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Filing Tax Amendment

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Filing Tax Amendment

Filing tax amendment Index Symbols 401(k) Plan Elective Deferrals, Elective Deferrals (401(k) Plans) Safe harbor, Safe harbor 401(k) plan. Filing tax amendment A Annual additions, Annual additions. Filing tax amendment Annual benefits, Annual benefits. Filing tax amendment Assistance (see Tax help) Automatic Enrollment, Automatic Enrollment B Business, definition, Business. Filing tax amendment C Common-law employee, Common-law employee. Filing tax amendment Compensation, Compensation. Filing tax amendment Contribution Defined, Contribution. Filing tax amendment Limits Qualified plans, Limits on Contributions and Benefits SEP-IRAs, Contribution Limits SIMPLE IRA plan, Contribution Limits D Deduction Defined, SIMPLE plans. Filing tax amendment , Deduction. Filing tax amendment Deduction worksheet for self-employed, Figuring your deduction. Filing tax amendment Defined benefit plan Deduction limits, Defined benefit plans. Filing tax amendment Limits on contributions, Defined benefit plan. Filing tax amendment Defined contribution plan Automatic Enrollment, Automatic Enrollment Deduction limits, Defined contribution plans. Filing tax amendment Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Filing tax amendment Forfeitures, Forfeiture. Filing tax amendment Limits on contributions, Defined contribution plan. Filing tax amendment Money purchase pension plan, Money purchase pension plan. Filing tax amendment Profit-sharing plan, Profit-sharing plan. Filing tax amendment Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Filing tax amendment Definitions you need to know, Definitions You Need To Know Disqualified person, Prohibited Transactions Distributions (withdrawals), Distributions (Withdrawals) E EACA, Eligible automatic contribution arrangement. Filing tax amendment Earned income, Earned income. Filing tax amendment Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. Filing tax amendment Employees Eligible, Eligible employee. Filing tax amendment Excludable, Excludable employees. Filing tax amendment Highly compensated, Highly compensated employee. Filing tax amendment Leased, Leased employee. Filing tax amendment Employer Defined, Employer. Filing tax amendment Excess Deferrals, Treatment of Excess Deferrals Excise tax, Excise Tax on Reversion of Plan Assets Nondeductible (excess) contributions, Excise Tax for Nondeductible (Excess) Contributions Reduced benefit accrual, Notification of Significant Benefit Accrual Reduction SEP excess contributions, Excise tax. Filing tax amendment Excludable employees, Excludable employees. Filing tax amendment F Form 1040, Where To Deduct Contributions, Reporting the tax. Filing tax amendment 1099-R, Reporting corrective distributions on Form 1099-R. Filing tax amendment 5304–SIMPLE, How To Set Up a SIMPLE IRA Plan 5305–S, Setting up a SIMPLE IRA. Filing tax amendment 5305–SA, Setting up a SIMPLE IRA. Filing tax amendment 5305–SEP, Formal written agreement. Filing tax amendment 5305–SIMPLE, How To Set Up a SIMPLE IRA Plan 5310, Form 5310. Filing tax amendment 5329, Reporting the tax. Filing tax amendment 5330, Reporting the tax. Filing tax amendment , Tax on excess contributions of highly compensated employees. Filing tax amendment , Excise Tax on Reversion of Plan Assets, Payment of the 15% tax. Filing tax amendment 5500, Form 5500. Filing tax amendment , Electronic filing of Forms 5500 and 5500-SF. Filing tax amendment 5500-EZ, Form 5500-EZ. Filing tax amendment Form W-2, Reporting on Form W-2. Filing tax amendment Schedule K (Form 1065), Where To Deduct Contributions Free tax services, Free help with your return. Filing tax amendment H Highly compensated employee, Highly compensated employee. Filing tax amendment K Keogh plans (see Qualified plans) L Leased employee, Leased employee. Filing tax amendment N Net earnings from self-employment, Net earnings from self-employment. Filing tax amendment Notification requirements, Notification Requirement P Participant, definition, Participant. Filing tax amendment Participation, Participation. Filing tax amendment Partner, definition, Partner. Filing tax amendment Publications (see Tax help) Q QACA, Qualified automatic contribution arrangement. Filing tax amendment Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. Filing tax amendment Qualified Plan, definition, Qualified plan. Filing tax amendment Qualified plans, Limits on Contributions and Benefits Assignment of benefits, Benefits must not be assigned or alienated. Filing tax amendment Benefits starting date, Benefit payment must begin when required. Filing tax amendment Contributions, Contributions, Employer Contributions, Limits on Contributions and Benefits, When Contributions Are Considered Made, Where To Deduct Contributions Deduction limits, Deduction Limits, Defined contribution plans. Filing tax amendment , Defined benefit plans. Filing tax amendment , Deduction Limit for Self-Employed Individuals, Carryover of Excess Contributions, Excise Tax for Nondeductible (Excess) Contributions Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Deductions, Employer Deduction Deferrals, Treatment of contributions. Filing tax amendment , Reporting on Form W-2. Filing tax amendment Defined benefit plan, Defined Benefit Plan Defined contribution plan, Defined Contribution Plan Distributions, Distributions Minimum, Required Distributions Required beginning date, Required beginning date. Filing tax amendment Rollover, Rollover. Filing tax amendment Tax on excess benefits, Tax on Excess Benefits Tax on premature, Tax on Early Distributions Tax treatment, Tax Treatment of Distributions Elective Deferrals, Elective Deferrals (401(k) Plans) Limits, Limit on Elective Deferrals Employee nondeductible contributions, Employee Contributions Excess Deferrals, Treatment of Excess Deferrals Investing plan assets, Investing Plan Assets Kinds of plans, Kinds of Plans Leased employees, Leased employee. Filing tax amendment Minimum requirements Coverage, Minimum coverage requirement must be met. Filing tax amendment Funding, Minimum Funding Requirement Vesting, Minimum vesting standard must be met. Filing tax amendment Prohibited transactions, Prohibited Transactions Qualification rules, Qualification Rules Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting requirements, Reporting Requirements Setting up, Setting Up a Qualified Plan Qualified Plans Survivor benefits, Survivor benefits. Filing tax amendment Qualified Roth Contribution Program, Qualified Roth Contribution Program R Rate Table for Self-Employed, Rate table for self-employed. Filing tax amendment Rate Worksheet for Self-Employed, Rate worksheet for self-employed. Filing tax amendment Required distributions, Required Distributions Rollovers, Rollover. Filing tax amendment S Safe harbor 401(k) plan, Safe harbor 401(k) plan. Filing tax amendment Salary reduction arrangement, Deferral percentage. Filing tax amendment , Limit on Elective Deferrals Salary Reduction Simplified Employee Pension(SARSEP), Salary Reduction Simplified Employee Pensions (SARSEPs) SARSEP ADP test, SARSEP ADP test. Filing tax amendment Section 402(f) notice, Section 402(f) Notice. Filing tax amendment Self-employed individual, Self-employed individual. Filing tax amendment SEP plans Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting and Disclosure, Reporting and Disclosure Requirements SEP-IRAs Contributions, Contributions for yourself. Filing tax amendment Deductible contributions, Deducting Contributions, Excise tax. Filing tax amendment Carryover of excess contributions, Carryover of Excess SEP Contributions Deduction limits, Deduction Limit for Contributions for Participants Limits for self-employed, Deduction Limit for Self-Employed Individuals When to deduct, When To Deduct Contributions Where to deduct, Where To Deduct Contributions Distributions (withdrawals), Distributions (Withdrawals) Eligible employee, Eligible employee. Filing tax amendment Excludable employees, Excludable employees. Filing tax amendment SIMPLE IRA plan Compensation, Compensation. Filing tax amendment Contributions, Contribution Limits Deductions, Nonelective contributions. Filing tax amendment Distributions(withdrawals), Distributions (Withdrawals) Employee election period, Election period. Filing tax amendment Employer matching contributions, Employer matching contributions. Filing tax amendment Excludable employees, Excludable employees. Filing tax amendment Notification requirements, Notification Requirement When to deduct contributions, When To Deduct Contributions SIMPLE plans, Who Can Set Up a SIMPLE IRA Plan?, Reporting on Form W-2. Filing tax amendment SIMPLE 401(k), SIMPLE 401(k) Plan SIMPLE IRA plan, SIMPLE IRA Plan Simplified employee pension (SEP), Salary Reduction Simplified Employee Pensions (SARSEPs) Salary reduction arrangement Compensation of self-employed individuals, Compensation of self-employed individuals. Filing tax amendment Employee compensation, Employee compensation. Filing tax amendment Who can have a SARSEP, Who can have a SARSEP? SEP-IRA contributions, How Much Can I Contribute? Setting up a SEP, Setting Up a SEP Sixty-day employee election period, Election period. Filing tax amendment Sole proprietor, definition, Sole proprietor. Filing tax amendment T Tax help, How To Get Tax Help U User fee, User fee. Filing tax amendment W Worksheets Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Prev  Up     Home   More Online Publications
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The Filing Tax Amendment

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