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Filing Taxes 2014

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Filing Taxes 2014

Filing taxes 2014 27. Filing taxes 2014   Tax Benefits for Work-Related Education Table of Contents What's New Introduction Useful Items - You may want to see: 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 taxes 2014 Transportation Expenses Travel Expenses No Double Benefit Allowed Reimbursements Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping What's New Standard mileage rate. Filing taxes 2014  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 56½ cents per mile. Filing taxes 2014 For more information, see Transportation Expenses under What Expenses Can Be Deducted. Filing taxes 2014 Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Filing taxes 2014 To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040) if you are an employee, File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education . Filing taxes 2014 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 taxes 2014 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 taxes 2014 See chapter 28. Filing taxes 2014 If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Filing taxes 2014 Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits (see chapter 35). Filing taxes 2014 You may qualify for these other benefits even if you do not meet the requirements listed earlier. Filing taxes 2014 Also, keep in mind that your work-related education expenses may qualify you to claim more than one tax benefit. Filing taxes 2014 Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Filing taxes 2014 When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that give you the lowest tax liability. Filing taxes 2014 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 970 Tax Benefits for Education Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Schedule A (Form 1040) Itemized Deductions Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Filing taxes 2014 This is education that meets at least one of the following two tests. Filing taxes 2014 The education is required by your employer or the law to keep your present salary, status, or job. Filing taxes 2014 The required education must serve a bona fide business purpose of your employer. Filing taxes 2014 The education maintains or improves skills needed in your present work. Filing taxes 2014 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 taxes 2014 You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Filing taxes 2014 Use Figure 27-A, later, as a quick check to see if your education qualifies. Filing taxes 2014 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 taxes 2014 This additional education is qualifying work-related education if all three of the following requirements are met. Filing taxes 2014 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 taxes 2014 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 taxes 2014 See Education To Maintain or Improve Skills , later. Filing taxes 2014 Example. Filing taxes 2014 You are a teacher who has satisfied the minimum requirements for teaching. Filing taxes 2014 Your employer requires you to take an additional college course each year to keep your teaching job. Filing taxes 2014 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 taxes 2014 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 taxes 2014 This could include refresher courses, courses on current developments, and academic or vocational courses. Filing taxes 2014 Example. Filing taxes 2014 You repair televisions, radios, and stereo systems for XYZ Store. Filing taxes 2014 To keep up with the latest changes, you take special courses in radio and stereo service. Filing taxes 2014 These courses maintain and improve skills required in your work. Filing taxes 2014 Maintaining skills vs. Filing taxes 2014 qualifying for new job. Filing taxes 2014   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 taxes 2014 Education during temporary absence. Filing taxes 2014   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 taxes 2014 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 taxes 2014 Example. Filing taxes 2014 You quit your biology research job to become a full-time biology graduate student for one year. Filing taxes 2014 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 taxes 2014 Education during indefinite absence. Filing taxes 2014   If you stop work for more than a year, your absence from your job is considered indefinite. Filing taxes 2014 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 taxes 2014 Therefore, it is not qualifying work-related education. Filing taxes 2014 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 taxes 2014 The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Filing taxes 2014 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 taxes 2014 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 taxes 2014 You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Filing taxes 2014 Example 1. Filing taxes 2014 You are a full-time engineering student. Filing taxes 2014 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 taxes 2014 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 taxes 2014 The education is not qualifying work-related education. Filing taxes 2014 Example 2. Filing taxes 2014 You are an accountant and you have met the minimum educational requirements of your employer. Filing taxes 2014 Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Filing taxes 2014 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 taxes 2014 Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Filing taxes 2014 The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Filing taxes 2014 If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Filing taxes 2014 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 taxes 2014 You generally will be considered a faculty member when one or more of the following occurs. Filing taxes 2014 You have tenure. Filing taxes 2014 Your years of service count toward obtaining tenure. Filing taxes 2014 You have a vote in faculty decisions. Filing taxes 2014 Your school makes contributions for you to a retirement plan other than social security or a similar program. Filing taxes 2014 Example 1. Filing taxes 2014 The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Filing taxes 2014 In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Filing taxes 2014 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 taxes 2014 However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Filing taxes 2014 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 taxes 2014 If you have all the required education except the fifth year, you have met the minimum educational requirements. Filing taxes 2014 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 taxes 2014 Figure 27-A Does Your Work-Related Education Qualify? Please click here for the text description of the image. Filing taxes 2014 Figure 27-A. Filing taxes 2014 Does Your Work-Related Education Qualify?" Example 2. Filing taxes 2014 Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Filing taxes 2014 The additional four education courses can be qualifying work-related education. Filing taxes 2014 Although you do not have all the required courses, you have already met the minimum educational requirements. Filing taxes 2014 Example 3. Filing taxes 2014 Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Filing taxes 2014 The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Filing taxes 2014 They are needed to meet the minimum educational requirements for employment as a teacher. Filing taxes 2014 Example 4. Filing taxes 2014 You have a bachelor's degree and you work as a temporary instructor at a university. Filing taxes 2014 At the same time, you take graduate courses toward an advanced degree. Filing taxes 2014 The rules of the university state that you can become a faculty member only if you get a graduate degree. Filing taxes 2014 Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Filing taxes 2014 You have not met the minimum educational requirements to qualify you as a faculty member. Filing taxes 2014 The graduate courses are not qualifying work-related education. Filing taxes 2014 Certification in a new state. Filing taxes 2014   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 taxes 2014 This is true even if you must get additional education to be certified in another state. Filing taxes 2014 Any additional education you need is qualifying work-related education. Filing taxes 2014 You have already met the minimum requirements for teaching. Filing taxes 2014 Teaching in another state is not a new trade or business. Filing taxes 2014 Example. Filing taxes 2014 You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Filing taxes 2014 You move to State B and are promptly hired as a teacher. Filing taxes 2014 You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Filing taxes 2014 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 taxes 2014 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 taxes 2014 This is true even if you do not plan to enter that trade or business. Filing taxes 2014 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 taxes 2014 Example 1. Filing taxes 2014 You are an accountant. Filing taxes 2014 Your employer requires you to get a law degree at your own expense. Filing taxes 2014 You register at a law school for the regular curriculum that leads to a law degree. Filing taxes 2014 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 taxes 2014 Example 2. Filing taxes 2014 You are a general practitioner of medicine. Filing taxes 2014 You take a 2-week course to review developments in several specialized fields of medicine. Filing taxes 2014 The course does not qualify you for a new profession. Filing taxes 2014 It is qualifying work-related education because it maintains or improves skills required in your present profession. Filing taxes 2014 Example 3. Filing taxes 2014 While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Filing taxes 2014 The program will lead to qualifying you to practice psychoanalysis. Filing taxes 2014 The psychoanalytic training does not qualify you for a new profession. Filing taxes 2014 It is qualifying work-related education because it maintains or improves skills required in your present profession. Filing taxes 2014 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 taxes 2014 They are part of a program of study that can qualify you for a new profession. Filing taxes 2014 Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Filing taxes 2014 A change in duties in any of the following ways is not considered a change to a new business. Filing taxes 2014 Elementary school teacher to secondary school teacher. Filing taxes 2014 Teacher of one subject, such as biology, to teacher of another subject, such as art. Filing taxes 2014 Classroom teacher to guidance counselor. Filing taxes 2014 Classroom teacher to school administrator. Filing taxes 2014 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 taxes 2014 If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Filing taxes 2014 You cannot deduct expenses related to tax-exempt and excluded income. Filing taxes 2014 Deductible expenses. Filing taxes 2014   The following education expenses can be deducted. Filing taxes 2014 Tuition, books, supplies, lab fees, and similar items. Filing taxes 2014 Certain transportation and travel costs. Filing taxes 2014 Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Filing taxes 2014 Nondeductible expenses. Filing taxes 2014   You cannot deduct personal or capital expenses. Filing taxes 2014 For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Filing taxes 2014 This amount is a personal expense. Filing taxes 2014 Unclaimed reimbursement. Filing taxes 2014   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 taxes 2014 Example. Filing taxes 2014 Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Filing taxes 2014 You do not file a voucher, and you do not get reimbursed. Filing taxes 2014 Because you did not file a voucher, you cannot deduct the expenses on your tax return. Filing taxes 2014 Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Filing taxes 2014 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 taxes 2014 Temporary basis. Filing taxes 2014   You go to school on a temporary basis if either of the following situations applies to you. Filing taxes 2014 Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Filing taxes 2014 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 taxes 2014 Your attendance is temporary up to the date you determine it will last more than 1 year. Filing taxes 2014 Note. Filing taxes 2014 If you are in either situation (1) or (2), your attendance is not temporary if facts and circumstances indicate otherwise. Filing taxes 2014 Attendance not on a temporary basis. Filing taxes 2014   You do not go to school on a temporary basis if either of the following situations apply to you. Filing taxes 2014 Your attendance at school is realistically expected to last more than 1 year. Filing taxes 2014 It does not matter how long you actually attend. Filing taxes 2014 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 taxes 2014 Your attendance is not temporary after the date you determine it will last more than 1 year. Filing taxes 2014 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 taxes 2014 This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Filing taxes 2014 Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Filing taxes 2014 Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Filing taxes 2014 Example 1. Filing taxes 2014 You regularly work in a nearby town, and go directly from work to home. Filing taxes 2014 You also attend school every work night for 3 months to take a course that improves your job skills. Filing taxes 2014 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 taxes 2014 This is true regardless of the distance traveled. Filing taxes 2014 Example 2. Filing taxes 2014 Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Filing taxes 2014 You can deduct your transportation expenses from your regular work site to school and then home. Filing taxes 2014 Example 3. Filing taxes 2014 Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Filing taxes 2014 Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Filing taxes 2014 Example 4. Filing taxes 2014 Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Filing taxes 2014 Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Filing taxes 2014 If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Filing taxes 2014 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 taxes 2014 Using your car. Filing taxes 2014   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 taxes 2014 The standard mileage rate for miles driven from January 1, 2013, through December 31, 2013 is 56½ cents per mile. Filing taxes 2014 Whichever method you use, you can also deduct parking fees and tolls. Filing taxes 2014 See chapter 26 for information on deducting your actual expenses of using a car. Filing taxes 2014 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 taxes 2014 Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Filing taxes 2014 For more information, see chapter 26. Filing taxes 2014 You cannot deduct expenses for personal activities, such as sightseeing, visiting, or entertaining. Filing taxes 2014 Mainly personal travel. Filing taxes 2014   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Filing taxes 2014 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 taxes 2014   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Filing taxes 2014 An important factor is the comparison of time spent on personal activities with time spent on educational activities. Filing taxes 2014 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 taxes 2014 Example 1. Filing taxes 2014 John works in Newark, New Jersey. Filing taxes 2014 He traveled to Chicago to take a deductible 1-week course at the request of his employer. Filing taxes 2014 His main reason for going to Chicago was to take the course. Filing taxes 2014 While there, he took a sight-seeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Filing taxes 2014 Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Filing taxes 2014 He cannot deduct his transportation expenses of going to Pleasantville. Filing taxes 2014 He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Filing taxes 2014 Example 2. Filing taxes 2014 Sue works in Boston. Filing taxes 2014 She went to a university in Michigan to take a course for work. Filing taxes 2014 The course is qualifying work-related education. Filing taxes 2014 She took one course, which is one-fourth of a full course load of study. Filing taxes 2014 She spent the rest of the time on personal activities. Filing taxes 2014 Her reasons for taking the course in Michigan were all personal. Filing taxes 2014 Sue's trip is mainly personal because three-fourths of her time is considered personal time. Filing taxes 2014 She cannot deduct the cost of her round-trip train ticket to Michigan. Filing taxes 2014 She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Filing taxes 2014 Example 3. Filing taxes 2014 Dave works in Nashville and recently traveled to California to take a 2-week seminar. Filing taxes 2014 The seminar is qualifying work-related education. Filing taxes 2014 While there, he spent an extra 8 weeks on personal activities. Filing taxes 2014 The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Filing taxes 2014 Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Filing taxes 2014 He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Filing taxes 2014 Cruises and conventions. Filing taxes 2014   Certain cruises and conventions offer seminars or courses as part of their itinerary. Filing taxes 2014 Even if the seminars or courses are work-related, your deduction for travel may be limited. Filing taxes 2014 This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Filing taxes 2014   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 taxes 2014 50% limit on meals. Filing taxes 2014   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Filing taxes 2014 You cannot have been reimbursed for the meals. Filing taxes 2014   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Filing taxes 2014 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 taxes 2014 Example. Filing taxes 2014 You are a French language teacher. Filing taxes 2014 While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Filing taxes 2014 You chose your itinerary and most of your activities to improve your French language skills. Filing taxes 2014 You cannot deduct your travel expenses as education expenses. Filing taxes 2014 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 taxes 2014 No Double Benefit Allowed You cannot do either of the following. Filing taxes 2014 Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, the tuition and fees deduction (see chapter 35). Filing taxes 2014 Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Filing taxes 2014 See Adjustments to Qualifying Work-Related Education Expenses , next. Filing taxes 2014 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 taxes 2014 You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Filing taxes 2014 For more information, see chapter 12 of Publication 970. Filing taxes 2014 Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see chapter 1 of Publication 970), The tax-free part of Pell grants (see chapter 1 of Publication 970), The tax-free part of employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received for education assistance. Filing taxes 2014 Amounts that do not reduce qualifying work-related education expenses. Filing taxes 2014   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 taxes 2014   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 taxes 2014 Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Filing taxes 2014 There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Filing taxes 2014 You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Filing taxes 2014 For information on how to treat reimbursements under both accountable and nonaccountable plans, see Reimbursements in chapter 26. Filing taxes 2014 Deducting Business Expenses Self-employed persons and employees report business expenses differently. Filing taxes 2014 The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Filing taxes 2014 Self-Employed Persons If you are self-employed, report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C, C-EZ, or F). Filing taxes 2014 If your educational 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 taxes 2014 See the instructions for the form you file for information on how to complete it. Filing taxes 2014 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 taxes 2014 If either (1) or (2) applies, you can deduct the total qualifying cost. Filing taxes 2014 If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Filing taxes 2014 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. Filing taxes 2014 (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Filing taxes 2014 ) 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 taxes 2014 See chapter 28. Filing taxes 2014 Form 2106 or 2106-EZ. Filing taxes 2014   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or Form 2106-EZ. Filing taxes 2014 Form not required. Filing taxes 2014   Do not complete either Form 2106 or Form 2106-EZ if: If amounts included in box 1 of your Form W-2, are not considered reimbursements, and You are not claiming travel, transportation, meal, or entertainment expenses. Filing taxes 2014   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21. Filing taxes 2014 (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Filing taxes 2014 ) Using Form 2106-EZ. Filing taxes 2014   This form is shorter and easier to use than Form 2106. Filing taxes 2014 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 taxes 2014   If you do not meet both of these requirements, use Form 2106. Filing taxes 2014 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 taxes 2014 Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24. Filing taxes 2014 You do not have to itemize your deductions on Schedule A (Form 1040), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Filing taxes 2014 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 taxes 2014 For more information on qualified performing artists, see chapter 6 of Publication 463. Filing taxes 2014 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. Filing taxes 2014 They are not subject to the 2%-of-adjusted-gross-income limit. Filing taxes 2014 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 taxes 2014 For more information on impairment-related work expenses, see chapter 6 of Publication 463. Filing taxes 2014 Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Filing taxes 2014 Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Filing taxes 2014 For specific information about keeping records of business expenses, see Recordkeeping in chapter 26. 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SOI Tax Stats - Domestic Private Foundation and Charitable Trust Statistics

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Snapshot of Private Foundation Statistics

Private foundations organized for charitable purposes are exempt from income taxes. They are differentiated from tax-exempt public charities by their narrow bases of control and financial support. Statistics on private foundations are compiled from Form 990-PF, an annual information return that includes data on excise tax liability, charitable distributions, administrative expenditures, as well as income statement and balance sheet information. Data are available for the following types of organizations:

  • Operating Foundations—Generally conduct their own charitable activities, e.g., museums
  • Nonoperating Foundations—Generally provide charitable support through grants and other financial means to charitable organizations; the majority of foundations are nonoperating
  • Section 4947(a)(1) Nonexempt Charitable Trusts—Charitable trusts treated as private foundations for tax purposes; may be operating or nonoperating

Statistical Tables   Publications and Papers   Microdata   Other IRS Data
 

For information about selected terms and concepts, a description of the data sources and limitations, and links to recent revisions of Form 990-PF, please visit the Private Foundations Study Metadata page.


Statistical Tables

The following tables are available as Microsoft Excel® files. A free Excel viewer is available for download, if needed.

NOTE: Statistics for the years denoted by an asterisk (*) include information reported by both domestic and foreign foundations and charitable trusts.

Domestic Private Foundations:
     Number and Selected Financial Data
      Classified by: Type of Foundation and Size of End-of-Year Fair Market Value of Total Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1995  1994  1993  1992  1991  1990  1989  1988  1987  1986  1985
 
     Income Statements and Balance Sheets
      Classified by: Size of End-of-Year Fair Market Value of Total Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*
    Selected Data Items in Current Dollars
      Classified by: Asset Size
      Tax Years: 1993–2002

 
Domestic Nonoperating Private Foundations:
     Disbursements for Charitable Purposes—in Constant Dollars
      Tax Years: 1985–2010
 
     Disbursements for Charitable Purposes—in Current Dollars
      Tax Years: 1985–2010
 
     Noncharitable-Use Assets and Qualifying Distributions
      Tax Years: 1985–2010
 
     Largest 100 Nonoperating Private Foundations—Selected Financial Data
      Tax Years: Panel Study, 1985–1997
 
     Selected Data Items by Asset Size—in Current Dollars
      Tax Years: 1993–2002

 
Domestic IRC Section 4947(a)(1) Charitable Trusts Treated as Foundations:
     Number and Selected Financial Data
      Classified by: Type of Charitable Trust and Size of End-of-Year Fair Market Value of Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*
 
     Income Statements and Balance Sheets
      Classified by: Size of End-of-Year Fair Market Value of Assets
      Tax Years: 2010  2009  2008  2007  2006  2005  2004  2003  2002  2001  2000  1999  1998  1997  1996  1996*  1995*  1994*  1993*  1992*  1991*

 
Excise Taxes Reported by Charities, Private Foundations, and Split-Interest Trusts on Form 4720
      Classified by: Type of Excise Tax
      Calendar Years: 2011  2010  2009  2008  2007  2006  2005  2004  2003

 
To make customized tables using these data, please visit the Statistics of Income Tax Stats Table Wizard

 
Historical Table:
Table 16—Nonprofit Charitable Organization and Domestic Private Foundation Information Returns, and Tax-Exempt Organization Business Income Tax Returns: Selected Financial Data, Expanded
      Published as: SOI Bulletin Historical Table 16

 
Projections
For selected tax returns, including the Form 990-PF, IRS's Office of Research produces annual forecasts of the number of returns that will be filed in future years.
     Projections of Returns to be Filed in Future Calendar Years
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Publications and Papers

The following are available as PDF files. A free Adobe® reader is available for download, if needed.

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Other SOI Data on Trusts

Form 5227 is an information return filed by split-interest trusts, those who make distributions to both charitable and noncharitable beneficiaries, while providing tax benefits to their donor. Form 1041 is the income tax return filed by fiduciaries to report income, distributions, and tax liability of estates and trusts.

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Microdata Files

Microdata are individual organization-level data that can be used for research purposes.

The data are contained in XML, ASCII flat files, Microsoft Excel spreadsheets and Adobe Acrobat PDF. Documentation to assist with the files is included. (Free Adobe Acrobat reader, WinZip utility, and Microsoft Excel viewer software is available for download, if needed.)
 

SOI Sample Data Files

This section contains microdata files for all Forms 990-PF sampled for the annual SOI studies of private foundations. The data for each of the annual studies are included in a comprehensive, "harmonized" dataset, with standardized variable names and codes based on the form revision of the latest available Tax Year.

The sample include returns filed by private foundations, exempt under Internal Revenue Code section 501(c)(3), and section 4947(a)(1) nonexempt charitable trusts. The stratified random samples are based on asset size and represent approximately 10 percent of Forms 990-PF filed; sampling rates of 100 percent are applied to large-asset classes. Microdata records contain most financial information from Forms 990-PF, as well as weights (to estimate the population), for each organization.

Available Data:  Tax Years 1985-2010 

Data Element Reference List

Click on one of the following links to access a page with links to data in the desired format.

         ASCII text     XML     

To make customized tables using these data, please visit the Statistics of Income Tax Stats Table Wizard.  
 

IRS Population Data

This page contains microdata files for all Forms 990, 990-EZ, and 990-PF returns filed by active organizations.  Data are from the IRS Exempt Organization Master File.

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Other IRS Data and Related Links

For tax administration data on this topic, as well as other types of taxes, choose from the links below.

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Return to Tax Stats home page .

Page Last Reviewed or Updated: 14-Jan-2014

The Filing Taxes 2014

Filing taxes 2014 Publication 600 - Main Contents Table of Contents Actual Expenses Optional Sales Tax Tables Instructions for the State and Local General Sales Tax Deduction WorksheetWhat if you lived in more than one state? What if you lived in more than one locality? What if your local general sales tax rate changed during 2006? What if you lived in more than one locality in the same state during 2006? Actual Expenses Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) you paid in 2006 if the tax rate was the same as the general sales tax rate. Filing taxes 2014 However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Filing taxes 2014 If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Filing taxes 2014 Motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Filing taxes 2014 Also include any state and local general sales taxes paid for a leased motor vehicle. Filing taxes 2014 Do not include sales taxes paid on items used in your trade or business. Filing taxes 2014 To deduct your actual expenses, enter the amount on Schedule A, line 5, and enter “ST” on the dotted line to the left of the line 5 entry space. Filing taxes 2014 You must keep your actual receipts showing general sales taxes paid to use this method. Filing taxes 2014 Refund of general sales taxes. Filing taxes 2014   If you received a refund of state or local general sales taxes in 2006 for amounts paid in 2006, reduce your actual 2006 state and local general sales taxes by this amount. Filing taxes 2014 If you received a refund of state or local general sales taxes in 2006 for prior year purchases, do not reduce your 2006 state and local general sales taxes by this amount. Filing taxes 2014 But if you deducted your actual state and local general sales taxes in the earlier year and the deduction reduced your tax, you may have to include the refund in income on Form 1040, line 21. Filing taxes 2014 See Recoveries in Pub. Filing taxes 2014 525 for details. Filing taxes 2014 Optional Sales Tax Tables Instead of using your actual expenses, you can use the tables on pages 5 through 7 to figure your state and local general sales tax deduction. Filing taxes 2014 You may also be able to add the state and local general sales taxes paid on certain specified items. Filing taxes 2014 To figure your state and local general sales tax deduction using the tables, complete the worksheet below. Filing taxes 2014 If your filing status is married filing separately, both you and your spouse elect to deduct sales taxes, and your spouse elects to use the optional sales tax tables, you also must use the tables to figure your state and local general sales tax deduction. Filing taxes 2014 State and Local General Sales Tax Deduction Worksheet (See the instructions that begin on page 3. Filing taxes 2014 ) Before you begin: See the instructions for line 1 on page 3 if: You lived in more than one state during 2006, or You had any nontaxable income in 2006. Filing taxes 2014   1. Filing taxes 2014 Enter your state general sales taxes from the applicable table on page 5 or 6 (see page 3 of the instructions) 1. Filing taxes 2014 $     Next. Filing taxes 2014 If, for all of 2006, you lived only in Connecticut, the District of Columbia, Hawaii, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, Rhode Island, Virginia, or West Virginia, skip lines 2 through 5, enter -0- on line 6, and go to line 7. Filing taxes 2014 Otherwise, go to line 2       2. Filing taxes 2014 Did you live in Alaska, Arizona, Arkansas (Texarkana only), California (Los Angeles County only), Colorado, Georgia, Illinois, Louisiana, New York State, or North Carolina in 2006?         No. Filing taxes 2014 Enter -0-                   Yes. Filing taxes 2014 Enter your local general sales taxes from the applicable table on page 7 (see page 3 of the instructions)     2. Filing taxes 2014 $       3. Filing taxes 2014 Did your locality impose a local general sales tax in 2006? Residents of California, Nevada, and Texarkana, Arkansas, see page 3 of the instructions             No. Filing taxes 2014 Skip lines 3 through 5, enter -0- on line 6, and go to line 7             Yes. Filing taxes 2014 Enter your local general sales tax rate, but omit the percentage sign. Filing taxes 2014 For example, if your local general sales tax rate was 2. Filing taxes 2014 5%, enter 2. Filing taxes 2014 5. Filing taxes 2014 If your local general sales tax rate changed or you lived in more than one locality in the same state during 2006, see page 3 of the instructions. Filing taxes 2014 (If you do not know your local general sales tax rate, contact your local government. Filing taxes 2014 ) 3. Filing taxes 2014 . Filing taxes 2014       4. Filing taxes 2014 Did you enter -0- on line 2 above?             No. Filing taxes 2014 Skip lines 4 and 5 and go to line 6             Yes. Filing taxes 2014 Enter your state general sales tax rate (shown in the table heading for your state), but omit the percentage sign. Filing taxes 2014 For example, if your state general sales tax rate is 6%, enter 6. Filing taxes 2014 0 4. Filing taxes 2014 . Filing taxes 2014       5. Filing taxes 2014 Divide line 3 by line 4. Filing taxes 2014 Enter the result as a decimal (rounded to at least three places) 5. Filing taxes 2014 . Filing taxes 2014       6. Filing taxes 2014 Did you enter -0- on line 2 above?             No. Filing taxes 2014 Multiply line 2 by line 3   6. Filing taxes 2014 $     Yes. Filing taxes 2014 Multiply line 1 by line 5. Filing taxes 2014 If you lived in more than one locality in the same state during 2006, see page 4 of the instructions           7. Filing taxes 2014 Enter your state and local general sales taxes paid on specified items, if any (see page 4 of the instructions) 7. Filing taxes 2014 $   8. Filing taxes 2014 Deduction for general sales taxes. Filing taxes 2014 Add lines 1, 6, and 7. Filing taxes 2014 Enter the result here and the total from all your state and local general sales tax deduction worksheets, if you completed more than one, on Schedule A, line 5. Filing taxes 2014 Be sure to enter “ST” on the dotted line to the left of the entry space 8. Filing taxes 2014 $     Instructions for the State and Local General Sales Tax Deduction Worksheet Line 1. Filing taxes 2014    If you lived in the same state for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional state sales tax table for your state on page 5 or 6. Filing taxes 2014 Read down the “At least-But less than” columns for your state and find the line that includes your 2006 income. Filing taxes 2014 If married filing separately, do not include your spouse's income. Filing taxes 2014 Your 2006 income is the amount shown on your Form 1040, line 38, plus any nontaxable items, such as the following. Filing taxes 2014 Tax-exempt interest. Filing taxes 2014 Veterans' benefits. Filing taxes 2014 Nontaxable combat pay. Filing taxes 2014 Workers' compensation. Filing taxes 2014 Nontaxable part of social security and railroad retirement benefits. Filing taxes 2014 Nontaxable part of IRA, pension, or annuity distributions. Filing taxes 2014 Do not include rollovers. Filing taxes 2014 Public assistance payments. Filing taxes 2014 The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Filing taxes 2014 Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Filing taxes 2014 What if you lived in more than one state?    If you lived in more than one state during 2006, look up the table amount for each state using the above rules. Filing taxes 2014 If there is no table for your state, the table amount is considered to be zero. Filing taxes 2014 Multiply the table amount for each state you lived in by a fraction. Filing taxes 2014 The numerator of the fraction is the number of days you lived in the state during 2006 and the denominator is the total number of days in the year (365). Filing taxes 2014 Enter the total of the prorated table amounts for each state on line 1. Filing taxes 2014 However, if you also lived in a locality during 2006 that imposed a local general sales tax, do not enter the total on line 1. Filing taxes 2014 Instead, complete a separate worksheet for each state you lived in and enter the prorated amount for that state on line 1. Filing taxes 2014 Example. Filing taxes 2014 You lived in State A from January 1 through August 31, 2006 (243 days), and in State B from September 1 through December 31, 2006 (122 days). Filing taxes 2014 The table amount for State A is $500. Filing taxes 2014 The table amount for State B is $400. Filing taxes 2014 You would figure your state general sales tax as follows. Filing taxes 2014 State A: $500 x 243/365 = $333   State B: $400 x 122/365 = 134   Total = $467   If none of the localities in which you lived during 2006 imposed a local general sales tax, enter $467 on line 1 of your worksheet. Filing taxes 2014 Otherwise, complete a separate worksheet for State A and State B. Filing taxes 2014 Enter $333 on line 1 of the State A worksheet and $134 on line 1 of the State B worksheet. Filing taxes 2014 Line 2. Filing taxes 2014   If you checked the “No” box, enter -0- on line 2, and go to line 3. Filing taxes 2014 If you checked the “Yes” box and lived in the same locality for all of 2006, enter the applicable amount, based on your 2006 income and exemptions, from the optional local sales tax table for your locality on page 7. Filing taxes 2014 Read down the “At least-But less than” columns for your locality and find the line that includes your 2006 income. Filing taxes 2014 See the line 1 instructions on this page to figure your 2006 income. Filing taxes 2014 The exemptions column refers to the number of exemptions claimed on Form 1040, line 6d. Filing taxes 2014 Do not include any additional exemptions you listed on Form 8914 for individuals displaced by Hurricane Katrina. Filing taxes 2014 What if you lived in more than one locality?   If you lived in more than one locality during 2006, look up the table amount for each locality using the above rules. Filing taxes 2014 If there is no table for your locality, the table amount is considered to be zero. Filing taxes 2014 Multiply the table amount for each locality you lived in by a fraction. Filing taxes 2014 The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Filing taxes 2014 If you lived in more than one locality in the same state and the local general sales tax rate was the same for each locality, enter the total of the prorated table amounts for each locality in that state on line 2. Filing taxes 2014 Otherwise, complete a separate worksheet for lines 2 through 6 for each locality and enter each prorated table amount on line 2 of the applicable worksheet. Filing taxes 2014 Example. Filing taxes 2014 You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Filing taxes 2014 The table amount for Locality 1 is $100. Filing taxes 2014 The table amount for Locality 2 is $150. Filing taxes 2014 You would figure the amount to enter on line 2 as follows. Filing taxes 2014 Note that this amount may not equal your local sales tax deduction, which is figured on line 6 of the worksheet. Filing taxes 2014 Locality 1: $100 x 243/365 = $67   Locality 2: $150 x 122/365 = 50   Total = $117   Line 3. Filing taxes 2014   If you lived in California, check the “No” box if your combined state and local general sales tax rate is 7. Filing taxes 2014 25%. Filing taxes 2014 Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 7. Filing taxes 2014 25%. Filing taxes 2014   If you lived in Nevada, check the “No” box if your combined state and local general sales tax rate is 6. Filing taxes 2014 5%. Filing taxes 2014 Otherwise, check the “Yes” box and include on line 3 only the part of the combined rate that is more than 6. Filing taxes 2014 5%. Filing taxes 2014   If you lived in Texarkana, Arkansas, check the “Yes” box and enter “4. Filing taxes 2014 0” on line 3. Filing taxes 2014 Your local general sales tax rate of 4. Filing taxes 2014 0% includes the additional 1. Filing taxes 2014 0% Arkansas state sales tax rate for Texarkana and the 1. Filing taxes 2014 5% sales tax rate for Miller County. Filing taxes 2014 What if your local general sales tax rate changed during 2006?    If you checked the “Yes” box and your local general sales tax rate changed during 2006, figure the rate to enter on line 3 as follows. Filing taxes 2014 Multiply each tax rate for the period it was in effect by a fraction. Filing taxes 2014 The numerator of the fraction is the number of days the rate was in effect during 2006 and the denominator is the total number of days in the year (365). Filing taxes 2014 Enter the total of the prorated tax rates on line 3. Filing taxes 2014 Example. Filing taxes 2014 Locality 1 imposed a 1% local general sales tax from January 1 through September 30, 2006 (273 days). Filing taxes 2014 The rate increased to 1. Filing taxes 2014 75% for the period from October 1 through December 31, 2006 (92 days). Filing taxes 2014 You would enter “1. Filing taxes 2014 189” on line 3, figured as follows. Filing taxes 2014 January 1 - September 30: 1. Filing taxes 2014 00 x 273/365 = 0. Filing taxes 2014 748   October 1 - December 31: 1. Filing taxes 2014 75 x 92/365 = 0. Filing taxes 2014 441   Total = 1. Filing taxes 2014 189   What if you lived in more than one locality in the same state during 2006?    Complete a separate worksheet for lines 2 through 6 for each locality in your state if you lived in more than one locality in the same state during 2006 and either of the following applies. Filing taxes 2014 Each locality did not have the same local general sales tax rate. Filing taxes 2014 You lived in Texarkana, AR, or Los Angeles County, CA. Filing taxes 2014   To figure the amount to enter on line 3 of the worksheet for each locality in which you lived (except a locality for which you used the table on page 7 to figure your local general sales tax deduction), multiply the local general sales tax rate by a fraction. Filing taxes 2014 The numerator of the fraction is the number of days you lived in the locality during 2006 and the denominator is the total number of days in the year (365). Filing taxes 2014 Example. Filing taxes 2014 You lived in Locality 1 from January 1 through August 31, 2006 (243 days), and in Locality 2 from September 1 through December 31, 2006 (122 days). Filing taxes 2014 The local general sales tax rate for Locality 1 is 1%. Filing taxes 2014 The rate for Locality 2 is 1. Filing taxes 2014 75%. Filing taxes 2014 You would enter “0. Filing taxes 2014 666” on line 3 for the Locality 1 worksheet and “0. Filing taxes 2014 585” for the Locality 2 worksheet, figured as follows. Filing taxes 2014 Locality 1: 1. Filing taxes 2014 00 x 243/365 = 0. Filing taxes 2014 666   Locality 2: 1. Filing taxes 2014 75 x 122/365 = 0. Filing taxes 2014 585   Line 6. Filing taxes 2014   If you lived in more than one locality in the same state during 2006, you should have completed line 1 only on the first worksheet for that state and separate worksheets for lines 2 through 6 for any other locality within that state in which you lived during 2006. Filing taxes 2014 If you checked the “Yes” box on line 6 of any of those worksheets, multiply line 5 of that worksheet by the amount that you entered on line 1 for that state on the first worksheet. Filing taxes 2014 Line 7. Filing taxes 2014    Enter on line 7 any state and local general sales taxes paid on the following specified items. Filing taxes 2014 If you are completing more than one worksheet, include the total for line 7 on only one of the worksheets. Filing taxes 2014 A motor vehicle (including a car, motorcycle, motor home, recreational vehicle, sport utility vehicle, truck, van, and off-road vehicle). Filing taxes 2014 Also include any state and local general sales taxes paid for a leased motor vehicle. Filing taxes 2014 If the state sales tax rate on these items is higher than the general sales tax rate, only include the amount of tax you would have paid at the general sales tax rate. Filing taxes 2014 An aircraft or boat, if the tax rate was the same as the general sales tax rate. Filing taxes 2014 A home (including a mobile home or prefabricated home) or substantial addition to or major renovation of a home, but only if the tax rate was the same as the general sales tax rate and any of the following applies. Filing taxes 2014 Your state or locality imposes a general sales tax directly on the sale of a home or on the cost of a substantial addition or major renovation. Filing taxes 2014 You purchased the materials to build a home or substantial addition or to perform a major renovation and paid the sales tax directly. Filing taxes 2014 Under your state law, your contractor is considered your agent in the construction of the home or substantial addition or the performance of a major renovation. Filing taxes 2014 The contract must state that the contractor is authorized to act in your name and must follow your directions on construction decisions. Filing taxes 2014 In this case, you will be considered to have purchased any items subject to a sales tax and to have paid the sales tax directly. Filing taxes 2014   Do not include sales taxes paid on items used in your trade or business. Filing taxes 2014 If you received a refund of state or local general sales taxes in 2006, see Refund of general sales taxes on page 1. Filing taxes 2014 Prev  Up  Next   Home   More Online Publications