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Fle 2012 Taxes Late Online Tax Filing

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Fle 2012 Taxes Late Online Tax Filing

Fle 2012 taxes late online tax filing 11. Fle 2012 taxes late online tax filing   Other Expenses Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Reimbursement of Travel, Meals, and EntertainmentReimbursements Miscellaneous ExpensesMeaning of generally enforced. Fle 2012 taxes late online tax filing Kickbacks. Fle 2012 taxes late online tax filing Form 1099-MISC. Fle 2012 taxes late online tax filing Exception. Fle 2012 taxes late online tax filing Tax preparation fees. Fle 2012 taxes late online tax filing Covered executive branch official. Fle 2012 taxes late online tax filing Exceptions to denial of deduction. Fle 2012 taxes late online tax filing Indirect political contributions. Fle 2012 taxes late online tax filing Type of deduction. Fle 2012 taxes late online tax filing Repayment—$3,000 or less. Fle 2012 taxes late online tax filing Repayment—over $3,000. Fle 2012 taxes late online tax filing Method 1. Fle 2012 taxes late online tax filing Method 2. Fle 2012 taxes late online tax filing Repayment does not apply. Fle 2012 taxes late online tax filing Year of deduction (or credit). Fle 2012 taxes late online tax filing Telephone. Fle 2012 taxes late online tax filing What's New Standard mileage rate. Fle 2012 taxes late online tax filing  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for business use is 56. Fle 2012 taxes late online tax filing 5 cents per mile. Fle 2012 taxes late online tax filing For more information, see Car and truck expenses under Miscellaneous Expenses. Fle 2012 taxes late online tax filing Introduction This chapter covers business expenses that may not have been explained to you, as a business owner, in previous chapters of this publication. Fle 2012 taxes late online tax filing Topics - This chapter discusses: Travel, meals, and entertainment Bribes and kickbacks Charitable contributions Education expenses Lobbying expenses Penalties and fines Repayments (claim of right) Other miscellaneous expenses Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 463 Travel, Entertainment, Gift, and Car Expenses 526 Charitable Contributions 529 Miscellaneous Deductions 544 Sales and Other Dispositions of Assets 970 Tax Benefits for Education 1542 Per Diem Rates See chapter 12 for information about getting publications and forms. Fle 2012 taxes late online tax filing Reimbursement of Travel, Meals, and Entertainment The following discussion explains how to handle any reimbursements or allowances you may provide to your employees under a reimbursement or allowance arrangement for travel, meals, and entertainment expenses. Fle 2012 taxes late online tax filing If you are self-employed and report your income and expenses on Schedule C or C-EZ (Form 1040), see Publication 463. Fle 2012 taxes late online tax filing To be deductible for tax purposes, expenses incurred for travel, meals, and entertainment must be ordinary and necessary expenses incurred while carrying on your trade or business. Fle 2012 taxes late online tax filing Generally, you also must show that entertainment expenses (including meals) are directly related to, or associated with, the conduct of your trade or business. Fle 2012 taxes late online tax filing For more information on travel, meals, and entertainment, including deductibility, see Publication 463. Fle 2012 taxes late online tax filing Reimbursements A “reimbursement or allowance arrangement” provides for payment of advances, reimbursements, and allowances for travel, meals, and entertainment expenses incurred by your employees during the ordinary course of business. Fle 2012 taxes late online tax filing If the expenses are substantiated, you can deduct the allowable amount on your tax return. Fle 2012 taxes late online tax filing Because of differences between accounting methods and tax law, the amount you can deduct for tax purposes may not be the same as the amount you deduct on your business books and records. Fle 2012 taxes late online tax filing For example, you can deduct 100% of the cost of meals on your business books and records. Fle 2012 taxes late online tax filing However, only 50% of these costs are allowed by law as a tax deduction. Fle 2012 taxes late online tax filing How you deduct a business expense under a reimbursement or allowance arrangement depends on whether you have: An accountable plan, or A nonaccountable plan. Fle 2012 taxes late online tax filing If you reimburse these expenses under an accountable plan, deduct them as travel, meals, or entertainment expenses. Fle 2012 taxes late online tax filing If you reimburse these expenses under a nonaccountable plan, report the reimbursements as wages on Form W-2, Wage and Tax Statement, and deduct them as wages on the appropriate line of your tax return. Fle 2012 taxes late online tax filing If you make a single payment to your employees and it includes both wages and an expense reimbursement, you must specify the amount of the reimbursement and report it accordingly. Fle 2012 taxes late online tax filing See Table 11-1 , Reporting Reimbursements. Fle 2012 taxes late online tax filing Accountable Plans An accountable plan requires your employees to meet all of the following requirements. Fle 2012 taxes late online tax filing Each employee must: Have paid or incurred deductible expenses while performing services as your employee, Adequately account to you for these expenses within a reasonable period of time, and Return any excess reimbursement or allowance within a reasonable period of time. Fle 2012 taxes late online tax filing An arrangement under which you advance money to employees is treated as meeting (3) above only if the following requirements are also met. Fle 2012 taxes late online tax filing The advance is reasonably calculated not to exceed the amount of anticipated expenses. Fle 2012 taxes late online tax filing You make the advance within a reasonable period of time of your employee paying or incurring the expense. Fle 2012 taxes late online tax filing If any expenses reimbursed under this arrangement are not substantiated, or an excess reimbursement is not returned within a reasonable period of time by an employee, you cannot treat these expenses as reimbursed under an accountable plan. Fle 2012 taxes late online tax filing Instead, treat the reimbursed expenses as paid under a nonaccountable plan, discussed later. Fle 2012 taxes late online tax filing Adequate accounting. Fle 2012 taxes late online tax filing   Your employees must adequately account to you for their travel, meals, and entertainment expenses. Fle 2012 taxes late online tax filing They must give you documentary evidence of their travel, mileage, and other employee business expenses. Fle 2012 taxes late online tax filing This evidence should include items such as receipts, along with either a statement of expenses, an account book, a day-planner, or similar record in which the employee entered each expense at or near the time the expense was incurred. Fle 2012 taxes late online tax filing Excess reimbursement or allowance. Fle 2012 taxes late online tax filing   An excess reimbursement or allowance is any amount you pay to an employee that is more than the business-related expenses for which the employee adequately accounted. Fle 2012 taxes late online tax filing The employee must return any excess reimbursement or other expense allowance to you within a reasonable period of time. Fle 2012 taxes late online tax filing Reasonable period of time. Fle 2012 taxes late online tax filing   A reasonable period of time depends on the facts and circumstances. Fle 2012 taxes late online tax filing Generally, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Fle 2012 taxes late online tax filing You give an advance within 30 days of the time the employee pays or incurs the expense. Fle 2012 taxes late online tax filing Your employees adequately account for their expenses within 60 days after the expenses were paid or incurred. Fle 2012 taxes late online tax filing Your employees return any excess reimbursement within 120 days after the expenses were paid or incurred. Fle 2012 taxes late online tax filing You give a periodic statement (at least quarterly) to your employees that asks them to either return or adequately account for outstanding advances and they comply within 120 days of the date of the statement. Fle 2012 taxes late online tax filing How to deduct. Fle 2012 taxes late online tax filing   You can claim a deduction for travel, meals, and entertainment expenses if you reimburse your employees for these expenses under an accountable plan. Fle 2012 taxes late online tax filing Generally, the amount you can deduct for meals and entertainment is subject to a 50% limit, discussed later. Fle 2012 taxes late online tax filing If you are a sole proprietor, or are filing as a single member limited liability company, deduct the travel reimbursement on line 24a and the deductible part of the meals and entertainment reimbursement on line 24b, Schedule C (Form 1040) or line 2, Schedule C-EZ (Form 1040). Fle 2012 taxes late online tax filing   If you are filing an income tax return for a corporation, include the reimbursement on the Other deductions line of Form 1120, U. Fle 2012 taxes late online tax filing S. Fle 2012 taxes late online tax filing Corporation Income Tax Return. Fle 2012 taxes late online tax filing If you are filing any other business income tax return, such as a partnership or S corporation return, deduct the reimbursement on the appropriate line of the return as provided in the instructions for that return. Fle 2012 taxes late online tax filing Table 11-1. Fle 2012 taxes late online tax filing Reporting Reimbursements IF the type of reimbursement (or other expense allowance) arrangement is under THEN the employer reports on Form W-2 An accountable plan with: Actual expense reimbursement:  Adequate accounting made and excess returned No amount. Fle 2012 taxes late online tax filing Actual expense reimbursement:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. Fle 2012 taxes late online tax filing Per diem or mileage allowance up to the federal rate:  Adequate accounting made and excess returned No amount. Fle 2012 taxes late online tax filing Per diem or mileage allowance up to the federal rate:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. Fle 2012 taxes late online tax filing The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Fle 2012 taxes late online tax filing Per diem or mileage allowance exceeds the federal rate:  Adequate accounting made up to the federal rate only and excess not returned The excess amount as wages in box 1. Fle 2012 taxes late online tax filing The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Fle 2012 taxes late online tax filing A nonaccountable plan with: Either adequate accounting or return of excess, or both, not required by plan The entire amount as wages in box 1. Fle 2012 taxes late online tax filing No reimbursement plan The entire amount as wages in box 1. Fle 2012 taxes late online tax filing Per Diem and Car Allowances You can reimburse your employees under an accountable plan based on travel days, miles, or some other fixed allowance. Fle 2012 taxes late online tax filing In these cases, your employee is considered to have accounted to you for the amount of the expense that does not exceed the rates established by the federal government. Fle 2012 taxes late online tax filing Your employee must actually substantiate to you the other elements of the expense, such as time, place, and business purpose. Fle 2012 taxes late online tax filing Federal rate. Fle 2012 taxes late online tax filing   The federal rate can be figured using any one of the following methods. Fle 2012 taxes late online tax filing For car expenses: The standard mileage rate. Fle 2012 taxes late online tax filing A fixed and variable rate (FAVR). Fle 2012 taxes late online tax filing For per diem amounts: The regular federal per diem rate. Fle 2012 taxes late online tax filing The standard meal allowance. Fle 2012 taxes late online tax filing The high-low rate. Fle 2012 taxes late online tax filing Car allowance. Fle 2012 taxes late online tax filing   Your employee is considered to have accounted to you for car expenses that do not exceed the standard mileage rate. Fle 2012 taxes late online tax filing Beginning in 2013, the standard business mileage rate is 56. Fle 2012 taxes late online tax filing 5 cents per mile. Fle 2012 taxes late online tax filing   You can choose to reimburse your employees using a fixed and variable rate (FAVR) allowance. Fle 2012 taxes late online tax filing This is an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your employees' variable operating costs (such as gas, oil, etc. Fle 2012 taxes late online tax filing ) plus a flat amount to cover your employees' fixed costs (such as depreciation, insurance, etc. Fle 2012 taxes late online tax filing ). Fle 2012 taxes late online tax filing For information on using a FAVR allowance, see Revenue Procedure 2010-51, available at www. Fle 2012 taxes late online tax filing irs. Fle 2012 taxes late online tax filing gov/irb/2010-51_IRB/ar14. Fle 2012 taxes late online tax filing html and Notice 2012-72, available at www. Fle 2012 taxes late online tax filing irs. Fle 2012 taxes late online tax filing gov/irb/2012-50_IRB/ar10. Fle 2012 taxes late online tax filing html. Fle 2012 taxes late online tax filing Per diem allowance. Fle 2012 taxes late online tax filing   If your employee actually substantiates to you the other elements (discussed earlier) of the expenses reimbursed using the per diem allowance, how you report and deduct the allowance depends on whether the allowance is for lodging and meal expenses or for meal expenses only and whether the allowance is more than the federal rate. Fle 2012 taxes late online tax filing Regular federal per diem rate. Fle 2012 taxes late online tax filing   The regular federal per diem rate is the highest amount the federal government will pay to its employees while away from home on travel. Fle 2012 taxes late online tax filing It has two components: Lodging expense, and Meal and incidental expense (M&IE). Fle 2012 taxes late online tax filing The rates are different for different locations. Fle 2012 taxes late online tax filing Publication 1542 lists the rates in the continental United States. Fle 2012 taxes late online tax filing Standard meal allowance. Fle 2012 taxes late online tax filing   The federal rate for meal and incidental expenses (M&IE) is the standard meal allowance. Fle 2012 taxes late online tax filing You can pay only an M&IE allowance to employees who travel away from home if: You pay the employee for actual expenses for lodging based on receipts submitted to you, You provide for the lodging, You pay for the actual expense of the lodging directly to the provider, You do not have a reasonable belief that lodging expenses were incurred by the employee, or The allowance is computed on a basis similar to that used in computing the employee's wages (that is, number of hours worked or miles traveled). Fle 2012 taxes late online tax filing Internet access. Fle 2012 taxes late online tax filing    Per diem rates are available on the Internet. Fle 2012 taxes late online tax filing You can access per diem rates at www. Fle 2012 taxes late online tax filing gsa. Fle 2012 taxes late online tax filing gov/perdiemrates. Fle 2012 taxes late online tax filing High-low method. Fle 2012 taxes late online tax filing   This is a simplified method of computing the federal per diem rate for travel within the continental United States. Fle 2012 taxes late online tax filing It eliminates the need to keep a current list of the per diem rate for each city. Fle 2012 taxes late online tax filing   Under the high-low method, the per diem amount for travel during January through September of 2013 is $242 ($65 for M&IE) for certain high-cost locations. Fle 2012 taxes late online tax filing All other areas have a per diem amount of $163 ($52 for M&IE). Fle 2012 taxes late online tax filing The high-cost locations eligible for the higher per diem amount under the high-low method are listed in Publication 1542. Fle 2012 taxes late online tax filing   Effective October 1, 2013, the per diem rate for high-cost locations increased to $251 ($65 for M&IE). Fle 2012 taxes late online tax filing The rate for all other locations increased to $170 ($52 for M&IE). Fle 2012 taxes late online tax filing For October, November, and December 2013, you can either continue to use the rates described in the preceding paragraph or change to the new rates. Fle 2012 taxes late online tax filing However, you must use the same rate for all employees reimbursed under the high-low method. Fle 2012 taxes late online tax filing   For more information about the high-low method, see Notice 2013-65, available at www. Fle 2012 taxes late online tax filing irs. Fle 2012 taxes late online tax filing gov/irb/2013-44_IRB/ar13. Fle 2012 taxes late online tax filing html. Fle 2012 taxes late online tax filing See Publication 1542 (available on the Internet at IRS. Fle 2012 taxes late online tax filing gov) for the current per diem rates for all locations. Fle 2012 taxes late online tax filing Reporting per diem and car allowances. Fle 2012 taxes late online tax filing   The following discussion explains how to report per diem and car allowances. Fle 2012 taxes late online tax filing The manner in which you report them depends on how the allowance compares to the federal rate. Fle 2012 taxes late online tax filing See Table 11-1. Fle 2012 taxes late online tax filing Allowance less than or equal to the federal rate. Fle 2012 taxes late online tax filing   If your allowance for the employee is less than or equal to the appropriate federal rate, that allowance is not included as part of the employee's pay in box 1 of the employee's Form W-2. Fle 2012 taxes late online tax filing Deduct the allowance as travel expenses (including meals that may be subject to the 50% limit, discussed later). Fle 2012 taxes late online tax filing See How to deduct under Accountable Plans, earlier. Fle 2012 taxes late online tax filing Allowance more than the federal rate. Fle 2012 taxes late online tax filing   If your employee's allowance is more than the appropriate federal rate, you must report the allowance as two separate items. Fle 2012 taxes late online tax filing   Include the allowance amount up to the federal rate in box 12 (code L) of the employee's Form W-2. Fle 2012 taxes late online tax filing Deduct it as travel expenses (as explained above). Fle 2012 taxes late online tax filing This part of the allowance is treated as reimbursed under an accountable plan. Fle 2012 taxes late online tax filing   Include the amount that is more than the federal rate in box 1 (and in boxes 3 and 5 if they apply) of the employee's Form W-2. Fle 2012 taxes late online tax filing Deduct it as wages subject to income tax withholding, social security, Medicare, and federal unemployment taxes. Fle 2012 taxes late online tax filing This part of the allowance is treated as reimbursed under a nonaccountable plan as explained later under Nonaccountable Plans. Fle 2012 taxes late online tax filing Meals and Entertainment Under an accountable plan, you can generally deduct only 50% of any otherwise deductible business-related meal and entertainment expenses you reimburse your employees. Fle 2012 taxes late online tax filing The deduction limit applies even if you reimburse them for 100% of the expenses. Fle 2012 taxes late online tax filing Application of the 50% limit. Fle 2012 taxes late online tax filing   The 50% deduction limit applies to reimbursements you make to your employees for expenses they incur for meals while traveling away from home on business and for entertaining business customers at your place of business, a restaurant, or another location. Fle 2012 taxes late online tax filing It applies to expenses incurred at a business convention or reception, business meeting, or business luncheon at a club. Fle 2012 taxes late online tax filing The deduction limit may also apply to meals you furnish on your premises to your employees. Fle 2012 taxes late online tax filing Related expenses. Fle 2012 taxes late online tax filing   Taxes and tips relating to a meal or entertainment activity you reimburse to your employee under an accountable plan are included in the amount subject to the 50% limit. Fle 2012 taxes late online tax filing Reimbursements you make for expenses, such as cover charges for admission to a nightclub, rent paid for a room to hold a dinner or cocktail party, or the amount you pay for parking at a sports arena, are all subject to the 50% limit. Fle 2012 taxes late online tax filing However, the cost of transportation to and from an otherwise allowable business meal or a business-related entertainment activity is not subject to the 50% limit. Fle 2012 taxes late online tax filing Amount subject to 50% limit. Fle 2012 taxes late online tax filing   If you provide your employees with a per diem allowance only for meal and incidental expenses, the amount treated as an expense for food and beverages is the lesser of the following. Fle 2012 taxes late online tax filing The per diem allowance. Fle 2012 taxes late online tax filing The federal rate for M&IE. Fle 2012 taxes late online tax filing   If you provide your employees with a per diem allowance that covers lodging, meals, and incidental expenses, you must treat an amount equal to the federal M&IE rate for the area of travel as an expense for food and beverages. Fle 2012 taxes late online tax filing If the per diem allowance you provide is less than the federal per diem rate for the area of travel, you can treat 40% of the per diem allowance as the amount for food and beverages. Fle 2012 taxes late online tax filing Meal expenses when subject to “hours of service” limits. Fle 2012 taxes late online tax filing   You can deduct 80% of the cost of reimbursed meals your employees consume while away from their tax home on business during, or incident to, any period subject to the Department of Transportation's “hours of service” limits. Fle 2012 taxes late online tax filing   See Publication 463 for a detailed discussion of individuals subject to the Department of Transportation's “hours of service” limits. Fle 2012 taxes late online tax filing De minimis (minimal) fringe benefit. Fle 2012 taxes late online tax filing   The 50% limit does not apply to an expense for food or beverage that is excluded from the gross income of an employee because it is a de minimis fringe benefit. Fle 2012 taxes late online tax filing See Publication 15-B for additional information on de minimis fringe benefits. Fle 2012 taxes late online tax filing Company cafeteria or executive dining room. Fle 2012 taxes late online tax filing   The cost of food and beverages you provide primarily to your employees on your business premises is deductible. Fle 2012 taxes late online tax filing This includes the cost of maintaining the facilities for providing the food and beverages. Fle 2012 taxes late online tax filing These expenses are subject to the 50% limit unless they qualify as a de minimis fringe benefit, as just discussed, or unless they are compensation to your employees (explained later). Fle 2012 taxes late online tax filing Employee activities. Fle 2012 taxes late online tax filing   The expense of providing recreational, social, or similar activities (including the use of a facility) for your employees is deductible and is not subject to the 50% limit. Fle 2012 taxes late online tax filing The benefit must be primarily for your employees who are not highly compensated. Fle 2012 taxes late online tax filing   For this purpose, a highly compensated employee is an employee who meets either of the following requirements. Fle 2012 taxes late online tax filing Owned a 10% or more interest in the business during the year or the preceding year. Fle 2012 taxes late online tax filing An employee is treated as owning any interest owned by his or her brother, sister, spouse, ancestors, and lineal descendants. Fle 2012 taxes late online tax filing Received more than $115,000 in pay for the preceding year. Fle 2012 taxes late online tax filing You can choose to include only employees who were also in the top 20% of employees when ranked by pay for the preceding year. Fle 2012 taxes late online tax filing   For example, the expenses for food, beverages, and entertainment for a company-wide picnic are not subject to the 50% limit. Fle 2012 taxes late online tax filing Meals or entertainment treated as compensation. Fle 2012 taxes late online tax filing   The 50% limit does not apply to either of the following. Fle 2012 taxes late online tax filing Expenses for meals or entertainment that you treat as: Compensation to an employee who was the recipient of the meals or entertainment, and Wages subject to withholding of federal income tax. Fle 2012 taxes late online tax filing Expenses for meals or entertainment if: A recipient of the meals or entertainment who is not your employee has to include the expenses in gross income as compensation for services or as a prize or award, and You include that amount on a Form 1099 issued to the recipient, if a Form 1099 is required. Fle 2012 taxes late online tax filing Sales of meals or entertainment. Fle 2012 taxes late online tax filing   You can deduct the cost of meals or entertainment (including the use of facilities) you sell to the public. Fle 2012 taxes late online tax filing For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is a business expense that is fully deductible. Fle 2012 taxes late online tax filing The 50% limit does not apply to this expense. Fle 2012 taxes late online tax filing Providing meals or entertainment to general public to promote goodwill. Fle 2012 taxes late online tax filing   You can deduct the cost of providing meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. Fle 2012 taxes late online tax filing The 50% limit does not apply to this expense. Fle 2012 taxes late online tax filing Director, stockholder, or employee meetings. Fle 2012 taxes late online tax filing   You can deduct entertainment expenses directly related to business meetings of your employees, partners, stockholders, agents, or directors. Fle 2012 taxes late online tax filing You can provide some minor social activities, but the main purpose of the meeting must be your company's business. Fle 2012 taxes late online tax filing These expenses are subject to the 50% limit. Fle 2012 taxes late online tax filing Trade association meetings. Fle 2012 taxes late online tax filing   You can deduct expenses directly related to and necessary for attending business meetings or conventions of certain tax-exempt organizations. Fle 2012 taxes late online tax filing These organizations include business leagues, chambers of commerce, real estate boards, and trade and professional associations. Fle 2012 taxes late online tax filing Nonaccountable Plans A nonaccountable plan is an arrangement that does not meet the requirements for an accountable plan. Fle 2012 taxes late online tax filing All amounts paid, or treated as paid, under a nonaccountable plan are reported as wages on Form W-2. Fle 2012 taxes late online tax filing The payments are subject to income tax withholding, social security, Medicare, and federal unemployment taxes. Fle 2012 taxes late online tax filing You can deduct the reimbursement as compensation or wages only to the extent it meets the deductibility tests for employees' pay in chapter 2. Fle 2012 taxes late online tax filing Deduct the allowable amount as compensation or wages on the appropriate line of your income tax return, as provided in its instructions. Fle 2012 taxes late online tax filing Miscellaneous Expenses In addition to travel, meal, and entertainment expenses, there are other expenses you can deduct. Fle 2012 taxes late online tax filing Advertising expenses. Fle 2012 taxes late online tax filing   You generally can deduct reasonable advertising expenses that are directly related to your business activities. Fle 2012 taxes late online tax filing Generally, you cannot deduct amounts paid to influence legislation (i. Fle 2012 taxes late online tax filing e. Fle 2012 taxes late online tax filing , lobbying). Fle 2012 taxes late online tax filing See Lobbying expenses , later. Fle 2012 taxes late online tax filing   You can usually deduct as a business expense the cost of institutional or goodwill advertising to keep your name before the public if it relates to business you reasonably expect to gain in the future. Fle 2012 taxes late online tax filing For example, the cost of advertising that encourages people to contribute to the Red Cross, to buy U. Fle 2012 taxes late online tax filing S. Fle 2012 taxes late online tax filing Savings Bonds, or to participate in similar causes is usually deductible. Fle 2012 taxes late online tax filing Anticipated liabilities. Fle 2012 taxes late online tax filing   Anticipated liabilities or reserves for anticipated liabilities are not deductible. Fle 2012 taxes late online tax filing For example, assume you sold 1-year TV service contracts this year totaling $50,000. Fle 2012 taxes late online tax filing From experience, you know you will have expenses of about $15,000 in the coming year for these contracts. Fle 2012 taxes late online tax filing You cannot deduct any of the $15,000 this year by charging expenses to a reserve or liability account. Fle 2012 taxes late online tax filing You can deduct your expenses only when you actually pay or accrue them, depending on your accounting method. Fle 2012 taxes late online tax filing Bribes and kickbacks. Fle 2012 taxes late online tax filing   Engaging in the payment of bribes or kickbacks is a serious criminal matter. Fle 2012 taxes late online tax filing Such activity could result in criminal prosecution. Fle 2012 taxes late online tax filing Any payments that appear to have been made, either directly or indirectly, to an official or employee of any government or an agency or instrumentality of any government are not deductible for tax purposes and are in violation of the law. Fle 2012 taxes late online tax filing   Payments paid directly or indirectly to a person in violation of any federal or state law (but only if that state law is generally enforced, defined below) that provides for a criminal penalty or for the loss of a license or privilege to engage in a trade or business are also not allowed as a deduction for tax purposes. Fle 2012 taxes late online tax filing Meaning of “generally enforced. Fle 2012 taxes late online tax filing ”   A state law is considered generally enforced unless it is never enforced or enforced only for infamous persons or persons whose violations are extraordinarily flagrant. Fle 2012 taxes late online tax filing For example, a state law is generally enforced unless proper reporting of a violation of the law results in enforcement only under unusual circumstances. Fle 2012 taxes late online tax filing Kickbacks. Fle 2012 taxes late online tax filing   A kickback is a payment for referring a client, patient, or customer. Fle 2012 taxes late online tax filing The common kickback situation occurs when money or property is given to someone as payment for influencing a third party to purchase from, use the services of, or otherwise deal with the person who pays the kickback. Fle 2012 taxes late online tax filing In many cases, the person whose business is being sought or enjoyed by the person who pays the kickback is not aware of the payment. Fle 2012 taxes late online tax filing   For example, the Yard Corporation is in the business of repairing ships. Fle 2012 taxes late online tax filing It returns 10% of the repair bills as kickbacks to the captains and chief officers of the vessels it repairs. Fle 2012 taxes late online tax filing Although this practice is considered an ordinary and necessary expense of getting business, it is clearly a violation of a state law that is generally enforced. Fle 2012 taxes late online tax filing These expenditures are not deductible for tax purposes, whether or not the owners of the shipyard are subsequently prosecuted. Fle 2012 taxes late online tax filing Form 1099-MISC. Fle 2012 taxes late online tax filing   It does not matter whether any kickbacks paid during the tax year are deductible on your income tax return in regards to information reporting. Fle 2012 taxes late online tax filing See Form 1099-MISC for more information. Fle 2012 taxes late online tax filing Car and truck expenses. Fle 2012 taxes late online tax filing   The costs of operating a car, truck, or other vehicle in your business are deductible. Fle 2012 taxes late online tax filing For more information on how to figure your deduction, see Publication 463. Fle 2012 taxes late online tax filing Charitable contributions. Fle 2012 taxes late online tax filing   Cash payments to an organization, charitable or otherwise, may be deductible as business expenses if the payments are not charitable contributions or gifts and are directly related to your business. Fle 2012 taxes late online tax filing If the payments are charitable contributions or gifts, you cannot deduct them as business expenses. Fle 2012 taxes late online tax filing However, corporations (other than S corporations) can deduct charitable contributions on their income tax returns, subject to limitations. Fle 2012 taxes late online tax filing See the Instructions for Form 1120 for more information. Fle 2012 taxes late online tax filing Sole proprietors, partners in a partnership, or shareholders in an S corporation may be able to deduct charitable contributions made by their business on Schedule A (Form 1040). Fle 2012 taxes late online tax filing Example. Fle 2012 taxes late online tax filing You paid $15 to a local church for a half-page ad in a program for a concert it is sponsoring. Fle 2012 taxes late online tax filing The purpose of the ad was to encourage readers to buy your products. Fle 2012 taxes late online tax filing Your payment is not a charitable contribution. Fle 2012 taxes late online tax filing You can deduct it as an advertising expense. Fle 2012 taxes late online tax filing Example. Fle 2012 taxes late online tax filing You made a $100,000 donation to a committee organized by the local Chamber of Commerce to bring a convention to your city, intended to increase business activity, including yours. Fle 2012 taxes late online tax filing Your payment is not a charitable contribution. Fle 2012 taxes late online tax filing You can deduct it as a business expense. Fle 2012 taxes late online tax filing See Publication 526 for a discussion of donated inventory, including capital gain property. Fle 2012 taxes late online tax filing Club dues and membership fees. Fle 2012 taxes late online tax filing   Generally, you cannot deduct amounts paid or incurred for membership in any club organized for business, pleasure, recreation, or any other social purpose. Fle 2012 taxes late online tax filing This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Fle 2012 taxes late online tax filing Exception. Fle 2012 taxes late online tax filing   The following organizations are not treated as clubs organized for business, pleasure, recreation, or other social purpose unless one of the main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. Fle 2012 taxes late online tax filing Boards of trade. Fle 2012 taxes late online tax filing Business leagues. Fle 2012 taxes late online tax filing Chambers of commerce. Fle 2012 taxes late online tax filing Civic or public service organizations. Fle 2012 taxes late online tax filing Professional organizations such as bar associations and medical associations. Fle 2012 taxes late online tax filing Real estate boards. Fle 2012 taxes late online tax filing Trade associations. Fle 2012 taxes late online tax filing Credit card convenience fees. Fle 2012 taxes late online tax filing   Credit card companies charge a fee to businesses who accept their cards. Fle 2012 taxes late online tax filing This fee when paid or incurred by the business can be deducted as a business expense. Fle 2012 taxes late online tax filing Damages recovered. Fle 2012 taxes late online tax filing   Special rules apply to compensation you receive for damages sustained as a result of patent infringement, breach of contract or fiduciary duty, or antitrust violations. Fle 2012 taxes late online tax filing You must include this compensation in your income. Fle 2012 taxes late online tax filing However, you may be able to take a special deduction. Fle 2012 taxes late online tax filing The deduction applies only to amounts recovered for actual economic injury, not any additional amount. Fle 2012 taxes late online tax filing The deduction is the smaller of the following. Fle 2012 taxes late online tax filing The amount you received or accrued for damages in the tax year reduced by the amount you paid or incurred in the year to recover that amount. Fle 2012 taxes late online tax filing Your losses from the injury you have not deducted. Fle 2012 taxes late online tax filing Demolition expenses or losses. Fle 2012 taxes late online tax filing   Amounts paid or incurred to demolish a structure are not deductible. Fle 2012 taxes late online tax filing These amounts are added to the basis of the land where the demolished structure was located. Fle 2012 taxes late online tax filing Any loss for the remaining undepreciated basis of a demolished structure would not be recognized until the property is disposed of. Fle 2012 taxes late online tax filing Education expenses. Fle 2012 taxes late online tax filing   Ordinary and necessary expenses paid for the cost of the education and training of your employees are deductible. Fle 2012 taxes late online tax filing See Education Expenses in chapter 2. Fle 2012 taxes late online tax filing   You can also deduct the cost of your own education (including certain related travel) related to your trade or business. Fle 2012 taxes late online tax filing You must be able to show the education maintains or improves skills required in your trade or business, or that it is required by law or regulations, for keeping your license to practice, status, or job. Fle 2012 taxes late online tax filing For example, an attorney can deduct the cost of attending Continuing Legal Education (CLE) classes that are required by the state bar association to maintain his or her license to practice law. Fle 2012 taxes late online tax filing   Education expenses you incur to meet the minimum requirements of your present trade or business, or those that qualify you for a new trade or business, are not deductible. Fle 2012 taxes late online tax filing This is true even if the education maintains or improves skills presently required in your business. Fle 2012 taxes late online tax filing For more information on education expenses, see Publication 970. Fle 2012 taxes late online tax filing Franchise, trademark, trade name. Fle 2012 taxes late online tax filing   If you buy a franchise, trademark, or trade name, you can deduct the amount you pay or incur as a business expense only if your payments are part of a series of payments that are: Contingent on productivity, use, or disposition of the item, Payable at least annually for the entire term of the transfer agreement, and Substantially equal in amount (or payable under a fixed formula). Fle 2012 taxes late online tax filing   When determining the term of the transfer agreement, include all renewal options and any other period for which you and the transferrer reasonably expect the agreement to be renewed. Fle 2012 taxes late online tax filing   A franchise includes an agreement that gives one of the parties to the agreement the right to distribute, sell, or provide goods, services, or facilities within a specified area. Fle 2012 taxes late online tax filing Impairment-related expenses. Fle 2012 taxes late online tax filing   If you are disabled, you can deduct expenses necessary for you to be able to work (impairment-related expenses) as a business expense, rather than as a medical expense. Fle 2012 taxes late online tax filing   You are disabled if you have either of the following. Fle 2012 taxes late online tax filing A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed. Fle 2012 taxes late online tax filing A physical or mental impairment that substantially limits one or more of your major life activities. Fle 2012 taxes late online tax filing   The expense qualifies as a business expense if all the following apply. Fle 2012 taxes late online tax filing Your work clearly requires the expense for you to satisfactorily perform that work. Fle 2012 taxes late online tax filing The goods or services purchased are clearly not needed or used, other than incidentally, in your personal activities. Fle 2012 taxes late online tax filing Their treatment is not specifically provided for under other tax law provisions. Fle 2012 taxes late online tax filing Example. Fle 2012 taxes late online tax filing You are blind. Fle 2012 taxes late online tax filing You must use a reader to do your work, both at and away from your place of work. Fle 2012 taxes late online tax filing The reader's services are only for your work. Fle 2012 taxes late online tax filing You can deduct your expenses for the reader as a business expense. Fle 2012 taxes late online tax filing Internet-related expenses. Fle 2012 taxes late online tax filing   Generally, you can deduct internet-related expenses including domain registrations fees and webmaster consulting costs. Fle 2012 taxes late online tax filing If you are starting a business you may have to amortize these expenses as start-up costs. Fle 2012 taxes late online tax filing For more information about amortizing start-up and organizational costs, see chapter 8. Fle 2012 taxes late online tax filing Interview expense allowances. Fle 2012 taxes late online tax filing   Reimbursements you make to job candidates for transportation or other expenses related to interviews for possible employment are not wages. Fle 2012 taxes late online tax filing You can deduct the reimbursements as a business expense. Fle 2012 taxes late online tax filing However, expenses for food, beverages, and entertainment are subject to the 50% limit discussed earlier under Meals and Entertainment. Fle 2012 taxes late online tax filing Legal and professional fees. Fle 2012 taxes late online tax filing   Fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business are deductible as business expenses. Fle 2012 taxes late online tax filing However, usually legal fees you pay to acquire business assets are not deductible. Fle 2012 taxes late online tax filing These costs are added to the basis of the property. Fle 2012 taxes late online tax filing   Fees that include payments for work of a personal nature (such as drafting a will, or damages arising from a personal injury) are not allowed as a business deduction on Schedule C or C-EZ. Fle 2012 taxes late online tax filing If the invoice includes both business and personal charges, compute the business portion as follows: multiply the total amount of the bill by a fraction, the numerator of which is the amount attributable to business matters, the denominator of which is the total amount paid. Fle 2012 taxes late online tax filing The result is the portion of the invoice attributable to business expenses. Fle 2012 taxes late online tax filing The portion attributable to personal matters is the difference between the total amount and the business portion (computed above). Fle 2012 taxes late online tax filing   Legal fees relating to personal tax advice may be deductible on Schedule A (Form 1040), if you itemize deductions. Fle 2012 taxes late online tax filing However, the deduction is subject to the 2% limitation on miscellaneous itemized deductions. Fle 2012 taxes late online tax filing See Publication 529, Miscellaneous Deductions. Fle 2012 taxes late online tax filing Tax preparation fees. Fle 2012 taxes late online tax filing   The cost of hiring a tax professional, such as a C. Fle 2012 taxes late online tax filing P. Fle 2012 taxes late online tax filing A. Fle 2012 taxes late online tax filing , to prepare that part of your tax return relating to your business as a sole proprietor is deductible on Schedule C or Schedule C-EZ. Fle 2012 taxes late online tax filing Any remaining cost may be deductible on Schedule A (Form 1040) if you itemize deductions. Fle 2012 taxes late online tax filing   You can also claim a business deduction for amounts paid or incurred in resolving asserted tax deficiencies for your business operated as a sole proprietor. Fle 2012 taxes late online tax filing Licenses and regulatory fees. Fle 2012 taxes late online tax filing   Licenses and regulatory fees for your trade or business paid annually to state or local governments generally are deductible. Fle 2012 taxes late online tax filing Some licenses and fees may have to be amortized. Fle 2012 taxes late online tax filing See chapter 8 for more information. Fle 2012 taxes late online tax filing Lobbying expenses. Fle 2012 taxes late online tax filing   Generally, lobbying expenses are not deductible. Fle 2012 taxes late online tax filing Lobbying expenses include amounts paid or incurred for any of the following activities. Fle 2012 taxes late online tax filing Influencing legislation. Fle 2012 taxes late online tax filing Participating in or intervening in any political campaign for, or against, any candidate for public office. Fle 2012 taxes late online tax filing Attempting to influence the general public, or segments of the public, about elections, legislative matters, or referendums. Fle 2012 taxes late online tax filing Communicating directly with covered executive branch officials (defined later) in any attempt to influence the official actions or positions of those officials. Fle 2012 taxes late online tax filing Researching, preparing, planning, or coordinating any of the preceding activities. Fle 2012 taxes late online tax filing   Your expenses for influencing legislation and communicating directly with a covered executive branch official include a portion of your labor costs and general and administrative costs of your business. Fle 2012 taxes late online tax filing For information on making this allocation, see section 1. Fle 2012 taxes late online tax filing 162-28 of the regulations. Fle 2012 taxes late online tax filing   You cannot claim a charitable or business expense deduction for amounts paid to an organization if both of the following apply. Fle 2012 taxes late online tax filing The organization conducts lobbying activities on matters of direct financial interest to your business. Fle 2012 taxes late online tax filing A principal purpose of your contribution is to avoid the rules discussed earlier that prohibit a business deduction for lobbying expenses. Fle 2012 taxes late online tax filing   If a tax-exempt organization, other than a section 501(c)(3) organization, provides you with a notice on the part of dues that is allocable to nondeductible lobbying and political expenses, you cannot deduct that part of the dues. Fle 2012 taxes late online tax filing Covered executive branch official. Fle 2012 taxes late online tax filing   For purposes of this discussion, a covered executive branch official is any of the following. Fle 2012 taxes late online tax filing The President. Fle 2012 taxes late online tax filing The Vice President. Fle 2012 taxes late online tax filing Any officer or employee of the White House Office of the Executive Office of the President and the two most senior level officers of each of the other agencies in the Executive Office. Fle 2012 taxes late online tax filing Any individual who: Is serving in a position in Level I of the Executive Schedule under section 5312 of title 5, United States Code, Has been designated by the President as having Cabinet-level status, or Is an immediate deputy of an individual listed in item (a) or (b). Fle 2012 taxes late online tax filing Exceptions to denial of deduction. Fle 2012 taxes late online tax filing   The general denial of the deduction does not apply to the following. Fle 2012 taxes late online tax filing Expenses of appearing before, or communicating with, any committee or member of any local council or similar governing body concerning its legislation (local legislation) if the legislation is of direct interest to you or to you and an organization of which you are a member. Fle 2012 taxes late online tax filing An Indian tribal government is treated as a local council or similar governing body. Fle 2012 taxes late online tax filing Any in-house expenses for influencing legislation and communicating directly with a covered executive branch official if those expenses for the tax year do not exceed $2,000 (excluding overhead expenses). Fle 2012 taxes late online tax filing Expenses incurred by taxpayers engaged in the trade or business of lobbying (professional lobbyists) on behalf of another person (but does apply to payments by the other person to the lobbyist for lobbying activities). Fle 2012 taxes late online tax filing Moving machinery. Fle 2012 taxes late online tax filing   Generally, the cost of moving machinery from one city to another is a deductible expense. Fle 2012 taxes late online tax filing So is the cost of moving machinery from one plant to another, or from one part of your plant to another. Fle 2012 taxes late online tax filing You can deduct the cost of installing the machinery in the new location. Fle 2012 taxes late online tax filing However, you must capitalize the costs of installing or moving newly purchased machinery. Fle 2012 taxes late online tax filing Outplacement services. Fle 2012 taxes late online tax filing   The costs of outplacement services you provide to your employees to help them find new employment, such as career counseling, résumé assistance, skills assessment, etc. Fle 2012 taxes late online tax filing are deductible. Fle 2012 taxes late online tax filing   The costs of outplacement services may cover more than one deduction category. Fle 2012 taxes late online tax filing For example, deduct as a utilities expense the cost of telephone calls made under this service and deduct as rental expense the cost of renting machinery and equipment for this service. Fle 2012 taxes late online tax filing   For information on whether the value of outplacement services is includable in your employees' income, see Publication 15-B. Fle 2012 taxes late online tax filing Penalties and fines. Fle 2012 taxes late online tax filing   Penalties paid for late performance or nonperformance of a contract are generally deductible. Fle 2012 taxes late online tax filing For instance, you own and operate a construction company. Fle 2012 taxes late online tax filing Under a contract, you are to finish construction of a building by a certain date. Fle 2012 taxes late online tax filing Due to construction delays, the building is not completed and ready for occupancy on the date stipulated in the contract. Fle 2012 taxes late online tax filing You are now required to pay an additional amount for each day that completion is delayed beyond the completion date stipulated in the contract. Fle 2012 taxes late online tax filing These additional costs are deductible business expenses. Fle 2012 taxes late online tax filing   On the other hand, penalties or fines paid to any government agency or instrumentality because of a violation of any law are not deductible. Fle 2012 taxes late online tax filing These fines or penalties include the following amounts. Fle 2012 taxes late online tax filing Paid because of a conviction for a crime or after a plea of guilty or no contest in a criminal proceeding. Fle 2012 taxes late online tax filing Paid as a penalty imposed by federal, state, or local law in a civil action, including certain additions to tax and additional amounts and assessable penalties imposed by the Internal Revenue Code. Fle 2012 taxes late online tax filing Paid in settlement of actual or possible liability for a fine or penalty, whether civil or criminal. Fle 2012 taxes late online tax filing Forfeited as collateral posted for a proceeding that could result in a fine or penalty. Fle 2012 taxes late online tax filing   Examples of nondeductible penalties and fines include the following. Fle 2012 taxes late online tax filing Fines for violating city housing codes. Fle 2012 taxes late online tax filing Fines paid by truckers for violating state maximum highway weight laws. Fle 2012 taxes late online tax filing Fines for violating air quality laws. Fle 2012 taxes late online tax filing Civil penalties for violating federal laws regarding mining safety standards and discharges into navigable waters. Fle 2012 taxes late online tax filing   A fine or penalty does not include any of the following. Fle 2012 taxes late online tax filing Legal fees and related expenses to defend yourself in a prosecution or civil action for a violation of the law imposing the fine or civil penalty. Fle 2012 taxes late online tax filing Court costs or stenographic and printing charges. Fle 2012 taxes late online tax filing Compensatory damages paid to a government. Fle 2012 taxes late online tax filing Political contributions. Fle 2012 taxes late online tax filing   Contributions or gifts paid to political parties or candidates are not deductible. Fle 2012 taxes late online tax filing In addition, expenses paid or incurred to take part in any political campaign of a candidate for public office are not deductible. Fle 2012 taxes late online tax filing Indirect political contributions. Fle 2012 taxes late online tax filing   You cannot deduct indirect political contributions and costs of taking part in political activities as business expenses. Fle 2012 taxes late online tax filing Examples of nondeductible expenses include the following. Fle 2012 taxes late online tax filing Advertising in a convention program of a political party, or in any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate. Fle 2012 taxes late online tax filing Admission to a dinner or program (including, but not limited to, galas, dances, film presentations, parties, and sporting events) if any of the proceeds from the function are for, or intended for, the use of a political party or candidate. Fle 2012 taxes late online tax filing Admission to an inaugural ball, gala, parade, concert, or similar event if identified with a political party or candidate. Fle 2012 taxes late online tax filing Repairs. Fle 2012 taxes late online tax filing   The cost of repairing or improving property used in your trade or business is either a deductible or capital expense. Fle 2012 taxes late online tax filing Routine maintenance that keeps your property in a normal efficient operating condition, but that does not materially increase the value or substantially prolong the useful life of the property, is deductible in the year that it is incurred. Fle 2012 taxes late online tax filing Otherwise, the cost must be capitalized and depreciated. Fle 2012 taxes late online tax filing See Form 4562 and its instructions for how to compute and claim the depreciation deduction. Fle 2012 taxes late online tax filing   The cost of repairs includes the costs of labor, supplies, and certain other items. Fle 2012 taxes late online tax filing The value of your own labor is not deductible. Fle 2012 taxes late online tax filing Examples of repairs include: Reconditioning floors (but not replacement), Repainting the interior and exterior walls of a building, Cleaning and repairing roofs and gutters, and Fixing plumbing leaks (but not replacement of fixtures). Fle 2012 taxes late online tax filing Repayments. Fle 2012 taxes late online tax filing   If you had to repay an amount you included in your income in an earlier year, you may be able to deduct the amount repaid for the year in which you repaid it. Fle 2012 taxes late online tax filing Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. Fle 2012 taxes late online tax filing Type of deduction. Fle 2012 taxes late online tax filing   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. Fle 2012 taxes late online tax filing For instance, if you repay an amount you previously reported as a capital gain, deduct the repayment as a capital loss on Form 8949. Fle 2012 taxes late online tax filing If you reported it as self-employment income, deduct it as a business deduction on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). Fle 2012 taxes late online tax filing   If you reported the amount as wages, unemployment compensation, or other nonbusiness ordinary income, enter it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is subject to the 2% limitation. Fle 2012 taxes late online tax filing However, if the repayment is over $3,000 and Method 1 (discussed later) applies, deduct it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is not subject to the 2% limitation. Fle 2012 taxes late online tax filing Repayment—$3,000 or less. Fle 2012 taxes late online tax filing   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Fle 2012 taxes late online tax filing Repayment—over $3,000. Fle 2012 taxes late online tax filing   If the amount you repaid was more than $3,000, you can deduct the repayment, as described earlier. Fle 2012 taxes late online tax filing However, you can instead choose to take a tax credit for the year of repayment if you included the income under a “claim of right. Fle 2012 taxes late online tax filing ” This means that at the time you included the income, it appeared that you had an unrestricted right to it. Fle 2012 taxes late online tax filing If you qualify for this choice, figure your tax under both methods and use the method that results in less tax. Fle 2012 taxes late online tax filing Method 1. Fle 2012 taxes late online tax filing   Figure your tax for 2013 claiming a deduction for the repaid amount. Fle 2012 taxes late online tax filing Method 2. Fle 2012 taxes late online tax filing   Figure your tax for 2013 claiming a credit for the repaid amount. Fle 2012 taxes late online tax filing Follow these steps. Fle 2012 taxes late online tax filing Figure your tax for 2013 without deducting the repaid amount. Fle 2012 taxes late online tax filing Refigure your tax from the earlier year without including in income the amount you repaid in 2013. Fle 2012 taxes late online tax filing Subtract the tax in (2) from the tax shown on your return for the earlier year. Fle 2012 taxes late online tax filing This is the amount of your credit. Fle 2012 taxes late online tax filing Subtract the answer in (3) from the tax for 2013 figured without the deduction (step 1). Fle 2012 taxes late online tax filing   If Method 1 results in less tax, deduct the amount repaid as discussed earlier under Type of deduction. Fle 2012 taxes late online tax filing   If Method 2 results in less tax, claim the credit on line 71 of Form 1040, and write “I. Fle 2012 taxes late online tax filing R. Fle 2012 taxes late online tax filing C. Fle 2012 taxes late online tax filing 1341” next to line 71. Fle 2012 taxes late online tax filing Example. Fle 2012 taxes late online tax filing For 2012, you filed a return and reported your income on the cash method. Fle 2012 taxes late online tax filing In 2013, you repaid $5,000 included in your 2012 gross income under a claim of right. Fle 2012 taxes late online tax filing Your filing status in 2013 and 2012 is single. Fle 2012 taxes late online tax filing Your income and tax for both years are as follows:   2012  With Income 2012  Without Income Taxable Income $15,000 $10,000 Tax $ 1,819 $ 1,069   2013  Without Deduction 2013  With Deduction Taxable Income $49,950 $44,950 Tax $8,423 $7,173 Your tax under Method 1 is $7,173. Fle 2012 taxes late online tax filing Your tax under Method 2 is $7,673, figured as follows: Tax previously determined for 2012 $ 1,819 Less: Tax as refigured − 1,069 Decrease in 2012 tax $ 750 Regular tax liability for 2013 $8,423 Less: Decrease in 2012 tax − 750 Refigured tax for 2013 $ 7,673 Because you pay less tax under Method 1, you should take a deduction for the repayment in 2013. Fle 2012 taxes late online tax filing Repayment does not apply. Fle 2012 taxes late online tax filing   This discussion does not apply to the following. Fle 2012 taxes late online tax filing Deductions for bad debts. Fle 2012 taxes late online tax filing Deductions from sales to customers, such as returns and allowances, and similar items. Fle 2012 taxes late online tax filing Deductions for legal and other expenses of contesting the repayment. Fle 2012 taxes late online tax filing Year of deduction (or credit). Fle 2012 taxes late online tax filing   If you use the cash method of accounting, you can take the deduction (or credit, if applicable) for the tax year in which you actually make the repayment. Fle 2012 taxes late online tax filing If you use any other accounting method, you can deduct the repayment or claim a credit for it only for the tax year in which it is a proper deduction under your accounting method. Fle 2012 taxes late online tax filing For example, if you use the accrual method, you are entitled to the deduction or credit in the tax year in which the obligation for the repayment accrues. Fle 2012 taxes late online tax filing Subscriptions. Fle 2012 taxes late online tax filing   Subscriptions to professional, technical, and trade journals that deal with your business field are deductible. Fle 2012 taxes late online tax filing Supplies and materials. Fle 2012 taxes late online tax filing   Unless you have deducted the cost in any earlier year, you generally can deduct the cost of materials and supplies actually consumed and used during the tax year. Fle 2012 taxes late online tax filing   If you keep incidental materials and supplies on hand, you can deduct the cost of the incidental materials and supplies you bought during the tax year if all the following requirements are met. Fle 2012 taxes late online tax filing You do not keep a record of when they are used. Fle 2012 taxes late online tax filing You do not take an inventory of the amount on hand at the beginning and end of the tax year. Fle 2012 taxes late online tax filing This method does not distort your income. Fle 2012 taxes late online tax filing   You can also deduct the cost of books, professional instruments, equipment, etc. Fle 2012 taxes late online tax filing , if you normally use them within a year. Fle 2012 taxes late online tax filing However, if the usefulness of these items extends substantially beyond the year they are placed in service, you generally must recover their costs through depreciation. Fle 2012 taxes late online tax filing For more information regarding depreciation see Publication 946, How To Depreciate Property. Fle 2012 taxes late online tax filing Utilities. Fle 2012 taxes late online tax filing   Business expenses for heat, lights, power, telephone service, and water and sewerage are deductible. Fle 2012 taxes late online tax filing However, any part due to personal use is not deductible. Fle 2012 taxes late online tax filing Telephone. Fle 2012 taxes late online tax filing   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. Fle 2012 taxes late online tax filing However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. Fle 2012 taxes late online tax filing Prev  Up  Next   Home   More Online Publications
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Understanding your CP2057 Notice

You need to file an amended return. We've received information not reported on your tax return.


What you need to do

  • Read your notice carefully — it explains the information we received.
  • File an amended return if the information is correct.
  • If you believe the information is wrong, contact the business or person reporting the information and ask them to correct it.

You may want to...


Answers to Common Questions

What do I need to do?
You need to amend your return if the information we received is correct.

Do I have to amend my return when the information is wrong?
No. Don't file an amended return.

How do I amend my return?
Use the information in the notice to amend your return. Compare it against a copy of your original return. Report the difference or change on Form 1040-X, Amended U.S. Individual Income Tax Return. You can receive help at an IRS Taxpayer Assistance Center.

How can I find an IRS Taxpayer Assistance Center?
We have centers located throughout the country. Find the center nearest to you.

I don't have a copy of my original return to help me amend it. What can I do?
You can order a transcript of your return. You also can get one by completing and sending us a Form 4506-T, Request for Transcript of Tax Return.

I don't want a transcript of my return. I want a copy. How can I get one?
Did an accountant or some other person prepare your return? You could ask them for a copy.

I can't get a copy of my return from a tax preparer. How else can I get a copy of it?
You can get a copy of your return by completing and sending us a Form 4506, Request for Copy of Tax Return. We charge a fee for return requests.

What do I do if the information is wrong?
You don't have to amend your return when the information is wrong. Instead, contact whoever reported the wrong information and ask them to correct it. You don't need to contact us.

Should I contact you to correct wrong information?
You don't have to contact us to explain why the information is wrong. You don't have to reply to your notice.

I reported the information but I reported it incorrectly. Can I call you to correct my return?
We can accept your information over the phone for incorrectly reported information as long as the mistake did not increase or decrease your tax. You should file an amended return when the information was never reported or misreported in a way that had tax consequences.

The information is wrong because someone else is using my name and Social Security number. What can I do?
You can visit our Identity theft information to find out more about what you can do. You also should call us and let us know.

Why did it take you so long to contact me about this matter?
Our computer systems match the information you report on your tax return with information reported by employers, banks, businesses, and others. This matching takes several months to complete.


Tips for next year

You can avoid future problems by:

  • keeping accurate and full records
  • waiting until you get all of your income statements to file your tax return
  • checking the records you get from your employer, mortgage company, bank, or other sources of income (W-2s, 1098s, 1099s, etc.) to make sure they're correct
  • including all your income on your tax return
  • following the instructions on how to report income, expenses and deductions
  • filing an amended tax return for any information you receive after you've filed your return

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about how to file electronically.

Page Last Reviewed or Updated: 28-Feb-2014

How to get help

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

The Fle 2012 Taxes Late Online Tax Filing

Fle 2012 taxes late online tax filing Publication 524 - Introductory Material Table of Contents Reminders IntroductionOrdering forms and publications. Fle 2012 taxes late online tax filing Tax questions. Fle 2012 taxes late online tax filing Useful Items - You may want to see: Reminders Future developments. Fle 2012 taxes late online tax filing  For the latest information about developments related to Publication 524, such as legislation enacted after it was published, go to www. Fle 2012 taxes late online tax filing irs. Fle 2012 taxes late online tax filing gov/pub524. Fle 2012 taxes late online tax filing Photographs of missing children. Fle 2012 taxes late online tax filing  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Fle 2012 taxes late online tax filing Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Fle 2012 taxes late online tax filing You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Fle 2012 taxes late online tax filing Introduction If you qualify, you may be able to reduce the tax you owe by taking the credit for the elderly or the disabled. Fle 2012 taxes late online tax filing This publication explains: Who qualifies for the credit for the elderly or the disabled, and How to figure the credit. Fle 2012 taxes late online tax filing You may be able to take the credit for the elderly or the disabled if: You are age 65 or older at the end of 2013, or You retired on permanent and total disability and have taxable disability income. Fle 2012 taxes late online tax filing Comments and suggestions. Fle 2012 taxes late online tax filing   We welcome your comments about this publication and your suggestions for future editions. Fle 2012 taxes late online tax filing   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Fle 2012 taxes late online tax filing NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Fle 2012 taxes late online tax filing Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Fle 2012 taxes late online tax filing   You can send your comments from www. Fle 2012 taxes late online tax filing irs. Fle 2012 taxes late online tax filing gov/formspubs/. Fle 2012 taxes late online tax filing Click on “More Information” and then on “Comment on Tax Forms and Publications”. Fle 2012 taxes late online tax filing   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Fle 2012 taxes late online tax filing Ordering forms and publications. Fle 2012 taxes late online tax filing   Visit www. Fle 2012 taxes late online tax filing irs. Fle 2012 taxes late online tax filing gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Fle 2012 taxes late online tax filing Internal Revenue Service 1201 N. Fle 2012 taxes late online tax filing Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Fle 2012 taxes late online tax filing   If you have a tax question, check the information available on IRS. Fle 2012 taxes late online tax filing gov or call 1-800-829-1040. Fle 2012 taxes late online tax filing We cannot answer tax questions sent to either of the above addresses. Fle 2012 taxes late online tax filing Useful Items - You may want to see: Publication 554 Tax Guide for Seniors Form (and instruction) Schedule R (Form 1040A or 1040) Credit for the Elderly or the Disabled See How To Get Tax Help , near the end of this publication, for information about getting this publication and form. Fle 2012 taxes late online tax filing Prev  Up  Next   Home   More Online Publications