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H&r block 1040ez free 2013 Publication 3402 - Main Content Table of Contents What is a Limited Liability Company? Classification of an LLC LLCs Classified as Partnerships LLCs Classified as Disregarded Entities LLCs Classified as Corporations Subsequent Elections How To Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What is a Limited Liability Company? For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. H&r block 1040ez free 2013 Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. H&r block 1040ez free 2013 An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. H&r block 1040ez free 2013 7701-3. H&r block 1040ez free 2013 The information in this publication applies to LLCs in general, and different rules may apply to special situations, including banks, insurance companies, or nonprofit organizations that are LLCs or that own LLCs. H&r block 1040ez free 2013 Check your state's requirements and the federal tax regulations for further information. H&r block 1040ez free 2013 Classification of an LLC Default classification rules. H&r block 1040ez free 2013   An LLC with at least two members is classified as a partnership for federal income tax purposes. H&r block 1040ez free 2013 An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes). H&r block 1040ez free 2013 Also, an LLC's federal tax classification can subsequently change under certain default rules discussed later. H&r block 1040ez free 2013 Elected classification. H&r block 1040ez free 2013   If an LLC does not choose to be classified under the above default classifications, it can elect to be classified as an association taxable as a corporation or as an S corporation. H&r block 1040ez free 2013 After an LLC has determined its federal tax classification, it can later elect to change that classification. H&r block 1040ez free 2013 For details, see Subsequent Elections, later. H&r block 1040ez free 2013 LLCs Classified as Partnerships If an LLC has at least two members and is classified as a partnership, it generally must file Form 1065, U. H&r block 1040ez free 2013 S. H&r block 1040ez free 2013 Return of Partnership Income. H&r block 1040ez free 2013 Generally, an LLC classified as a partnership is subject to the same filing and reporting requirements as partnerships. H&r block 1040ez free 2013 For certain purposes, members of an LLC are treated as limited partners in a limited partnership. H&r block 1040ez free 2013 For example, LLC members are treated as limited partners for purposes of material participation under the passive activity limitation rules (see Temporary Regulation section 1. H&r block 1040ez free 2013 469-5T(e)). H&r block 1040ez free 2013 See the Instructions for Form 1065 for reporting rules that apply specifically to LLCs. H&r block 1040ez free 2013 Member manager. H&r block 1040ez free 2013   Only a member manager of an LLC can sign the partnership tax return. H&r block 1040ez free 2013 And only a member manager can represent the LLC as the tax matters partner under the consolidated audit proceedings in sections 6221 through 6234. H&r block 1040ez free 2013 A member manager is any owner of an interest in the LLC who, alone or together with others, has the continuing authority to make the management decisions necessary to conduct the business for which the LLC was formed. H&r block 1040ez free 2013 If there are no elected or designated member managers, each owner is treated as a member manager. H&r block 1040ez free 2013 Change in default classification. H&r block 1040ez free 2013   If the number of members in an LLC classified as a partnership is reduced to only one member, it becomes an entity disregarded as separate from its owner under Regulations section 301. H&r block 1040ez free 2013 7701-3(f)(2). H&r block 1040ez free 2013 However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a disregarded entity will not apply. H&r block 1040ez free 2013   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. H&r block 1040ez free 2013 If a partnership that becomes a disregarded entity as a result of a decrease in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed under Subsequent Elections, later, apply. H&r block 1040ez free 2013 Example 1. H&r block 1040ez free 2013 Ethel and Francis are members of an LLC classified as a partnership for federal tax purposes. H&r block 1040ez free 2013 Each holds an equal membership interest. H&r block 1040ez free 2013 The LLC does not hold any unrealized receivables or substantially appreciated inventory. H&r block 1040ez free 2013 Ethel sells her entire interest in the LLC to Francis for $10,000. H&r block 1040ez free 2013 After the sale, the business is continued by the LLC, which is owned solely by Francis. H&r block 1040ez free 2013 No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. H&r block 1040ez free 2013 The partnership terminates when Francis buys Ethel's entire interest. H&r block 1040ez free 2013 Ethel must treat the transaction as the sale of a partnership interest and must report gain or loss, if any, resulting from the sale of her partnership interest. H&r block 1040ez free 2013 For purposes of determining the tax treatment of Francis, the partnership is deemed to make a liquidating distribution of all of its assets to Ethel and Francis, and after this distribution, Francis is treated as acquiring the assets deemed to have been distributed to Ethel in liquidation of Ethel's partnership interest. H&r block 1040ez free 2013 Francis's basis in the assets attributable to Ethel's one-half interest in the partnership is $10,000, the purchase price for Ethel's partnership interest. H&r block 1040ez free 2013 Upon the termination of the partnership, Francis is considered to receive a distribution of those assets attributable to Francis's former interest in the partnership. H&r block 1040ez free 2013 Francis must recognize gain or loss, if any, on the deemed distribution of the assets to the extent required by Internal Revenue Code section 731(a). H&r block 1040ez free 2013 See Partnership Distributions in Publication 541. H&r block 1040ez free 2013 Example 2. H&r block 1040ez free 2013 George and Henrietta are members of an LLC classified as a partnership for federal tax purposes. H&r block 1040ez free 2013 Each holds an equal membership interest. H&r block 1040ez free 2013 The LLC does not hold any unrealized receivables or substantially appreciated inventory. H&r block 1040ez free 2013 George and Henrietta each sell their entire interests in the LLC to Ian, an unrelated person, in exchange for $10,000. H&r block 1040ez free 2013 After the sale, the business is continued by the LLC, which is owned solely by Ian. H&r block 1040ez free 2013 No entity classification election is made after the sale to treat the LLC as a corporation for federal tax purposes. H&r block 1040ez free 2013 The partnership terminates when Ian purchases the entire interests of George and Henrietta in the LLC. H&r block 1040ez free 2013 George and Henrietta must report gain or loss, if any, resulting from the sale of their partnership interests. H&r block 1040ez free 2013 For purposes of classifying the acquisition by Ian, the partnership is deemed to make a liquidating distribution of its assets to George and Henrietta. H&r block 1040ez free 2013 Immediately following this distribution, Ian is deemed to acquire, by purchase, all of the former partnership's assets. H&r block 1040ez free 2013   For more details on the preceding two examples, see Revenue Ruling 99-6, 1999-6 I. H&r block 1040ez free 2013 R. H&r block 1040ez free 2013 B. H&r block 1040ez free 2013 6. H&r block 1040ez free 2013 You can find Revenue Ruling 99-6 at www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/pub/irs-irbs/irb99-06. H&r block 1040ez free 2013 pdf. H&r block 1040ez free 2013 LLCs Classified as Disregarded Entities If an LLC has only one member and is classified as an entity disregarded as separate from its owner, its income, deductions, gains, losses, and credits are reported on the owner's income tax return. H&r block 1040ez free 2013 For example, if the owner of the LLC is an individual, the LLC's income and expenses would be reported on the following schedules filed with the owner's Form 1040: Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule C-EZ, Net Profit From Business (Sole Proprietorship); Schedule E, Supplemental Income and Loss; or Schedule F, Profit or Loss From Farming. H&r block 1040ez free 2013 Employment tax and certain excise taxes. H&r block 1040ez free 2013   A single-member LLC that is classified as a disregarded entity for income tax purposes is treated as a separate entity for purposes of employment tax and certain excise taxes. H&r block 1040ez free 2013 For wages paid after January 1, 2009, the single-member LLC is required to use its name and employer identification number (EIN) for reporting and payment of employment taxes. H&r block 1040ez free 2013 A single-member LLC is also required to use its name and EIN to register for excise tax activities on Form 637; pay and report excise taxes reported on Forms 720, 730, 2290, and 11-C; and claim any refunds, credits, and payments on Form 8849. H&r block 1040ez free 2013 See the employment and excise tax returns for more information. H&r block 1040ez free 2013 Self-employment tax rule for disregarded entity LLCs. H&r block 1040ez free 2013   An individual owner of a single-member LLC classified as a disregarded entity is not an employee of the LLC. H&r block 1040ez free 2013 Instead, the owner is subject to tax on the net earnings from self-employment of the LLC which is treated in the same manner as a sole-proprietorship. H&r block 1040ez free 2013 Example 3. H&r block 1040ez free 2013 LLC is a disregarded entity owned by Irene. H&r block 1040ez free 2013 LLC has three employees (Kent, Patricia, and Tex) and pays wages. H&r block 1040ez free 2013 LLC is treated as an entity separate from its owner for purposes of employment taxes. H&r block 1040ez free 2013 For the wages paid to Kent, Patricia, and Tex, LLC is liable for income tax withholding, Federal Insurance Contributions Act (FICA) taxes, and Federal Unemployment Tax Act (FUTA) taxes. H&r block 1040ez free 2013 In addition, LLC must file under its name and EIN the applicable employment tax returns; make timely employment tax deposits; and file with the Social Security Administration and furnish to LLC's employees (Kent, Patricia, and Tex) Forms W-2, Wage and Tax Statement. H&r block 1040ez free 2013 Irene is self-employed for purposes of the self-employment tax. H&r block 1040ez free 2013 Thus, Irene is subject to self-employment tax on her net earnings from self-employment with respect to LLC's activities. H&r block 1040ez free 2013 Irene is not an employee of LLC for purposes of employment taxes. H&r block 1040ez free 2013 Because LLC is treated as a sole proprietorship of Irene for income tax purposes, Irene must report the income and expenses from LLC on her Schedule C. H&r block 1040ez free 2013 Irene will figure the tax due on her net earnings from self-employment on Schedule SE. H&r block 1040ez free 2013 Irene can also deduct one-half of her self-employment tax on line 27 of her Form 1040. H&r block 1040ez free 2013 Taxpayer identification number. H&r block 1040ez free 2013   For all income tax purposes, a single-member LLC classified as a disregarded entity must use the owner's social security number (SSN) or EIN. H&r block 1040ez free 2013 This includes all information returns and reporting related to income tax. H&r block 1040ez free 2013 For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the LLC must provide the owner's SSN or EIN, not the LLC's EIN. H&r block 1040ez free 2013   However, most new single-member LLCs classified as a disregarded entity will need to obtain an EIN for the LLC. H&r block 1040ez free 2013 An LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed above (see Employment tax and certain excise taxes earlier). H&r block 1040ez free 2013 See Form SS-4, Application for Employer Identification Number, for information on applying for an EIN. H&r block 1040ez free 2013 Change in default classification. H&r block 1040ez free 2013   If a single-member LLC classified as a disregarded entity for income tax purposes acquires an additional member, it becomes a partnership under Regulations section 301. H&r block 1040ez free 2013 7701-3(f)(2). H&r block 1040ez free 2013 However, if the LLC has made an election to be classified as a corporation (discussed later) and that elective classification is in effect at the time of the change in membership, the default classification as a partnership will not apply. H&r block 1040ez free 2013   Other tax consequences of a change in membership, such as recognition of gain or loss, are determined by the transactions through which an interest in the LLC is acquired or disposed of. H&r block 1040ez free 2013 If a disregarded entity that becomes a partnership as a result of an increase in the number of members makes an election to be classified as a corporation, the applicable deemed transactions discussed in Subsequent Elections, later, apply. H&r block 1040ez free 2013 Example 4. H&r block 1040ez free 2013 Bart, who is not related to Alain, buys 50% of Alain's interest in an LLC that is a disregarded entity for $5,000. H&r block 1040ez free 2013 Alain does not contribute any portion of the $5,000 to the LLC. H&r block 1040ez free 2013 Alain and Bart continue to operate the business of the LLC as co-owners of the LLC. H&r block 1040ez free 2013 The LLC is converted to a partnership when the new member, Bart, buys an interest in the disregarded entity from the owner, Alain. H&r block 1040ez free 2013 Bart's buying a 50% interest in Alain's ownership interest in the LLC is treated as Bart's buying a 50% interest in each of the LLC's assets, which are treated as owned directly by Alain for federal income tax purposes. H&r block 1040ez free 2013 Immediately thereafter, Alain and Bart are treated as contributing their respective interests in those assets to a partnership in exchange for ownership interests in the partnership. H&r block 1040ez free 2013 Alain recognizes gain or loss from the deemed sale to Bart of the 50% interest in the assets. H&r block 1040ez free 2013 Neither Alain nor Bart recognizes any gain or loss as a result of the deemed contribution of the assets to the partnership. H&r block 1040ez free 2013 Example 5. H&r block 1040ez free 2013 Charles, who is not related to Danielle, contributes $10,000 to an LLC owned by Danielle for a 50% ownership interest in the LLC. H&r block 1040ez free 2013 The LLC uses all of the contributed cash in its business. H&r block 1040ez free 2013 Charles and Danielle continue to operate the business of the LLC as co-owners of the LLC. H&r block 1040ez free 2013 The LLC is converted from a disregarded entity to a partnership when Charles contributes cash to the LLC. H&r block 1040ez free 2013 Charles's contribution is treated as a contribution to a partnership in exchange for an ownership interest in the partnership. H&r block 1040ez free 2013 Danielle is treated as contributing all of the assets of the LLC to the partnership in exchange for a partnership interest. H&r block 1040ez free 2013 Neither Charles nor Danielle recognizes gain or loss as a result of the conversion of the disregarded entity to a partnership. H&r block 1040ez free 2013   For more details on the preceding two examples, see Revenue Ruling 99-5, 1999-6 I. H&r block 1040ez free 2013 R. H&r block 1040ez free 2013 B. H&r block 1040ez free 2013 8. H&r block 1040ez free 2013 You can find Revenue Ruling 99-5 at www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/pub/irs-irbs/irb99-06. H&r block 1040ez free 2013 pdf. H&r block 1040ez free 2013 LLCs Classified as Corporations An LLC with either a single member or more than one member can elect to be classified as a corporation rather than be classified as a partnership or disregarded entity under the default rules discussed earlier. H&r block 1040ez free 2013 File Form 8832, Entity Classification Election, to elect classification as a C corporation. H&r block 1040ez free 2013 File Form 2553, Election by a Small Business Corporation, to elect classification as an S corporation. H&r block 1040ez free 2013 LLCs electing classification as an S corporation are not required to file Form 8832 to elect classification as a corporation before filing Form 2553. H&r block 1040ez free 2013 By filing Form 2553, an LLC is deemed to have elected classification as a corporation in addition to the S corporation classification. H&r block 1040ez free 2013 If the LLC elects to be classified as a corporation by filing Form 8832, a copy of the LLC's Form 8832 must be attached to the federal income tax return of each direct and indirect owner of the LLC for the tax year of the owner that includes the date on which the election took effect. H&r block 1040ez free 2013 Example 6. H&r block 1040ez free 2013 Classification as a corporation without an S election. H&r block 1040ez free 2013 Wanda and Sylvester are members of an LLC. H&r block 1040ez free 2013 They agree that the LLC should be classified as a corporation but do not want to elect to have the LLC be treated as an S corporation. H&r block 1040ez free 2013 The LLC must file Form 8832. H&r block 1040ez free 2013 Example 7. H&r block 1040ez free 2013 Classification as a corporation with an S election. H&r block 1040ez free 2013 Evelyn and Carol are members of an LLC. H&r block 1040ez free 2013 They agree that the LLC should be classified as an S corporation. H&r block 1040ez free 2013 The LLC must file Form 2553 instead of Form 8832. H&r block 1040ez free 2013 If the LLC is classified as a corporation, it must file a corporation income tax return. H&r block 1040ez free 2013 If it is a C corporation, it is taxed on its taxable income and distributions to the members are includible in the members' gross income to the extent of the corporation's earnings and profits (double taxation). H&r block 1040ez free 2013 If it is an S corporation, the corporation is generally not subject to any income tax and the income, deductions, gains, losses, and credits of the corporation “pass through” to the members. H&r block 1040ez free 2013 Corporations generally file either: Form 1120, U. H&r block 1040ez free 2013 S. H&r block 1040ez free 2013 Corporation Income Tax Return; or Form 1120S, U. H&r block 1040ez free 2013 S. H&r block 1040ez free 2013 Income Tax Return for an S Corporation. H&r block 1040ez free 2013 For more information on the income taxation of corporations and their shareholders, see Publication 542, Corporations. H&r block 1040ez free 2013 For more information on the income taxation of S corporations and their shareholders, see the Instructions for Form 1120S, U. H&r block 1040ez free 2013 S. H&r block 1040ez free 2013 Income Tax Return for an S Corporation. H&r block 1040ez free 2013 Subsequent Elections An LLC can elect to change its classification. H&r block 1040ez free 2013 Generally, once an LLC has elected to change its classification, it cannot elect again to change it classification during the 60 months after the effective date of the election. H&r block 1040ez free 2013 An election by a newly formed LLC that is effective on the date of formation is not considered a change for purposes of this limitation. H&r block 1040ez free 2013 For more information and exceptions, see Regulations section 301. H&r block 1040ez free 2013 7701-3(c) and the Form 8832 instructions. H&r block 1040ez free 2013 An election to change classification can have significant tax consequences based on the following transactions that are deemed to occur as a result of the election. H&r block 1040ez free 2013 Partnership to corporation. H&r block 1040ez free 2013   An election to change classification from a partnership to a corporation will be treated as if the partnership contributed all of its assets and liabilities to the corporation in exchange for stock and the partnership then immediately liquidated by distributing the stock to its partners. H&r block 1040ez free 2013   For more information, see Partnership Distributions in Publication 541 and Property Exchanged for Stock in Publication 542. H&r block 1040ez free 2013 Corporation to partnership. H&r block 1040ez free 2013   An election to change classification from a corporation to a partnership will be treated as if the corporation distributed all of its assets and liabilities to its shareholders in liquidation and the shareholders then immediately contributed all of the distributed assets and liabilities to a new partnership. H&r block 1040ez free 2013   For more information, see Contribution of Property in Publication 541 and Distributions to Shareholders in Publication 542. H&r block 1040ez free 2013 Corporation to disregarded entity. H&r block 1040ez free 2013   An election to change classification from a corporation to a disregarded entity will be treated as if the corporation distributed all of its assets and liabilities to its single owner in liquidation. H&r block 1040ez free 2013   For more information, see Distributions to Shareholders in Publication 542. H&r block 1040ez free 2013 Disregarded entity to corporation. H&r block 1040ez free 2013   An election to change classification from a disregarded entity to a corporation will be treated as if the owner of the disregarded entity contributed all of the assets and liabilities to the corporation in exchange for stock. H&r block 1040ez free 2013   For more information, see Property Exchanged for Stock in Publication 542. H&r block 1040ez free 2013 How To Get More Information This section describes the help the IRS and other federal agencies offer to taxpayers who operate their own businesses. H&r block 1040ez free 2013 Internal Revenue Service You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. H&r block 1040ez free 2013 By selecting the method that is best for you, you will have quick and easy access to tax help. H&r block 1040ez free 2013 Contacting your Taxpayer Advocate. H&r block 1040ez free 2013   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. H&r block 1040ez free 2013   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. H&r block 1040ez free 2013 You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. H&r block 1040ez free 2013 You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. H&r block 1040ez free 2013 For more information, go to www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/advocate. H&r block 1040ez free 2013 Low Income Taxpayer Clinics (LITCs). H&r block 1040ez free 2013   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. H&r block 1040ez free 2013 The clinics also provide tax education and outreach for taxpayers with limited English proficiency or who speak English as a second language. H&r block 1040ez free 2013 Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. H&r block 1040ez free 2013 It is available at www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov or at your local IRS office. H&r block 1040ez free 2013 Small business workshops. H&r block 1040ez free 2013   Small business workshops are designed to help the small business owner understand and fulfill their federal tax responsibilities. H&r block 1040ez free 2013 Workshops are sponsored and presented by IRS partners who are federal tax specialists. H&r block 1040ez free 2013 Workshop topics vary from a general overview of taxes to more specific topics such as recordkeeping and retirement plans. H&r block 1040ez free 2013 Although most are free, some workshops have fees associated with them. H&r block 1040ez free 2013 Any fees charged for a workshop are paid to the sponsoring organization, not the IRS. H&r block 1040ez free 2013   For more information, visit www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/businesses/small. H&r block 1040ez free 2013 Subscribe to e-news for small businesses. H&r block 1040ez free 2013   Join the e-News for Small Businesses mailing list to receive updates, reminders, and other information useful to small business owners and self employed individuals. H&r block 1040ez free 2013 Visit the website at www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/businesses/small and click on “Subscribe to e-News. H&r block 1040ez free 2013 ” Free tax services. H&r block 1040ez free 2013   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. H&r block 1040ez free 2013 It contains a list of free tax publications and describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. H&r block 1040ez free 2013   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. H&r block 1040ez free 2013 Internet. H&r block 1040ez free 2013 You can access the IRS website at www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov 24 hours a day, 7 days a week, to: E-file your return. H&r block 1040ez free 2013 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. H&r block 1040ez free 2013 Check the status of your refund. H&r block 1040ez free 2013 Go to www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov and click on Where's My Refund. H&r block 1040ez free 2013 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. H&r block 1040ez free 2013 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). H&r block 1040ez free 2013 Have your tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. H&r block 1040ez free 2013 Download forms, instructions, and publications. H&r block 1040ez free 2013 Order IRS products online. H&r block 1040ez free 2013 Research your tax questions online. H&r block 1040ez free 2013 Search publications online by topic or keyword. H&r block 1040ez free 2013 View Internal Revenue Bulletins (IRBs) published in the last few years. H&r block 1040ez free 2013 Figure your withholding allowances using the withholding calculator online at www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/individuals. H&r block 1040ez free 2013 Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. H&r block 1040ez free 2013 Sign up to receive local and national tax news by email. H&r block 1040ez free 2013 Get information on starting and operating a small business. H&r block 1040ez free 2013 Phone. H&r block 1040ez free 2013 Many services are available by phone. H&r block 1040ez free 2013 Ordering forms, instructions, and publications. H&r block 1040ez free 2013 Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. H&r block 1040ez free 2013 You should receive your order within 10 days. H&r block 1040ez free 2013 Asking tax questions. H&r block 1040ez free 2013 Call the IRS with your tax questions at 1-800-829-1040. H&r block 1040ez free 2013 Solving problems. H&r block 1040ez free 2013 You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. H&r block 1040ez free 2013 An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. H&r block 1040ez free 2013 Call your local Taxpayer Assistance Center for an appointment. H&r block 1040ez free 2013 To find the number, go to www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. H&r block 1040ez free 2013 TTY/TDD equipment. H&r block 1040ez free 2013 If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. H&r block 1040ez free 2013 TeleTax topics. H&r block 1040ez free 2013 Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. H&r block 1040ez free 2013 Refund information. H&r block 1040ez free 2013 To check the status of your 2009 refund, call 1-800-829-1954 during business hours or 1-800-829-4477 (automated refund information 24 hours a day, 7 days a week). H&r block 1040ez free 2013 Wait at least 72 hours after the IRS acknowledges receipt of your e-filed return, or 3 to 4 weeks after mailing a paper return. H&r block 1040ez free 2013 If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). H&r block 1040ez free 2013 Have your 2009 tax return available so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. H&r block 1040ez free 2013 Refunds are sent out weekly on Fridays. H&r block 1040ez free 2013 If you check the status of your refund and are not given the date it will be issued, please wait until the next week before checking back. H&r block 1040ez free 2013 Evaluating the quality of our telephone services. H&r block 1040ez free 2013 To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. H&r block 1040ez free 2013 One method is for a second IRS representative to listen in on or record random telephone calls. H&r block 1040ez free 2013 Another is to ask some callers to complete a short survey at the end of the call. H&r block 1040ez free 2013 Walk-in. H&r block 1040ez free 2013 Many products and services are available on a walk-in basis. H&r block 1040ez free 2013 Products. H&r block 1040ez free 2013 You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. H&r block 1040ez free 2013 Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. H&r block 1040ez free 2013 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. H&r block 1040ez free 2013 Services. H&r block 1040ez free 2013 You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. H&r block 1040ez free 2013 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. H&r block 1040ez free 2013 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. H&r block 1040ez free 2013 No appointment is necessary—just walk in. H&r block 1040ez free 2013 If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. H&r block 1040ez free 2013 A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. H&r block 1040ez free 2013 If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested. H&r block 1040ez free 2013 All other issues will be handled without an appointment. H&r block 1040ez free 2013 To find the number of your local office, go to www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. H&r block 1040ez free 2013 Mail. H&r block 1040ez free 2013 You can send your order for forms, instructions, and publications to the address below. H&r block 1040ez free 2013 You should receive a response within 10 days after your request is received. H&r block 1040ez free 2013 Internal Revenue Service1201 N. H&r block 1040ez free 2013 Mitsubishi MotorwayBloomington, IL 61705–6613 DVD for tax products. H&r block 1040ez free 2013 You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. H&r block 1040ez free 2013 Prior-year forms, instructions, and publications. H&r block 1040ez free 2013 Tax Map: an electronic research tool and finding aid. H&r block 1040ez free 2013 Tax law frequently asked questions. H&r block 1040ez free 2013 Tax Topics from the IRS telephone response system. H&r block 1040ez free 2013 Internal Revenue Code—Title 26 of the U. H&r block 1040ez free 2013 S. H&r block 1040ez free 2013 Code. H&r block 1040ez free 2013 Fill-in, print, and save features for most tax forms. H&r block 1040ez free 2013 Internal Revenue Bulletins. H&r block 1040ez free 2013 Toll-free and email technical support. H&r block 1040ez free 2013 Two releases during the year. H&r block 1040ez free 2013 – The first release will ship the beginning of January. H&r block 1040ez free 2013 – The final release will ship the beginning of March. H&r block 1040ez free 2013 Purchase the DVD from National Technical Information Service (NTIS) at www. H&r block 1040ez free 2013 irs. H&r block 1040ez free 2013 gov/cdorders for $30 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the DVD for $30 (plus a $6 handling fee). H&r block 1040ez free 2013 Small Business Administration The Small Business Administration (SBA) offers training and educational programs, counseling services, financial programs, and contract assistance for small business owners. H&r block 1040ez free 2013 The SBA also has publications and videos on a variety of business topics. H&r block 1040ez free 2013 The following briefly describes assistance provided by the SBA. H&r block 1040ez free 2013 Small Business Development Centers (SBDCs). H&r block 1040ez free 2013   SBDCs provide counseling, training, and technical services to current and prospective small business owners who cannot afford the services of a private consultant. H&r block 1040ez free 2013 Help is available when beginning, improving, or expanding a small business. H&r block 1040ez free 2013 Business Information Centers (BICs). H&r block 1040ez free 2013   BICs offer a small business reference library, management video tapes, and computer technology to help plan a business. H&r block 1040ez free 2013 BICs also offer one-on-one assistance. H&r block 1040ez free 2013 Individuals who are in business or are interested in starting a business can use BICs as often as they wish at no charge. H&r block 1040ez free 2013 Service Corps of Retired Executives (SCORE). H&r block 1040ez free 2013   SCORE provides small business counseling and training to current and prospective small business owners. H&r block 1040ez free 2013 SCORE is made up of current and former business people who offer their expertise and knowledge to help people start, manage, and expand a small business. H&r block 1040ez free 2013 SCORE also offers a variety of small business workshops. H&r block 1040ez free 2013    Internet. H&r block 1040ez free 2013 You can visit the SBA website at www. H&r block 1040ez free 2013 sba. H&r block 1040ez free 2013 gov. H&r block 1040ez free 2013 While visiting the SBA website, you can find a variety of information of interest to small business owners. H&r block 1040ez free 2013    Phone. H&r block 1040ez free 2013 Call the SBA Answer Desk at 1-800-UASK-SBA (1-800-827-5722) for general information about programs available to assist small business owners. H&r block 1040ez free 2013    Walk-in. H&r block 1040ez free 2013 You can walk in to a Small Business Development Center or Business Information Center to request assistance with your small business. H&r block 1040ez free 2013 To find the location nearest you, visit the SBA website or call the SBA Answer Desk. H&r block 1040ez free 2013 Other Federal Agencies Other federal agencies also publish publications and pamphlets to assist small businesses. H&r block 1040ez free 2013 Most of these are available from the Superintendent of Documents at the Government Printing Office. H&r block 1040ez free 2013 You can get information and order these publications and pamphlets in several ways. H&r block 1040ez free 2013 Internet. H&r block 1040ez free 2013 You can visit the GPO website at www. H&r block 1040ez free 2013 access. H&r block 1040ez free 2013 gpo. H&r block 1040ez free 2013 gov. H&r block 1040ez free 2013 Mail. H&r block 1040ez free 2013 Write to the GPO at the following address. H&r block 1040ez free 2013 Superintendent of DocumentsU. H&r block 1040ez free 2013 S. H&r block 1040ez free 2013 Government Printing OfficeP. H&r block 1040ez free 2013 O. H&r block 1040ez free 2013 Box 979050St. H&r block 1040ez free 2013 Louis, MO 63917-9000 Phone. H&r block 1040ez free 2013 Call the GPO toll-free at 1-866-512-1800 or at 202-512-1800 from the Washington, DC area. 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IRS Wants You to Know About Schemes, Scams and Cons:

If it sounds too good to be true, it probably is!" Seek professional advice from the IRS or a Tax Professional before you subscribe to any scheme that offers exemption from your obligation as a United States Citizen to pay taxes. Buying into a tax evasion scheme can be very costly.

Department of Justice Press Releases on Civil and Criminal Actions Taken as a Result of IRS Enforcement Activities

The Department of Justice issues press releases on IRS enforcement activities.

Tax Scams: How to Recognize and Avoid Them

To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of educational materials. Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. Education is the best way to avoid the pitfalls of these “too good to be true” tax scams.

Tax Scams/Consumer Alerts

Don't fall victim to tax scams. The IRS issues News Releases on some of the common scams, including the annual Dirty Dozen news release.

Special Advice for Law Enforcement on Avoiding Tax Preparer Scams

           Enforcing the Laws and Paying Taxes: Is there a Connection?

This is one of many outreach articles the IRS prepares to help educate the public about tax scams.  

Examples of Fraud Investigations

In addition to the  Tax Fraud Alerts page, Criminal Investigation (CI) wants you to know about other areas of fraud in which individuals have been criminally prosecuted

How Do You Report Suspected Tax Fraud Activity?
If you have information about an individual or company you suspect is not complying with the tax law, report this activity.


Criminal Investigation (CI)

Tax Fraud Alerts

Page Last Reviewed or Updated: 09-Jan-2014

The H&r Block 1040ez Free 2013

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