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File 1040ez online irs Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. File 1040ez online irs Computer used in a home office. File 1040ez online irs Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). File 1040ez online irs You can claim the amount of expenses that is more than 2% of your adjusted gross income. File 1040ez online irs You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. File 1040ez online irs Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. File 1040ez online irs Generally, you apply the 2% limit after you apply any other deduction limit. File 1040ez online irs For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. File 1040ez online irs Deductions subject to the 2% limit are discussed in the following three categories. File 1040ez online irs Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). File 1040ez online irs Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). File 1040ez online irs Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). File 1040ez online irs Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. File 1040ez online irs You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. File 1040ez online irs An expense is ordinary if it is common and accepted in your trade, business, or profession. File 1040ez online irs An expense is necessary if it is appropriate and helpful to your business. File 1040ez online irs An expense does not have to be required to be considered necessary. File 1040ez online irs You may be able to deduct the following items as unreimbursed employee expenses. File 1040ez online irs Business bad debt of an employee. File 1040ez online irs Business liability insurance premiums. File 1040ez online irs Damages paid to a former employer for breach of an employment contract. File 1040ez online irs Depreciation on a computer your employer requires you to use in your work. File 1040ez online irs Dues to a chamber of commerce if membership helps you do your job. File 1040ez online irs Dues to professional societies. File 1040ez online irs Educator expenses. File 1040ez online irs Home office or part of your home used regularly and exclusively in your work. File 1040ez online irs Job search expenses in your present occupation. File 1040ez online irs Laboratory breakage fees. File 1040ez online irs Legal fees related to your job. File 1040ez online irs Licenses and regulatory fees. File 1040ez online irs Malpractice insurance premiums. File 1040ez online irs Medical examinations required by an employer. File 1040ez online irs Occupational taxes. File 1040ez online irs Passport for a business trip. File 1040ez online irs Repayment of an income aid payment received under an employer's plan. File 1040ez online irs Research expenses of a college professor. File 1040ez online irs Rural mail carriers' vehicle expenses. File 1040ez online irs Subscriptions to professional journals and trade magazines related to your work. File 1040ez online irs Tools and supplies used in your work. File 1040ez online irs Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. File 1040ez online irs Union dues and expenses. File 1040ez online irs Work clothes and uniforms if required and not suitable for everyday use. File 1040ez online irs Work-related education. File 1040ez online irs Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. File 1040ez online irs Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. File 1040ez online irs A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. File 1040ez online irs Example. File 1040ez online irs You make a bona fide loan to the corporation you work for. File 1040ez online irs It fails to pay you back. File 1040ez online irs You had to make the loan in order to keep your job. File 1040ez online irs You have a business bad debt as an employee. File 1040ez online irs More information. File 1040ez online irs   For more information on business bad debts, see chapter 10 in Publication 535. File 1040ez online irs For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. File 1040ez online irs Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. File 1040ez online irs Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. File 1040ez online irs Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. File 1040ez online irs For the convenience of your employer. File 1040ez online irs   This means that your use of the computer is for a substantial business reason of your employer. File 1040ez online irs You must consider all facts in making this determination. File 1040ez online irs Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. File 1040ez online irs Required as a condition of your employment. File 1040ez online irs   This means that you cannot properly perform your duties without the computer. File 1040ez online irs Whether you can properly perform your duties without it depends on all the facts and circumstances. File 1040ez online irs It is not necessary that your employer explicitly requires you to use your computer. File 1040ez online irs But neither is it enough that your employer merely states that your use of the item is a condition of your employment. File 1040ez online irs Example. File 1040ez online irs You are an engineer with an engineering firm. File 1040ez online irs You occasionally take work home at night rather than work late at the office. File 1040ez online irs You own and use a computer that is similar to the one you use at the office to complete your work at home. File 1040ez online irs Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. File 1040ez online irs Which depreciation method to use. File 1040ez online irs   The depreciation method you use depends on whether you meet the more-than-50%-use test. File 1040ez online irs More-than-50%-use test met. File 1040ez online irs   You meet this test if you use the computer more than 50% in your work. File 1040ez online irs If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). File 1040ez online irs In addition, you may be able to take the section 179 deduction for the year you place the item in service. File 1040ez online irs More-than-50%-use test not met. File 1040ez online irs   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). File 1040ez online irs You also cannot claim the section 179 deduction. File 1040ez online irs (But if you use your computer in a home office, see the exception below. File 1040ez online irs ) Investment use. File 1040ez online irs   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. File 1040ez online irs However, you can combine your investment use with your work use in figuring your depreciation deduction. File 1040ez online irs Exception for computer used in a home office. File 1040ez online irs   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . File 1040ez online irs You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. File 1040ez online irs You also may be able to take a section 179 deduction for the year you place the computer in service. File 1040ez online irs See Computer used in a home office under How To Report, later. File 1040ez online irs More information. File 1040ez online irs   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. File 1040ez online irs Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. File 1040ez online irs Reporting your depreciation deduction. File 1040ez online irs    See How To Report, later, for information about reporting a deduction for depreciation. File 1040ez online irs You must keep records to prove your percentage of business and investment use. File 1040ez online irs Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. File 1040ez online irs Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. File 1040ez online irs Lobbying and political activities. File 1040ez online irs    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. File 1040ez online irs See Lobbying Expenses under Nondeductible Expenses, later. File 1040ez online irs Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. File 1040ez online irs If you file Form 1040A, you can deduct these expenses on line 16. File 1040ez online irs If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. File 1040ez online irs However, neither spouse can deduct more than $250 of his or her qualified expenses. File 1040ez online irs Eligible educator. File 1040ez online irs   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. File 1040ez online irs Qualified expenses. File 1040ez online irs   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. File 1040ez online irs An ordinary expense is one that is common and accepted in your educational field. File 1040ez online irs A necessary expense is one that is helpful and appropriate for your profession as an educator. File 1040ez online irs An expense does not have to be required to be considered necessary. File 1040ez online irs   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. File 1040ez online irs You must reduce your qualified expenses by the following amounts. File 1040ez online irs Excludable U. File 1040ez online irs S. File 1040ez online irs series EE and I savings bond interest from Form 8815. File 1040ez online irs Nontaxable qualified state tuition program earnings. File 1040ez online irs Nontaxable earnings from Coverdell education savings accounts. File 1040ez online irs Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. File 1040ez online irs Educator expenses over limit. File 1040ez online irs   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. File 1040ez online irs Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. File 1040ez online irs You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. File 1040ez online irs The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. File 1040ez online irs Principal place of business. File 1040ez online irs   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. File 1040ez online irs   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. File 1040ez online irs You should keep records that will give the information needed to figure the deduction according to these rules. File 1040ez online irs Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. File 1040ez online irs More information. File 1040ez online irs   See Publication 587 for more detailed information and a worksheet for figuring the deduction. File 1040ez online irs Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. File 1040ez online irs You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. File 1040ez online irs Employment and outplacement agency fees. File 1040ez online irs    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. File 1040ez online irs Employer pays you back. File 1040ez online irs   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. File 1040ez online irs See Recoveries in Publication 525. File 1040ez online irs Employer pays the employment agency. File 1040ez online irs   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. File 1040ez online irs Résumé. File 1040ez online irs   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. File 1040ez online irs Travel and transportation expenses. File 1040ez online irs   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. File 1040ez online irs You can deduct the travel expenses if the trip is primarily to look for a new job. File 1040ez online irs The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. File 1040ez online irs   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. File 1040ez online irs    You can choose to use the standard mileage rate to figure your car expenses. File 1040ez online irs The 2013 rate for business use of a vehicle is 56½ cents per mile. File 1040ez online irs See Publication 463 for more information on travel and car expenses. File 1040ez online irs Legal Fees You can deduct legal fees related to doing or keeping your job. File 1040ez online irs Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. File 1040ez online irs Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. File 1040ez online irs If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. File 1040ez online irs Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. File 1040ez online irs If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. File 1040ez online irs Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. File 1040ez online irs You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. File 1040ez online irs However, you cannot deduct the cost of travel as a form of education. File 1040ez online irs Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. File 1040ez online irs See chapter 4 of Publication 463 for more information. File 1040ez online irs Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. File 1040ez online irs You can depreciate the cost of tools that have a useful life substantially beyond the tax year. File 1040ez online irs For more information about depreciation, see Publication 946. File 1040ez online irs Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. File 1040ez online irs Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. File 1040ez online irs Travel expenses. File 1040ez online irs   Travel expenses are those incurred while traveling away from home for your employer. File 1040ez online irs You can deduct travel expenses paid or incurred in connection with a temporary work assignment. File 1040ez online irs Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. File 1040ez online irs   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. File 1040ez online irs ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. File 1040ez online irs   Travel expenses are discussed more fully in chapter 1 of Publication 463. File 1040ez online irs Temporary work assignment. File 1040ez online irs    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. File 1040ez online irs Indefinite work assignment. File 1040ez online irs   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. File 1040ez online irs If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. File 1040ez online irs Federal crime investigation and prosecution. File 1040ez online irs   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. File 1040ez online irs This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. File 1040ez online irs   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. File 1040ez online irs Armed Forces reservists traveling more than 100 miles from home. File 1040ez online irs   If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. File 1040ez online irs The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. File 1040ez online irs The balance, if any, is reported on Schedule A. File 1040ez online irs   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. File 1040ez online irs   For more information on travel expenses, see Publication 463. File 1040ez online irs Local transportation expenses. File 1040ez online irs   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. File 1040ez online irs They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. File 1040ez online irs   You can choose to use the standard mileage rate to figure your car expenses. File 1040ez online irs The 2013 rate for business use of a vehicle is 56½ cents per mile. File 1040ez online irs    In general, the costs of commuting between your residence and your place of business are nondeductible. File 1040ez online irs Work at two places in a day. File 1040ez online irs   If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. File 1040ez online irs Temporary work location. File 1040ez online irs   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. File 1040ez online irs The work location is outside the metropolitan area where you live and normally work. File 1040ez online irs You have at least one regular work location (other than your home) for the same trade or business. File 1040ez online irs (If this applies, the distance between your home and the temporary work location does not matter. File 1040ez online irs )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. File 1040ez online irs It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. File 1040ez online irs If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. File 1040ez online irs For more information, see chapter 1 of Publication 463. File 1040ez online irs Home office. File 1040ez online irs   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. File 1040ez online irs (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. File 1040ez online irs ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. File 1040ez online irs Meals and entertainment. File 1040ez online irs   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. File 1040ez online irs However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. File 1040ez online irs   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. File 1040ez online irs You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. File 1040ez online irs Meals when subject to “hours of service” limits. File 1040ez online irs   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. File 1040ez online irs You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. File 1040ez online irs Gift expenses. File 1040ez online irs   You can generally deduct up to $25 of business gifts you give to any one individual during the year. File 1040ez online irs The following items do not count toward the $25 limit. File 1040ez online irs Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. File 1040ez online irs Signs, racks, and promotional materials to be displayed on the business premises of the recipient. File 1040ez online irs Local lodging. File 1040ez online irs   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. File 1040ez online irs   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. File 1040ez online irs Additional information. File 1040ez online irs    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. File 1040ez online irs Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. File 1040ez online irs You can also deduct assessments for benefit payments to unemployed union members. File 1040ez online irs However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. File 1040ez online irs Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. File 1040ez online irs You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. File 1040ez online irs See Lobbying Expenses under Nondeductible Expenses, later. File 1040ez online irs Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. File 1040ez online irs You must wear them as a condition of your employment. File 1040ez online irs The clothes are not suitable for everyday wear. File 1040ez online irs It is not enough that you wear distinctive clothing. File 1040ez online irs The clothing must be specifically required by your employer. File 1040ez online irs Nor is it enough that you do not, in fact, wear your work clothes away from work. File 1040ez online irs The clothing must not be suitable for taking the place of your regular clothing. File 1040ez online irs Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. File 1040ez online irs ). File 1040ez online irs Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. File 1040ez online irs However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. File 1040ez online irs Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. File 1040ez online irs Protective clothing. File 1040ez online irs   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. File 1040ez online irs   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. File 1040ez online irs Military uniforms. File 1040ez online irs   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. File 1040ez online irs However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. File 1040ez online irs In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. File 1040ez online irs   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. File 1040ez online irs   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. File 1040ez online irs However, you can deduct the cost of insignia, shoulder boards, and related items. File 1040ez online irs    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. File 1040ez online irs Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. File 1040ez online irs It maintains or improves skills required in your present work. File 1040ez online irs It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. File 1040ez online irs You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. File 1040ez online irs If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. File 1040ez online irs If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. File 1040ez online irs Travel as education. File 1040ez online irs   You cannot deduct the cost of travel that in itself constitutes a form of education. File 1040ez online irs For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. File 1040ez online irs More information. File 1040ez online irs    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. File 1040ez online irs Education Expenses During Unemployment If you stop working for a year or less in order to get education in order 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. File 1040ez online irs Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. File 1040ez online irs Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. File 1040ez online irs Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. File 1040ez online irs These fees include the cost of tax preparation software programs and tax publications. File 1040ez online irs They also include any fee you paid for electronic filing of your return. File 1040ez online irs See Tax preparation fees under How To Report, later. File 1040ez online irs Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. File 1040ez online irs On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. File 1040ez online irs You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. File 1040ez online irs These other expenses include the following items. File 1040ez online irs Appraisal fees for a casualty loss or charitable contribution. File 1040ez online irs Casualty and theft losses from property used in performing services as an employee. File 1040ez online irs Clerical help and office rent in caring for investments. File 1040ez online irs Depreciation on home computers used for investments. File 1040ez online irs Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. File 1040ez online irs Fees to collect interest and dividends. File 1040ez online irs Hobby expenses, but generally not more than hobby income. File 1040ez online irs Indirect miscellaneous deductions from pass-through entities. File 1040ez online irs Investment fees and expenses. File 1040ez online irs Legal fees related to producing or collecting taxable income or getting tax advice. File 1040ez online irs Loss on deposits in an insolvent or bankrupt financial institution. File 1040ez online irs Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. File 1040ez online irs Repayments of income. File 1040ez online irs Repayments of social security benefits. File 1040ez online irs Safe deposit box rental, except for storing jewelry and other personal effects. File 1040ez online irs Service charges on dividend reinvestment plans. File 1040ez online irs Tax advice fees. File 1040ez online irs Trustee's fees for your IRA, if separately billed and paid. File 1040ez online irs If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. File 1040ez online irs Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. File 1040ez online irs Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. File 1040ez online irs First report the loss in Section B of Form 4684, Casualties and Thefts. File 1040ez online irs You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. File 1040ez online irs To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. File 1040ez online irs For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. File 1040ez online irs Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. File 1040ez online irs Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. File 1040ez online irs The fees are deductible on the return for the year in which you paid them. File 1040ez online irs For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. File 1040ez online irs Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). File 1040ez online irs You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. File 1040ez online irs But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. File 1040ez online irs For more information on depreciation, see Publication 946. File 1040ez online irs Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. File 1040ez online irs Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. File 1040ez online irs The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. File 1040ez online irs For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. File 1040ez online irs Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. File 1040ez online irs But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. File 1040ez online irs You must add the fee to the cost of the property. File 1040ez online irs You cannot deduct the fee you pay to a broker to sell securities. File 1040ez online irs You can use the fee only to figure gain or loss from the sale. File 1040ez online irs See the instructions for Schedule D (Form 1040) for information on how to report the fee. File 1040ez online irs Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. File 1040ez online irs A hobby is not a business because it is not carried on to make a profit. File 1040ez online irs See Not-for-Profit Activities in chapter 1 of Publication 535. File 1040ez online irs Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. File 1040ez online irs Deductions of pass-through entities are passed through to the partners or shareholders. File 1040ez online irs The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. File 1040ez online irs Example. File 1040ez online irs You are a member of an investment club that is formed solely to invest in securities. File 1040ez online irs The club is treated as a partnership. File 1040ez online irs The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. File 1040ez online irs In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. File 1040ez online irs However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. File 1040ez online irs Publicly offered mutual funds. File 1040ez online irs   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. File 1040ez online irs A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. File 1040ez online irs   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). File 1040ez online irs This net figure is the amount you report on your return as income. File 1040ez online irs You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. File 1040ez online irs Information returns. File 1040ez online irs   You should receive information returns from pass-through entities. File 1040ez online irs Partnerships and S corporations. File 1040ez online irs   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. File 1040ez online irs Nonpublicly offered mutual funds. File 1040ez online irs   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. File 1040ez online irs You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. File 1040ez online irs Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. File 1040ez online irs Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. File 1040ez online irs You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. File 1040ez online irs You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. File 1040ez online irs You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). File 1040ez online irs See Tax Preparation Fees, earlier. File 1040ez online irs Unlawful discrimination claims. File 1040ez online irs   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. File 1040ez online irs S. File 1040ez online irs Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. File 1040ez online irs However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. File 1040ez online irs See Publication 525 for more information. File 1040ez online irs Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. File 1040ez online irs If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. File 1040ez online irs If elected, the casualty loss is subject to certain deduction limitations. File 1040ez online irs The election is made on Form 4684. File 1040ez online irs Once you make this choice, you cannot change it without IRS approval. File 1040ez online irs If none of the deposit is federally insured, you can deduct the loss in either of the following ways. File 1040ez online irs As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). File 1040ez online irs Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. File 1040ez online irs This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. File 1040ez online irs As a casualty loss. File 1040ez online irs Report it on Form 4684 first and then on Schedule A (Form 1040). File 1040ez online irs See Publication 547 for details. File 1040ez online irs As a nonbusiness bad debt. File 1040ez online irs Report it on Schedule D (Form 1040). File 1040ez online irs If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. File 1040ez online irs Exception. File 1040ez online irs   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. File 1040ez online irs For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. File 1040ez online irs Actual loss different from estimated loss. File 1040ez online irs   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. File 1040ez online irs See Recoveries in Publication 525. File 1040ez online irs If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. File 1040ez online irs Choice not made. File 1040ez online irs   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. File 1040ez online irs See Nonbusiness Bad Debts in chapter 4 of Publication 550. File 1040ez online irs Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. File 1040ez online irs For more information, see Publication 590, Individual Retirement Arrangements (IRAs). File 1040ez online irs Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. File 1040ez online irs If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. File 1040ez online irs If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. File 1040ez online irs Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. File 1040ez online irs The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. File 1040ez online irs The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. File 1040ez online irs It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). File 1040ez online irs If the deduction is more than $3,000, you will have to use a special computation to figure your tax. File 1040ez online irs See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. File 1040ez online irs Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. File 1040ez online irs You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. File 1040ez online irs Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. File 1040ez online irs These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. File 1040ez online irs Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. File 1040ez online irs Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. File 1040ez online irs They are not subject to the 2% limit. File 1040ez online irs Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. File 1040ez online irs List of Deductions Amortizable premium on taxable bonds. File 1040ez online irs Casualty and theft losses from income-producing property. File 1040ez online irs Federal estate tax on income in respect of a decedent. File 1040ez online irs Gambling losses up to the amount of gambling winnings. File 1040ez online irs Impairment-related work expenses of persons with disabilities. File 1040ez online irs Loss from other activities from Schedule K-1 (Form 1065-B), box 2. File 1040ez online irs Losses from Ponzi-type investment schemes. File 1040ez online irs Repayments of more than $3,000 under a claim of right. File 1040ez online irs Unrecovered investment in an annuity. File 1040ez online irs Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. File 1040ez online irs You can elect to amortize the premium on taxable bonds. File 1040ez online irs The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. File 1040ez online irs Pre-1998 election to amortize bond premium. File 1040ez online irs   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. File 1040ez online irs Bonds acquired after October 22, 1986, and before 1988. File 1040ez online irs   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. File 1040ez online irs Bonds acquired before October 23, 1986. File 1040ez online irs   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. File 1040ez online irs Deduction for excess premium. File 1040ez online irs   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. File 1040ez online irs If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. File 1040ez online irs However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. File 1040ez online irs If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. File 1040ez online irs    Pre-1998 choice to amortize bond premium. File 1040ez online irs If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. File 1040ez online irs More information. File 1040ez online irs    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. File 1040ez online irs Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). File 1040ez online irs First report the loss in Section B of Form 4684. File 1040ez online irs You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. File 1040ez online irs To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. File 1040ez online irs For more information on casualty and theft losses, see Publication 547. File 1040ez online irs Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. File 1040ez online irs Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. File 1040ez online irs See Publication 559 for information about figuring the amount of this deduction. File 1040ez online irs Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. File 1040ez online irs You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. File 1040ez online irs You cannot deduct gambling losses that are more than your winnings. File 1040ez online irs Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). File 1040ez online irs You cannot reduce your gambling winnings by your gambling losses and report the difference. File 1040ez online irs You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. File 1040ez online irs Therefore, your records should show your winnings separately from your losses. File 1040ez online irs Diary of winnings and losses. File 1040ez online irs You must keep an accurate diary or similar record of your losses and winnings. File 1040ez online irs Your diary should contain at least the following information. File 1040ez online irs The date and type of your specific wager or wagering activity. File 1040ez online irs The name and address or location of the gambling establishment. File 1040ez online irs The names of other persons present with you at the gambling establishment. File 1040ez online irs The amount(s) you won or lost. File 1040ez online irs Proof of winnings and losses. File 1040ez online irs   In addition to your diary, you should also have other documentation. File 1040ez online irs You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. File 1040ez online irs   For specific wagering transactions, you can use the following items to support your winnings and losses. File 1040ez online irs    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. File 1040ez online irs They are not all-inclusive. File 1040ez online irs Your tax liability depends on your particular facts and circumstances. File 1040ez online irs Keno. File 1040ez online irs   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. File 1040ez online irs Slot machines. File 1040ez online irs   A record of the machine number and all winnings by date and time the machine was played. File 1040ez online irs Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. File 1040ez online irs ). File 1040ez online irs   The number of the table at which you were playing. File 1040ez online irs Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. File 1040ez online irs Bingo. File 1040ez online irs   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. File 1040ez online irs Supplemental records include any receipts from the casino, parlor, etc. File 1040ez online irs Racing (horse, harness, dog, etc. File 1040ez online irs ). File 1040ez online irs   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. File 1040ez online irs Supplemental records include unredeemed tickets and payment records from the racetrack. File 1040ez online irs Lotteries. File 1040ez online irs   A record of ticket purchases, dates, winnings, and losses. File 1040ez online irs Supplemental records include unredeemed tickets, payment slips, and winnings statements. File 1040ez online irs Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. File 1040ez online irs Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. File 1040ez online irs Example. File 1040ez online irs You are blind. File 1040ez online irs You must use a reader to do your work. File 1040ez online irs You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. File 1040ez online irs The reader's services are only for your work. File 1040ez online irs You can deduct your expenses for the reader as impairment-related work expenses. File 1040ez online irs Self-employed. File 1040ez online irs   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. File 1040ez online irs See Impairment-related work expenses. File 1040ez online irs , later under How To Report. File 1040ez online irs Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. File 1040ez online irs S. File 1040ez online irs trade or business). File 1040ez online irs It is not subject to the passive activity limitations. File 1040ez online irs Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. File 1040ez online irs See Publication 463 for more information. File 1040ez online irs Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. File 1040ez online irs If you are an employee, complete Form 2106 or Form 2106-EZ. File 1040ez online irs See Publication 463 for more information. File 1040ez online irs Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. File 1040ez online irs You figure the deductible loss in Section B of Form 4684. File 1040ez online irs However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. File 1040ez online irs Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. File 1040ez online irs You do not need to complete Appendix A. File 1040ez online irs See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. File 1040ez online irs Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. File 1040ez online irs See Repayments in Publication 525 for more information. File 1040ez online irs Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. File 1040ez online irs If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. File 1040ez online irs See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. File 1040ez online irs Nondeductible Expenses You cannot deduct the following expenses. File 1040ez online irs List of Nondeductible Expenses Adoption expenses. File 1040ez online irs Broker's commissions. File 1040ez online irs Burial or funeral expenses, including the cost of a cemetery lot. File 1040ez online irs Campaign expenses. File 1040ez online irs Capital expenses. File 1040ez online irs Check-writing fees. File 1040ez online irs Club dues. File 1040ez online irs Commuting expenses. File 1040ez online irs Fees and licenses, such as car licenses, marriage licenses, and dog tags. File 1040ez online irs Fines and penalties, such as parking tickets. File 1040ez online irs Health spa expenses. File 1040ez online irs Hobby losses—but see Hobby Expenses, earlier. File 1040ez online irs Home repairs, insurance, and rent. File 1040ez online irs Home security system. File 1040ez online irs Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. File 1040ez online irs Investment-related seminars. File 1040ez online irs Life insurance premiums paid by the insured. File 1040ez online irs Lobbying expenses. File 1040ez online irs Losses from the sale of your home, furniture, personal car, etc. File 1040ez online irs Lost or misplaced cash or property. File 1040ez online irs Lunches with co-workers. File 1040ez online irs Meals while working late. File 1040ez online irs Medical expenses as business expenses other than medical examinations required by your employer. File 1040ez online irs Personal disability insurance premiums. File 1040ez online irs Personal legal expenses. File 1040ez online irs Personal, living, or family expenses. File 1040ez online irs Political contributions. File 1040ez online irs Professional accreditation fees. File 1040ez online irs Professional reputation, expenses to improve. File 1040ez online irs Relief fund contributions. File 1040ez online irs Residential telephone line. File 1040ez online irs Stockholders' meeting, expenses of attending. File 1040ez online irs Tax-exempt income, expenses of earning or collecting. File 1040ez online irs The value of wages never received or lost vacation time. File 1040ez online irs Travel expenses for another individual. File 1040ez online irs Voluntary unemployment benefit fund contributions. File 1040ez online irs Wristwatches. File 1040ez online irs Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. File 1040ez online irs For details, see Form 8839, Qualified Adoption Expenses. File 1040ez online irs Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. File 1040ez online irs Instead, these fees must be added to the taxpayer's cost of the securities. File 1040ez online irs Commissions paid on the sale are deductible as business expenses only by dealers. File 1040ez online irs Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. File 1040ez online irs These include qualification and registration fees for primary elections. File 1040ez online irs Legal fees. File 1040ez online irs   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. File 1040ez online irs Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. File 1040ez online irs If you use such property in your work, you may be able to take a depreciation deduction. File 1040ez online irs See Publication 946. File 1040ez online irs If the property is a car used in your work, also see Publication 463. File 1040ez online irs Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. File 1040ez online irs Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. File 1040ez online irs This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. File 1040ez online irs You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. File 1040ez online irs Dues paid to airline, hotel, and luncheon clubs are not deductible. File 1040ez online irs Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). File 1040ez online irs If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. File 1040ez online irs Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. File 1040ez online irs This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). File 1040ez online irs Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. File 1040ez online irs Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. File 1040ez online irs Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. File 1040ez online irs However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. File 1040ez online irs See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. File 1040ez online irs Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. File 1040ez online irs Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. File 1040ez online irs You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. File 1040ez online irs See Publication 504, Divorced or Separated Individuals, for information on alimony. File 1040ez online irs Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. File 1040ez online irs These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. File 1040ez online irs Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. File 1040ez online irs Covered executive branch official. File 1040ez online irs   A covered executive branch official, for the purpose of (4) above, is any of the following officials. File 1040ez online irs The President. File 1040ez online irs The Vice President. File 1040ez online irs Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. File 1040ez online irs Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. File 1040ez online irs Dues used for lobbying. File 1040ez online irs   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. File 1040ez online irs Exceptions. File 1040ez online irs   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. File 1040ez online irs You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). File 1040ez online irs An Indian tribal government is considered a local council or similar governing body. File 1040ez online irs You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). File 1040ez online irs If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. File 1040ez online irs Payments by the other person to you for lobbying activities cannot be deducted. File 1040ez online irs Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. File 1040ez online irs However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. File 1040ez online irs See Publication 547. File 1040ez online irs Example. File 1040ez online irs A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. File 1040ez online irs The diamond falls from the ring and is never found. File 1040ez online irs The loss of the diamond is a casualty. File 1040ez online irs Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. File 1040ez online irs See Publication 463 for information on deductible expenses while traveling away from home. File 1040ez online irs Meals While Working Late You cannot deduct the cost of meals while working late. File 1040ez online irs However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. File 1040ez online irs See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. File 1040ez online irs Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. File 1040ez online irs Custody of children. File 1040ez online irs Breach of promise to marry suit. File 1040ez online irs Civil or criminal charges resulting from a personal relationship. File 1040ez online irs Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). File 1040ez online irs For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. File 1040ez online irs Preparation of a title (or defense or perfection of a title). File 1040ez online irs Preparation of a will. File 1040ez online irs Property claims or property settlement in a divorce. File 1040ez online irs You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. File 1040ez online irs Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. File 1040ez online irs Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. File 1040ez online irs Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. File 1040ez online irs Accounting certificate fees paid for the initial right to practice accounting. File 1040ez online irs Bar exam fees and incidental expenses in securing initial admission to the bar. File 1040ez online irs Medical and dental license fees paid to get initial licensing. File 1040ez online irs Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. File 1040ez online irs Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. File 1040ez online irs Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. File 1040ez online irs Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. File 1040ez online irs You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. File 1040ez online irs Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. File 1040ez online irs You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. File 1040ez online irs If you have expenses to p
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Buying a New Car

Whether you are buying or leasing a vehicle, these tips will help you get the best deal and avoid problems.

  • Check out different vehicles. Do your research first and compare vehicles. You can go to the website of every car manufacturer and review every model of car available. In fact, most manufacturer sites will even let you use drop down menus to “build” an electronic version of your dream car. Then, when you decide which model, colors, and accessories you want, you can hit the locate dealer button and find the closest showroom that has your car.
  • Research the dealer’s price for the car and options. It’s easier to get the best price when you know what the dealer paid for a vehicle. The dealer invoice price is available at a number of websites and in printed pricing guides. Consumer Reports provides the wholesale price; this figure factors in dealer incentives from a manufacturer and is a more accurate estimate of what a dealer is paying for a vehicle.
  • Special Discounts. Determine if you qualify for special discounts or rebates for military personnel, students or other qualifying groups.
  • Negotiate. Negotiate up from the invoice price instead of down from the inflated price to get a good deal.
  • Find out if the manufacturer is offering rebates that will lower the cost. Two websites that offer this information are Carsdirect.com and Autopedia.com.
  • Get price quotes from several dealers. Find out if the amounts quoted are the prices before or after rebates are deducted.
  • Avoid low-value extras such as credit insurance, auto club memberships, extended warranties, rust proofing and upholstery finishes. You do not have to purchase credit insurance in order to get a loan.
  • Hybrid-electric cars are becoming popular among consumers interested in fuel economy and reducing their negative impact on the environment. These cars combine the benefits of gasoline engines and electric motors and can be configured to achieve different objectives such as improved fuel economy, increased power, or additional auxiliary power.

The File 1040ez Online Irs

File 1040ez online irs 15. File 1040ez online irs   Estimated Tax Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Special Estimated Tax Rules for Qualified FarmersQualified Farmer Special Rules for Qualified Farmers Estimated Tax Penalty for 2013 What's New Net Investment Income Tax. File 1040ez online irs . File 1040ez online irs  For tax years beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). File 1040ez online irs NIIT is a 3. File 1040ez online irs 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income (MAGI) over the threshold amount. File 1040ez online irs NIIT may need to be included when calculating your estimated tax. File 1040ez online irs For more information, see Publication 505,Tax Withholding and Estimated Tax. File 1040ez online irs Additional Medicare Tax. File 1040ez online irs  For tax years beginning in 2013, a 0. File 1040ez online irs 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. File 1040ez online irs You may need to include this amount when figuring your estimated tax. File 1040ez online irs For more information, see Publication 505. File 1040ez online irs Introduction Estimated tax is the method used to pay tax on income that is not subject to withholding. File 1040ez online irs See Publication 505 for the general rules and requirements for paying estimated tax. File 1040ez online irs If you are a qualified farmer, defined below, you are subject to the special rules covered in this chapter for paying estimated tax. File 1040ez online irs Topics - This chapter discusses: Special estimated tax rules for qualified farmers Estimated tax penalty Useful Items - You may want to see: Publication 505 Tax Withholding and Estimated Tax Form (and Instructions) 1040 U. File 1040ez online irs S. File 1040ez online irs Individual Income Tax Return 1040-ES Estimated Tax for Individuals 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 16 for information about getting publications and forms. File 1040ez online irs Special Estimated Tax Rules for Qualified Farmers Special rules apply to the payment of estimated tax by individuals who are qualified farmers. File 1040ez online irs If you are not a qualified farmer as defined next, see Publication 505 for the estimated tax rules that apply. File 1040ez online irs Qualified Farmer An individual is a qualified farmer for 2013 if at least two-thirds of his or her gross income from all sources for 2012 or 2013 was from farming. File 1040ez online irs See Gross Income , next, for information on how to figure your gross income from all sources and see Gross Income From Farming , later, for information on how to figure your gross income from farming. File 1040ez online irs See also Percentage From Farming , later, for information on how to determine the percentage of your gross income from farming. File 1040ez online irs Gross Income Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from income tax. File 1040ez online irs On a joint return, you must add your spouse's gross income to your gross income. File 1040ez online irs To decide whether two-thirds of your gross income was from farming, use as your gross income the total of the following income (not loss) amounts from your tax return. File 1040ez online irs Wages, salaries, tips, etc. File 1040ez online irs Taxable interest. File 1040ez online irs Ordinary dividends. File 1040ez online irs Taxable refunds, credits, or offsets of state and local income taxes. File 1040ez online irs Alimony. File 1040ez online irs Gross business income from Schedule C (Form 1040). File 1040ez online irs Gross business receipts from Schedule C-EZ (Form 1040). File 1040ez online irs Capital gains from Schedule D (Form 1040). File 1040ez online irs Losses are not netted against gains. File 1040ez online irs Gains on sales of business property. File 1040ez online irs Taxable IRA distributions, pensions, annuities, and social security benefits. File 1040ez online irs Gross rental income from Schedule E (Form 1040). File 1040ez online irs Gross royalty income from Schedule E (Form 1040). File 1040ez online irs Taxable net income from an estate or trust reported on Schedule E (Form 1040). File 1040ez online irs Income from a Real Estate Mortgage Investment Conduit reported on Schedule E (Form 1040). File 1040ez online irs Gross farm rental income from Form 4835. File 1040ez online irs Gross farm income from Schedule F (Form 1040). File 1040ez online irs Your distributive share of gross income from a partnership, or limited liability company treated as a partnership, from Schedule K-1 (Form 1065). File 1040ez online irs Your pro rata share of gross income from an S corporation, from Schedule K-1 (Form 1120S). File 1040ez online irs Unemployment compensation. File 1040ez online irs Other income not included with any of the items listed above. File 1040ez online irs Gross Income From Farming Gross income from farming is income from cultivating the soil or raising agricultural commodities. File 1040ez online irs It includes the following amounts. File 1040ez online irs Income from operating a stock, dairy, poultry, bee, fruit, or truck farm. File 1040ez online irs Income from a plantation, ranch, nursery, range, orchard, or oyster bed. File 1040ez online irs Crop shares for the use of your land. File 1040ez online irs Gains from sales of draft, breeding, dairy, or sporting livestock. File 1040ez online irs Gross income from farming is the total of the following amounts from your tax return. File 1040ez online irs Gross farm income from Schedule F (Form 1040). File 1040ez online irs Gross farm rental income from Form 4835. File 1040ez online irs Gross farm income from Schedule E (Form 1040), Parts II and III. File 1040ez online irs Gains from the sale of livestock used for draft, breeding, sport, or dairy purposes reported on Form 4797. File 1040ez online irs For more information about income from farming, see chapter 3. File 1040ez online irs Farm income does not include any of the following: Wages you receive as a farm employee. File 1040ez online irs Income you receive from contract grain harvesting and hauling with workers and machines you furnish. File 1040ez online irs Gains you receive from the sale of farm land and depreciable farm equipment. File 1040ez online irs Percentage From Farming Figure your gross income from all sources, discussed earlier. File 1040ez online irs Then figure your gross income from farming, discussed earlier. File 1040ez online irs Divide your farm gross income by your total gross income to determine the percentage of gross income from farming. File 1040ez online irs Example 1. File 1040ez online irs Jane Smith had the following total gross income and farm gross income amounts in 2013. File 1040ez online irs Gross Income   Total Farm Taxable interest $3,000   Dividends 500   Rental income (Sch E) 41,500   Farm income (Sch F) 75,000 $75,000 Gain (Form 4797) 5,000 5,000 Total $125,000 $80,000 Schedule D showed gain from the sale of dairy cows carried over from Form 4797 ($5,000) in addition to a loss from the sale of corporate stock ($2,000). File 1040ez online irs However, that loss is not netted against the gain to figure Ms. File 1040ez online irs Smith's total gross income or her gross farm income. File 1040ez online irs Her gross farm income is 64% of her total gross income ($80,000 ÷ $125,000 = 0. File 1040ez online irs 64). File 1040ez online irs Special Rules for Qualified Farmers The following special estimated tax rules apply if you are a qualified farmer for 2013. File 1040ez online irs You do not have to pay estimated tax if you file your 2013 tax return and pay all the tax due by March 3, 2014. File 1040ez online irs You do not have to pay estimated tax if your 2013 income tax withholding (including any amount applied to your 2013 estimated tax from your 2012 return) will be at least 662/3% (. File 1040ez online irs 6667) of the total tax shown on your 2013 tax return or 100% of the total tax shown on your 2012 return. File 1040ez online irs If you must pay estimated tax, you are required to make only one estimated tax payment (your required annual payment) by January 15, 2014, using special rules to figure the amount of the payment. File 1040ez online irs See Required Annual Payment , next, for details. File 1040ez online irs Figure 15-1 presents an overview of the special estimated tax rules that apply to qualified farmers. File 1040ez online irs Example 2. File 1040ez online irs Assume the same fact as in Example 1. File 1040ez online irs Ms. File 1040ez online irs Smith's gross farm income is only 64% of her total income. File 1040ez online irs Therefore, based on her 2013 income, she does not qualify to use the special estimated tax rules for qualified farmers. File 1040ez online irs However, she does qualify if at least two-thirds of her 2012 gross income was from farming. File 1040ez online irs Example 3. File 1040ez online irs Assume the same facts as in Example 1 except that Ms. File 1040ez online irs Smith's farm income from Schedule F was $90,000 instead of $75,000. File 1040ez online irs This made her total gross income $140,000 ($3,000 + $500 + $41,500 + $90,000 + $5,000) and her farm gross income $95,000 ($90,000 + $5,000). File 1040ez online irs She qualifies to use the special estimated tax rules for qualified farmers, since 67. File 1040ez online irs 9% (at least two-thirds) of her gross income is from farming ($95,000 ÷ $140,000 = . File 1040ez online irs 679). File 1040ez online irs Required Annual Payment If you are a qualified farmer and must pay estimated tax for 2013, use the worksheet on Form 1040-ES to figure the amount of your required annual payment. File 1040ez online irs Apply the following special rules for qualified farmers to the worksheet. File 1040ez online irs On line 14a, multiply line 13c by 662/3% (. File 1040ez online irs 6667). File 1040ez online irs On line 14b, enter 100% of the tax shown on your 2012 tax return regardless of the amount of your adjusted gross income. File 1040ez online irs For this purpose, the “tax shown on your 2012 tax return” is the amount on line 61 of your 2012 return modified by certain adjustments. File 1040ez online irs For more information, see chapter 4 of Publication 505. File 1040ez online irs Estimated Tax Penalty for 2013 If you do not pay all your required estimated tax for 2013 by January 15, 2014, or file your 2013 return and pay any tax due by March 3, 2014, you may owe a penalty. File 1040ez online irs Use Form 2210-F, Underpayment of Estimated Tax by Farmers and Fishermen, to determine if you owe a penalty. File 1040ez online irs See the instructions for Form 2210-F. File 1040ez online irs Figure 15-1. File 1040ez online irs Estimated Tax for Farmers Please click here for the text description of the image. File 1040ez online irs Figure 2–A If you receive a penalty notice, do not ignore it, even if you think it is in error. File 1040ez online irs You may get a penalty notice even though you filed your return on time, attached Form 2210-F, and met the gross-income-from-farming requirement. File 1040ez online irs If you receive a penalty notice for underpaying estimated tax and you think it is in error, write to the address on the notice and explain why you think the notice is in error. File 1040ez online irs Include a computation similar to the one in Example 1 (earlier), showing that you met the gross income from farming requirement. File 1040ez online irs Prev  Up  Next   Home   More Online Publications