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File 2011 Tax Return

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File 2011 Tax Return

File 2011 tax return Index Symbols 1231 property sale, Sale of property interest. File 2011 tax return 401(k) plans, Elective Deferrals Excess contributions, Excess Contributions 403(b) plans, Elective Deferrals Limit for, Limit for tax-sheltered annuities. File 2011 tax return 457 plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under section 457 plans. File 2011 tax return 501(c)(18)(D) plans, Elective Deferrals Contributions, Section 501(c)(18)(D) contributions. File 2011 tax return 501(c)(3) organizations, Student loans. File 2011 tax return 529 program, Qualified tuition program (QTP). File 2011 tax return 83(b) election, How to make the choice. File 2011 tax return A Academic health centers Meals and lodging when teaching and research organization, Academic health center. File 2011 tax return Accelerated death benefits, Accelerated Death Benefits Accident insurance, Accident or Health Plan Accidental death benefits, Accidental death benefits. File 2011 tax return Accrual method taxpayers, Prepaid income. File 2011 tax return Accrued leave payment At time of retirement or resignation, Accrued leave payment. File 2011 tax return Disability retirement, Accrued leave payment. File 2011 tax return Activity not for profit, Activity not for profit. File 2011 tax return Adoption Employer assistance, Adoption Assistance Advance commissions, Miscellaneous Compensation Aircraft, Flights on employer-provided aircraft. File 2011 tax return Airlines No-additional-cost services, No-Additional-Cost Services Valuation of flights on employer-provided aircraft, Flights on employer-provided aircraft. File 2011 tax return Alaska Permanent Fund dividend, Alaska Permanent Fund dividend. File 2011 tax return Alien status, waiver of, Waiver of alien status. File 2011 tax return Aliens Nonresident, Nonresident aliens. File 2011 tax return Alimony, Alimony. File 2011 tax return Alternative minimum tax (AMT) Recoveries, refiguring of, Subject to alternative minimum tax. File 2011 tax return Stock options, Alternative minimum tax (AMT). File 2011 tax return Annuities Charitable gift, Charitable gift annuities. File 2011 tax return Railroad retirement, Railroad retirement annuities. File 2011 tax return Tax-sheltered, Limit for tax-sheltered annuities. File 2011 tax return Archer MSAs, Archer MSA contributions. File 2011 tax return , Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File 2011 tax return Armed forces, Military Combat zone bonus, Veterans' benefits. File 2011 tax return Disability, Disability. File 2011 tax return Disability pensions, Military and Government Disability Pensions Health professions scholarship, Tuition Reduction Military action as cause of disability injuries, Terrorist attack or military action. File 2011 tax return Qualified reservist distribution, Qualified reservist distribution (QRD). File 2011 tax return Rehabilitative program payments, Veterans' benefits. File 2011 tax return Retirement pay, Military retirement pay. File 2011 tax return Veterans benefits, Veterans' benefits. File 2011 tax return Assistance (see Tax help) Athletic facilities, employer-provided, Athletic Facilities Automobile (see Vehicle, employer-provided) Awards (see Damages from lawsuits) B Babysitting, Babysitting. File 2011 tax return Back pay, award for, Back pay awards. File 2011 tax return Backup withholding Barter exchange transactions, Backup withholding. File 2011 tax return Bankruptcy Canceled debt not deemed to be income, Excluded debt. File 2011 tax return Barter income, Bartering Below-market loans, Below-market loans. File 2011 tax return Bequest for services, Bequest for services. File 2011 tax return Bicycle, Transportation Fringe benefit, Qualified bicycle commuting. File 2011 tax return Black lung benefit payments, Black lung benefit payments. File 2011 tax return Bonuses, Bonuses and awards. File 2011 tax return , Employee awards or bonuses. File 2011 tax return Breach of contract Damages as income, Court awards and damages. File 2011 tax return Bribes, Bribes. File 2011 tax return Business expenses Reimbursements, Allowances and reimbursements. File 2011 tax return Business income, Business and Investment Income, More information. File 2011 tax return C Cafeteria plans, Cafeteria plans. File 2011 tax return Campaign contributions, Campaign contributions. File 2011 tax return Campus lodging, Qualified campus lodging. File 2011 tax return , Moving Expense Reimbursements Cancellation of debt, Canceled Debts Cancellation of sales contracts, Canceled sales contract. File 2011 tax return Capital gains Recoveries, Capital gains. File 2011 tax return , Capital gains. File 2011 tax return Capital gains or losses Employee stock option plans (ESOPs), Option granted at a discount. File 2011 tax return Incentive stock options (ISOs), Incentive stock options (ISOs). File 2011 tax return Sale of personal property, Sale of personal items. File 2011 tax return Car (see Vehicle, employer-provided) Car pools, Car pools. File 2011 tax return Cash or deferred arrangements (CODAs), Elective Deferrals Cash rebates, Cash rebates. File 2011 tax return Casualty insurance Reimbursements from, Casualty insurance and other reimbursements. File 2011 tax return Catch-up contributions, Catch-up contributions. File 2011 tax return , Catch-up contributions. File 2011 tax return Charitable gift annuities, Charitable gift annuities. File 2011 tax return Child and Adult Care Food Program Payments to daycare providers, Food program payments to daycare providers. File 2011 tax return Child support payments, Child support payments. File 2011 tax return Childcare providers, Childcare providers. File 2011 tax return , Food program payments to daycare providers. File 2011 tax return Chronic illness, Chronically ill individual. File 2011 tax return Accelerated death benefits paid to, Exclusion for chronic illness. File 2011 tax return Citizens outside U. File 2011 tax return S. File 2011 tax return Exclusion of foreign income, Reminders Civil Rights Act of 1964, Title VII Back pay and damages for emotional distress under, Court awards and damages. File 2011 tax return Clergy, Clergy Coal, Coal and iron ore. File 2011 tax return Colleges and universities Faculty lodging, Faculty lodging. File 2011 tax return Scholarships and fellowships, Scholarships and fellowships. File 2011 tax return Commissions Advance, Miscellaneous Compensation Commuter highway vehicles, Transportation Compensation Employee, Employee Compensation Miscellaneous, Miscellaneous Compensation Unemployment, Unemployment compensation. File 2011 tax return Workers', Workers' Compensation Compensatory damages, Other compensation. File 2011 tax return , Court awards and damages. File 2011 tax return Constructive receipt of income, Constructively received income. File 2011 tax return Copyrights Infringement damages, Court awards and damages. File 2011 tax return Royalties, Copyrights and patents. File 2011 tax return Corporate directors, Corporate director. File 2011 tax return Cost-of-living allowances, Government cost-of-living allowances. File 2011 tax return Court awards, Court awards and damages. File 2011 tax return (see also Damages from lawsuits) Credit card Insurance, Credit card insurance. File 2011 tax return Credits Recoveries, refiguring of unused credits, Unused tax credits. File 2011 tax return , Unused tax credits. File 2011 tax return Currency transactions, foreign, Foreign currency transactions. File 2011 tax return D Damages from lawsuits, Court awards and damages. File 2011 tax return Back pay awards, Back pay awards. File 2011 tax return Breach of contract, Court awards and damages. File 2011 tax return Compensatory damages, Other compensation. File 2011 tax return , Court awards and damages. File 2011 tax return Emotional distress under Title VII, Civil Rights Act of 1964, Court awards and damages. File 2011 tax return Punitive damages, Court awards and damages. File 2011 tax return Daycare providers, Childcare providers. File 2011 tax return (see also Childcare providers) Food program payments to, Food program payments to daycare providers. File 2011 tax return De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Death benefits, Proceeds not received in installments. File 2011 tax return (see also Life insurance) Accelerated, Accelerated Death Benefits Debts Canceled, Canceled Debts Excluded debt, Excluded debt. File 2011 tax return Nonrecourse debts, Mortgage relief upon sale or other disposition. File 2011 tax return Recourse, Mortgage relief upon sale or other disposition. File 2011 tax return Stockholder's, Stockholder debt. File 2011 tax return Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. File 2011 tax return Deferred compensation Nonqualified plans, Nonqualified deferred compensation plans. File 2011 tax return , Nonqualified deferred compensation plans of nonqualified entities. File 2011 tax return Dependent care benefits, Dependent Care Benefits Depletion allowance, Depletion. File 2011 tax return Differential wage payments, Differential wage payments. File 2011 tax return Armed forces, Differential wage payments. File 2011 tax return Directors' fees, Corporate director. File 2011 tax return Disability Military, Disability. File 2011 tax return Pensions, Disability Pensions Workers' compensation, Disability pension. File 2011 tax return Person with, Persons with disabilities. File 2011 tax return Unemployment compensation, paid as substitute for, Types of unemployment compensation. File 2011 tax return Disaster relief Disaster mitigation payments, Disaster mitigation payments. File 2011 tax return Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. File 2011 tax return Unemployment benefits, Unemployment Benefits Mitigation payments, Reminders Payments, Disaster relief payments. File 2011 tax return Discounts Employee discounts, Employee Discounts Employee stock purchase plans, Option granted at a discount. File 2011 tax return Mortgage loan for early payment, Discounted mortgage loan. File 2011 tax return Dividends Restricted stock, Dividends received on restricted stock. File 2011 tax return Divorced taxpayers Stock options exercised incident to divorce, Tax form. File 2011 tax return Down payment assistance, Down payment assistance. File 2011 tax return E Educational assistance Employer-provided, Educational Assistance Scholarships and fellowships, Scholarships and fellowships. File 2011 tax return Educational institutions Faculty lodging, Faculty lodging. File 2011 tax return Elderly persons Nutrition Program for the Elderly, Nutrition Program for the Elderly. File 2011 tax return Tax Counseling for the Elderly, Volunteer tax counseling. File 2011 tax return Election precinct officials, Election precinct official. File 2011 tax return Elective deferrals, Elective Deferrals Catch-up contributions, Catch-up contributions. File 2011 tax return , Catch-up contributions. File 2011 tax return Excess annual additions, Excess Annual Additions Excess contributions, Excess Contributions Excess deferrals, Excess deferrals. File 2011 tax return Increased limit for last 3 years prior to retirement age, Increased limit. File 2011 tax return Limit on, Elective Deferrals Reporting by employer, Reporting by employer. File 2011 tax return Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. File 2011 tax return Emotional distress damages, Emotional distress. File 2011 tax return Employee achievement awards, Employee achievement award. File 2011 tax return Employee awards or bonuses, Employee awards or bonuses. File 2011 tax return Employee compensation, Employee Compensation, Inherited property not substantially vested. File 2011 tax return Fringe benefits, Fringe Benefits, Special valuation rules. File 2011 tax return Restricted property, Restricted Property, Inherited property not substantially vested. File 2011 tax return Retirement plan contributions, Retirement Plan Contributions Stock options, Stock Options, Statutory Stock Options Employee discounts, Employee Discounts Employee stock purchase plans, Statutory Stock Options, Employee stock purchase plan. File 2011 tax return Employer, foreign, Foreign Employer Employer-owned life insurance, Employer-owned life insurance contract. File 2011 tax return Employer-provided Educational assistance, Educational Assistance Vehicles, Employer-provided vehicles. File 2011 tax return Employment Abroad, Employment abroad. File 2011 tax return Agency fees, Employment agency fees. File 2011 tax return Contracts Severance pay for cancellation of, Severance pay. File 2011 tax return Endowment proceeds, Endowment Contract Proceeds Energy Assistance, Payments to reduce cost of winter energy. File 2011 tax return Conservation Subsidies, Energy conservation subsidies. File 2011 tax return Utility rebates, Utility rebates. File 2011 tax return Estate income, Estate and trust income. File 2011 tax return Estimated tax Unemployment compensation, Tax withholding. File 2011 tax return Excess Annual additions, Excess Annual Additions Contributions, Excess Contributions Deferrals, Excess deferrals. File 2011 tax return Expected inheritance, Expected inheritance. File 2011 tax return Expenses paid by another, Expenses paid by another. File 2011 tax return Exxon Valdez settlement, Exxon Valdez settlement income. File 2011 tax return Eligible retirement plan, Contributions to eligible retirement plan. File 2011 tax return Income averaging, Income averaging. File 2011 tax return Legal expenses, Legal expenses. File 2011 tax return Reporting requirement-statement, Statement. File 2011 tax return F Faculty lodging, Faculty lodging. File 2011 tax return Fair market value (FMV), Fair market value. File 2011 tax return Stock options, Grant of option. File 2011 tax return Farming Qualified farm debt, cancellation of, Excluded debt. File 2011 tax return Federal employees Accrued leave payment, Accrued leave payment. File 2011 tax return Cost-of-living allowances, Government cost-of-living allowances. File 2011 tax return Disability pensions, Military and Government Disability Pensions Thrift Savings Plan for, Elective Deferrals Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). File 2011 tax return Federal income tax Refunds, Federal income tax refund. File 2011 tax return Fees for services, Fees for services. File 2011 tax return Financial counseling fees, Financial Counseling Fees Fellowships, Scholarships and fellowships. File 2011 tax return FICA withholding Foreign employers, U. File 2011 tax return S. File 2011 tax return citizens working for in U. File 2011 tax return S. File 2011 tax return , Social security and Medicare taxes. File 2011 tax return Paid by employer, Social security and Medicare taxes paid by employer. File 2011 tax return Fiduciaries Fees for services, Fees for services. File 2011 tax return , Personal representatives. File 2011 tax return Financial counseling fees, Financial Counseling Fees (see also Retirement planning services) Fitness programs Employer-provided, Athletic Facilities Flights Employer-provided aircraft, Flights on employer-provided aircraft. File 2011 tax return No-additional-cost services, No-Additional-Cost Services Food benefits Daycare providers, food program payments to, Food program payments to daycare providers. File 2011 tax return Nutrition Program for the Elderly, Nutrition Program for the Elderly. File 2011 tax return Foreign Currency transactions, Foreign currency transactions. File 2011 tax return Employment, Foreign Employer Governments, employees of, Employees of international organizations or foreign governments. File 2011 tax return Income, Reminders Service, Service-connected disability. File 2011 tax return Form 1040 Excess contributions to elective deferrals, Excess Contributions Recoveries, Where to report. File 2011 tax return Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040 or 1040A, Schedule B Restricted stock dividends, Stock you chose to include in your income. File 2011 tax return Form 1040, Schedule A Outplacement services, deduction for, Outplacement services. File 2011 tax return Repayment of commissions paid in advance, Advance commissions and other earnings. File 2011 tax return Form 1040, Schedule C Bartering, Bartering Childcare providers to use, Childcare providers. File 2011 tax return Personal property rental, reporting income from, Reporting business income and expenses. File 2011 tax return Royalties, Royalties Form 1040, Schedule C-EZ Bartering, Bartering Childcare Providers to use, Childcare providers. File 2011 tax return Personal property rental, reporting income from, Reporting business income and expenses. File 2011 tax return Royalties, Royalties Form 1040, Schedule D Stock options, Sale of the stock. File 2011 tax return Stock options reported on, Statutory Stock Options Form 1040, Schedule E Partner's return, Partner's return. File 2011 tax return Royalties, Royalties Form 1040A Recoveries, Where to report. File 2011 tax return Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040EZ Recoveries, Where to report. File 2011 tax return Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1041 Estates and trusts, Estate and trust income. File 2011 tax return Form 1041, Schedule K-1 Beneficiary's share of income, deductions, credits, etc. File 2011 tax return , Estate and trust income. File 2011 tax return Form 1065 Partnership return, Partnership return. File 2011 tax return Form 1065, Schedule K-1 Partner's share of income, Schedule K-1 (Form 1065). File 2011 tax return , Partnership Income Form 1098 Mortgage interest statement, Mortgage interest refund. File 2011 tax return Form 1099-B Barter exchange transactions, Form 1099-B from barter exchange. File 2011 tax return , Backup withholding. File 2011 tax return Form 1099-C Cancellation of debt, Form 1099-C. File 2011 tax return Form 1099-DIV Restricted stock dividends, Stock you chose to include in your income. File 2011 tax return Form 1099-G State tax refunds, State tax refund. File 2011 tax return Unemployment compensation, Unemployment Benefits Form 1099-MISC Services totaling $600 or more, Fees for services. File 2011 tax return Stock options exercised incident to divorce, Tax form. File 2011 tax return Form 1099-R Charitable gift annuities, Charitable gift annuities. File 2011 tax return Excess annual additions, Excess Annual Additions Excess deferral amounts, Excess distributed to you. File 2011 tax return Surrender of life insurance policy for cash, Surrender of policy for cash. File 2011 tax return Form 1120-POL Political organizations, Campaign contributions. File 2011 tax return Form 1120S S corporation return, S corporation return. File 2011 tax return Form 1120S, Schedule K-1 Shareholder's share of income, credits, deductions, etc. File 2011 tax return , Schedule K-1 (Form 1120S). File 2011 tax return Form 2441 Child and dependent care expenses, Dependent Care Benefits Form 4255 Recapture of investment credit, Amounts Recovered for Credits Form 6251 Alternative minimum tax, Alternative minimum tax (AMT). File 2011 tax return Form 8839 Adoption assistance, Adoption Assistance Form 8853 Accelerated death benefits, Form 8853. File 2011 tax return Archer MSAs and long-term care insurance contracts, Archer MSA contributions. File 2011 tax return Form 8919 Uncollected social security and Medicare tax on wages, Employee Compensation Form RRB-1099 Railroad retirement board payments, Form RRB-1099. File 2011 tax return Form SSA-1099 Social security benefit statement, Form SSA-1099. File 2011 tax return Form W-2 501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions. File 2011 tax return Accrued leave payment at time of retirement or resignation, Accrued leave payment. File 2011 tax return Back pay awards, Back pay awards. File 2011 tax return Bonuses or awards, Bonuses and awards. File 2011 tax return Elective deferrals, reporting by employer, Reporting by employer. File 2011 tax return Failure to receive from employer, Employee Compensation Fringe benefits reported on, Form W-2. File 2011 tax return Stock options from employers, Tax form. File 2011 tax return Wage and tax statement, Employee Compensation Form W-2G Gambling winnings, Form W-2G. File 2011 tax return Form W-4V Unemployment compensation, voluntary withholding request, Tax withholding. File 2011 tax return Form W-9 Request for taxpayer identification number, Backup withholding. File 2011 tax return Foster care, Foster care providers. File 2011 tax return Foster Grandparent Program, National Senior Service Corps programs. File 2011 tax return Found property, Found property. File 2011 tax return Free tax services, Free help with your tax return. File 2011 tax return Fringe benefits, Fringe Benefits, Special valuation rules. File 2011 tax return Accident and health insurance, Accident or Health Plan Adoption, employer assistance, Adoption Assistance Athletic facilities, Athletic Facilities Commuter highway vehicles, Transportation De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Dependent care benefits, Dependent Care Benefits Educational assistance, Educational Assistance Employee discounts, Employee Discounts Faculty lodging, Faculty lodging. File 2011 tax return Financial counseling fees, Financial Counseling Fees Holiday gifts, Holiday gifts. File 2011 tax return Meals and lodging, Meals and Lodging Moving expenses (see Moving expenses) No-additional-cost services, No-Additional-Cost Services Parking, Transportation Retirement planning (see Retirement planning services) Transit pass, Transportation, Transit pass. File 2011 tax return Tuition reduction, Tuition Reduction Valuation of, Valuation of Fringe Benefits, Special valuation rules. File 2011 tax return Vehicle, Employer-provided vehicles. File 2011 tax return Working condition benefits, Working Condition Benefits Frozen deposits Interest on, Interest on frozen deposits. File 2011 tax return G Gambling winnings and losses, Gambling winnings. File 2011 tax return Gas Royalties from, Oil, gas, and minerals. File 2011 tax return Gifts, Gifts and inheritances. File 2011 tax return Holiday gifts from employer, Holiday gifts. File 2011 tax return Government employees (see Federal employees; State employees) Grantor trusts, Grantor trust. File 2011 tax return Group-term life insurance Worksheets, Figuring the taxable cost. File 2011 tax return , Worksheet 1. File 2011 tax return Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Gulf oil spill, Reminders, Gulf oil spill. File 2011 tax return H HAMP Home affordable modification program Pay-for-performance success payments, Home Affordable Modification Program (HAMP). File 2011 tax return Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. File 2011 tax return Health Flexible spending arrangement, Health flexible spending arrangement (health FSA). File 2011 tax return Insurance, Accident or Health Plan Reimbursement arrangement, Health reimbursement arrangement (HRA). File 2011 tax return Savings account, Health savings accounts (HSA). File 2011 tax return Help (see Tax help) Highly compensated employees Excess contributions to elective deferrals, Excess Contributions Historic preservation grants, Historic preservation grants. File 2011 tax return Hobby losses, Hobby losses. File 2011 tax return Holding period requirement, Holding period requirement. File 2011 tax return Holiday gifts, Holiday gifts. File 2011 tax return Holocaust victims restitution, Holocaust victims restitution. File 2011 tax return Home, sale of, Sale of home. File 2011 tax return Host or hostess, Host or Hostess Hotels No-additional-cost services, No-Additional-Cost Services Housing (see Lodging) I Illegal activities, Illegal activities. File 2011 tax return Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs). File 2011 tax return Income Assigned, Assignment of income. File 2011 tax return Business and investment, Business and Investment Income, More information. File 2011 tax return Constructive receipt of, Constructively received income. File 2011 tax return Estate and trust, Estate and trust income. File 2011 tax return Foreign employers, Foreign Employer Illegal, Illegal activities. File 2011 tax return Miscellaneous, Miscellaneous Income Other, Other Income Partnership, Partnership Income Prepaid, Prepaid income. File 2011 tax return S corporation, S Corporation Income Indian fishing rights, Indian fishing rights. File 2011 tax return Indian money account, Indian money account litigation settlement. File 2011 tax return Individual retirement arrangements (IRAs) Deduction, Benefits may affect your IRA deduction. File 2011 tax return Inherited IRA, Inherited pension or IRA. File 2011 tax return Inheritance, Gifts and inheritances. File 2011 tax return IRA, Inherited pension or IRA. File 2011 tax return Property not substantially vested, Inherited property not substantially vested. File 2011 tax return Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. File 2011 tax return Insurance Credit card, Credit card insurance. File 2011 tax return Health, Accident or Health Plan Life (see Life insurance) Long-term care (see Long-term care insurance) Interest Canceled debt including, Interest included in canceled debt. File 2011 tax return Frozen deposits, Interest on frozen deposits. File 2011 tax return Mortgage refunds, Mortgage interest refund. File 2011 tax return Option on insurance, Interest option on insurance. File 2011 tax return Recovery amounts, Interest on recovery. File 2011 tax return Savings bond, Interest on qualified savings bonds. File 2011 tax return State and local government obligations, Interest on state and local government obligations. File 2011 tax return Interference with business operations Damages as income, Court awards and damages. File 2011 tax return International organizations, employees of, Foreign Employer Interview expenses, Job interview expenses. File 2011 tax return Investment counseling fees, Financial Counseling Fees (see also Retirement planning services) Investment income, Business and Investment Income, More information. File 2011 tax return IRAs (see Individual retirement arrangements (IRAs)) Iron ore, Coal and iron ore. File 2011 tax return Itemized deductions Limited, Itemized deductions limited. File 2011 tax return Recoveries, Recoveries, Itemized Deduction Recoveries J Job interview expenses, Job interview expenses. File 2011 tax return Joint returns Social security benefits or railroad retirement payments, Joint return. File 2011 tax return Joint state/local tax return Recoveries, Joint state or local income tax return. File 2011 tax return Jury duty pay, Jury duty. File 2011 tax return K Kickbacks, Kickbacks. File 2011 tax return L Labor unions Convention expenses, reimbursed, Reimbursed union convention expenses. File 2011 tax return Dues, Union benefits and dues. File 2011 tax return Strike and lockout benefits, Strike and lockout benefits. File 2011 tax return Unemployment benefits paid from, Payments by a union. File 2011 tax return Last day of tax year, income received on, Constructively received income. File 2011 tax return Leave (see Accrued leave payment) Length-of-service awards, Employee achievement award. File 2011 tax return Life insurance Employer-owned, Employer-owned life insurance contract. File 2011 tax return Proceeds, Life Insurance Proceeds Surrender of policy for cash, Surrender of policy for cash. File 2011 tax return Loans, Discounted mortgage loan. File 2011 tax return (see also Mortgage) Below-market, Below-market loans. File 2011 tax return Student, Student loans. File 2011 tax return Lockout benefits, Strike and lockout benefits. File 2011 tax return Lodging Campus lodging, Qualified campus lodging. File 2011 tax return , Moving Expense Reimbursements Clergy, Housing Employer-paid or reimbursed, Meals and Lodging Faculty lodging, Faculty lodging. File 2011 tax return Replacement housing payments, Replacement housing payments. File 2011 tax return Long-term care insurance, Long-term care coverage. File 2011 tax return , Long-Term Care Insurance Contracts Lotteries and raffles, Lotteries and raffles. File 2011 tax return Lump-sum distributions Survivor benefits, Lump-sum payments. File 2011 tax return M Manufacturer incentive payments, Manufacturer incentive payments. File 2011 tax return Meals Employer-paid or reimbursed, Meals and Lodging Nutrition Program for the Elderly, Nutrition Program for the Elderly. File 2011 tax return Medical Care reimbursements, Reimbursement for medical care. File 2011 tax return Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File 2011 tax return Medicare Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File 2011 tax return Benefits, Medicare. File 2011 tax return Tax paid by employer, Social security and Medicare taxes paid by employer. File 2011 tax return Medicare tax (see Social security and Medicare taxes) Military (see Armed forces) Minerals Royalties from, Oil, gas, and minerals. File 2011 tax return Miscellaneous Compensation, Miscellaneous Compensation Income, Miscellaneous Income Missing children, photographs of, Reminders Mortgage Assistance payment (under sec. File 2011 tax return 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. File 2011 tax return Discounted loan, Discounted mortgage loan. File 2011 tax return Interest refund, Mortgage interest refund. File 2011 tax return Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI). File 2011 tax return Relief, Mortgage relief upon sale or other disposition. File 2011 tax return Motor vehicle, employer-provided, Employer-provided vehicles. File 2011 tax return Moving expenses Reimbursements, Allowances and reimbursements. File 2011 tax return , Moving expense reimbursements. File 2011 tax return MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File 2011 tax return N National Health Service Corps Scholarship Program, Tuition Reduction National Oceanic and Atmospheric Administration, Service-connected disability. File 2011 tax return National Senior Service Corps, National Senior Service Corps programs. File 2011 tax return No-additional-cost services, No-Additional-Cost Services No-fault car insurance Disability benefits under, Other compensation. File 2011 tax return Nobel prize, Pulitzer, Nobel, and similar prizes. File 2011 tax return Nonrecourse debt, Mortgage relief upon sale or other disposition. File 2011 tax return Nonstatutory stock options, Nonstatutory Stock Options Nontaxable income, Introduction Not-for-profit activities, Activity not for profit. File 2011 tax return Notary fees, Notary public. File 2011 tax return Notes received for services, Note received for services. File 2011 tax return Nutrition Program for the Elderly, Nutrition Program for the Elderly. File 2011 tax return O Oil Royalties from, Oil, gas, and minerals. File 2011 tax return Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). File 2011 tax return Options, stock, Stock Options, Statutory Stock Options Outplacement services, Outplacement services. File 2011 tax return Overseas work, Reminders P Parking fees Employer-paid or reimbursed, Transportation, Qualified parking. File 2011 tax return Partner and partnership income, Partnership Income Patents Infringement damages, Court awards and damages. File 2011 tax return Royalties, Copyrights and patents. File 2011 tax return Peace Corps, Peace Corps. File 2011 tax return Pensions Clergy, Pension. File 2011 tax return Disability pensions, Disability Pensions Inherited pensions, Inherited pension or IRA. File 2011 tax return Military, Military retirement pay. File 2011 tax return Personal property Rental income and expense, Rents From Personal Property Sale of, Sale of personal items. File 2011 tax return Personal representatives (see Fiduciaries) Prepaid income, Prepaid income. File 2011 tax return Price reduced after purchase, Price reduced after purchase. File 2011 tax return Prizes and awards, Bonuses and awards. File 2011 tax return , Prizes and awards. File 2011 tax return Achievement awards, Employee achievement award. File 2011 tax return Employee awards or bonuses, Employee awards or bonuses. File 2011 tax return Length-of-service awards, Employee achievement award. File 2011 tax return Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes. File 2011 tax return Safety achievement, Employee achievement award. File 2011 tax return Scholarship prizes, Prizes. File 2011 tax return Profit-sharing plan, Retirement and profit-sharing plans. File 2011 tax return Public assistance benefits, Welfare and Other Public Assistance Benefits Public Health Service, Service-connected disability. File 2011 tax return Public safety officers killed in line of duty, Public safety officer killed in the line of duty. File 2011 tax return Public transportation passes, employer-provided, Transportation, Transit pass. File 2011 tax return Publications (see Tax help) Pulitzer prize, Pulitzer, Nobel, and similar prizes. File 2011 tax return Punitive damages, Court awards and damages. File 2011 tax return Q Qualified joint venture, Reminders Qualified tuition program (QTP), Qualified tuition program (QTP). File 2011 tax return R Raffles, Lotteries and raffles. File 2011 tax return Railroad Retirement annuities, Railroad retirement annuities. File 2011 tax return Retirement benefits, Social security and equivalent railroad retirement benefits. File 2011 tax return Sick pay, Railroad sick pay. File 2011 tax return Unemployment compensation benefits, Types of unemployment compensation. File 2011 tax return Real estate Qualified real property business debt, cancellation of, Excluded debt. File 2011 tax return Rebates Cash, Cash rebates. File 2011 tax return Utility, Utility rebates. File 2011 tax return Recovery of amounts previously deducted, Recoveries, Standard deduction for earlier years. File 2011 tax return Itemized deductions, Recoveries, Itemized Deduction Recoveries Non-itemized deductions, Non-Itemized Deduction Recoveries Unused tax credits, refiguring of, Unused tax credits. File 2011 tax return , Unused tax credits. File 2011 tax return Refunds Federal income tax, Federal income tax refund. File 2011 tax return Mortgage interest, Mortgage interest refund. File 2011 tax return State tax, State tax refund. File 2011 tax return Rehabilitative program payments, Veterans' benefits. File 2011 tax return Reimbursements Business expenses, Allowances and reimbursements. File 2011 tax return Casualty losses, Casualty insurance and other reimbursements. File 2011 tax return Meals and lodging, Meals and Lodging Medical expenses, Reimbursement for medical care. File 2011 tax return Moving expenses, Allowances and reimbursements. File 2011 tax return , Moving expense reimbursements. File 2011 tax return Related party transactions Stock option transfer, Transfer in non-arm's-length transaction. File 2011 tax return Religious order members, Members of Religious Orders Rental income and expenses Personal property rental, Rents From Personal Property Reporting of, Reporting business income and expenses. File 2011 tax return Repayments, Repayments, Year of deduction (or credit). File 2011 tax return Repossession, Canceled sales contract. File 2011 tax return Restricted property, Restricted Property, Inherited property not substantially vested. File 2011 tax return Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs. File 2011 tax return Retirement Settlement, Reminders Retirement planning services, Financial Counseling Fees, Retirement Planning Services Retirement plans, Military retirement pay. File 2011 tax return (see also Pensions) Automatic contribution arrangements, Qualified automatic contribution arrangements. File 2011 tax return Contributions, Retirement Plan Contributions, Excess Annual Additions, Statutory Stock Options Elective deferrals (see Elective deferrals) Rewards, Rewards. File 2011 tax return Roth contributions, Designated Roth contributions. File 2011 tax return Royalties, Royalties S S corporations, S Corporation Income Safety achievement awards, Employee achievement award. File 2011 tax return Salary reduction simplified employee pension plans (see SARSEPs) Sale of home, Sale of home. File 2011 tax return Sales contracts Cancellation of, Canceled sales contract. File 2011 tax return SARSEPs, Elective Deferrals Excess contributions, Excess Contributions Savings bonds, Interest on qualified savings bonds. File 2011 tax return Savings incentive match plans for employees (see SIMPLE plans) Scholarships and fellowships, Scholarships and fellowships. File 2011 tax return Self-employed persons U. File 2011 tax return S. File 2011 tax return citizens working for foreign employers in U. File 2011 tax return S. File 2011 tax return treated as, Social security and Medicare taxes. File 2011 tax return Senior Companion Program, National Senior Service Corps programs. File 2011 tax return Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE). File 2011 tax return Severance pay, Severance pay. File 2011 tax return Outplacement services, Outplacement services. File 2011 tax return Sick pay, Sick pay. File 2011 tax return Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. File 2011 tax return SIMPLE plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under SIMPLE plans. File 2011 tax return Smallpox vaccine injuries, Smallpox vaccine injuries. File 2011 tax return Social security and Medicare taxes Foreign employers, U. File 2011 tax return S. File 2011 tax return citizens working for in U. File 2011 tax return S. File 2011 tax return , Social security and Medicare taxes. File 2011 tax return Paid by employer, Social security and Medicare taxes paid by employer. File 2011 tax return Social security benefits, Social security and equivalent railroad retirement benefits. File 2011 tax return Standard deduction Recoveries, Standard deduction limit. File 2011 tax return , Standard deduction for earlier years. File 2011 tax return State employees Unemployment benefits paid to, State employees. File 2011 tax return State or local governments Interest on obligations of, Interest on state and local government obligations. File 2011 tax return State or local taxes Refunds, State tax refund. File 2011 tax return Statutory stock option holding period, Sale of the stock. File 2011 tax return Stock appreciation rights, Stock appreciation rights. File 2011 tax return Stock options, Stock Options, Statutory Stock Options Stock options, nonstatutory Exercise or transfer, Exercise or transfer of option. File 2011 tax return Grant, Grant of option. File 2011 tax return Sale, Sale of the stock. File 2011 tax return Stock options, statutory Exercise, Exercise of option. File 2011 tax return Grant, Grant of option. File 2011 tax return Sale, Sale of the stock. File 2011 tax return Stockholder debts, Stockholder debt. File 2011 tax return Stolen property, Stolen property. File 2011 tax return Strike benefits, Strike and lockout benefits. File 2011 tax return Student loans Cancellation of debt, Student loans. File 2011 tax return Substantial risk of forfeiture, Substantial risk of forfeiture. File 2011 tax return Substantially vested property, Substantially vested. File 2011 tax return Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits. File 2011 tax return Supplemental unemployment benefits, Supplemental unemployment benefits. File 2011 tax return Surviving spouse Life insurance proceeds paid to, Surviving spouse. File 2011 tax return Survivor benefits, Survivor Benefits T Tables and figures Group-term life insurance (Table 1), Group-Term Life Insurance Tax benefit rule, Tax benefit rule. File 2011 tax return Tax Counseling for the Elderly, Volunteer tax counseling. File 2011 tax return Tax help, How To Get Tax Help Tax-sheltered annuity plans (403(b) plans), Elective Deferrals Limit for, Limit for tax-sheltered annuities. File 2011 tax return Terminal illness, Exclusion for terminal illness. File 2011 tax return Terrorist attacks Disability payments for injuries from, Terrorist attack or military action. File 2011 tax return Victims of, tax relief, Reminders Thrift Savings Plan, Elective Deferrals Title VII, Civil Rights Act of 1964 Back pay and damages for emotional distress under, Court awards and damages. File 2011 tax return Tour guides, free tours for, Free tour. File 2011 tax return Trade Act of 1974 Trade readjustment allowances under, Types of unemployment compensation. File 2011 tax return , Repayment of benefits. File 2011 tax return Transferable property, Transferable property. File 2011 tax return Transit passes, Transportation, Transit pass. File 2011 tax return Travel agencies Free tour to organizer of group of tourists, Free tour. File 2011 tax return Travel and transportation expenses Free tours from travel agencies, Free tour. File 2011 tax return Fringe benefits, Transportation Reimbursements, Allowances and reimbursements. File 2011 tax return School children, transporting of, Transporting school children. File 2011 tax return Trusts Grantor trusts, Grantor trust. File 2011 tax return Income, Estate and trust income. File 2011 tax return Tuition program, qualified (QTP), Qualified tuition program (QTP). File 2011 tax return Tuition reduction, Tuition Reduction U Unemployment compensation, Unemployment Benefits Unions (see Labor unions) Unlawful discrimination suits Deduction for costs, Deduction for costs involved in unlawful discrimination suits. File 2011 tax return V VA payments, VA payments. File 2011 tax return Valuation Fringe benefits, Valuation of Fringe Benefits, Special valuation rules. File 2011 tax return Stock options, Nonstatutory Stock Options Vehicle Commuter highway, Commuter highway vehicle. File 2011 tax return Employer-provided, Employer-provided vehicles. File 2011 tax return Veterans benefits, Veterans' benefits. File 2011 tax return Disability compensation, Retroactive VA determination. File 2011 tax return Retroactive VA determination, Retroactive VA determination. File 2011 tax return Special statute of limitations. File 2011 tax return , Special statute of limitations. File 2011 tax return Viatical settlements, Viatical settlement. File 2011 tax return Volunteer work, Volunteers Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling. File 2011 tax return Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA). File 2011 tax return W W-2 form (see Form W-2) Welfare benefits, Welfare and Other Public Assistance Benefits Whistleblower, Whistleblower's award. File 2011 tax return Winter energy payments, Payments to reduce cost of winter energy. File 2011 tax return Withholding Barter exchange transactions, Backup withholding. File 2011 tax return Unemployment compensation, Tax withholding. File 2011 tax return Work-training programs, Work-training program. File 2011 tax return Workers' compensation, Workers' Compensation Working condition benefits, Working Condition Benefits Worksheets Group-term life insurance (Worksheet 1), Figuring the taxable cost. File 2011 tax return , Worksheet 1. File 2011 tax return Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Prev  Up     Home   More Online Publications

Topic 305 - Recordkeeping

Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination, or to prepare a response if you receive an IRS notice.

Records such as receipts, canceled checks, and other documents that support an item of income or a deduction, or a credit appearing on a return must be kept so long as they may become material in the administration of any internal revenue law, which generally will be until the period of limitation expires for that return. For assessment of tax you owe, this generally is 3 years from the date you filed the return. Returns filed before the due date are treated as filed on the due date.

There is no period of limitations to assess tax when a return is fraudulent or when no return is filed. If income that you should have reported is not reported, and it is more than 25% of the gross income shown on the return, the time to assess is 6 years from when the return is filed. For filing a claim for credit or refund, the period to make the claim generally is 3 years from the date the original return was filed (or the due date for filing the return if the return was filed before that date), or 2 years from the date the tax was paid, whichever is later. For filing a claim for an overpayment resulting from a bad debt deduction or a loss from worthless securities the time to make the claim is 7 years from when the return was due.

If you have employees, you must keep all your employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later. For more information, see Publication 15, (Circular E), Employer's Tax Guide.

If you are in business, there is no particular method of bookkeeping you must use. However, you must use a method that clearly and accurately reflects your gross income and expenses. The records should substantiate both your income and expenses. Publication 583, Starting a Business and Keeping Records, and Publication 463, Travel, Entertainment, Gift, and Car Expenses, provide additional information on required documentation for taxpayers with business expenses. Publication 17, Your Federal Income Tax for Individuals, provides more information on recordkeeping requirements for individuals.

Page Last Reviewed or Updated: January 22, 2014

The File 2011 Tax Return

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