. Federal tax forms As proof that it is from a bank loan, you may rely on a copy of the loan document, a written statement or lien instruction from the bank, or similar proof. Federal tax forms Example. Federal tax forms You are a car dealer. Federal tax forms Mandy White buys a new car from you for $11,500. Federal tax forms She pays you with $2,000 of U. Federal tax forms S. Federal tax forms currency and a cashier's check for $9,500 payable to you and her. Federal tax forms You can tell that the cashier's check is the proceeds of a bank loan because it includes instructions to you to have a lien put on the car as security for the loan. Federal tax forms For this reason, the cashier's check is not treated as cash. Federal tax forms You do not have to file Form 8300 for the transaction. Federal tax forms Exception for certain installment sales. Federal tax forms   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if it is received in payment on a promissory note or an installment sales contract (including a lease that is considered a sale for federal tax purposes). Federal tax forms However, this exception applies only if: You use similar notes or contracts in other sales to ultimate consumers in the ordinary course of your trade or business, and The total payments for the sale that you receive on or before the 60th day after the sale are 50% or less of the purchase price. Federal tax forms Exception for certain down payment plans. Federal tax forms   A cashier's check, bank draft, traveler's check, or money order is not treated as cash if you received it in payment for a consumer durable or collectible, and all three of the following statements are true. Federal tax forms You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the date of sale. Federal tax forms You receive it more than 60 days before the date of sale. Federal tax forms You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Federal tax forms Exception for travel and entertainment. Federal tax forms   A cashier's check, bank draft, traveler's check, or money order received for travel or entertainment is not treated as cash if all three of the following statements are true. Federal tax forms You receive it under a payment plan requiring: One or more down payments, and Payment of the rest of the purchase price by the earliest date that any travel or entertainment item (such as airfare) is furnished for the trip or entertainment event. Federal tax forms You receive it more than 60 days before the date on which the final payment is due. Federal tax forms You use payment plans with the same or substantially similar terms when selling to ultimate consumers in the ordinary course of your trade or business. Federal tax forms Taxpayer Identification Number (TIN) You must furnish the correct TIN of the person or persons from whom you receive the cash. Federal tax forms If the transaction is conducted on the behalf of another person or persons, you must furnish the TIN of that person or persons. Federal tax forms If you do not know a person's TIN, you have to ask for it. Federal tax forms You may be subject to penalties for an incorrect or missing TIN. Federal tax forms There are three types of TINs. Federal tax forms The TIN for an individual, including a sole proprietor, is the individual's social security number (SSN). Federal tax forms The TIN for a nonresident alien individual who needs a TIN but is not eligible to get an SSN is an IRS individual taxpayer identification number (ITIN). Federal tax forms An ITIN has nine digits, similar to an SSN. Federal tax forms The TIN for other persons, including corporations, partnerships, and estates, is the employer identification number (EIN). Federal tax forms Exception. Federal tax forms   You are not required to provide the TIN of a person who is a nonresident alien individual or a foreign organization if that person or foreign organization: Does not have income effectively connected with the conduct of a U. Federal tax forms S. Federal tax forms trade or business; Does not have an office or place of business, or a fiscal or paying agent in the United States; Does not file a federal tax return; Does not furnish a withholding certificate described in §1. Federal tax forms 1441-1(e)(2) or (3) or 1. Federal tax forms 1441-5(c)(2)(iv) or (3)(iii) to the extent required under 1. Federal tax forms 1441-1(e)(4)(vii); Does not have to furnish a TIN on any return, statement, or other document as required by the income tax regulations under section 897 or 1445; or In the case of a nonresident alien individual, the individual has not chosen to file a joint federal income tax return with a spouse who is a U. Federal tax forms S. Federal tax forms citizen or resident. Federal tax forms What Is a Related Transaction? Any transactions between a buyer (or an agent of the buyer) and a seller that occur within a 24-hour period are related transactions. Federal tax forms If you receive over $10,000 in cash during two or more transactions with one buyer in a 24-hour period, you must treat the transactions as one transaction and report the payments on Form 8300. Federal tax forms For example, if you sell two products for $6,000 each to the same customer in 1 day and the customer pays you in cash, these are related transactions. Federal tax forms Because they total $12,000 (more than $10,000), you must file Form 8300. Federal tax forms More than 24 hours between transactions. Federal tax forms   Transactions are related even if they are more than 24 hours apart if you know, or have reason to know, that each is one of a series of connected transactions. Federal tax forms   For example, you are a travel agent. Federal tax forms A client pays you $8,000 in cash for a trip. Federal tax forms Two days later, the same client pays you $3,000 more in cash to include another person on the trip. Federal tax forms These are related transactions, and you must file Form 8300 to report them. Federal tax forms What About Suspicious Transactions? If you receive $10,000 or less in cash, you may voluntarily file Form 8300 if the transaction appears to be suspicious. Federal tax forms A transaction is suspicious if it appears that a person is trying to cause you not to file Form 8300 or is trying to cause you to file a false or incomplete Form 8300, or if there is a sign of possible illegal activity. Federal tax forms If you are suspicious, you are encouraged to call the local IRS Criminal Investigation Division as soon as possible. Federal tax forms Or, you can call the FinCEN Financial Institution Hotline toll free at 1-866-556-3974. Federal tax forms When, Where, and What To File The amount you receive and when you receive it determine when you must file. Federal tax forms Generally, you must file Form 8300 within 15 days after receiving a payment. Federal tax forms If the Form 8300 due date (the 15th or last day you can timely file the form) falls on a Saturday, Sunday, or legal holiday, it is delayed until the next day that is not a Saturday, Sunday, or legal holiday. Federal tax forms More than one payment. Federal tax forms   In some transactions, the buyer may arrange to pay you in cash installment payments. Federal tax forms If the first payment is more than $10,000, you must file Form 8300 within 15 days. Federal tax forms If the first payment is not more than $10,000, you must add the first payment and any later payments made within 1 year of the first payment. Federal tax forms When the total cash payments are more than $10,000, you must file Form 8300 within 15 days. Federal tax forms   After you file Form 8300, you must start a new count of cash payments received from that buyer. Federal tax forms If you receive more than $10,000 in additional cash payments from that buyer within a 12-month period, you must file another Form 8300. Federal tax forms You must file the form within 15 days of the payment that causes the additional payments to total more than $10,000. Federal tax forms   If you are already required to file Form 8300 and you receive additional payments within the 15 days before you must file, you can report all the payments on one form. Federal tax forms Example. Federal tax forms On January 10, you receive a cash payment of $11,000. Federal tax forms You receive additional cash payments on the same transaction of $4,000 on February 15, $5,000 on March 20, and $6,000 on May 12. Federal tax forms By January 25, you must file a Form 8300 for the $11,000 payment. Federal tax forms By May 27, you must file an additional Form 8300 for the additional payments that total $15,000. Federal tax forms Amending a Report?   If you are amending a report, check box 1a at the top of Form 8300. Federal tax forms Complete the form in its entirety (Parts I-IV) and include the amended information. Federal tax forms Do not attach a copy of the original report. Federal tax forms Where to file. Federal tax forms   Mail the form to the address given in the Form 8300 instructions. Federal tax forms Required statement to buyer. Federal tax forms   You must give a written or electronic statement to each person named on any Form 8300 you must file. Federal tax forms You can give the statement electronically only if the recipient agrees to receive it in that format. Federal tax forms The statement must show the name and address of your business, the name and phone number of a contact person, and the total amount of reportable cash you received from the person during the year. Federal tax forms It must state that you are also reporting this information to the IRS. Federal tax forms   You must send this statement to the buyer by January 31 of the year after the year in which you received the cash that caused you to file the form. Federal tax forms    You must keep a copy of every Form 8300 you file for 5 years. Federal tax forms Examples Example 1. Federal tax forms Pat Brown is the sales manager for Small Town Cars. Federal tax forms On January 6, 2009, Jane Smith buys a new car from Pat and pays $18,000 in cash. Federal tax forms Pat asks for identification from Jane to get the necessary information to complete Form 8300. Federal tax forms A filled-in form is shown in this publication. Federal tax forms Pat must mail the form to the address shown in the form's instructions by January 21, 2009. Federal tax forms He must also send a statement to Jane by January 31, 2010. Federal tax forms Example 2. Federal tax forms Using the same facts given in Example 1, suppose Jane had arranged to make cash payments of $6,000 each on January 6, February 6, and March 6. Federal tax forms Pat would have to file a Form 8300 by February 26 (17 days after receiving total cash payments within 1 year over $10,000 because February 21, 2009, is a Saturday). Federal tax forms Pat would not have to report the remaining $6,000 cash payment because it is not more than $10,000. Federal tax forms However, he could report it if he felt it was a suspicious transaction. Federal tax forms Penalties There are civil penalties for failure to: File a correct Form 8300 by the date it is due, and Provide the required statement to those named in the Form 8300. Federal tax forms If you intentionally disregard the requirement to file a correct Form 8300 by the date it is due, the penalty is the greater of: $25,000, or The amount of cash you received and were required to report (up to $100,000). Federal tax forms There are criminal penalties for: Willful failure to file Form 8300, Willfully filing a false or fraudulent Form 8300, Stopping or trying to stop Form 8300 from being filed, and Setting up, helping to set up, or trying to set up a transaction in a way that would make it seem unnecessary to file Form 8300. Federal tax forms If you willfully fail to file Form 8300, you can be fined up to $250,000 for individuals ($500,000 for corporations) or sentenced to up to 5 years in prison, or both. Federal tax forms These dollar amounts are based on Section 3571 of Title 18 of the U. Federal tax forms S. Federal tax forms Code. Federal tax forms The penalties for failure to file may also apply to any person (including a payer) who attempts to interfere with or prevent the seller (or business) from filing a correct Form 8300. Federal tax forms This includes any attempt to structure the transaction in a way that would make it seem unnecessary to file Form 8300. Federal tax forms Structuring means breaking up a large cash transaction into small cash transactions. Federal tax forms How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Federal tax forms By selecting the method that is best for you, you will have quick and easy access to tax help. Federal tax forms Free help with your return. Federal tax forms   Free help in preparing your return is available nationwide from IRS-certified volunteers. Federal tax forms The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Federal tax forms Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Federal tax forms To find the nearest VITA or TCE site, visit IRS. Federal tax forms gov or call 1-800-906-9887 or 1-800-829-1040. Federal tax forms   As part of the TCE program, AARP offers the Tax-Aide counseling program. Federal tax forms To find the nearest AARP Tax-Aide site, call 1-888-227-7669 or visit AARP's website at www. Federal tax forms aarp. Federal tax forms org/money/taxaide. Federal tax forms   For more information on these programs, go to IRS. Federal tax forms gov and enter keyword “VITA” in the upper right-hand corner. Federal tax forms Internet. Federal tax forms You can access the IRS website at IRS. Federal tax forms gov 24 hours a day, 7 days a week to: Check the status of your 2011 refund. Federal tax forms Go to IRS. Federal tax forms gov and click on Where's My Refund. Federal tax forms Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Federal tax forms If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Federal tax forms Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Federal tax forms E-file your return. Federal tax forms Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Federal tax forms Download forms, including talking tax forms, instructions, and publications. Federal tax forms Order IRS products online. Federal tax forms Research your tax questions online. Federal tax forms Search publications online by topic or keyword. Federal tax forms Use the online Internal Revenue Code, regulations, or other official guidance. Federal tax forms View Internal Revenue Bulletins (IRBs) published in the last few years. Federal tax forms Figure your withholding allowances using the withholding calculator online at  www. Federal tax forms irs. Federal tax forms gov/individuals. Federal tax forms Determine if Form 6251 must be filed by using our Alternative Minimum Tax (AMT) Assistant available online at  www. Federal tax forms irs. Federal tax forms gov/individuals. Federal tax forms Sign up to receive local and national tax news by email. Federal tax forms Get information on starting and operating a small business. Federal tax forms Phone. Federal tax forms Many services are available by phone. Federal tax forms   Ordering forms, instructions, and publications. Federal tax forms Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions. Federal tax forms You should receive your order within 10 days. Federal tax forms Asking tax questions. Federal tax forms Call the IRS with your tax questions at 1-800-829-1040. Federal tax forms Solving problems. Federal tax forms You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Federal tax forms An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Federal tax forms Call your local Taxpayer Assistance Center for an appointment. Federal tax forms To find the number, go to www. Federal tax forms irs. Federal tax forms gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Federal tax forms TTY/TDD equipment. Federal tax forms If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Federal tax forms TeleTax topics. Federal tax forms Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Federal tax forms Refund information. Federal tax forms You can check the status of your refund on the new IRS phone app. Federal tax forms Download the free IRS2Go app by visiting the iTunes app store or the Android Marketplace. Federal tax forms IRS2Go is a new way to provide you with information and tools. Federal tax forms To check the status of your refund by phone, call 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). Federal tax forms Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. Federal tax forms If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Federal tax forms Have your 2011 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Federal tax forms If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. Federal tax forms Other refund information. Federal tax forms To check the status of a prior-year refund or amended return refund, call 1-800-829-1040. Federal tax forms Evaluating the quality of our telephone services. Federal tax forms To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Federal tax forms One method is for a second IRS representative to listen in on or record random telephone calls. Federal tax forms Another is to ask some callers to complete a short survey at the end of the call. Federal tax forms Walk-in. Federal tax forms Many products and services are available on a walk-in basis. Federal tax forms   Products. Federal tax forms You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Federal tax forms Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Federal tax forms Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Federal tax forms Services. Federal tax forms You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Federal tax forms An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Federal tax forms If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Federal tax forms No appointment is necessary—just walk in. Federal tax forms If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Federal tax forms A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Federal tax forms If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. Federal tax forms All other issues will be handled without an appointment. Federal tax forms To find the number of your local office, go to www. Federal tax forms irs. Federal tax forms gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Federal tax forms Mail. Federal tax forms You can send your order for forms, instructions, and publications to the address below. Federal tax forms You should receive a response within 10 days after your request is received. Federal tax forms  Internal Revenue Service 1201 N. Federal tax forms Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Federal tax forms   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Federal tax forms Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Federal tax forms We offer free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Federal tax forms Remember, the worst thing you can do is nothing at all. Federal tax forms   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Federal tax forms You face (or your business is facing) an immediate threat of adverse action. Federal tax forms You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Federal tax forms   If you qualify for our help, we’ll do everything we can to get your problem resolved. Federal tax forms You will be assigned to one advocate who will be with you at every turn. Federal tax forms We have offices in every state, the District of Columbia, and Puerto Rico. Federal tax forms Although TAS is independent within the IRS, our advocates know how to work with the IRS to get your problems resolved. Federal tax forms And our services are always free. Federal tax forms   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Federal tax forms Our tax toolkit at www. Federal tax forms TaxpayerAdvocate. Federal tax forms irs. Federal tax forms gov can help you understand these rights. Federal tax forms   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Federal tax forms irs. Federal tax forms gov/advocate. Federal tax forms You can also call our toll-free number at 1-877-777-4778. Federal tax forms   TAS also handles large-scale or systemic problems that affect many taxpayers. Federal tax forms If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Federal tax forms irs. Federal tax forms gov/advocate. Federal tax forms Low Income Taxpayer Clinics (LITCs). Federal tax forms   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Federal tax forms Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Federal tax forms These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Federal tax forms Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Federal tax forms For more information and to find a clinic near you, see the LITC page on www. Federal tax forms irs. Federal tax forms gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Federal tax forms This publication is also available by calling 1-800-829-3676 or at your local IRS office. Federal tax forms Free tax services. Federal tax forms   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Federal tax forms Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Federal tax forms The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Federal tax forms The majority of the information and services listed in this publication are available to you free of charge. Federal tax forms If there is a fee associated with a resource or service, it is listed in the publication. Federal tax forms   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Federal tax forms DVD for tax products. Federal tax forms You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Federal tax forms Prior-year forms, instructions, and publications. Federal tax forms Tax Map: an electronic research tool and finding aid. Federal tax forms Tax law frequently asked questions. Federal tax forms Tax Topics from the IRS telephone response system. Federal tax forms Internal Revenue Code—Title 26 of the U. Federal tax forms S. Federal tax forms Code. Federal tax forms Links to other Internet based Tax Research Materials. Federal tax forms Fill-in, print, and save features for most tax forms. Federal tax forms Internal Revenue Bulletins. Federal tax forms Toll-free and email technical support. Federal tax forms Two releases during the year. Federal tax forms  – The first release will ship the beginning of January. Federal tax forms  – The final release will ship the beginning of March. Federal tax forms Purchase the DVD from National Technical Information Service (NTIS) at www. Federal tax forms irs. Federal tax forms gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Federal tax forms This image is too large to be displayed in the current screen. Federal tax forms Please click the link to view the image. Federal tax forms Fill-in Form 8300 Prev  Up  Next   Home   More Online Publications