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File for a tax extension free Publication 516 - Main Content Table of Contents U. File for a tax extension free S. File for a tax extension free Tax ReturnFiling Information Foreign Bank Accounts U. File for a tax extension free S. File for a tax extension free Government Payments Foreign Earned Income Exclusion Tax Treaty Benefits Allowances, Differentials, and Special Pay Other Income Deductions and Credits — Business Expenses Deductions and Credits — Nonbusiness Expenses Foreign Taxes Local (Foreign) Tax ReturnTax Treaty Benefits Other Agreements Double Withholding How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). File for a tax extension free U. File for a tax extension free S. File for a tax extension free Tax Return Filing Information If you are a U. File for a tax extension free S. File for a tax extension free citizen or green card holder living or traveling outside the United States, you are generally required to file income tax returns in the same way as those residing in the United States. File for a tax extension free However, the special rules explained in the following discussions may apply to you. File for a tax extension free See also Tax Treaty Benefits, later. File for a tax extension free When To File and Pay Most individual tax returns cover a calendar year, January through December. File for a tax extension free The regular due date for these tax returns is April 15 of the following year. File for a tax extension free If April 15 falls on a Saturday, Sunday, or legal holiday, your tax return is considered timely filed if it is filed by the next business day that is not a Saturday, Sunday, or legal holiday. File for a tax extension free If you get an extension, you are allowed additional time to file and, in some circumstances, pay your tax. File for a tax extension free You must pay interest on any tax not paid by the regular due date. File for a tax extension free Your return is considered filed on time if it is mailed from and officially postmarked in a foreign country on or before the due date (including extensions), or given to a designated international private delivery service before midnight of the last date prescribed for filing. File for a tax extension free See your tax form instructions for a list of private delivery services that have been designated by the IRS to meet this “timely mailing as timely filing/paying” rule for tax returns and payments. File for a tax extension free If your return is filed late, the postmark or delivery service date does not determine the date of filing. File for a tax extension free In that case, your return is considered filed when it is received by the IRS. File for a tax extension free Extensions You may be able to get an extension of time to file your return and pay your tax. File for a tax extension free Automatic 2-month extension. File for a tax extension free   You can get an automatic 2-month extension (to June 15, for a calendar year return) to file your return and pay your tax if you are a U. File for a tax extension free S. File for a tax extension free citizen or resident and, on the regular due date of your return, you are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico. File for a tax extension free To get this extension, you must attach a statement to your return explaining how you qualified. File for a tax extension free You will owe interest on any tax not paid by the regular due date of your return. File for a tax extension free Married taxpayers. File for a tax extension free   If you file a joint return, either you or your spouse can qualify for the automatic extension. File for a tax extension free If you and your spouse file separate returns, the extension applies only to the spouse who qualifies. File for a tax extension free Additional extension. File for a tax extension free   You can apply for an additional extension of time to file your return by filing Form 4868. File for a tax extension free You must file Form 4868 by the due date for your income tax return. File for a tax extension free   Generally, you must file it by April 15. File for a tax extension free However, if you qualify for the automatic 2-month extension, you generally must file Form 4868 by June 15. File for a tax extension free Check the box on line 8 of Form 4868. File for a tax extension free Payment of tax. File for a tax extension free   You should estimate and pay any additional tax you owe when you file Form 4868 to avoid being charged a late-payment penalty. File for a tax extension free The late-payment penalty applies if, through withholding, etc. File for a tax extension free , you paid less than 90% of your actual tax liability by the original due date of your income tax return. File for a tax extension free Even if the late-payment penalty does not apply, you will be charged interest on any unpaid tax liability from the original due date of the return until the tax is paid. File for a tax extension free Electronic filing. File for a tax extension free   You can file for the additional extension by phone, using your home computer, or through a tax professional. File for a tax extension free See Form 4868 for more information. File for a tax extension free Limit on additional extensions. File for a tax extension free   You generally cannot get a total extension of more than 6 months. File for a tax extension free However, if you are outside the United States and meet certain tests, you may be able to get a longer extension. File for a tax extension free   For more information, see Publication 54. File for a tax extension free Foreign Bank Accounts You must file Form TD F 90-22. File for a tax extension free 1 if at any time during the year you had an interest in, or signature or other authority over, a bank account, securities account, or other financial account in a foreign country. File for a tax extension free This applies if the combined assets in the account(s) were more than $10,000. File for a tax extension free Do not include accounts in a U. File for a tax extension free S. File for a tax extension free military banking facility operated by a U. File for a tax extension free S. File for a tax extension free financial institution. File for a tax extension free File the completed form by June 30 of the following year with the Department of the Treasury at the address shown on that form. File for a tax extension free Do not attach it to Form 1040. File for a tax extension free If you are required to file Form TD F 90-22. File for a tax extension free 1 but do not do so, you may have to pay a penalty of up to $10,000 (more if the failure to file is willful). File for a tax extension free You also may be required to file Form 8938 with your U. File for a tax extension free S. File for a tax extension free income tax return to report your interest in foreign bank accounts and other specified foreign financial assets. File for a tax extension free For taxpayers living abroad, you generally do not have to file Form 8938 unless the total value of your specified foreign financial assets is more than $200,000 ($400,000 if married filing jointly) on the last day of the tax year or more than $300,000 ($600,000 if married filing jointly) at any time during the tax year. File for a tax extension free For more information, see Form 8938 and its instructions. File for a tax extension free U. File for a tax extension free S. File for a tax extension free Government Payments Wages earned for performing services outside the United States is foreign income, regardless of your employer. File for a tax extension free If you are a U. File for a tax extension free S. File for a tax extension free citizen or resident alien, you must report all income from worldwide sources on your tax return unless it is exempt by U. File for a tax extension free S. File for a tax extension free law. File for a tax extension free This applies to earned income (such as wages) as well as unearned income (such as interest, dividends, and capital gains). File for a tax extension free If you are a nonresident alien, your income from sources outside the United States is not subject to U. File for a tax extension free S. File for a tax extension free tax. File for a tax extension free Foreign Earned Income Exclusion Employees of the U. File for a tax extension free S. File for a tax extension free Government are not entitled to the foreign earned income exclusion or the foreign housing exclusion/deduction under section 911 because “foreign earned income ”does not include amounts paid by the U. File for a tax extension free S. File for a tax extension free Government as an employee. File for a tax extension free But see Other Employment, later. File for a tax extension free Special Situations In the following two situations, your pay is from the U. File for a tax extension free S. File for a tax extension free Government and does not qualify for the foreign earned income exclusion. File for a tax extension free U. File for a tax extension free S. File for a tax extension free agency reimbursed by foreign country. File for a tax extension free   If you are a U. File for a tax extension free S. File for a tax extension free Government employee paid by a U. File for a tax extension free S. File for a tax extension free agency to perform services in a foreign country, your pay is from the U. File for a tax extension free S. File for a tax extension free Government and does not qualify the foreign earned income exclusion or the foreign housing exclusion/deduction. File for a tax extension free This is true even if the U. File for a tax extension free S. File for a tax extension free agency is reimbursed by the foreign government. File for a tax extension free Employees of post exchanges, etc. File for a tax extension free   If you are an employee of an Armed Forces post exchange, officers' and enlisted personnel club, Embassy commissary, or similar instrumentality of the U. File for a tax extension free S. File for a tax extension free Government, the earnings you receive are paid by the U. File for a tax extension free S. File for a tax extension free Government. File for a tax extension free This is true whether they are paid from appropriated or nonappropriated funds. File for a tax extension free These earnings are not eligible for the foreign earned income exclusion or the foreign housing exclusion/deduction. File for a tax extension free Tax Treaty Benefits Most income tax treaties contain an article relating to remuneration from government services. File for a tax extension free Even if you are working in a foreign country with which the United States has an income tax treaty in force and the treaty article that applies to government services says that your government pay is taxable only in the foreign country, the treaty will likely contain a “saving clause”, which provides that the United States may tax its citizens and its residents as if the treaty had not come into effect. File for a tax extension free In some treaties, the government service article is an exception to the saving clause, but often only for individuals who are not U. File for a tax extension free S. File for a tax extension free citizens or green card holders. File for a tax extension free Consequently, if you are a U. File for a tax extension free S. File for a tax extension free citizen or green card holder, you will generally not be entitled to reduce your U. File for a tax extension free S. File for a tax extension free tax on your government pay. File for a tax extension free If you are neither a U. File for a tax extension free S. File for a tax extension free citizen nor green card holder, and you are treated as a resident of the treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule), then you may be entitled to benefits under the government service article. File for a tax extension free Review the treaty text carefully. File for a tax extension free U. File for a tax extension free S. File for a tax extension free citizens must always file Form 1040. File for a tax extension free Non-U. File for a tax extension free S. File for a tax extension free citizens who are treated as a resident of a treaty country under the treaty residence article (after application of the so-called “tie-breaker” rule) may file Form 1040NR and attach Form 8833. File for a tax extension free If you pay or accrue taxes to the foreign country on your pay, you may be able to relieve double taxation with a foreign tax credit. File for a tax extension free Most income tax treaties contain an article providing relief from double taxation. File for a tax extension free Many treaties contain special foreign tax credit rules for U. File for a tax extension free S. File for a tax extension free citizens who are residents of a treaty country. File for a tax extension free For more information on the mechanics of the foreign tax credit, see Foreign Taxes, later. File for a tax extension free Allowances, Differentials, and Special Pay Most payments received by U. File for a tax extension free S. File for a tax extension free Government civilian employees for working abroad, including pay differentials, are taxable. File for a tax extension free However, certain foreign areas allowances, cost of living allowances, and travel allowances are tax free. File for a tax extension free The following discussions explain the tax treatment of allowances, differentials, and other special pay you receive for employment abroad. File for a tax extension free Pay differentials. File for a tax extension free   Pay differentials you receive as financial incentives for employment abroad are taxable. File for a tax extension free Your employer should have included these differentials as wages on your Form W-2, Wage and Tax Statement. File for a tax extension free   Generally, pay differentials are given for employment under adverse conditions (such as severe climate) or because the post of duty is located in a hazardous or isolated area that may be outside the United States. File for a tax extension free The area does not have to be a qualified hazardous duty area as discussed in Publication 3. File for a tax extension free Pay differentials include: Post differentials, Special incentive differentials, and Danger pay. File for a tax extension free Foreign areas allowances. File for a tax extension free   Certain foreign areas allowances are tax free. File for a tax extension free Your employer should not have included these allowances as wages on your Form W-2. File for a tax extension free   Tax-free foreign areas allowances are allowances (other than post differentials) received under the following laws. File for a tax extension free Title I, chapter 9, of the Foreign Service Act of 1980. File for a tax extension free Section 4 of the Central Intelligence Agency Act of 1949, as amended. File for a tax extension free Title II of the Overseas Differentials and Allowances Act. File for a tax extension free Subsection (e) or (f) of the first section of the Administrative Expenses Act of 1946, as amended, or section 22 of that Act. File for a tax extension free These allowances cover such expenses as: Certain repairs to a leased home, Education of dependents in special situations, Motor vehicle shipment, Separate maintenance for dependents, Temporary quarters, Transportation for medical treatment, and Travel, moving, and storage. File for a tax extension free Allowances received by foreign service employees for representation expenses are also tax free under the above provisions. File for a tax extension free Cost-of-living allowances. File for a tax extension free   If you are stationed outside the continental United States or in Alaska, your gross income does not include cost-of-living allowances (other than amounts received under Title II of the Overseas Differentials and Allowances Act) granted by regulations approved by the President of the United States. File for a tax extension free The cost-of-living portion of any other allowance (for example, a living and quarters allowance) is not included even if the underlying allowance is included in gross income. File for a tax extension free Cost-of-living allowances are not included on your Form W-2. File for a tax extension free Federal court employees. File for a tax extension free   If you are a federal court employee, the preceding paragraph also applies to you. File for a tax extension free The cost-of-living allowance must be granted by rules similar to regulations approved by the President. File for a tax extension free American Institute in Taiwan. File for a tax extension free   If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. File for a tax extension free S. File for a tax extension free tax if they are equivalent to tax-exempt allowances received by civilian employees of the U. File for a tax extension free S. File for a tax extension free Government. File for a tax extension free Federal reemployment payments after serving with an international organization. File for a tax extension free   If you are a federal employee who is reemployed by a federal agency after serving with an international organization, you must include in income any reemployment payments you receive. File for a tax extension free These payments are equal to the difference between the pay, allowances, post differential, and other monetary benefits paid by the international organization and the pay and other benefits that would have been paid by the federal agency had you been detailed to the international agency. File for a tax extension free Allowances or reimbursements for travel and transportation expenses. File for a tax extension free   See How To Report Business Expenses, later, for a discussion on whether a reimbursement or allowance for travel or transportation is included in your income. File for a tax extension free Lodging furnished to a principal representative of the United States. File for a tax extension free   If you are a principal representative of the United States stationed in a foreign country, you do not have to include in income the value of lodging (including utilities) provided to you as an official residence. File for a tax extension free However, amounts paid by the U. File for a tax extension free S. File for a tax extension free government for your usual costs of operating and maintaining your household are taxable. File for a tax extension free If amounts are withheld from your pay to cover these expenses, you cannot exclude or deduct those amounts from your income. File for a tax extension free Peace Corps. File for a tax extension free   If you are a Peace Corps volunteer or volunteer leader, some allowances you receive are taxable and others are not. File for a tax extension free Taxable allowances. File for a tax extension free   The following allowances must be included on your Form W-2 and reported on your return as wages. File for a tax extension free If you are a volunteer leader, allowances paid to your spouse and minor children while you are training in the United States. File for a tax extension free The part of living allowances designated by the Director of the Peace Corps as basic compensation. File for a tax extension free This is the part for personal items such as domestic help, laundry and clothing maintenance, entertainment and recreation, transportation, and other miscellaneous expenses. File for a tax extension free Leave allowances. File for a tax extension free Readjustment allowances or “termination payments. File for a tax extension free ” Taxable allowances are considered received by you when credited to your account. File for a tax extension free Example. File for a tax extension free Gary Carpenter, a Peace Corps volunteer, gets $175 a month during his period of service, to be paid to him in a lump sum at the end of his tour of duty. File for a tax extension free Although the allowance is not available to him until the end of his service, Gary must include it in his income on a monthly basis as it is credited to his account. File for a tax extension free Nontaxable allowances. File for a tax extension free   These generally include travel allowances and the part of living allowances for housing, utilities, food, clothing, and household supplies. File for a tax extension free These allowances should not be included on your Form W-2. File for a tax extension free These allowances are tax free whether paid by the U. File for a tax extension free S. File for a tax extension free Government or the foreign country in which you are stationed. File for a tax extension free Other Income Other employment. File for a tax extension free   If, in addition to your U. File for a tax extension free S. File for a tax extension free government pay, you receive income from a private employer or self-employment, you may qualify to claim the foreign earned income exclusion and the foreign housing exclusion and deduction under section 911 based on this other income provided you meet either the bona fide residence test or the physical presence test. File for a tax extension free In addition, if your spouse is a U. File for a tax extension free S. File for a tax extension free citizen or resident alien who earns income in a foreign country that is paid by a private employer or is from self-employment, he or she may also qualify for the exclusion or the deduction. File for a tax extension free For more information, see Publication 54. File for a tax extension free The tax treaty rules relating to income from personal services generally apply to income from private employment. File for a tax extension free As discussed above, the saving clause applies to you if you are a U. File for a tax extension free S. File for a tax extension free citizen or if you are a resident of the United States under the treaty residence article (after application of the so-called “tie-breaker” rule). File for a tax extension free Sale of personal property. File for a tax extension free   If you have a gain from the sale of your personal property (such as an automobile or a home appliance), whether directly or through a favorable exchange rate in converting the proceeds to U. File for a tax extension free S. File for a tax extension free dollars, the excess of the amount received in U. File for a tax extension free S. File for a tax extension free dollars over the cost or other basis of the property is a capital gain. File for a tax extension free Capital gains are reported on Schedule D (Form 1040), Capital Gains and Losses. File for a tax extension free However, losses from sales of your personal property, whether directly or through an unfavorable exchange rate, are not deductible. File for a tax extension free Sale of your home. File for a tax extension free   All or part of the gain on the sale of your main home, within or outside the United States, may be taxable. File for a tax extension free Losses are not deductible. File for a tax extension free   You may be able to exclude from income any gain up to $250,000 ($500,000 on a joint return). File for a tax extension free Generally, you must have owned and used the home as your main residence for two of the five years preceding the date of sale. File for a tax extension free   You can choose to have the 5-year test period for ownership and use suspended during any period you or your spouse is serving on qualified official extended duty as a member of the Foreign Service of the United States, as an employee of the intelligence community, or as an employee or volunteer of the Peace Corps. File for a tax extension free   For detailed information on selling your home, see Publication 523. File for a tax extension free Deductions and Credits — Business Expenses You may deduct certain expenses such as travel expenses, transportation expenses, and other expenses connected to your employment. File for a tax extension free Travel Expenses Subject to certain limits, you can deduct your unreimbursed ordinary and necessary expenses of traveling away from home in connection with the performance of your official duties. File for a tax extension free These expenses include such items as travel costs, meals, lodging, baggage charges, local transportation costs (such as taxi fares), tips, and dry cleaning and laundry fees. File for a tax extension free Your home for tax purposes (tax home) is your regular post of duty regardless of where you maintain your family home. File for a tax extension free Your tax home is not limited to the Embassy, consulate, or duty station. File for a tax extension free It includes the entire city or general area in which your principal place of employment is located. File for a tax extension free Traveling away from home. File for a tax extension free   You are traveling away from home if you meet both of the following requirements. File for a tax extension free Your duties require you to be away from the general area of your tax home substantially longer than an ordinary day's work. File for a tax extension free You need to get sleep or rest to meet the demands of your work while away from home. File for a tax extension free This requirement is not satisfied by merely napping in your car. File for a tax extension free 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 for a tax extension free Temporary assignment. File for a tax extension free   If your assignment or job away from your tax home is temporary, your tax home does not change. File for a tax extension free You are considered to be away from home for the whole period, and your travel expenses are deductible. File for a tax extension free Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for one year or less. File for a tax extension free   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 for a tax extension free An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than one year, whether or not it actually lasts for more than one year. File for a tax extension free   You must determine whether your assignment is temporary or indefinite when you start work. File for a tax extension free If you expect employment to last for one year or less, it is temporary unless there are facts and circumstances that indicate otherwise. File for a tax extension free Employment that is initially temporary may become indefinite due to changed circumstances. File for a tax extension free 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 for a tax extension free Exception for federal crime investigations or prosecutions. File for a tax extension free   If you are a federal employee participating in a federal crime investigation or prosecution, you may be able to deduct travel expenses even if you are away from your tax home for more than one year. File for a tax extension free This exception to the one-year rule applies if the Attorney General certifies that you are traveling for the federal government in a temporary duty status to prosecute, or provide support services for the investigation or prosecution of, a federal crime. File for a tax extension free Limit on meals and entertainment. File for a tax extension free   You can generally deduct only 50% of the cost of your unreimbursed business-related meals and entertainment. File for a tax extension free However, the limit does not apply to expenses reimbursed under a U. File for a tax extension free S. File for a tax extension free Government expense allowance arrangement. File for a tax extension free Individuals subject to hours of service limits. File for a tax extension free   You can deduct 80% of your unreimbursed business-related meal expenses if the meals take place during or incident to any period subject to the Department of Transportation's hours of service limits. File for a tax extension free   Individuals subject to the Department of Transportation's “hours of service” limits include the following. File for a tax extension free Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. File for a tax extension free Interstate truck operators and bus drivers who are under Department of Transportation regulations. File for a tax extension free Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. File for a tax extension free Certain merchant mariners who are under Coast Guard regulations. File for a tax extension free Primary purpose of trip must be for business. File for a tax extension free   If your trip was entirely for business, your unreimbursed travel expenses are generally deductible. File for a tax extension free However, if you spend some of your time on nonbusiness activities, part of your expenses may not be deductible. File for a tax extension free   If your trip was mainly personal, you cannot deduct your travel expenses to and from your destination. File for a tax extension free This applies even if you engage in business activities while there. File for a tax extension free However, you can deduct any expenses while at your destination that are directly related to your business. File for a tax extension free Expenses paid for others. File for a tax extension free   You generally cannot deduct travel expenses of your spouse, dependents, or other individuals who go with you on a trip. File for a tax extension free Home leave. File for a tax extension free   The Foreign Service Act requires U. File for a tax extension free S. File for a tax extension free citizens who are members of the foreign service to take a leave of absence after completing 3 years of continuous service abroad. File for a tax extension free This period is called “home leave” and can be used to take care of certain personal matters such as medical and dental checkups, buying a new wardrobe, and visiting relatives. File for a tax extension free   The amounts paid for your travel, meals, and lodging while on home leave are deductible as travel or business expenses subject to the rules and limits discussed earlier. File for a tax extension free You must be able to verify these amounts in order to claim them. File for a tax extension free Amounts paid on behalf of your family while on home leave are personal living expenses and are not deductible. File for a tax extension free More information. File for a tax extension free   See chapter 1 of Publication 463 for more information on travel expenses. File for a tax extension free Transportation Expenses You can deduct allowable transportation expenses that are directly related to your official duties. File for a tax extension free Transportation expenses include the cost of transportation by air, rail, bus, or taxi, and the cost of driving and maintaining your car. File for a tax extension free They do not include expenses you have when traveling away from home overnight. File for a tax extension free Those expenses are deductible as travel expenses and are discussed earlier. File for a tax extension free Commuting. File for a tax extension free   You cannot deduct your transportation costs of going between your home and your regular business location. File for a tax extension free These costs are personal commuting expenses. File for a tax extension free   If you have one or more regular business locations but must work at a temporary location, you can deduct the costs of commuting to that temporary place of work. File for a tax extension free   If you work at two or more places in the same day, you can deduct your expenses of getting from one place of work to the other. File for a tax extension free More information. File for a tax extension free   For more information on transportation expenses, see chapter 4 of Publication 463. File for a tax extension free Other Employee Business Expenses You may be able to deduct other unreimbursed expenses that are connected with your employment. File for a tax extension free Membership dues. File for a tax extension free   You can deduct membership dues you pay to professional societies that relate to your business or profession. File for a tax extension free Subscriptions. File for a tax extension free   You can deduct subscriptions to professional publications that relate to your business or profession. File for a tax extension free Educational expenses. File for a tax extension free   Generally, educational expenses are considered to be personal expenses and are not deductible. File for a tax extension free However, under some circumstances, educational expenses are deductible as business expenses. File for a tax extension free   You can deduct educational expenses as business expenses if the education: Maintains or improves skills needed in your present position, or Meets the express requirements of your agency to keep your present position, salary, or status. File for a tax extension free   You cannot deduct educational expenses as business expenses if the education: Is needed to enable you to meet minimum educational requirements for qualification in your present position, Is a part of a program of study that can qualify you for a new position, or Is for travel as a form of education. File for a tax extension free These rules apply even if the education is required by your agency or it maintains or improves skills required in your work. File for a tax extension free   See Publication 970, Tax Benefits for Education, for more information on educational expenses. File for a tax extension free    Educational expenses that are not work related, such as costs of sending children to college, are personal expenses that you cannot deduct. File for a tax extension free However, you may be eligible for other tax benefits such as the American opportunity and lifetime learning credits; contributions to a Coverdell education savings account or qualified tuition program; deduction for student loan interest; and exclusion from income of certain savings bond interest. File for a tax extension free These benefits are explained in Publication 970. File for a tax extension free Foreign service representation expenses. File for a tax extension free   If you are an employee of the U. File for a tax extension free S. File for a tax extension free Foreign Service and your position requires you to establish and maintain favorable relations in foreign countries, you may receive a nontaxable allowance for representation expenses. File for a tax extension free If your expenses are more than the allowance you receive, you can deduct the excess expenses as an itemized deduction on Schedule A (Form 1040) if you meet one of the following conditions. File for a tax extension free You have a certificate from the Secretary of State attesting that the expenses were incurred for the benefit of the United States, and would be reimbursable under appropriate legislation if the agency had sufficient funds for these reimbursements. File for a tax extension free The expenses, while specifically not reimbursable under State Department regulations, were ordinary and necessary business expenses incurred in the performance of your official duties. File for a tax extension free    To deduct any expenses for travel, entertainment, and gifts, including those certified by the Secretary of State, you must meet the rules for recordkeeping and accounting to your employer. File for a tax extension free These rules are explained in Publication 463. File for a tax extension free Representation expenses. File for a tax extension free   These are expenses that further the interest of the United States abroad. File for a tax extension free They include certain entertainment, gifts, costs of official functions, and rental of ceremonial dress. File for a tax extension free They generally do not include costs of passenger vehicles (such as cars or aircraft), printing or engraving, membership fees, or amounts a principal representative must pay personally to cover the usual costs of operating and maintaining an official residence. File for a tax extension free   Chapters 300 and 400 of the Standardized Regulations (Government Civilians, Foreign Area) provide more detail on what expenses are allowable as representation expenses. File for a tax extension free These regulations are available on the Internet at www. File for a tax extension free state. File for a tax extension free gov/m/a/als. File for a tax extension free Look under “Standardized Regulations (DSSR)” and click on “DSSR Table of Contents. File for a tax extension free ” Publication 463 and Publication 529, Miscellaneous Deductions, provide more detail on what expenses are allowable as ordinary and necessary business expenses. File for a tax extension free Impairment-related work expenses. File for a tax extension free   If you are an employee with a physical or mental disability, you can deduct attendant-care services at your place of work and other expenses in connection with work that are necessary for you to be able to work. File for a tax extension free Attendant care includes a reader for a blind person and a helper for a person with a physical disability. File for a tax extension free These expenses are reported on Form 2106 or 2106-EZ and carried to Schedule A (Form 1040). File for a tax extension free They are not subject to the 2%-of-adjusted- gross-income limit on miscellaneous itemized deductions. File for a tax extension free Loss on conversion of U. File for a tax extension free S. File for a tax extension free dollars into foreign currency. File for a tax extension free   The conversion of U. File for a tax extension free S. File for a tax extension free dollars into foreign currency at an official rate of exchange that is not as favorable as the free market rate does not result in a deductible loss. File for a tax extension free Recordkeeping Rules If you claim a deduction for unreimbursed business expenses, you must keep timely and adequate records of all your business expenses. File for a tax extension free For example, you must keep records and supporting evidence to prove the following elements about deductions for travel expenses (including meals and lodging while away from home). File for a tax extension free The amount of each separate expense for travel away from home, such as the cost of your transportation, lodging, or meals. File for a tax extension free You may total your incidental expenses if you list them in reasonable categories such as daily meals, gasoline and oil, and taxi fares. File for a tax extension free For each trip away from home, the dates you left and returned and the number of days spent on business. File for a tax extension free The destination or area of your travel, described by the name of the city, town, or similar designation. File for a tax extension free The business reason for your travel or the business benefit gained or expected to be gained from your travel. File for a tax extension free How to record your expenses. File for a tax extension free   Records for proof of your expenses should be kept in an account book, diary, statement of expense, or similar record. File for a tax extension free They should be supported by other records, such as receipts or canceled checks, in sufficient detail to establish the elements for these expenses. File for a tax extension free You do not need to duplicate information in an account book or diary that is shown on a receipt as long as your records and receipts complement each other in an orderly manner. File for a tax extension free   Each expense should be recorded separately in your records. File for a tax extension free However, some items can be totaled in reasonable categories. File for a tax extension free You can make one daily entry for categories such as taxi fares, telephone calls, meals while away from home, gas and oil, and other incidental costs of travel. File for a tax extension free You may record tips separately or with the cost of the service. File for a tax extension free    Documentary evidence generally is required to support all lodging expenses while traveling away from home. File for a tax extension free It is also required for any other expense of $75 or more, except transportation charges if the evidence is not readily available. File for a tax extension free Documentary evidence is a receipt, paid bill, or similar proof sufficient to support an expense. File for a tax extension free It ordinarily will be considered adequate if it shows the amount, date, place, and essential business character of the expense. File for a tax extension free    A canceled check by itself does not prove a business cost. File for a tax extension free You must have other evidence to show that the check was used for a business purpose. File for a tax extension free Your records must be timely. File for a tax extension free   Record the elements for the expense in your account book or other record at or near the time of the expense. File for a tax extension free A timely-kept record has more value than statements prepared later when, generally, there is a lack of accurate recall. File for a tax extension free Confidential information. File for a tax extension free   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. File for a tax extension free However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. File for a tax extension free How To Report Business Expenses As a U. File for a tax extension free S. File for a tax extension free Government employee, your business expense reimbursements are generally paid under an accountable plan and are not included in your wages on your Form W-2. File for a tax extension free If your expenses are not more than the reimbursements, you do not need to show your expenses or reimbursements on your return. File for a tax extension free However, if you do not account to your employer for a travel advance or if you do not return any excess advance within a reasonable period of time, the advance (or excess) will be included in your wages on your Form W-2. File for a tax extension free If you are entitled to a reimbursement from your employer but you do not claim it, you cannot deduct the expenses to which that unclaimed reimbursement applies. File for a tax extension free Form 2106 or Form 2106-EZ. File for a tax extension free   You must complete Form 2106 or 2106-EZ to deduct your expenses. File for a tax extension free Also, if your actual expenses are more than your reimbursements, you can complete Form 2106 or 2106-EZ to deduct your excess expenses. File for a tax extension free Generally, you must include all of your expenses and reimbursements on Form 2106 or 2106-EZ and carry your allowable expense to Schedule A (Form 1040). File for a tax extension free Your allowable expense is then generally subject to the 2%-of-adjusted-gross-income limit. File for a tax extension free Form 2106-EZ. File for a tax extension free   You may be able to use Form 2106-EZ instead of the more complex Form 2106 for reporting unreimbursed employee business expenses. File for a tax extension free You can use Form 2106-EZ if you meet both of the following conditions. File for a tax extension free You are not reimbursed by your employer for any expenses. File for a tax extension free (Amounts your employer included in your wages on your Form W-2 are not considered reimbursements. File for a tax extension free ) If you claim car expenses, you use the standard mileage rate. File for a tax extension free Deductions and Credits — Nonbusiness Expenses In addition to deductible business expenses, you may be entitled to deduct certain other expenses. File for a tax extension free Moving Expenses If you changed job locations or started a new job, you may be able to deduct the reasonable expenses of moving yourself, your family, and your household goods and personal effects to your new home. File for a tax extension free However, you cannot deduct any expenses for which you received a tax-free allowance as a U. File for a tax extension free S. File for a tax extension free Government employee. File for a tax extension free To deduct moving expenses, your move must be closely related to the start of work and you must meet the distance test and the time test. File for a tax extension free Closely related to the start of work. File for a tax extension free   The move must be closely related, both in time and in place, to the start of work at the new location. File for a tax extension free In general, you must have incurred your moving expenses within one year from the time you first report to your new job or business. File for a tax extension free   A move generally is not considered closely related in place to the start of work if the distance from your new home to the new job location is more than the distance from your former home to the new job location. File for a tax extension free A move that does not meet this requirement may qualify if you can show that you must live at the new home as a condition of employment, or you will spend less time or money commuting from the new home to the new job. File for a tax extension free Distance test. File for a tax extension free   Your new main job location must be at least 50 miles farther from your former home than your old main job location was. File for a tax extension free If you did not have an old job location, your new job location must be at least 50 miles from your former home. File for a tax extension free Time test. File for a tax extension free   If you are an employee, you must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location. File for a tax extension free Deductible moving expenses. File for a tax extension free   Moving expenses that can be deducted include the reasonable costs of: Moving household goods and personal effects (including packing, crating, in-transit storage, and insurance) of both you and members of your household, and Transportation and lodging for yourself and members of your household for one trip from your former home to your new home (including costs of getting passports). File for a tax extension free    The cost of your meals is not a deductible moving expense. File for a tax extension free   The costs of moving household goods include the reasonable expenses of moving household goods and personal effects to and from storage. File for a tax extension free For a foreign move, the costs also include expenses of storing the goods and effects for part or all of the period that your new job location abroad continues to be your main job location. File for a tax extension free Expenses must be reasonable. File for a tax extension free   You can deduct only those expenses that are reasonable for the circumstances of your move. File for a tax extension free For example, the costs of traveling from your former home to your new one should be by the shortest, most direct route available by conventional transportation. File for a tax extension free Members of your household. File for a tax extension free   A member of your household includes anyone who has both your former home and new home as his or her home. File for a tax extension free It does not include a tenant or employee unless you can claim that person as a dependent. File for a tax extension free Retirees. File for a tax extension free   You can deduct the costs of moving to the United States when you permanently retire if both your former main job location and former home were outside the United States and its possessions. File for a tax extension free You do not have to meet the time test described earlier. File for a tax extension free Survivors. File for a tax extension free   You can deduct moving expenses for a move to the United States if you are the spouse or dependent of a person whose main job location at the time of death was outside the United States and its possessions. File for a tax extension free The move must begin within 6 months after the decedent's death. File for a tax extension free It must be from the decedent's former home outside the United States, and that home must also have been your home. File for a tax extension free You do not have to meet the time test described earlier. File for a tax extension free How to report moving expenses. File for a tax extension free   Use Form 3903 to report your moving expenses and figure your allowable deduction. File for a tax extension free Claim the deduction as an adjustment to income on Form 1040. File for a tax extension free (You cannot deduct moving expenses on Form 1040A or Form 1040EZ. File for a tax extension free ) Reimbursements. File for a tax extension free   Generally, you must include reimbursements of, or payments for, nondeductible moving expenses in gross income for the year paid. File for a tax extension free You also must include in gross income reimbursements paid to you under a nonaccountable plan. File for a tax extension free However, there is an exception for the tax-free foreign areas allowances described earlier under Allowances, Differentials, and Special Pay. File for a tax extension free Additional information. File for a tax extension free   For additional information about moving expenses, see Publication 521. File for a tax extension free Other Itemized Deductions You may be able to claim other itemized deductions not connected to your employment. File for a tax extension free Contributions. File for a tax extension free   You can deduct contributions to qualified organizations created or organized in or under the laws of the United States or its possessions. File for a tax extension free You cannot deduct contributions you make directly to foreign organizations (except for certain Canadian, Israeli, and Mexican charities), churches, and governments. File for a tax extension free For more information, see Publication 526, Charitable Contributions. File for a tax extension free Real estate tax and home mortgage interest. File for a tax extension free   If you receive a tax-free housing allowance, your itemized deductions for real estate taxes and home mortgage interest are limited. File for a tax extension free You must reduce the amount of each deduction that would otherwise be allowable by the amount of each expense that is related to the tax-free allowance. File for a tax extension free Example. File for a tax extension free Adam is an IRS employee working overseas who receives a $6,300 tax-free housing and utility allowance. File for a tax extension free During the year, Adam used the allowance, with other funds, to provide a home for himself. File for a tax extension free His expenses for this home totaled $8,400 and consisted of mortgage principal ($500), insurance ($400), real estate taxes ($1,400), mortgage interest ($4,000), and utility costs ($2,100). File for a tax extension free Adam did not have any other expenses related to providing a home for himself. File for a tax extension free Adam must reduce his deductions for home mortgage interest and real estate taxes. File for a tax extension free He figures a reasonable way to reduce them is to multiply them by a fraction: its numerator is $6,300 (the total housing and utility allowance) and its denominator is $8,400 (the total of all payments to which the housing and utility allowance applies). File for a tax extension free The result is 3/4. File for a tax extension free Adam reduces his otherwise allowable home mortgage interest deduction by $3,000 (the $4,000 he paid ×3/4) and his otherwise allowable real estate tax deduction by $1,050 (the $1,400 he paid × 3/4). File for a tax extension free He can deduct $1,000 of his mortgage interest ($4,000 − $3,000) and $350 of his real estate taxes ($1,400 − $1,050) when he itemizes his deductions. File for a tax extension free Exception to the reduction. File for a tax extension free   If you receive a tax-free housing allowance as a member of the military or the clergy, you do not have to reduce your deductions for real estate tax and home mortgage interest expenses you are otherwise entitled to deduct. File for a tax extension free Required statement. File for a tax extension free   If you receive a tax-free housing allowance and have real estate tax or home mortgage interest expenses, attach a statement to your tax return. File for a tax extension free The statement must contain all of the following information. File for a tax extension free The amount of each type of tax-free income you received, such as a tax-free housing allowance or tax-free representation allowance. File for a tax extension free The amount of otherwise deductible expenses attributable to each type of tax-free income. File for a tax extension free The amount attributable to each type of tax-free income that was not directly attributable to that type of tax-free income. File for a tax extension free An explanation of how you determined the amounts not directly attributable to each type of tax-free income. File for a tax extension free   The statement must also indicate that none of the amounts deducted on your return are in any way attributable to tax-free income. File for a tax extension free Foreign Taxes If you pay or accrue taxes to a foreign government, you generally can choose to either claim them as a credit against your U. File for a tax extension free S. File for a tax extension free income tax liability or deduct them as an itemized deduction when figuring your taxable income. File for a tax extension free Do not include the foreign taxes paid or accrued as withheld income taxes in the Payments section of Form 1040. File for a tax extension free Foreign tax credit. File for a tax extension free   Your foreign tax credit is subject to a limit based on your taxable income from foreign sources. File for a tax extension free If you choose to figure a credit against your U. File for a tax extension free S. File for a tax extension free tax liability for the foreign taxes, you generally must complete Form 1116 and attach it to your U. File for a tax extension free S. File for a tax extension free income tax return. File for a tax extension free    You cannot claim a credit for foreign taxes paid on amounts excluded from gross income under the foreign earned income or housing exclusions. File for a tax extension free If all your foreign income is exempt from U. File for a tax extension free S. File for a tax extension free tax, you will not be able to claim a foreign tax credit. File for a tax extension free   If, because of the limit on the credit, you cannot use the full amount of qualified foreign taxes paid or accrued in the tax year, you are allowed to carry the excess back 1 year and then forward 10 years. File for a tax extension free Exemption from limit. File for a tax extension free   You can elect to not be subject to the foreign tax limit if you meet all the following conditions. File for a tax extension free Your only foreign income is passive income, such as interest, dividends, and royalties. File for a tax extension free The total of all your foreign taxes is not more than $300 ($600 for joint tax returns). File for a tax extension free The foreign income and taxes are reported to you on a payee statement, such as Form 1099-DIV, Dividends and Distributions, or 1099-INT, Interest Income. File for a tax extension free If you make the election, you can claim a foreign tax credit without filing Form 1116. File for a tax extension free However, you cannot carry back or carry over any unused foreign tax to or from this year. File for a tax extension free See the instructions for the appropriate line in the Tax and Credits section of Form 1040. File for a tax extension free Foreign tax deduction. File for a tax extension free   If you choose to deduct all foreign income taxes on your U. File for a tax extension free S. File for a tax extension free income tax return, itemize the deduction on Schedule A (Form 1040). File for a tax extension free You cannot deduct foreign taxes paid on income you exclude under the foreign earned income or housing exclusions. File for a tax extension free Example. File for a tax extension free Dennis and Christina are married and live and work in Country X. File for a tax extension free Dennis works for the U. File for a tax extension free S. File for a tax extension free Government and Christina is employed by a private company. File for a tax extension free They pay income tax to Country X on Christina's income only. File for a tax extension free Dennis and Christina file a joint tax return and exclude all of Christina's income. File for a tax extension free They cannot claim a foreign tax credit or take a deduction for the taxes paid to Country X. File for a tax extension free Deduction for other foreign taxes. File for a tax extension free   The deduction for foreign taxes other than foreign income taxes is not related to the foreign tax credit. File for a tax extension free You can take deductions for these miscellaneous foreign taxes and also claim the foreign tax credit for income taxes paid to a foreign country. File for a tax extension free   You can deduct real property taxes you pay that are imposed on you by a foreign country. File for a tax extension free You take this deduction on Schedule A (Form 1040). File for a tax extension free You cannot deduct other foreign taxes, such as personal property taxes, unless you incurred the expenses in a trade or business or in the production of income. File for a tax extension free More information. File for a tax extension free   The foreign tax credit and deduction, their limits, and carryback and carryover provisions are discussed in detail in Publication 514. File for a tax extension free Local (Foreign) Tax Return As a U. File for a tax extension free S. File for a tax extension free Government employee, you are expected to observe and fulfill all tax obligations imposed by the host country government. File for a tax extension free Check with local tax authorities to determine whether you are considered a tax resident of your host country, whether you are required to file a host country tax return and whether you owe taxes to the host country. File for a tax extension free Tax Treaty Benefits As discussed earlier, most income tax treaties contain an article relating to remuneration from government services. File for a tax extension free Review the treaty text carefully to determine whether your U. File for a tax extension free S. File for a tax extension free Government remuneration is taxable in the host country. File for a tax extension free You will first have to determine whether you are a resident of your host country under the treaty residence article (after application of the so-called “tie-breaker” rule). File for a tax extension free If you or your spouse receives income from a private employer or self-employment, review the tax treaty rules relating to income from personal services to determine whether that income is taxable in the host country. File for a tax extension free If you pay or accrue taxes to both the host country and the United States, you may be able to relieve double taxation with a foreign tax credit. File for a tax extension free Most income tax treaties contain an article providing relief from double taxation. File for a tax extension free Many treaties contain special foreign tax credit rules for U. File for a tax extension free S. File for a tax extension free citizens who are residents of a treaty country. File for a tax extension free For more information about the foreign tax credit, see Foreign Taxes, earlier. File for a tax extension free Other Agreements The United States may be a party to agreements other than income tax treaties that may affect your tax obligations to the host country. File for a tax extension free For example, consular employees may be exempt from host country tax under the Vienna Convention on Consular Relations or bilateral consular agreements. File for a tax extension free Similarly, certain diplomatic staff may be exempt from host country tax under the Vienna Convention on Diplomatic Relations. File for a tax extension free Check with the appropriate U. File for a tax extension free S. File for a tax extension free Embassy for more information. File for a tax extension free Double Withholding If your U. File for a tax extension free S. File for a tax extension free government pay is subject to withholding in both the United States and the foreign country, you may reduce the amount of U. File for a tax extension free S. File for a tax extension free tax that is withheld from your pay if you expect to be entitled to a foreign tax credit on your U. File for a tax extension free S. File for a tax extension free income tax return on this income. File for a tax extension free Complete Worksheet 1-6 in Publication 505, Tax Withholding and Estimated Tax, to determine how to revise Form W-4, Employee’s Withholding Allowance Certificate. File for a tax extension free How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. File for a tax extension free By selecting the method that is best for you, you will have quick and easy access to tax help. File for a tax extension free Free help with your tax return. File for a tax extension free   Free help in preparing your return is available nationwide from IRS-certified volunteers. File for a tax extension free The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. File for a tax extension free The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. File for a tax extension free Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. File for a tax extension free Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. File for a tax extension free To find the nearest VITA or TCE site, visit IRS. File for a tax extension free gov or call 1-800-906-9887 or 1-800-829-1040. File for a tax extension free   As part of the TCE program, AARP offers the Tax-Aide counseling program. File for a tax extension free To find the nearest AARP Tax-Aide site, visit AARP's website at www. File for a tax extension free aarp. File for a tax extension free org/money/taxaide or call 1-888-227-7669. File for a tax extension free   For more information on these programs, go to IRS. File for a tax extension free gov and enter “VITA” in the search box. File for a tax extension free Internet. File for a tax extension free You can access the IRS website at IRS. File for a tax extension free gov 24 hours a day, 7 days a week to: E-file your return. File for a tax extension free Find out about commercial tax preparation and e-file services available free to eligible taxpayers. File for a tax extension free Check the status of your 2012 refund. File for a tax extension free Go to IRS. File for a tax extension free gov and click on Where’s My Refund. File for a tax extension free Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. File for a tax extension free If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). File for a tax extension free Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. File for a tax extension free Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. File for a tax extension free Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. File for a tax extension free So in a change from previous filing seasons, you won't get an estimated refund date right away. File for a tax extension free Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. File for a tax extension free You can obtain a free transcript online at IRS. File for a tax extension free gov by clicking on Order a Return or Account Transcript under “Tools. File for a tax extension free ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. File for a tax extension free You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. File for a tax extension free Download forms, including talking tax forms, instructions, and publications. File for a tax extension free Order IRS products. File for a tax extension free Research your tax questions. File for a tax extension free Search publications by topic or keyword. File for a tax extension free Use the Internal Revenue Code, regulations, or other official guidance. File for a tax extension free View Internal Revenue Bulletins (IRBs) published in the last few years. File for a tax extension free Figure your withholding allowances using the IRS Withholding Calculator at www. File for a tax extension free irs. File for a tax extension free gov/individuals. File for a tax extension free Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. File for a tax extension free gov by typing Alternative Minimum Tax Assistant in the search box. File for a tax extension free Sign up to receive local and national tax news by email. File for a tax extension free Get information on starting and operating a small business. File for a tax extension free Phone. File for a tax extension free Many services are available by phone. File for a tax extension free   Ordering forms, instructions, and publications. File for a tax extension free Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, and publications, and prior-year forms and instructions (limited to 5 years). File for a tax extension free You should receive your order within 10 days. File for a tax extension free Asking tax questions. File for a tax extension free Call the IRS with your tax questions at 1-800-829-1040. File for a tax extension free Solving problems. File for a tax extension free You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). File for a tax extension free An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. File for a tax extension free Call your local Taxpayer Assistance Center for an appointment. File for a tax extension free To find the number, go to www. File for a tax extension free irs. File for a tax extension free gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. File for a tax extension free TTY/TDD equipment. File for a tax extension free If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. File for a tax extension free The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. File for a tax extension free These individuals can also access the IRS through relay services such as the Federal Relay Service at www. File for a tax extension free gsa. File for a tax extension free gov/fedrelay. File for a tax extension free TeleTax topics. File for a tax extension free Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. File for a tax extension free Checking the status of your 2012 refund. File for a tax extension free To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). File for a tax extension free Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. File for a tax extension free If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). File for a tax extension free Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. File for a tax extension free Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. File for a tax extension free Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. File for a tax extension free Outside the U. File for a tax extension free S. File for a tax extension free If you are outside the United States, taxpayer assistance is available at the following U. File for a tax extension free S Embassies or consulate. File for a tax extension free Beijing, China (86) (10) 8531-3983 Frankfurt, Germany (49) (69) 7535-3834 London, England (44) (20) 7894-0476 Paris, France (33) (1) 4312-2555 Please contact the office for times when assistance will be available. File for a tax extension free If you cannot get to one of these offices, taxpayer assistance is available at (267) 941-1000 (not a toll free call). File for a tax extension free If you are in a U. File for a tax extension free S. File for a tax extension free territory (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and U. File for a tax extension free S. File for a tax extension free Virgin Islands) and have a tax question, you can call 1-800-829-1040. File for a tax extension free Evaluating the quality of our telephone services. File for a tax extension free To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. File for a tax extension free One method is for a second IRS representative to listen in on or record random telephone calls. File for a tax extension free Another is to ask some callers to complete a short survey at the end of the call. File for a tax extension free Walk-in. File for a tax extension free Some products and services are available on a walk-in basis. File for a tax extension free   Products. File for a tax extension free You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. File for a tax extension free Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. File for a tax extension free Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. File for a tax extension free Services. File for a tax extension free You can walk in to your local TAC most business days for personal, face-to-face tax help. File for a tax extension free An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. File for a tax extension free If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. File for a tax extension free No appointment is necessary—just walk in. File for a tax extension free Before visiting, check www. File for a tax extension free irs. File for a tax extension free gov/localcontacts for hours of operation and services provided. File for a tax extension free If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. File for a tax extension free You can leave a message and a representative will call you back within 2 business days. File for a tax extension free All other issues will be handled without an appointment. File for a tax extension free To call your local TAC, go to  www. File for a tax extension free irs. File for a tax extension free gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. File for a tax extension free Outside the U. File for a tax extension free S. File for a tax extension free If you are outside the United States during the filing period (January to mid-June), you can get the necessary federal tax forms and publications from most U. File for a tax extension free S. File for a tax extension free Embassies and consulates. File for a tax extension free Mail. File for a tax extension free You can send your order for forms, instructions, and publications to the address below. File for a tax extension free You should receive a response within 10 days after your request is received. File for a tax extension free  Internal Revenue Service 1201 N. File for a tax extension free Mitsubishi Motorway Bloomington, IL 61705-6613 Outside the U. File for a tax extension free S. File for a tax extension free If you are outside the United States, you can get tax assistance by writing to the address below. File for a tax extension free  Internal Revenue Service International Accounts Philadelphia, PA 19255-0725 Taxpayer Advocate Service. File for a tax extension free   The Taxpayer Advocate Service (TAS) is your voice at the IRS. File for a tax extension free Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. File for a tax extension free TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. File for a tax extension free Remember, the worst thing you can do is nothing at all. File for a tax extension free   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. File for a tax extension free You face (or your business is facing) an immediate threat of adverse action. File for a tax extension free You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. File for a tax extension free   If you qualify for help, they will do everything they can to get your problem resolved. File for a tax extension free You will be assigned to one advocate who will be with you at every turn. File for a tax extension free TAS has offices in every state, the District of Columbia, and Puerto Rico. File for a tax extension free Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. File for a tax extension free And its services are always free. File for a tax extension free   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. File for a tax extension free The TAS tax toolkit at www. File for a tax extension free TaxpayerAdvocate. File for a tax extension free irs. File for a tax extension free gov can help you understand these rights. File for a tax extension free   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. File for a tax extension free irs. File for a tax extension free gov/advocate. File for a tax extension free You can also call the toll-free number at 1-877-777-4778. File for a tax extension free Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. File for a tax extension free These individuals can also access the IRS through relay services such as the Federal Relay Service at www. File for a tax extension free gsa. File for a tax extension free gov/fedrelay. File for a tax extension free   TAS also handles large-scale or systemic problems that affect many taxpayers. File for a tax extension free If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. File for a tax extension free irs. File for a tax extension free gov/advocate. File for a tax extension free    Outside the U. File for a tax extension free S. File for a tax extension free If you live outside of the United States, you can call the Taxpayer Advocate at (787) 522-8601 in English or (787) 522-8600 in Spanish. File for a tax extension free You can contact the Taxpayer Advocate at: Internal Revenue Service Taxpayer Advocate Service City View Plaza, 48 Carr 165, Suite 2000 Guaynabo, P. File for a tax extension free R. File for a tax extension free 00968-8000 Low Income Taxpayer Clinics (LITCs). File for a tax extension free   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. File for a tax extension free Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. File for a tax extension free These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. File for a tax extension free Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. File for a tax extension free For more information and to find a clinic near you, see the LITC page on www. File for a tax extension free irs. File for a tax extension free gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. File for a tax extension free This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. File for a tax extension free Free tax services. File for a tax extension free   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. File for a tax extension free Learn about free tax information from the IRS, including publications, services, and education and assistance programs. File for a tax extension free The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. File for a tax extension free The majority of the information and services listed in this publication are available to you free of charge. File for a tax extension free If there is a fee associated with a resource or service, it is listed in the publication. File for a tax extension free   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. File for a tax extension free DVD for tax products. File for a tax extension free You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. File for a tax extension free Prior-year forms, instructions, and publications. File for a tax extension free Tax Map: an electronic research tool and finding aid. File for a tax extension free Tax law frequently asked questions. File for a tax extension free Tax Topics from the IRS telephone response system. File for a tax extension free Internal Revenue Code—Title 26 of the U. File for a tax extension free S. File for a tax extension free Code. File for a tax extension free Links to other Internet-based tax research materials. File for a tax extension free Fill-in, print, and save features for most tax forms. File for a tax extension free Internal Revenue Bulletins. File for a tax extension free Toll-free and email technical support. File for a tax extension free Two releases during the year. File for a tax extension free  – The first release will ship the beginning of January 2013. File for a tax extension free  – The final release will ship the beginning of March 2013. File for a tax extension free Purchase the DVD from National Technical Information Service (NTIS) at www. File for a tax extension free irs. File for a tax extension free gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). File for a tax extension free Prev  Up  Next   Home   More Online Publications
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Understanding Your CP211E Notice

We denied your request to extend the time to file your Exempt Organization Return because your Form 8868, Application for Extension of Time To File an Exempt Organization Return, didn't meet one or more of the requirements.


Your request didn’t meet one or more of the requirements:

  • Postmark your request by the previously established due date.
  • Have your request signed by an authorized person.
  • Deposit estimated tax due by the previously established due date.
  • Show reasonable cause for requiring another extension.
  • Establish reasons that prevented you from filing by the extended due date.

Your previous due date still applies.


What you need to do

  • File your required Exempt Organization Return immediately to limit any late filing penalties. If your Exempt Organization Return is filed after the due date of the return (including any extensions), the return is considered late and subject to late filing penalties.
  • We encourage you to use electronic filing – the fastest and easiest way to file.

You may want to

  • Visit www.irs.gov/Charities-&-Non-Profits to learn about approved e-File providers, what types of returns can be filed electronically, and whether you are required to file electronically.

Answers to Common Questions

Q. Where can I go for more information about tax-exempt organizations?

A. For more information on Employee Benefit Plans, see Tax Information for Charities & Other Non-Profits.

Q. Can I get help over the phone?

A. If you have questions and/or need help, you can call 1-877-829-5500. Personal assistance is available Monday through Friday, 7:00 a.m. to 7:00 p.m. CT.


Tips for next year

Be sure to sign and mail your Form 8868 with a reason you need an additional 3-month extension on or before the due date of your first extension.

Page Last Reviewed or Updated: 24-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The File For A Tax Extension Free

File for a tax extension free 8. File for a tax extension free   Business Expenses Table of Contents Introduction Useful Items - You may want to see: Bad DebtsAccrual method. File for a tax extension free Cash method. File for a tax extension free Car and Truck ExpensesOffice in the home. File for a tax extension free Methods for Deducting Car and Truck Expenses Reimbursing Your Employees for Expenses Depreciation Employees' PayFringe benefits. File for a tax extension free InsuranceHow to figure the deduction. File for a tax extension free Interest Legal and Professional FeesTax preparation fees. File for a tax extension free Pension Plans Rent Expense Taxes Travel, Meals, and EntertainmentTransportation. File for a tax extension free Taxi, commuter bus, and limousine. File for a tax extension free Baggage and shipping. File for a tax extension free Car or truck. File for a tax extension free Meals and lodging. File for a tax extension free Cleaning. File for a tax extension free Telephone. File for a tax extension free Tips. File for a tax extension free More information. File for a tax extension free Business Use of Your HomeExceptions to exclusive use. File for a tax extension free Other Expenses You Can Deduct Expenses You Cannot Deduct Introduction You can deduct the costs of operating your business. File for a tax extension free These costs are known as business expenses. File for a tax extension free These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. File for a tax extension free To be deductible, a business expense must be both ordinary and necessary. File for a tax extension free An ordinary expense is one that is common and accepted in your field of business. File for a tax extension free A necessary expense is one that is helpful and appropriate for your business. File for a tax extension free An expense does not have to be indispensable to be considered necessary. File for a tax extension free For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses. File for a tax extension free If you have an expense that is partly for business and partly personal, separate the personal part from the business part. File for a tax extension free The personal part is not deductible. File for a tax extension free Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 946 How To Depreciate Property See chapter 12 for information about getting publications and forms. File for a tax extension free Bad Debts If someone owes you money you cannot collect, you have a bad debt. File for a tax extension free There are two kinds of bad debts, business bad debts and nonbusiness bad debts. File for a tax extension free A business bad debt is generally one that comes from operating your trade or business. File for a tax extension free You may be able to deduct business bad debts as an expense on your business tax return. File for a tax extension free Business bad debt. File for a tax extension free   A business bad debt is a loss from the worthlessness of a debt that was either of the following. File for a tax extension free Created or acquired in your business. File for a tax extension free Closely related to your business when it became partly or totally worthless. File for a tax extension free A debt is closely related to your business if your primary motive for incurring the debt is a business reason. File for a tax extension free   Business bad debts are mainly the result of credit sales to customers. File for a tax extension free They can also be the result of loans to suppliers, clients, employees, or distributors. File for a tax extension free Goods and services customers have not paid for are shown in your books as either accounts receivable or notes receivable. File for a tax extension free If you are unable to collect any part of these accounts or notes receivable, the uncollectible part is a business bad debt. File for a tax extension free    You can take a bad debt deduction for these accounts and notes receivable only if the amount you were owed was included in your gross income either for the year the deduction is claimed or for a prior year. File for a tax extension free Accrual method. File for a tax extension free   If you use an accrual method of accounting, you normally report income as you earn it. File for a tax extension free You can take a bad debt deduction for an uncollectible receivable if you have included the uncollectible amount in income. File for a tax extension free Cash method. File for a tax extension free   If you use the cash method of accounting, you normally report income when you receive payment. File for a tax extension free You cannot take a bad debt deduction for amounts owed to you that you have not received and cannot collect if you never included those amounts in income. File for a tax extension free More information. File for a tax extension free   For more information about business bad debts, see chapter 10 in Publication 535. File for a tax extension free Nonbusiness bad debts. File for a tax extension free   All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040). File for a tax extension free For more information on nonbusiness bad debts, see Publication 550, Investment Income and Expenses. File for a tax extension free Car and Truck Expenses If you use your car or truck in your business, you may be able to deduct the costs of operating and maintaining your vehicle. File for a tax extension free You also may be able to deduct other costs of local transportation and traveling away from home overnight on business. File for a tax extension free You may qualify for a tax credit for qualified plug-in electric vehicles, qualified plug-in electric drive motor vehicles, and alternative motor vehicles you place in service during the year. File for a tax extension free See Form 8936 and Form 8910 for more information. File for a tax extension free Local transportation expenses. File for a tax extension free   Local transportation expenses include the ordinary and necessary costs of all the following. File for a tax extension free Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. File for a tax extension free Tax home is defined later. File for a tax extension free Visiting clients or customers. File for a tax extension free Going to a business meeting away from your regular workplace. File for a tax extension free Getting from your home to a temporary workplace when you have one or more regular places of work. File for a tax extension free These temporary workplaces can be either within the area of your tax home or outside that area. File for a tax extension free Local business transportation does not include expenses you have while traveling away from home overnight. File for a tax extension free Those expenses are deductible as travel expenses and are discussed later under Travel, Meals, and Entertainment. File for a tax extension free 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 for a tax extension free   Generally, your tax home is your regular place of business, regardless of where you maintain your family home. File for a tax extension free It includes the entire city or general area in which your business or work is located. File for a tax extension free Example. File for a tax extension free You operate a printing business out of rented office space. File for a tax extension free You use your van to deliver completed jobs to your customers. File for a tax extension free You can deduct the cost of round-trip transportation between your customers and your print shop. File for a tax extension free    You cannot deduct the costs of driving your car or truck between your home and your main or regular workplace. File for a tax extension free These costs are personal commuting expenses. File for a tax extension free Office in the home. File for a tax extension free   Your workplace can be your home if you have an office in your home that qualifies as your principal place of business. File for a tax extension free For more information, see Business Use of Your Home, later. File for a tax extension free Example. File for a tax extension free You are a graphics designer. File for a tax extension free You operate your business out of your home. File for a tax extension free Your home qualifies as your principal place of business. File for a tax extension free You occasionally have to drive to your clients to deliver your completed work. File for a tax extension free You can deduct the cost of the round-trip transportation between your home and your clients. File for a tax extension free Methods for Deducting Car and Truck Expenses For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses. File for a tax extension free Standard mileage rate. File for a tax extension free Actual expenses. File for a tax extension free Standard mileage rate. File for a tax extension free   You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. File for a tax extension free For 2013, the standard mileage rate is 56. File for a tax extension free 5 cents per mile. File for a tax extension free    If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls. File for a tax extension free Choosing the standard mileage rate. File for a tax extension free   If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. File for a tax extension free In later years, you can choose to use either the standard mileage rate or actual expenses. File for a tax extension free   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). File for a tax extension free Standard mileage rate not allowed. File for a tax extension free   You cannot use the standard mileage rate if you: Operate five or more cars at the same time, Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS, Claimed a section 179 deduction on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. File for a tax extension free Parking fees and tolls. File for a tax extension free   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. File for a tax extension free (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. File for a tax extension free ) Actual expenses. File for a tax extension free   If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. File for a tax extension free    If you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. File for a tax extension free   Actual car expenses include the costs of the following items. File for a tax extension free Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. File for a tax extension free You can divide your expenses based on the miles driven for each purpose. File for a tax extension free Example. File for a tax extension free You are the sole proprietor of a flower shop. File for a tax extension free You drove your van 20,000 miles during the year. File for a tax extension free 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use (including commuting miles). File for a tax extension free You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. File for a tax extension free More information. File for a tax extension free   For more information about the rules for claiming car and truck expenses, see Publication 463. File for a tax extension free Reimbursing Your Employees for Expenses You generally can deduct the amount you reimburse your employees for car and truck expenses. File for a tax extension free The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. File for a tax extension free For details, see chapter 11 in Publication 535. File for a tax extension free That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. File for a tax extension free Depreciation If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. File for a tax extension free You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. File for a tax extension free This method of deducting the cost of business property is called depreciation. File for a tax extension free The discussion here is brief. File for a tax extension free You will find more information about depreciation in Publication 946. File for a tax extension free What property can be depreciated?   You can depreciate property if it meets all the following requirements. File for a tax extension free It must be property you own. File for a tax extension free It must be used in business or held to produce income. File for a tax extension free You never can depreciate inventory (explained in chapter 2) because it is not held for use in your business. File for a tax extension free It must have a useful life that extends substantially beyond the year it is placed in service. File for a tax extension free It must have a determinable useful life, which means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. File for a tax extension free You never can depreciate the cost of land because land does not wear out, become obsolete, or get used up. File for a tax extension free It must not be excepted property. File for a tax extension free This includes property placed in service and disposed of in the same year. File for a tax extension free Repairs. File for a tax extension free    You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. File for a tax extension free You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ. File for a tax extension free Depreciation method. File for a tax extension free   The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). File for a tax extension free MACRS is discussed in detail in Publication 946. File for a tax extension free Section 179 deduction. File for a tax extension free   You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. File for a tax extension free This deduction is known as the “section 179 deduction. File for a tax extension free ” The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). File for a tax extension free See IRC 179(e). File for a tax extension free   This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. File for a tax extension free The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). File for a tax extension free Special rules apply to trucks and vans. File for a tax extension free For more information, see Publication 946. File for a tax extension free It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction. File for a tax extension free    Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. File for a tax extension free For more information, see the Instructions for Form 4562 or Publication 946. File for a tax extension free Listed property. File for a tax extension free   You must follow special rules and recordkeeping requirements when depreciating listed property. File for a tax extension free Listed property is any of the following. File for a tax extension free Most passenger automobiles. File for a tax extension free Most other property used for transportation. File for a tax extension free Any property of a type generally used for entertainment, recreation, or amusement. File for a tax extension free Certain computers and related peripheral equipment. File for a tax extension free   For more information about listed property, see Publication 946. File for a tax extension free Form 4562. File for a tax extension free   Use Form 4562, Depreciation and Amortization, if you are claiming any of the following. File for a tax extension free Depreciation on property placed in service during the current tax year. File for a tax extension free A section 179 deduction. File for a tax extension free Depreciation on any listed property (regardless of when it was placed in service). File for a tax extension free    If you have to use Form 4562, you must file Schedule C. File for a tax extension free You cannot use Schedule C-EZ. File for a tax extension free   Employees' Pay You can generally deduct on Schedule C the pay you give your employees for the services they perform for your business. File for a tax extension free The pay may be in cash, property, or services. File for a tax extension free To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it in the tax year. File for a tax extension free In addition, the pay must meet both the following tests. File for a tax extension free The pay must be reasonable. File for a tax extension free The pay must be for services performed. File for a tax extension free Chapter 2 in Publication 535 explains and defines these requirements. File for a tax extension free You cannot deduct your own salary or any personal withdrawals you make from your business. File for a tax extension free As a sole proprietor, you are not an employee of the business. File for a tax extension free If you had employees during the year, you must use Schedule C. File for a tax extension free You cannot use Schedule C-EZ. File for a tax extension free Kinds of pay. File for a tax extension free   Some of the ways you may provide pay to your employees are listed below. File for a tax extension free For an explanation of each of these items, see chapter 2 in Publication 535. File for a tax extension free Awards. File for a tax extension free Bonuses. File for a tax extension free Education expenses. File for a tax extension free Fringe benefits (discussed later). File for a tax extension free Loans or advances you do not expect the employee to repay if they are for personal services actually performed. File for a tax extension free Property you transfer to an employee as payment for services. File for a tax extension free Reimbursements for employee business expenses. File for a tax extension free Sick pay. File for a tax extension free Vacation pay. File for a tax extension free Fringe benefits. File for a tax extension free   A fringe benefit is a form of pay for the performance of services. File for a tax extension free The following are examples of fringe benefits. File for a tax extension free Benefits under qualified employee benefit programs. File for a tax extension free Meals and lodging. File for a tax extension free The use of a car. File for a tax extension free Flights on airplanes. File for a tax extension free Discounts on property or services. File for a tax extension free Memberships in country clubs or other social clubs. File for a tax extension free Tickets to entertainment or sporting events. File for a tax extension free   Employee benefit programs include the following. File for a tax extension free Accident and health plans. File for a tax extension free Adoption assistance. File for a tax extension free Cafeteria plans. File for a tax extension free Dependent care assistance. File for a tax extension free Educational assistance. File for a tax extension free Group-term life insurance coverage. File for a tax extension free Welfare benefit funds. File for a tax extension free   You can generally deduct the cost of fringe benefits you provide on your Schedule C in whatever category the cost falls. File for a tax extension free For example, if you allow an employee to use a car or other property you lease, deduct the cost of the lease as a rent or lease expense. File for a tax extension free If you own the property, include your deduction for its cost or other basis as a section 179 deduction or a depreciation deduction. File for a tax extension free    You may be able to exclude all or part of the fringe benefits you provide from your employees' wages. File for a tax extension free For more information about fringe benefits and the exclusion of benefits, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. File for a tax extension free Insurance You can generally deduct premiums you pay for the following kinds of insurance related to your business. File for a tax extension free Fire, theft, flood, or similar insurance. File for a tax extension free Credit insurance that covers losses from business bad debts. File for a tax extension free Group hospitalization and medical insurance for employees, including long-term care insurance. File for a tax extension free Liability insurance. File for a tax extension free Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. File for a tax extension free Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. File for a tax extension free Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. File for a tax extension free Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. File for a tax extension free Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. File for a tax extension free If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. File for a tax extension free If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. File for a tax extension free Life insurance covering your employees if you are not directly or indirectly the beneficiary under the contract. File for a tax extension free Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. File for a tax extension free Nondeductible premiums. File for a tax extension free   You cannot deduct premiums on the following kinds of insurance. File for a tax extension free Self-insurance reserve funds. File for a tax extension free You cannot deduct amounts credited to a reserve set up for self-insurance. File for a tax extension free This applies even if you cannot get business insurance coverage for certain business risks. File for a tax extension free However, your actual losses may be deductible. File for a tax extension free For more information, see Publication 547, Casualties, Disasters, and Thefts. File for a tax extension free Loss of earnings. File for a tax extension free You cannot deduct premiums for a policy that pays for your lost earnings due to sickness or disability. File for a tax extension free However, see item (8) in the previous list. File for a tax extension free Certain life insurance and annuities. File for a tax extension free For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. File for a tax extension free You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. File for a tax extension free A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. File for a tax extension free For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. File for a tax extension free The disallowance applies without regard to whom the policy covers. File for a tax extension free Insurance to secure a loan. File for a tax extension free If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. File for a tax extension free Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. File for a tax extension free In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. File for a tax extension free Self-employed health insurance deduction. File for a tax extension free   You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you and your family. File for a tax extension free How to figure the deduction. File for a tax extension free   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. File for a tax extension free However, if any of the following apply, you must use the worksheet in chapter 6 of Publication 535. File for a tax extension free You have more than one source of income subject to self-employment tax. File for a tax extension free You file Form 2555 or Form 2555-EZ (relating to foreign earned income). File for a tax extension free You are using amounts paid for qualified long-term care insurance to figure the deduction. File for a tax extension free Prepayment. File for a tax extension free   You cannot deduct expenses in advance, even if you pay them in advance. File for a tax extension free This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. File for a tax extension free Example. File for a tax extension free In 2013, you signed a 3-year insurance contract. File for a tax extension free Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. File for a tax extension free You can deduct in 2014 and 2015 the premium allocable to those years. File for a tax extension free More information. File for a tax extension free   For more information about deducting insurance, see chapter 6 in Publication 535. File for a tax extension free Interest You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your business. File for a tax extension free Interest relates to your business if you use the proceeds of the loan for a business expense. File for a tax extension free It does not matter what type of property secures the loan. File for a tax extension free You can deduct interest on a debt only if you meet all of the following requirements. File for a tax extension free You are legally liable for that debt. File for a tax extension free Both you and the lender intend that the debt be repaid. File for a tax extension free You and the lender have a true debtor-creditor relationship. File for a tax extension free You cannot deduct on Schedule C or C-EZ the interest you paid on personal loans. File for a tax extension free If a loan is part business and part personal, you must divide the interest between the personal part and the business part. File for a tax extension free Example. File for a tax extension free In 2013, you paid $600 interest on a car loan. File for a tax extension free During 2013, you used the car 60% for business and 40% for personal purposes. File for a tax extension free You are claiming actual expenses on the car. File for a tax extension free You can only deduct $360 (60% × $600) for 2013 on Schedule C or C-EZ. File for a tax extension free The remaining interest of $240 is a nondeductible personal expense. File for a tax extension free More information. File for a tax extension free   For more information about deducting interest, see chapter 4 in Publication 535. File for a tax extension free That chapter explains the following items. File for a tax extension free Interest you can deduct. File for a tax extension free Interest you cannot deduct. File for a tax extension free How to allocate interest between personal and business use. File for a tax extension free When to deduct interest. File for a tax extension free The rules for a below-market interest rate loan. File for a tax extension free (This is generally a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. File for a tax extension free ) Legal and Professional Fees Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on Schedule C or C-EZ. File for a tax extension free However, you usually cannot deduct legal fees you pay to acquire business assets. File for a tax extension free Add them to the basis of the property. File for a tax extension free If the fees include payments for work of a personal nature (such as making a will), you can take a business deduction only for the part of the fee related to your business. File for a tax extension free The personal part of legal fees for producing or collecting taxable income, doing or keeping your job, or for tax advice may be deductible on Schedule A (Form 1040) if you itemize deductions. File for a tax extension free For more information, see Publication 529, Miscellaneous Deductions. File for a tax extension free Tax preparation fees. File for a tax extension free   You can deduct on Schedule C or C-EZ the cost of preparing that part of your tax return relating to your business as a sole proprietor or statutory employee. File for a tax extension free You can deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. File for a tax extension free   You can also deduct on Schedule C or C-EZ the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor or statutory employee. File for a tax extension free Pension Plans You can set up and maintain the following small business retirement plans for yourself and your employees. File for a tax extension free SEP (Simplified Employee Pension) plans. File for a tax extension free SIMPLE (Savings Incentive Match Plan for Employees) plans. File for a tax extension free Qualified plans (including Keogh or H. File for a tax extension free R. File for a tax extension free 10 plans). File for a tax extension free SEP, SIMPLE, and qualified plans offer you and your employees a tax favored way to save for retirement. File for a tax extension free You can deduct contributions you make to the plan for your employees on line 19 of Schedule C. File for a tax extension free If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 28 of Form 1040. File for a tax extension free You can also deduct trustees' fees if contributions to the plan do not cover them. File for a tax extension free Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. File for a tax extension free You may also be able to claim a tax credit of 50% of the first $1,000 of qualified startup costs if you begin a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. File for a tax extension free Under certain plans, employees can have you contribute limited amounts of their before-tax pay to a plan. File for a tax extension free These amounts (and earnings on them) are generally tax free until your employees receive distributions from the plan. File for a tax extension free For more information on retirement plans for small business, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). File for a tax extension free Publication 590, Individual Retirement Arrangements (IRAs), discusses other tax favored ways to save for retirement. File for a tax extension free Rent Expense Rent is any amount you pay for the use of property you do not own. File for a tax extension free In general, you can deduct rent as a business expense only if the rent is for property you use in your business. File for a tax extension free If you have or will receive equity in or title to the property, you cannot deduct the rent. File for a tax extension free Unreasonable rent. File for a tax extension free   You cannot take a rental deduction for unreasonable rents. File for a tax extension free Ordinarily, the issue of reasonableness arises only if you and the lessor are related. File for a tax extension free Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. File for a tax extension free Rent is not unreasonable just because it is figured as a percentage of gross receipts. File for a tax extension free   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. File for a tax extension free For a list of the other related persons, see section 267 of the Internal Revenue Code. File for a tax extension free Rent on your home. File for a tax extension free   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. File for a tax extension free You must meet the requirements for business use of your home. File for a tax extension free For more information, see Business Use of Your Home , later. File for a tax extension free Rent paid in advance. File for a tax extension free   Generally, rent paid in your business is deductible in the year paid or accrued. File for a tax extension free If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. File for a tax extension free You can deduct the rest of your payment only over the period to which it applies. File for a tax extension free More information. File for a tax extension free   For more information about rent, see chapter 3 in Publication 535. File for a tax extension free Taxes You can deduct on Schedule C or C-EZ various federal, state, local, and foreign taxes directly attributable to your business. File for a tax extension free Income taxes. File for a tax extension free   You can deduct on Schedule C or C-EZ a state tax on gross income (as distinguished from net income) directly attributable to your business. File for a tax extension free You can deduct other state and local income taxes on Schedule A (Form 1040) if you itemize your deductions. File for a tax extension free Do not deduct federal income tax. File for a tax extension free Employment taxes. File for a tax extension free   You can deduct the social security, Medicare, and federal unemployment (FUTA) taxes you paid out of your own funds as an employer. File for a tax extension free Employment taxes are discussed briefly in chapter 1. File for a tax extension free You can also deduct payments you made as an employer to a state unemployment compensation fund or to a state disability benefit fund. File for a tax extension free Deduct these payments as taxes. File for a tax extension free Self-employment tax. File for a tax extension free   You can deduct one-half of your self-employment tax on line 27 of Form 1040. File for a tax extension free Self-employment tax is discussed in chapters 1 and 10. File for a tax extension free Personal property tax. File for a tax extension free   You can deduct on Schedule C or C-EZ any tax imposed by a state or local government on personal property used in your business. File for a tax extension free   You can also deduct registration fees for the right to use property within a state or local area. File for a tax extension free Example. File for a tax extension free May and Julius Winter drove their car 7,000 business miles out of a total of 10,000 miles. File for a tax extension free They had to pay $25 for their annual state license tags and $20 for their city registration sticker. File for a tax extension free They also paid $235 in city personal property tax on the car, for a total of $280. File for a tax extension free They are claiming their actual car expenses. File for a tax extension free Because they used the car 70% for business, they can deduct 70% of the $280, or $196, as a business expense. File for a tax extension free Real estate taxes. File for a tax extension free   You can deduct on Schedule C or C-EZ the real estate taxes you pay on your business property. File for a tax extension free Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. File for a tax extension free The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. File for a tax extension free   For more information about real estate taxes, see chapter 5 in Publication 535. File for a tax extension free That chapter explains special rules for deducting the following items. File for a tax extension free Taxes for local benefits, such as those for sidewalks, streets, water mains, and sewer lines. File for a tax extension free Real estate taxes when you buy or sell property during the year. File for a tax extension free Real estate taxes if you use an accrual method of accounting and choose to accrue real estate tax related to a definite period ratably over that period. File for a tax extension free Sales tax. File for a tax extension free   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. File for a tax extension free If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. File for a tax extension free If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. File for a tax extension free If the property is depreciable, add the sales tax to the basis for depreciation. File for a tax extension free For information on the basis of property, see Publication 551, Basis of Assets. File for a tax extension free    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. File for a tax extension free Do not include these taxes in gross receipts or sales. File for a tax extension free Excise taxes. File for a tax extension free   You can deduct on Schedule C or C-EZ all excise taxes that are ordinary and necessary expenses of carrying on your business. File for a tax extension free Excise taxes are discussed briefly in chapter 1. File for a tax extension free Fuel taxes. File for a tax extension free   Taxes on gasoline, diesel fuel, and other motor fuels you use in your business are usually included as part of the cost of the fuel. File for a tax extension free Do not deduct these taxes as a separate item. File for a tax extension free   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. File for a tax extension free For more information, see Publication 510, Excise Taxes. File for a tax extension free Travel, Meals, and Entertainment This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ. File for a tax extension free Table 8-1. File for a tax extension free When Are Entertainment Expenses Deductible? (Note. File for a tax extension free The following is a summary of the rules for deducting entertainment expenses. File for a tax extension free For more details about these rules, see Publication 463. File for a tax extension free ) General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. File for a tax extension free Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. File for a tax extension free An ordinary expense is one that is common and accepted in your field of business, trade, or profession. File for a tax extension free A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business. File for a tax extension free Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. File for a tax extension free   Associated test Entertainment is associated with your trade or business, and Entertainment directly precedes or follows a substantial business discussion. File for a tax extension free Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. File for a tax extension free You cannot deduct expenses that are lavish or extravagant under the circumstances. File for a tax extension free You generally can deduct only 50% of your unreimbursed entertainment expenses. File for a tax extension free Travel expenses. File for a tax extension free   These are the ordinary and necessary expenses of traveling away from home for your business. File for a tax extension free You are traveling away from home if both the following conditions are met. File for a tax extension free 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. File for a tax extension free You need to get sleep or rest to meet the demands of your work while away from home. File for a tax extension free Generally, your tax home is your regular place of business, regardless of where you maintain your family home. File for a tax extension free It includes the entire city or general area in which your business is located. File for a tax extension free See Publication 463 for more information. File for a tax extension free   The following is a brief discussion of the expenses you can deduct. File for a tax extension free Transportation. File for a tax extension free   You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination. File for a tax extension free Taxi, commuter bus, and limousine. File for a tax extension free   You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home. File for a tax extension free Baggage and shipping. File for a tax extension free   You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations. File for a tax extension free Car or truck. File for a tax extension free   You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. File for a tax extension free You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. File for a tax extension free If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. File for a tax extension free Meals and lodging. File for a tax extension free   You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. File for a tax extension free In most cases, you can deduct only 50% of your meal expenses. File for a tax extension free Cleaning. File for a tax extension free   You can deduct the costs of dry cleaning and laundry while on your business trip. File for a tax extension free Telephone. File for a tax extension free   You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices. File for a tax extension free Tips. File for a tax extension free   You can deduct the tips you pay for any expense in this list. File for a tax extension free More information. File for a tax extension free   For more information about travel expenses, see Publication 463. File for a tax extension free Entertainment expenses. File for a tax extension free   You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. File for a tax extension free In most cases, you can deduct only 50% of these expenses. File for a tax extension free   The following are examples of entertainment expenses. File for a tax extension free Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events. File for a tax extension free Providing meals, a hotel suite, or a car to business customers or their families. File for a tax extension free To be deductible, the expenses must meet the rules listed in Table 8-1. File for a tax extension free For details about these rules, see Publication 463. File for a tax extension free Reimbursing your employees for expenses. File for a tax extension free   You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. File for a tax extension free The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. File for a tax extension free For details, see chapter 11 in Publication 535. File for a tax extension free That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. File for a tax extension free Business Use of Your Home To deduct expenses related to the part of your home used for business, you must meet specific requirements. File for a tax extension free Even then, your deduction may be limited. File for a tax extension free To qualify to claim expenses for business use of your home, you must meet the following tests. File for a tax extension free Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use , later), Regular, For your business, and The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your business, or A separate structure (not attached to your home) you use in connection with your business. File for a tax extension free Exclusive use. File for a tax extension free   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. File for a tax extension free The area used for business can be a room or other separately identifiable space. File for a tax extension free The space does not need to be marked off by a permanent partition. File for a tax extension free   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. File for a tax extension free Example. File for a tax extension free You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. File for a tax extension free Your family also uses the den for recreation. File for a tax extension free The den is not used exclusively in your profession, so you cannot claim a business deduction for its use. File for a tax extension free Exceptions to exclusive use. File for a tax extension free   You do not have to meet the exclusive use test if you use part of your home in either of the following ways. File for a tax extension free For the storage of inventory or product samples. File for a tax extension free As a daycare facility. File for a tax extension free For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). File for a tax extension free Regular use. File for a tax extension free   To qualify under the regular use test, you must use a specific area of your home for business on a continuing basis. File for a tax extension free You do not meet the test if your business use of the area is only occasional or incidental, even if you do not use that area for any other purpose. File for a tax extension free Principal place of business. File for a tax extension free   You can have more than one business location, including your home, for a single trade or business. File for a tax extension free To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that business. File for a tax extension free To determine your principal place of business, you must consider all the facts and circumstances. File for a tax extension free   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. File for a tax extension free You use it exclusively and regularly for administrative or management activities of your business. File for a tax extension free You have no other fixed location where you conduct substantial administrative or management activities of your business. File for a tax extension free   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. File for a tax extension free The relative importance of the activities performed at each location. File for a tax extension free If the relative importance factor does not determine your principal place of business, you can also consider the time spent at each location. File for a tax extension free   If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. File for a tax extension free However, for other ways to qualify to deduct home office expenses, see Publication 587. File for a tax extension free Deduction limit. File for a tax extension free   If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. File for a tax extension free If your gross income from the business use is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. File for a tax extension free   Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation (with depreciation taken last), allocable to the business is limited to the gross income from the business use of your home minus the sum of the following. File for a tax extension free The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). File for a tax extension free The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. File for a tax extension free Do not include in (2) above your deduction for one-half of your self-employment tax. File for a tax extension free   Use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. File for a tax extension free New simplified method. File for a tax extension free    The IRS now provides a simplified method to determine your expenses for business use of your home. File for a tax extension free The simplified method is an alternative to calculating and substantiating actual expenses. File for a tax extension free In most cases, you will figure your deduction by multiplying $5 by the area of your home used for a qualified business use. File for a tax extension free The area you use to figure your deduction is limited to 300 square feet. File for a tax extension free For more information, see the Instructions for Schedule C. File for a tax extension free More information. File for a tax extension free   For more information on deducting expenses for the business use of your home, see Publication 587. File for a tax extension free Other Expenses You Can Deduct You may also be able to deduct the following expenses. File for a tax extension free See Publication 535 to find out whether you can deduct them. File for a tax extension free Advertising. File for a tax extension free Bank fees. File for a tax extension free Donations to business organizations. File for a tax extension free Education expenses. File for a tax extension free Energy efficient commercial buildings deduction expenses. File for a tax extension free Impairment-related expenses. File for a tax extension free Interview expense allowances. File for a tax extension free Licenses and regulatory fees. File for a tax extension free Moving machinery. File for a tax extension free Outplacement services. File for a tax extension free Penalties and fines you pay for late performance or nonperformance of a contract. File for a tax extension free Repairs that keep your property in a normal efficient operating condition. File for a tax extension free Repayments of income. File for a tax extension free Subscriptions to trade or professional publications. File for a tax extension free Supplies and materials. File for a tax extension free Utilities. File for a tax extension free Expenses You Cannot Deduct You usually cannot deduct the following as business expenses. File for a tax extension free For more information, see Publication 535. File for a tax extension free Bribes and kickbacks. File for a tax extension free Charitable contributions. File for a tax extension free Demolition expenses or losses. File for a tax extension free Dues to business, social, athletic, luncheon, sporting, airline, and hotel clubs. File for a tax extension free Lobbying expenses. File for a tax extension free Penalties and fines you pay to a governmental agency or instrumentality because you broke the law. File for a tax extension free Personal, living, and family expenses. File for a tax extension free Political contributions. File for a tax extension free Repairs that add to the value of your property or significantly increase its life. File for a tax extension free Prev  Up  Next   Home   More Online Publications