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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

File Federal And State Taxes Free

2011 1040 Form1040ez File Online FreeHrblock Com MyreturnstatusFile Taxes 2010 FreeHr Block FreeIrs 1040ez Form 2011How To Ammend A Tax ReturnE File State Tax Only For FreeIrs E FileIrs 2011 TaxesTaxact 2011 Returning UserHow To File A 1040 EzTax Tips For 2012H&r Block Federal Free2010 Tax Form 1040Filing Taxes 2014Turbotax 2012 State TaxesIrs Gov Tax FormsHow To File 1040ez Online For FreeHow Do I File My Taxes From 2012Filing 2010 Taxes OnlineFiling 1040 OnlineBack Tax ReturnsFiling An Amended Return For 2012Irs Gov Free State File760 State Tax Form 2013Free Ez FormOnline Taxes H&rblockTurbo Tax EzAmend Your Taxes2010 Free Tax FilingFile 2010 Taxes FreeTax Filing ExtensionFile Extension Online1040ez Forms 2013Amended Federal Tax Return 20112008 TurbotaxIrs Forms 1040ez 2011Federal Ez FormAmend My Taxes

File Federal And State Taxes Free

File federal and state taxes free 28. File federal and state taxes free   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. File federal and state taxes free  The 2013 rate for business use of a vehicle is 56½ cents per mile. File federal and state taxes free Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). File federal and state taxes free You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. File federal and state taxes free This chapter covers the following topics. File federal and state taxes free Deductions subject to the 2% limit. File federal and state taxes free Deductions not subject to the 2% limit. File federal and state taxes free Expenses you cannot deduct. File federal and state taxes free You must keep records to verify your deductions. File federal and state taxes free You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. File federal and state taxes free For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. File federal and state taxes free Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). File federal and state taxes free You can claim the amount of expenses that is more than 2% of your adjusted gross income. File federal and state taxes free You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. File federal and state taxes free Your adjusted gross income is the amount on Form 1040, line 38. File federal and state taxes free Generally, you apply the 2% limit after you apply any other deduction limit. File federal and state taxes free For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. File federal and state taxes free Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). File federal and state taxes free Unreimbursed employee expenses (line 21). File federal and state taxes free Tax preparation fees (line 22). File federal and state taxes free Other expenses (line 23). File federal and state taxes free Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. File federal and state taxes free An expense is ordinary if it is common and accepted in your trade, business, or profession. File federal and state taxes free An expense is necessary if it is appropriate and helpful to your business. File federal and state taxes free An expense does not have to be required to be considered necessary. File federal and state taxes free Examples of unreimbursed employee expenses are listed next. File federal and state taxes free The list is followed by discussions of additional unreimbursed employee expenses. File federal and state taxes free Business bad debt of an employee. File federal and state taxes free Education that is work related. File federal and state taxes free (See chapter 27. File federal and state taxes free ) Legal fees related to your job. File federal and state taxes free Licenses and regulatory fees. File federal and state taxes free Malpractice insurance premiums. File federal and state taxes free Medical examinations required by an employer. File federal and state taxes free Occupational taxes. File federal and state taxes free Passport for a business trip. File federal and state taxes free Subscriptions to professional journals and trade magazines related to your work. File federal and state taxes free Travel, transportation, entertainment, and gifts related to your work. File federal and state taxes free (See chapter 26. File federal and state taxes free ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. File federal and state taxes free Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. File federal and state taxes free Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. File federal and state taxes free For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. File federal and state taxes free Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. File federal and state taxes free Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. File federal and state taxes free Lobbying and political activities. File federal and state taxes free   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. File federal and state taxes free See Dues used for lobbying under Nondeductible Expenses, later. File federal and state taxes free Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. File federal and state taxes free If you file Form 1040A, you can deduct these expenses on line 16. File federal and state taxes free If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. File federal and state taxes free However, neither spouse can deduct more than $250 of his or her qualified expenses. File federal and state taxes free Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. File federal and state taxes free You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. File federal and state taxes free The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. File federal and state taxes free See Publication 587 for more detailed information and a worksheet. File federal and state taxes free Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. File federal and state taxes free You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. File federal and state taxes free Employment and outplacement agency fees. File federal and state taxes free   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. File federal and state taxes free Employer pays you back. File federal and state taxes free   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. File federal and state taxes free (See Recoveries in chapter 12. File federal and state taxes free ) Employer pays the employment agency. File federal and state taxes free   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. File federal and state taxes free Résumé. File federal and state taxes free   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. File federal and state taxes free Travel and transportation expenses. File federal and state taxes free   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. File federal and state taxes free You can deduct the travel expenses if the trip is primarily to look for a new job. File federal and state taxes free The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. File federal and state taxes free   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. File federal and state taxes free   You can choose to use the standard mileage rate to figure your car expenses. File federal and state taxes free The 2013 rate for business use of a vehicle is 56½ cents per mile. File federal and state taxes free See chapter 26 for more information. File federal and state taxes free Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. File federal and state taxes free Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. File federal and state taxes free If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. File federal and state taxes free Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. File federal and state taxes free If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. File federal and state taxes free Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. File federal and state taxes free You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. File federal and state taxes free However, you cannot deduct the cost of travel as a form of education. File federal and state taxes free Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. File federal and state taxes free You can depreciate the cost of tools that have a useful life substantially beyond the tax year. File federal and state taxes free For more information about depreciation, see Publication 946. File federal and state taxes free Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. File federal and state taxes free You can also deduct assessments for benefit payments to unemployed union members. File federal and state taxes free However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. File federal and state taxes free Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. File federal and state taxes free You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. File federal and state taxes free See Lobbying Expenses under Nondeductible Expenses, later. File federal and state taxes free Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. File federal and state taxes free You must wear them as a condition of your employment. File federal and state taxes free The clothes are not suitable for everyday wear. File federal and state taxes free It is not enough that you wear distinctive clothing. File federal and state taxes free The clothing must be specifically required by your employer. File federal and state taxes free Nor is it enough that you do not, in fact, wear your work clothes away from work. File federal and state taxes free The clothing must not be suitable for taking the place of your regular clothing. File federal and state taxes free Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. File federal and state taxes free ). File federal and state taxes free Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. File federal and state taxes free However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. File federal and state taxes free Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. File federal and state taxes free Protective clothing. File federal and state taxes free   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. File federal and state taxes free   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. File federal and state taxes free Military uniforms. File federal and state taxes free   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. File federal and state taxes free However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. File federal and state taxes free In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. File federal and state taxes free   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. File federal and state taxes free   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. File federal and state taxes free Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. File federal and state taxes free Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. File federal and state taxes free These fees include the cost of tax preparation software programs and tax publications. File federal and state taxes free They also include any fee you paid for electronic filing of your return. File federal and state taxes free Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. File federal and state taxes free On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. File federal and state taxes free You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. File federal and state taxes free Some of these other expenses are explained in the following discussions. File federal and state taxes free If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. File federal and state taxes free Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. File federal and state taxes free Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. File federal and state taxes free First report the loss in Section B of Form 4684, Casualties and Thefts. File federal and state taxes free You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. File federal and state taxes free To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. File federal and state taxes free For other casualty and theft losses, see chapter 25. File federal and state taxes free Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. File federal and state taxes free Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. File federal and state taxes free The fees are deductible in the year paid. File federal and state taxes free Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). File federal and state taxes free You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. File federal and state taxes free But if you work as an employee and also use the computer in that work, see Publication 946. File federal and state taxes free Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. File federal and state taxes free Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. File federal and state taxes free The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. File federal and state taxes free For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. File federal and state taxes free Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. File federal and state taxes free But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. File federal and state taxes free You must add the fee to the cost of the property. File federal and state taxes free You cannot deduct the fee you pay to a broker to sell securities. File federal and state taxes free You can use the fee only to figure gain or loss from the sale. File federal and state taxes free See the Instructions for Form 8949 for information on how to report the fee. File federal and state taxes free Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. File federal and state taxes free A hobby is not a business because it is not carried on to make a profit. File federal and state taxes free See Activity not for profit in chapter 12 under Other Income. File federal and state taxes free Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. File federal and state taxes free Deductions of pass-through entities are passed through to the partners or shareholders. File federal and state taxes free The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. File federal and state taxes free Example. File federal and state taxes free You are a member of an investment club that is formed solely to invest in securities. File federal and state taxes free The club is treated as a partnership. File federal and state taxes free The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. File federal and state taxes free In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. File federal and state taxes free However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. File federal and state taxes free Publicly offered mutual funds. File federal and state taxes free   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. File federal and state taxes free A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. File federal and state taxes free   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). File federal and state taxes free This net figure is the amount you report on your return as income. File federal and state taxes free You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. File federal and state taxes free Information returns. File federal and state taxes free   You should receive information returns from pass-through entities. File federal and state taxes free Partnerships and S corporations. File federal and state taxes free   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. File federal and state taxes free Nonpublicly offered mutual funds. File federal and state taxes free   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. File federal and state taxes free You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. File federal and state taxes free Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. File federal and state taxes free Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. File federal and state taxes free You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. File federal and state taxes free You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. File federal and state taxes free You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). File federal and state taxes free See Tax Preparation Fees , earlier. File federal and state taxes free Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. File federal and state taxes free Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. File federal and state taxes free If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. File federal and state taxes free If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. File federal and state taxes free Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. File federal and state taxes free Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. File federal and state taxes free You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. File federal and state taxes free Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. File federal and state taxes free These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. File federal and state taxes free Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. File federal and state taxes free For more information about IRAs, see chapter 17. File federal and state taxes free Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. File federal and state taxes free They are not subject to the 2% limit. File federal and state taxes free Report these items on Schedule A (Form 1040), line 28. File federal and state taxes free List of Deductions Each of the following items is discussed in detail after the list (except where indicated). File federal and state taxes free Amortizable premium on taxable bonds. File federal and state taxes free Casualty and theft losses from income- producing property. File federal and state taxes free Federal estate tax on income in respect of a decedent. File federal and state taxes free Gambling losses up to the amount of gambling winnings. File federal and state taxes free Impairment-related work expenses of persons with disabilities. File federal and state taxes free Loss from other activities from Schedule K-1 (Form 1065-B), box 2. File federal and state taxes free Losses from Ponzi-type investment schemes. File federal and state taxes free See Losses from Ponzi-type investment schemes under Theft in chapter 25. File federal and state taxes free Repayments of more than $3,000 under a claim of right. File federal and state taxes free Unrecovered investment in an annuity. File federal and state taxes free Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. File federal and state taxes free You can elect to amortize the premium on taxable bonds. File federal and state taxes free The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. File federal and state taxes free Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. File federal and state taxes free For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. File federal and state taxes free Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). File federal and state taxes free First, report the loss in Form 4684, Section B. File federal and state taxes free You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. File federal and state taxes free To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. File federal and state taxes free For more information on casualty and theft losses, see chapter 25. File federal and state taxes free Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. File federal and state taxes free Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. File federal and state taxes free See Publication 559 for more information. File federal and state taxes free Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. File federal and state taxes free You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. File federal and state taxes free You cannot deduct gambling losses that are more than your winnings. File federal and state taxes free You cannot reduce your gambling winnings by your gambling losses and report the difference. File federal and state taxes free You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. File federal and state taxes free Therefore, your records should show your winnings separately from your losses. File federal and state taxes free Diary of winnings and losses. File federal and state taxes free You must keep an accurate diary or similar record of your losses and winnings. File federal and state taxes free Your diary should contain at least the following information. File federal and state taxes free The date and type of your specific wager or wagering activity. File federal and state taxes free The name and address or location of the gambling establishment. File federal and state taxes free The names of other persons present with you at the gambling establishment. File federal and state taxes free The amount(s) you won or lost. File federal and state taxes free See Publication 529 for more information. File federal and state taxes free Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. File federal and state taxes free Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. File federal and state taxes free Self-employed. File federal and state taxes free   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. File federal and state taxes free Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. File federal and state taxes free It is not subject to the passive activity limitations. File federal and state taxes free Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. File federal and state taxes free See Repayments in chapter 12 for more information. File federal and state taxes free Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. File federal and state taxes free If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. File federal and state taxes free See chapter 10 for more information about the tax treatment of pensions and annuities. File federal and state taxes free Nondeductible Expenses Examples of nondeductible expenses are listed next. File federal and state taxes free The list is followed by discussions of additional nondeductible expenses. File federal and state taxes free List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. File federal and state taxes free Burial or funeral expenses, including the cost of a cemetery lot. File federal and state taxes free Capital expenses. File federal and state taxes free Fees and licenses, such as car licenses, marriage licenses, and dog tags. File federal and state taxes free Hobby losses, but see Hobby Expenses , earlier. File federal and state taxes free Home repairs, insurance, and rent. File federal and state taxes free Illegal bribes and kickbacks. File federal and state taxes free See Bribes and kickbacks in chapter 11 of Publication 535. File federal and state taxes free Losses from the sale of your home, furniture, personal car, etc. File federal and state taxes free Personal disability insurance premiums. File federal and state taxes free Personal, living, or family expenses. File federal and state taxes free The value of wages never received or lost vacation time. File federal and state taxes free Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. File federal and state taxes free See chapter 37. File federal and state taxes free Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. File federal and state taxes free These include qualification and registration fees for primary elections. File federal and state taxes free Legal fees. File federal and state taxes free   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. File federal and state taxes free Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. File federal and state taxes free Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. File federal and state taxes free This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. File federal and state taxes free You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. File federal and state taxes free Dues paid to airline, hotel, and luncheon clubs are not deductible. File federal and state taxes free Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). File federal and state taxes free If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. File federal and state taxes free Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. File federal and state taxes free This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). File federal and state taxes free Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. File federal and state taxes free Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. File federal and state taxes free Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. File federal and state taxes free However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. File federal and state taxes free See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. File federal and state taxes free Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. File federal and state taxes free Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. File federal and state taxes free You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. File federal and state taxes free See chapter 18 for information on alimony. File federal and state taxes free Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. File federal and state taxes free These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. File federal and state taxes free Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. File federal and state taxes free Dues used for lobbying. File federal and state taxes free   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. File federal and state taxes free See Lobbying Expenses in Publication 529 for information on exceptions. File federal and state taxes free Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. File federal and state taxes free However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. File federal and state taxes free See chapter 25. File federal and state taxes free Example. File federal and state taxes free A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. File federal and state taxes free The diamond falls from the ring and is never found. File federal and state taxes free The loss of the diamond is a casualty. File federal and state taxes free Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. File federal and state taxes free See chapter 26 for information on deductible expenses while traveling away from home. File federal and state taxes free Meals While Working Late You cannot deduct the cost of meals while working late. File federal and state taxes free However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. File federal and state taxes free See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. File federal and state taxes free Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. File federal and state taxes free Custody of children. File federal and state taxes free Breach of promise to marry suit. File federal and state taxes free Civil or criminal charges resulting from a personal relationship. File federal and state taxes free Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. File federal and state taxes free Preparation of a title (or defense or perfection of a title). File federal and state taxes free Preparation of a will. File federal and state taxes free Property claims or property settlement in a divorce. File federal and state taxes free You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. File federal and state taxes free Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. File federal and state taxes free Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. File federal and state taxes free Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. File federal and state taxes free Accounting certificate fees paid for the initial right to practice accounting. File federal and state taxes free Bar exam fees and incidental expenses in securing initial admission to the bar. File federal and state taxes free Medical and dental license fees paid to get initial licensing. File federal and state taxes free Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. File federal and state taxes free Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. File federal and state taxes free Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. File federal and state taxes free Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. File federal and state taxes free You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. File federal and state taxes free Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. File federal and state taxes free You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. File federal and state taxes free If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. File federal and state taxes free Example. File federal and state taxes free During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. File federal and state taxes free In earning this income, you had total expenses of $500 during the year. File federal and state taxes free You cannot identify the amount of each expense item that is for each income item. File federal and state taxes free Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. File federal and state taxes free You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). File federal and state taxes free Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. File federal and state taxes free See chapter 26 for more information on deductible travel expenses. File federal and state taxes free Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. File federal and state taxes free However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. File federal and state taxes free Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. File federal and state taxes free Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Tax Information for Members of the Military

Special EITC Rules
Special rules apply for calculating Earned Income Tax Credit or EITC for members of the military, ministers or members of the clergy.

Tax Information for Members of the U.S. Armed Forces
Members of the U.S. Armed Forces, especially those serving in combat zones, face some special tax situations and are entitled to some special tax benefits.

Special Tax Considerations for Veterans
Special tax considerations for disabled veterans occasionally result in a need for amended returns

2013 Publ3 (PDF)
Armed Forces' Tax Guide

Employers with Employees in a Combat Zone
FAQs for employers whose workers deploy to a combat zone

Extension of Deadlines — Combat Zone Service
Extension of deadlines for combat zone service

Retirement Plans FAQs regarding USERRA and SSCRA
Insights into the re-employment of veterans and the restoration of retirement plan benefits, as affected by the Uniformed Services and Reemployment Rights Act (USERRA) and the Veterans and Sailors Civil Relief Act (SSCRA).

Miscellaneous Provisions — Combat Zone Service
Miscellaneous provisions related to combat zone service

1040 Central
1040 Central has been updated for the last few weeks of Filing Season 2014.

Page Last Reviewed or Updated: 27-Mar-2014

The File Federal And State Taxes Free

File federal and state taxes free Publication 530 - Additional Material Prev  Up  Next   Home   More Online Publications