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H&r block advantage 30. H&r block advantage   Cómo Calcular los Impuestos Table of Contents Introduction Cómo Calcular los Impuestos Impuesto Mínimo Alternativo (AMT) Impuestos Calculados por el IRS Cómo Presentar la Declaración Introduction Una vez que haya calculado los ingresos y deducciones según se explica en las Partes Uno a Cinco, calcule los impuestos. H&r block advantage Este capítulo trata sobre los temas siguientes: Los pasos a seguir para calcular los impuestos, Un impuesto adicional que podría verse obligado a pagar, el cual se denomina “impuesto mínimo alternativo” (AMT, por sus siglas en inglés) y Las condiciones que tiene que cumplir si desea que el IRS le calcule los impuestos. H&r block advantage Cómo Calcular los Impuestos El impuesto sobre los ingresos se basa en los ingresos tributables. H&r block advantage Después de haber calculado el impuesto sobre los ingresos y el impuesto mínimo alternativo, si lo hubiera, reste los créditos tributarios y sume cualquier otro impuesto adeudado. H&r block advantage El resultado es el total de los impuestos. H&r block advantage Compare el total de los impuestos con el total de los pagos que ha efectuado para saber si tiene derecho a un reembolso o si tiene que efectuar un pago. H&r block advantage Esta sección expone los puntos generales para calcular el impuesto. H&r block advantage Puede encontrar instrucciones detalladas en las Instrucciones de los Formularios 1040EZ, 1040A y 1040. H&r block advantage Si no está seguro de qué formulario tributario debe presentar, vea ¿Qué Formulario Debo Usar? , en el capítulo 1. H&r block advantage Impuestos. H&r block advantage   La mayor parte de los contribuyentes utiliza la Tabla de Impuestos o la Hoja de Trabajo para el Cálculo del Impuesto para calcular el impuesto sobre el ingreso. H&r block advantage No obstante, existen métodos especiales si los ingresos incluyen cualquiera de los siguientes puntos: Una ganancia neta de capital. H&r block advantage (Vea el capítulo 16). H&r block advantage Dividendos calificados gravados a la misma tasa que una ganancia neta de capital. H&r block advantage (Vea los capítulos 8 y 16). H&r block advantage Distribuciones de suma global. H&r block advantage (Vea el capítulo 10). H&r block advantage Ingresos procedentes de la agricultura o pesca. H&r block advantage (Vea el Anexo J del Formulario 1040, Income Averaging for Farmers and Fishermen (Cómo calcular el promedio de ingresos para los agricultores y pescadores), en inglés. H&r block advantage Ingresos de inversiones de más de $2,000 para determinados hijos. H&r block advantage (Vea el capítulo 31). H&r block advantage Elección del padre o de la madre de declarar los intereses y dividendos de un hijo. H&r block advantage (Vea el capítulo 31). H&r block advantage Exclusión de ingresos devengados en el extranjero o exclusión por concepto de vivienda en el extranjero. H&r block advantage (Vea el Formulario 2555, Foreign Earned Income (Ingresos devengados en el extranjero) o el Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingresos devengados en el extranjero) y el Foreign Earned Income Tax Worksheet (Hoja de trabajo para los impuestos sobre ingresos devengados en el extranjero) de las Instrucciones del Formulario 1040), todos en inglés. H&r block advantage Créditos. H&r block advantage   Luego de haber calculado el impuesto sobre los ingresos y todo impuesto mínimo alternativo (explicado más adelante), verifique si tiene derecho a algún crédito tributario. H&r block advantage Puede encontrar información para saber si tiene derecho a estos créditos tributarios en los capítulos 32 al 37 y en las instrucciones de los formularios de impuestos. H&r block advantage La tabla a continuación muestra los créditos que tal vez pueda restar del impuesto y le indica en dónde puede encontrar más información sobre cada crédito. H&r block advantage CRÉDITOS Para información sobre: Vea el   capítulo: Adopción 37 Vehículo motorizado alternativo 37 Propiedad para reabastecimiento de vehículos con combustible alternativo 37 Cuidado de menores y dependientes 32 Crédito tributario por hijos 34 Crédito para titulares de bonos de crédito tributario 37 Estudios 35 Ancianos o personas incapacitadas 33 Crédito por vehículos eléctricos 37 Impuestos del extranjero 37 Intereses hipotecarios 37 Impuesto mínimo de años anteriores 37 Energía residencial 37 Aportaciones a arreglos de ahorros para la jubilación 37   Hay algunos créditos (como el crédito por ingreso del trabajo) que no aparecen en la lista porque se consideran pagos. H&r block advantage Vea Pagos , más adelante. H&r block advantage   Existen otros créditos no abordados en esta publicación. H&r block advantage Éstos abarcan los siguientes créditos: Crédito general para negocios, el cual se compone de distintos créditos relacionados con los negocios. H&r block advantage Éstos suelen declararse en el Formulario 3800, General Business Credit (Crédito general para negocios) y se explican en el capítulo 4 de la Publicación 334, Tax Guide for Small Business (Guía tributaria para pequeños negocios), ambos en inglés. H&r block advantage Crédito por producción de electricidad renovable, carbón refinado y carbón de yacimientos en tierras pertenecientes a indios para electricidad y carbón refinado producidos en instalaciones puestas en funcionamiento después del 22 de octubre de 2004 (después del 2 de octubre de 2008, para la electricidad producida mediante la energía hidrocinética renovable y la energía marina renovable) y carbón de yacimientos en tierras pertenecientes a indios producido en instalaciones puestas en funcionamiento después del 8 de agosto de 2005. H&r block advantage Vea la Parte II del Formulario 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit (Crédito por producción de electricidad renovable, carbón refinado y carbón de yacimientos en tierras pertenecientes a indios), en inglés. H&r block advantage Crédito de oportunidad laboral. H&r block advantage Vea el Formulario 5884, Work Opportunity Credit (Crédito de oportunidad laboral), en inglés. H&r block advantage Crédito por impuestos del Seguro Social y Medicare del empleador pagados sobre ciertas propinas del empleado. H&r block advantage Vea el Formulario 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips (Crédito por impuestos del Seguro Social y del Medicare pagados por el empleador sobre ciertas propinas del empleado), en inglés. H&r block advantage Otros impuestos. H&r block advantage   Después de haber restado los créditos tributarios, determine si tiene que pagar impuestos adicionales. H&r block advantage Este capítulo no explica dichos impuestos adicionales. H&r block advantage Esa información aparece en otros capítulos de esta publicación y en las instrucciones de los formularios. H&r block advantage Consulte la tabla siguiente para ver otros impuestos que tal vez necesite sumar al impuesto sobre los ingresos. H&r block advantage OTROS IMPUESTOS Para información sobre: Vea el   capítulo: Impuestos adicionales sobre planes de jubilación y arreglos IRA calificados 10, 17 Impuestos sobre el empleo de empleados domésticos 32 Recuperación de un crédito para estudios 35 Impuesto del Seguro Social y Medicare sobre el salario 5 Impuesto del Seguro Social y Medicare sobre las propinas 6 Impuestos no retenidos del Seguro Social y Medicare sobre propinas 6   Usted quizás podría verse obligado a pagar el impuesto mínimo alternativo (el cual se explica más adelante en este capítulo). H&r block advantage   Existen impuestos adicionales que no se explican en esta publicación. H&r block advantage Éstos abarcan lo siguiente: Impuesto sobre el trabajo por cuenta propia. H&r block advantage Tiene que calcular este impuesto si cualquiera de las dos condiciones siguientes le corresponde (o a su cónyuge, si usted presenta una declaración conjunta). H&r block advantage Tiene ganancias netas provenientes del trabajo por cuenta propia de $400 o más, salvo ingresos de un empleado de una iglesia. H&r block advantage El término “ganancias netas provenientes del trabajo por cuenta propia” puede incluir determinada remuneración que no recibió como empleado y otras cantidades detalladas en el Formulario 1099-MISC, Miscellaneous Income (Ingresos misceláneos), en inglés. H&r block advantage Si recibió el Formulario 1099-MISC, vea las Instructions for Recipient (Instrucciones para el destinatario), al dorso del mismo. H&r block advantage Asimismo, vea las instrucciones del Anexo SE del Formulario 1040, Self-Employment Tax (Impuesto sobre el trabajo por cuenta propia) y la Publicación 334, Tax Guide for Small Business (Guía tributaria para pequeños negocios), ambas en inglés. H&r block advantage Recibió ingresos de $108. H&r block advantage 28 o más como empleado de una iglesia. H&r block advantage Impuesto Adicional del Medicare. H&r block advantage Comenzando en el año 2013, usted quizás podría estar sujeto a un Impuesto Adicional del Medicare de 0. H&r block advantage 9%, que se le aplica a los salarios sujetos al impuesto Medicare, la remuneración recibida conforme a la Railroad Retirement Act (Ley de Jubilación Ferroviaria) y el ingreso sobre el trabajo por cuenta propia que esté sobre cierta cantidad según su estado civil para efectos de la declaración. H&r block advantage Si desea más información, vea las instrucciones para la línea 60 del Formulario 1040 y las Instrucciones para el Formulario 8959, ambas disponibles en inglés. H&r block advantage Impuesto sobre los ingresos netos de inversión (NIIT, por sus siglas en inglés). H&r block advantage Comenzando en el año 2013, usted quizás podría estar sujeto al impuesto sobre los ingresos netos de inversión (NIIT, por sus siglas en inglés). H&r block advantage El NIIT es un impuesto de 3. H&r block advantage 8% sobre la cantidad menor entre el ingreso neto de inversión o la cantidad en exceso de su ingreso bruto ajustado modificado sobre una cantidad límite. H&r block advantage Si desea más información, vea las instrucciones para la línea 60 del Formulario 1040 y las Instrucciones para el Formulario 8960, ambas disponibles en inglés. H&r block advantage Impuestos sobre recuperaciones. H&r block advantage Podría verse obligado a pagar estos impuestos si antes ha reclamado un crédito por inversiones, crédito de vivienda para personas de bajos recursos, crédito por mercados nuevos, crédito por vehículos enchufables con motor de dirección eléctrica que reúnen los requisitos, crédito por vehículo motorizado alternativo, crédito por instalaciones para proveer cuidado de niños provistas por el empleador, crédito por empleo de indios estadounidenses u otros créditos enumerados en las instrucciones para la línea 60 del Formulario 1040. H&r block advantage Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. H&r block advantage Impuesto sobre beneficios en exceso de la sección 72(m)(5). H&r block advantage Si usted es (o fue) propietario del 5% de un negocio y recibió una distribución superior a los beneficios que se le ofrecen conforme a la fórmula para planes de pensiones o de anualidades calificados, tal vez tenga que pagar este impuesto adicional. H&r block advantage Vea Tax on Excess Benefits (Impuesto sobre beneficios en exceso), en el capítulo 4 de la Publicación 560, Retirement Plans for Small Business (Planes de jubilación para pequeños negocios), en inglés. H&r block advantage Impuesto del Seguro Social y Medicare sobre el seguro de vida colectivo a término fijo que no fue recaudado. H&r block advantage Si su antiguo empleador proveyó más de $50,000 en cobertura de seguro de vida colectivo a término fijo, usted tiene que pagar la parte correspondiente al empleado de los impuestos del Seguro Social y Medicare sobre esas primas. H&r block advantage La cantidad debe aparecer en el recuadro 12 del Formulario W-2 con los códigos M y N. H&r block advantage Impuestos sobre pagos de contrato blindado. H&r block advantage Este impuesto le corresponde si recibió un “pago de contrato blindado en exceso” ( “excess parachute payment” o EPP, por sus siglas en inglés) debido a un cambio de propietario o administración de la empresa. H&r block advantage La cantidad de este impuesto debe estar indicada en el recuadro 12 del Formulario W-2 con el código K. H&r block advantage Vea las instrucciones para la línea 60 del Formulario 1040. H&r block advantage Impuestos sobre distribuciones acumuladas de fideicomisos. H&r block advantage Esto le corresponde si es el beneficiario de un fideicomiso que haya acumulado ingresos, en vez de haberlos distribuido a intervalos regulares. H&r block advantage Vea el Formulario 4970, Tax on Accumulation Distribution of Trusts (Impuestos sobre distribuciones acumuladas de fideicomisos), y sus instrucciones, en inglés. H&r block advantage Impuestos adicionales sobre las cuentas HSA o MSA. H&r block advantage Puede que tenga que pagar impuestos adicionales si las cantidades que se han aportado a su cuenta de ahorros para la salud (HSA, por sus siglas en inglés) o su cuenta de ahorros para gastos médicos (MSA, por sus siglas en inglés) o las cantidades que se han distribuido de éstas no cumplen los requisitos correspondientes a dichas cuentas. H&r block advantage Vea la Publicación 969, Health Savings Accounts and Other Tax-Favored Health Plans (Cuentas de ahorros para la salud y otros planes para la salud con beneficios tributarios); el Formulario 8853, Archer MSAs and Long-Term Care Insurance Contracts (Cuentas Archer MSA de ahorros médicos y contratos del seguro de cuidado a largo plazo); Formulario 8889, Health Savings Accounts (HSAs) (Cuentas de ahorros médicos (HSA, por sus siglas en inglés)) y el Formulario 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts (Impuestos adicionales sobre planes calificados (incluidos los arreglos IRA) y otras cuentas con beneficios tributarios), todos en inglés. H&r block advantage Impuestos adicionales en cuentas Coverdell ESA para estudios. H&r block advantage Esto es aplicable si las cantidades que se han aportado a su cuenta Coverdell ESA para estudios o que se han distribuido de la misma no satisfacen los requisitos correspondientes a dichas cuentas. H&r block advantage Vea la Publicación 970, Tax Benefits for Education (Prestaciones tributarias para estudios) y el Formulario 5329, ambos en inglés. H&r block advantage Impuestos adicionales sobre programas de matrícula calificada. H&r block advantage Esto corresponde a cantidades distribuidas de programas de matrícula calificada generales pero que no cumplan los requisitos de dichas cuentas. H&r block advantage Vea la Publicación 970 y el Formulario 5329, ambos en inglés. H&r block advantage Impuestos sobre artículos de uso y consumo gravados sobre remuneraciones de acciones internas de una empresa expatriada. H&r block advantage Tal vez adeude un impuesto sobre artículos de uso y consumo del 15% sobre el valor de opciones de acciones no estatutarias y sobre otra remuneración determinada procedente de las acciones, de las cuales usted o un miembro de su familia es dueño, que es de una empresa expatriada o su grupo ampliado de filiales en las que usted fue ejecutivo, directivo o propietario de más del 10%. H&r block advantage Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. H&r block advantage Impuestos adicionales sobre ingresos recibidos de un plan de remuneración diferida no calificado que no reúna determinados requisitos adicionales. H&r block advantage Estos ingresos tienen que aparecer en el recuadro 12 del Formulario W-2, con el código Z o en el recuadro 15b del Formulario 1099-MISC. H&r block advantage Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. H&r block advantage Intereses sobre los impuestos adeudados sobre ingresos de pagos a plazo procedentes de la venta de ciertos terrenos residenciales y multipropiedades. H&r block advantage Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. H&r block advantage Intereses sobre los impuestos diferidos sobre ganancias de ciertas ventas a plazos con precio de venta superior a $150,000. H&r block advantage Para información adicional, vea las instrucciones para la línea 60 del Formulario 1040. H&r block advantage Devolución del crédito tributario para comprador de primera vivienda. H&r block advantage Si desea más información, vea el Formulario 5405, Repayment of the First-Time Homebuyer Credit (Devolución del crédito tributario para comprador de primera vivienda) y sus instrucciones, disponibles en inglés. H&r block advantage Además, vea las instrucciones para la línea 59b del Formulario 1040, en inglés. H&r block advantage Pagos. H&r block advantage   Después de calcular el impuesto total, calcule el total de los pagos que ya haya efectuado para el año. H&r block advantage Incluya los créditos que se tratan como pagos. H&r block advantage Este capítulo no explica dichos pagos ni créditos. H&r block advantage Esa información aparece en otros capítulos de esta publicación y en las instrucciones de los formularios. H&r block advantage Vea la siguiente tabla para saber qué cantidades se pueden incluir en el total de sus pagos. H&r block advantage PAGOS Para información sobre: Vea el   capítulo: Crédito tributario por hijos (adicional) 34 Crédito por ingreso del trabajo 36 Impuestos estimados pagados 4 Impuestos de Seguro Social o impuestos de la jubilación ferroviaria retenidos en exceso 37 Retención del impuesto federal sobre los ingresos 4 Crédito tributario por cobertura del seguro médico 37 Crédito por sociedad inversionista reglamentada 37 Impuesto pagado a través de prórroga 1   Otro crédito que se considera un pago es el crédito por concepto del impuesto federal sobre artículos de uso y consumo pagado sobre combustibles. H&r block advantage Este crédito es para personas que hagan uso no tributable de determinados combustibles, tales como diésel y keroseno. H&r block advantage Se declara en la línea 70 del Formulario 1040. H&r block advantage Vea el Formulario 4136, Credit for Federal Tax Paid on Fuels (Crédito por impuestos federales pagados sobre combustibles), en inglés. H&r block advantage Reembolso o saldo adeudado. H&r block advantage   Para saber si tiene derecho a recibir un reembolso o si tiene que efectuar algún pago, compare el total de los pagos con el total del impuesto. H&r block advantage Si tiene derecho a un reembolso, vea las instrucciones del formulario que presentará para saber cómo puede depositar dicho reembolso directamente en una o más de sus cuentas o para comprar bonos de ahorros de los Estados Unidos en vez de recibir un cheque en papel. H&r block advantage Impuesto Mínimo Alternativo (AMT) Esta sección explica brevemente el impuesto adicional que podría verse obligado a pagar. H&r block advantage La ley tributaria les da un trato especial a determinados tipos de ingresos y permite deducciones y créditos especiales para algunos tipos de gastos. H&r block advantage Los contribuyentes que se vean beneficiados por este trato particular podrían estar obligados a pagar al menos una cantidad mínima de impuestos mediante otro impuesto adicional denominado “impuesto mínimo alternativo” (AMT, por sus siglas en inglés). H&r block advantage Tal vez tenga que pagar el impuesto mínimo alternativo si sus ingresos tributables para fines tributarios normales, sumados a determinados ajustes y elementos de preferencia tributaria, superan una determinada cantidad. H&r block advantage Vea el Formulario 6251, Alternative Minimum Tax — Individuals (Impuesto mínimo alternativo — personas físicas), en inglés. H&r block advantage Ajustes y elementos de preferencia tributaria. H&r block advantage   Los ajustes más comunes y elementos de preferencia tributaria abarcan los siguientes casos: Inclusión de exenciones personales, Inclusión de la deducción estándar (si ésta se reclamó), Inclusión de deducciones detalladas por concepto de impuestos estatales y locales, determinados intereses, la mayor parte de las deducciones misceláneas y parte de los gastos médicos, Exclusión de todo reembolso de impuestos estatales y locales que se haya incluido en los ingresos brutos, Cambios en la depreciación acelerada de determinados bienes, La diferencia entre ganancias y pérdidas sobre la venta de bienes declarada para fines tributarios normales y del impuesto mínimo alternativo, Inclusión de determinados ingresos procedentes de opciones de compra de acciones con incentivo, Cambio en ciertas deducciones por pérdidas de actividades pasivas, Inclusión de algún valor de agotamiento que sea superior a la base ajustada de los bienes, Inclusión de una parte de la deducción por ciertos gastos de perforación intangibles e Inclusión de intereses exentos de impuestos sobre determinados bonos de una actividad privada. H&r block advantage Información adicional. H&r block advantage   Para más información acerca del impuesto mínimo alternativo, vea las Instrucciones para el Formulario 6251, en inglés. H&r block advantage Impuestos Calculados por el IRS Si presenta la declaración para el 15 de abril de 2014, puede pedir que el IRS le calcule los impuestos en el Formulario 1040EZ, el Formulario 1040A o el Formulario 1040. H&r block advantage Si el IRS le calcula los impuestos y usted pagó demasiado, recibirá un reembolso. H&r block advantage Si no pagó lo suficiente, recibirá una factura que indique el saldo adeudado. H&r block advantage Para no tener que pagar intereses o una multa por pagos morosos, tiene que pagar la factura dentro de 30 días a partir de la fecha de la factura o para la fecha de vencimiento para la presentación de la declaración, la que ocurra más tarde. H&r block advantage El IRS también le calcula el crédito para ancianos o personas incapacitadas además del crédito por ingreso del trabajo. H&r block advantage Cuándo el IRS no puede calcularle los impuestos. H&r block advantage   El IRS no puede calcularle los impuestos si se da alguna de las siguientes condiciones: Desea que el reembolso se deposite directamente en sus cuentas. H&r block advantage Desea que alguna parte del reembolso se aplique al impuesto estimado de 2014. H&r block advantage Recibió ingresos para el año de fuentes que no sean salarios, sueldos, propinas, intereses, dividendos, beneficios de Seguro Social sujetos a impuestos, compensación por desempleo, distribuciones de un arreglo IRA, pensiones y anualidades. H&r block advantage Su ingreso tributable es $100,000 o más. H&r block advantage Detalla las deducciones. H&r block advantage Presenta cualquiera de los siguientes formularios: Formulario 2555, Foreign Earned Income (Ingresos devengados en el extranjero), en inglés. H&r block advantage Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingresos devengados en el extranjero), en inglés. H&r block advantage Formulario 4137, Social Security and Medicare Tax on Unreported Tip Income (Impuestos del Seguro Social y Medicare sobre el ingreso de propinas no declaradas), en inglés. H&r block advantage Formulario 4970, Tax on Accumulation Distribution of Trusts (Impuesto sobre distribuciones acumuladas de un fideicomiso), en inglés. H&r block advantage Formulario 4972, Tax on Lump-Sum Distributions (Impuesto sobre distribuciones de sumas globales), en inglés. H&r block advantage Formulario 6198, At-Risk Limitations (Límites sobre el monto en riesgo), en inglés. H&r block advantage Formulario 6251, Alternative Minimum Tax—Individuals (Impuesto mínimo alternativo—personas físicas), en inglés. H&r block advantage Formulario 8606, Nondeductible IRAs (Arreglos IRA no deducibles), en inglés. H&r block advantage Formulario 8615, Tax for Certain Children Who Have Unearned Income (Impuesto para determinados hijos con ingresos no derivados del trabajo), en inglés. H&r block advantage Formulario 8814, Parents' Election To Report Child's Interest and Dividends (Decisión de los padres de declarar los intereses y dividendos del hijo), en inglés. H&r block advantage Formulario 8839, Qualified Adoption Expenses (Gastos de adopción calificados), en inglés. H&r block advantage Formulario 8853, Archer MSAs and Long-Term Care Insurance Contracts (Planes de ahorros para gastos médicos Archer y contratos de seguro para cuidados a largo plazo), en inglés. H&r block advantage Formulario 8889, Health Savings Accounts (HSAs) (Cuentas de ahorro para gastos médicos (HSA)), en inglés. H&r block advantage Formulario 8919, Uncollected Social Security and Medicare Tax on Wages (Impuestos sobre salarios sujetos al Seguro Social y al Medicare no recaudados), en inglés. H&r block advantage Cómo Presentar la Declaración Después de haber completado las líneas del formulario de impuestos que va a presentar, escriba su nombre y dirección. H&r block advantage En el espacio provisto, anote su número de Seguro Social. H&r block advantage Si es casado, escriba los números de Seguro Social de usted y su cónyuge aun si presenta una declaración por separado. H&r block advantage Firme y feche la declaración y escriba su(s) oficio(s). H&r block advantage Si presenta una declaración conjunta, usted y su cónyuge tienen que firmarla. H&r block advantage En el espacio provisto, anote un número telefónico con su código de área donde ubicarlo durante el día. H&r block advantage Esto agilizará la tramitación de su declaración si el IRS tiene una pregunta que puede ser resuelta por teléfono. H&r block advantage Si presenta una declaración conjunta de impuestos, anote el número de teléfono donde usted o su cónyuge pueden ser localizados durante el día. H&r block advantage Si desea autorizar al IRS para que hable sobre su declaración de impuestos del año 2013 con su amigo, con un miembro de su familia o con cualquier persona que usted elija, marque el recuadro “ Yes ” (Sí) en el área titulada “ Third Party Designee ” (Designación de un tercero) de su declaración de impuestos. H&r block advantage También, escriba el nombre del designado, número de teléfono y cualesquier 5 dígitos que el designado elija como su número de identificación personal (PIN, por sus siglas en inglés). H&r block advantage Si marca el recuadro “ Yes ” (Sí), usted y su cónyuge, si presentan una declaración conjunta, autoriza(n) a los empleados del IRS a llamar al designado para que éste conteste toda pregunta que surja durante el trámite de su declaración de impuestos. H&r block advantage Complete y adjunte a su declaración en papel cualesquier anexo y formulario solicitado en las líneas que usted completó. H&r block advantage Adjunte una copia de cada uno de los Formularios W-2 a la declaración en papel. H&r block advantage Además, adjunte a su declaración en papel todo Formulario 1099-R recibido que indique retención de impuestos en el recuadro 4. H&r block advantage Envíe la declaración al Internal Revenue Service Center (Centro de Servicio del IRS) que corresponda al área donde vive. H&r block advantage Una lista de direcciones de Centros de Servicio se halla al final de la publicación y en las instrucciones de su declaración de impuestos. H&r block advantage Datos a Incluir en el Formulario 1040EZ Lea las líneas 1 a 8b y llene las líneas que le correspondan. H&r block advantage No llene las líneas 9 a 12. H&r block advantage Si presenta una declaración conjunta, utilice el espacio a la izquierda de la línea 6 para indicar por separado los ingresos tributables suyos y los de su cónyuge. H&r block advantage Pagos. H&r block advantage   Anote en la línea 7 todo impuesto federal sobre los ingresos que se le haya retenido. H&r block advantage El impuesto federal sobre los ingresos retenido aparece en el recuadro 2 del Formulario W-2 o en el recuadro 4 del Formulario 1099. H&r block advantage Crédito por ingreso del trabajo. H&r block advantage   Si puede reclamar este crédito, según se explica en el capítulo 36 , el IRS se lo puede calcular. H&r block advantage Escriba “EIC” en el espacio a la izquierda de la línea 8a. H&r block advantage Anote en la línea 8b la paga no tributable por combate que desee incluir en los ingresos derivados del trabajo. H&r block advantage   Si su crédito de cualquier año posterior a 1996 fue reducido o denegado por el IRS, quizás tenga que presentar junto con la declaración el Formulario 8862(SP), Información Para Reclamar el Crédito Por Ingreso del Trabajo Después de Haber Sido Denegado (o el Formulario 8862, Information To Claim Earned Income Credit After Disallowance, en inglés). H&r block advantage Para detalles adicionales, vea las Instrucciones para el Formulario 1040EZ, en inglés. H&r block advantage Datos a Incluir en el Formulario 1040A Lea las líneas 1 a 27 y llene las líneas que le correspondan. H&r block advantage Si presenta una declaración conjunta, utilice el espacio a la izquierda de la línea 27 para indicar por separado los ingresos tributables suyos y los de su cónyuge. H&r block advantage No llene la línea 28. H&r block advantage Llene las líneas 29 a 33 y 36 a 40 si le corresponden. H&r block advantage Sin embargo, no llene las líneas 30 ni 38a si desea que el IRS le calcule los créditos indicados en dichas líneas. H&r block advantage Además, escriba toda información adicional que le corresponda en el espacio a la izquierda de la línea 41. H&r block advantage No llene las líneas 34, 35 ni 42 a la 46. H&r block advantage Pagos. H&r block advantage   Anote todo impuesto federal retenido sobre los ingresos que se indique en el recuadro 2 del Formulario W-2 o en el recuadro 4 del Formulario 1099, en la línea 36. H&r block advantage Anote en la línea 37 todo pago de impuesto estimado que haya efectuado. H&r block advantage Crédito por gastos del cuidado de menores y dependientes. H&r block advantage   Si puede reclamar este crédito, según se explica en el capítulo 32 , complete el Formulario 2441, Child and Dependent Care Expenses (Gastos del cuidado de menores y dependientes), en inglés, y adjúntelo a su declaración. H&r block advantage Anote la cantidad del crédito en la línea 29. H&r block advantage El IRS no le calculará este crédito. H&r block advantage Crédito para ancianos o personas incapacitadas. H&r block advantage   Si puede reclamar este crédito, según se explica en el capítulo 33 , el IRS le calculará este crédito. H&r block advantage Escriba “ CFE ” en el espacio a la izquierda de la línea 30 y adjunte el Anexo R del Formulario 1040, Credit for the Elderly or the Disabled (Crédito para ancianos o personas incapacitadas), en inglés, a su declaración de impuestos en papel. H&r block advantage En el Anexo R, marque el recuadro de la Parte I correspondiente a su estado civil para efectos de la declaración y edad. H&r block advantage Complete la Parte II y las líneas 11 y 13 de la Parte III, si le corresponden. H&r block advantage Crédito por ingreso del trabajo. H&r block advantage   Si puede reclamar este crédito, según se explica en el capítulo 36 , el IRS se lo calculará. H&r block advantage Anote “EIC” a la izquierda del espacio de la línea 38a. H&r block advantage Anote en la línea 38b la paga no tributable por combate que desee incluir en los ingresos derivados del trabajo. H&r block advantage   Si tiene un hijo que le da derecho a este crédito, tiene que llenar el Anexo EIC (Formulario 1040 ó 1040A), Earned Income Credit (Crédito por ingreso del trabajo), en inglés, y adjuntarlo a su declaración en papel. H&r block advantage Si no provee el número de Seguro Social de su hijo en la línea 2 del Anexo EIC, el crédito será reducido o denegado a menos que el hijo haya nacido y fallecido en el año 2013. H&r block advantage   Si su crédito de cualquier año posterior a 1996 fue reducido o denegado por el IRS, tal vez tenga que presentar junto con la declaración el Formulario 8862(SP) (o el Formulario 8862, en inglés). H&r block advantage Para detalles adicionales, vea las Instrucciones para el Formulario 1040A. H&r block advantage Datos a Incluir en el Formulario 1040 Lea las líneas 1 a 43 y llene las líneas que le correspondan. H&r block advantage No llene la línea 44. H&r block advantage Si presenta una declaración conjunta, utilice el espacio bajo las palabras “ Adjusted Gross Income ” (Ingresos brutos ajustados), en la primera página de la declaración para indicar por separado los ingresos tributables suyos y los de su cónyuge. H&r block advantage Lea las líneas 45 a la 71. H&r block advantage Llene las líneas que le correspondan, pero no llene las líneas 54, 61 ni 72. H&r block advantage Además, no complete la línea 55 ni las líneas 73 a 77. H&r block advantage No llene el recuadro “ c ” de la línea 53 si completa el Anexo R del Formulario 1040A o 1040, ni la línea 64a si desea que el IRS le calcule los créditos indicados en dichas líneas. H&r block advantage Pagos. H&r block advantage   Anote todo impuesto federal retenido sobre los ingresos que se indique en el recuadro 2 del Formulario W-2 o en el recuadro 4 del Formulario 1099, en la línea 62. H&r block advantage Anote en la línea 63 todo pago de impuesto estimado que haya efectuado. H&r block advantage Crédito por gastos del cuidado de menores y dependientes. H&r block advantage   Si puede reclamar este crédito, según se explica en el capítulo 32 , complete el Formulario 2441, en inglés, y adjúntelo a su declaración en papel. H&r block advantage Anote la cantidad del crédito en la línea 48. H&r block advantage El IRS no le calculará este crédito. H&r block advantage Crédito para ancianos o personas incapacitadas. H&r block advantage   Si puede reclamar este crédito, según se explica en el capítulo 33 , el IRS puede calcularle este crédito. H&r block advantage Escriba “CFE” al lado de la línea 53 y marque el recuadro “ c ” y adjunte el Anexo R del Formulario 1040A o 1040 a su declaración en papel. H&r block advantage En el Anexo R del Formulario 1040A o 1040, marque el recuadro de la Parte I correspondiente a su estado civil para efectos de la declaración y edad. H&r block advantage Complete la Parte II y las líneas 11 y 13 de la Parte III, si le corresponden. H&r block advantage Crédito por ingreso del trabajo. H&r block advantage   Si puede reclamar este crédito, según se explica en el capítulo 36 , el IRS se lo calculará. H&r block advantage Anote “EIC” en la línea de puntos al lado de la línea 64a del Formulario 1040. H&r block advantage Anote en la línea 64b la paga no tributable por combate que desee incluir en los ingresos derivados del trabajo. H&r block advantage   Si tiene un hijo que le dé derecho a este crédito, tiene que llenar el Anexo EIC, Earned Income Credit (Crédito por ingreso del trabajo), en inglés, y adjuntarlo a su declaración en papel. H&r block advantage Si no provee el número de Seguro Social de su hijo en la línea 2 del Anexo EIC (Formulario 1040 ó 1040A), el crédito será reducido o denegado a menos que su hijo haya nacido y fallecido en el año 2013. H&r block advantage   Si su crédito de cualquier año posterior a 1996 fue reducido o denegado por el IRS, tal vez tenga que presentar junto con la declaración el Formulario 8862(SP), (o el Formulario 8862, en inglés). H&r block advantage Para detalles adicionales, vea las Instrucciones para el Formulario 1040, en inglés. H&r block advantage Prev  Up  Next   Home   More Online Publications
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The H&r Block Advantage

H&r block advantage 26. H&r block advantage   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. H&r block advantage Parking fees. H&r block advantage Advertising display on car. H&r block advantage Car pools. H&r block advantage Hauling tools or instruments. H&r block advantage Union members' trips from a union hall. H&r block advantage Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. H&r block advantage Statutory employees. H&r block advantage Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. H&r block advantage  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. H&r block advantage Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. H&r block advantage Depreciation limits on cars, trucks, and vans. H&r block advantage  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). H&r block advantage For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). H&r block advantage For more information, see Depreciation limits in Publication 463. H&r block advantage Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. H&r block advantage An ordinary expense is one that is common and accepted in your trade or business. H&r block advantage A necessary expense is one that is helpful and appropriate for your business. H&r block advantage An expense does not have to be required to be considered necessary. H&r block advantage This chapter explains the following. H&r block advantage What expenses are deductible. H&r block advantage How to report your expenses on your return. H&r block advantage What records you need to prove your expenses. H&r block advantage How to treat any expense reimbursements you may receive. H&r block advantage Who does not need to use this chapter. H&r block advantage   If you are an employee, you will not need to read this chapter if all of the following are true. H&r block advantage You fully accounted to your employer for your work-related expenses. H&r block advantage You received full reimbursement for your expenses. H&r block advantage Your employer required you to return any excess reimbursement and you did so. H&r block advantage There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. H&r block advantage If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. H&r block advantage See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. H&r block advantage    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. H&r block advantage Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. H&r block advantage This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. H&r block advantage It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. H&r block advantage Travel expenses defined. H&r block advantage   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. H&r block advantage   You will find examples of deductible travel expenses in Table 26-1 . H&r block advantage Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. H&r block advantage This rest requirement is not satisfied by merely napping in your car. H&r block advantage You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. H&r block advantage Example 1. H&r block advantage You are a railroad conductor. H&r block advantage You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. H&r block advantage During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. H&r block advantage You are considered to be away from home. H&r block advantage Example 2. H&r block advantage You are a truck driver. H&r block advantage You leave your terminal and return to it later the same day. H&r block advantage You get an hour off at your turnaround point to eat. H&r block advantage Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. H&r block advantage Members of the Armed Forces. H&r block advantage   If you are a member of the U. H&r block advantage S. H&r block advantage Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. H&r block advantage You cannot deduct your expenses for meals and lodging. H&r block advantage You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. H&r block advantage If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. H&r block advantage    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. H&r block advantage Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. H&r block advantage Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. H&r block advantage It includes the entire city or general area in which your business or work is located. H&r block advantage If you have more than one regular place of business, your tax home is your main place of business. H&r block advantage See Main place of business or work , later. H&r block advantage If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. H&r block advantage See No main place of business or work , later. H&r block advantage If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. H&r block advantage As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. H&r block advantage Main place of business or work. H&r block advantage   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. H&r block advantage The total time you ordinarily spend in each place. H&r block advantage The level of your business activity in each place. H&r block advantage Whether your income from each place is significant or insignificant. H&r block advantage Example. H&r block advantage You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. H&r block advantage You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. H&r block advantage Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. H&r block advantage No main place of business or work. H&r block advantage   You may have a tax home even if you do not have a regular or main place of business or work. H&r block advantage Your tax home may be the home where you regularly live. H&r block advantage Factors used to determine tax home. H&r block advantage   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. H&r block advantage You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. H&r block advantage You have living expenses at your main home that you duplicate because your business requires you to be away from that home. H&r block advantage You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. H&r block advantage   If you satisfy all three factors, your tax home is the home where you regularly live. H&r block advantage If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. H&r block advantage If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. H&r block advantage Example. H&r block advantage You are single and live in Boston in an apartment you rent. H&r block advantage You have worked for your employer in Boston for a number of years. H&r block advantage Your employer enrolls you in a 12-month executive training program. H&r block advantage You do not expect to return to work in Boston after you complete your training. H&r block advantage During your training, you do not do any work in Boston. H&r block advantage Instead, you receive classroom and on-the-job training throughout the United States. H&r block advantage You keep your apartment in Boston and return to it frequently. H&r block advantage You use your apartment to conduct your personal business. H&r block advantage You also keep up your community contacts in Boston. H&r block advantage When you complete your training, you are transferred to Los Angeles. H&r block advantage You do not satisfy factor (1) because you did not work in Boston. H&r block advantage You satisfy factor (2) because you had duplicate living expenses. H&r block advantage You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. H&r block advantage Therefore, you have a tax home in Boston. H&r block advantage Tax home different from family home. H&r block advantage   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. H&r block advantage You also cannot deduct the cost of meals and lodging while at your tax home. H&r block advantage See Example 1 . H&r block advantage   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. H&r block advantage See Example 2 . H&r block advantage Example 1. H&r block advantage You are a truck driver and you and your family live in Tucson. H&r block advantage You are employed by a trucking firm that has its terminal in Phoenix. H&r block advantage At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. H&r block advantage You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. H&r block advantage This is because Phoenix is your tax home. H&r block advantage Example 2. H&r block advantage Your family home is in Pittsburgh, where you work 12 weeks a year. H&r block advantage The rest of the year you work for the same employer in Baltimore. H&r block advantage In Baltimore, you eat in restaurants and sleep in a rooming house. H&r block advantage Your salary is the same whether you are in Pittsburgh or Baltimore. H&r block advantage Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. H&r block advantage You cannot deduct any expenses you have for meals and lodging there. H&r block advantage However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. H&r block advantage You can deduct the cost of your round trip between Baltimore and Pittsburgh. H&r block advantage You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. H&r block advantage Temporary Assignment or Job You may regularly work at your tax home and also work at another location. H&r block advantage It may not be practical to return to your tax home from this other location at the end of each work day. H&r block advantage Temporary assignment vs. H&r block advantage indefinite assignment. H&r block advantage   If your assignment or job away from your main place of work is temporary, your tax home does not change. H&r block advantage You are considered to be away from home for the whole period you are away from your main place of work. H&r block advantage You can deduct your travel expenses if they otherwise qualify for deduction. H&r block advantage Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. H&r block advantage   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. H&r block advantage An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. H&r block advantage   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. H&r block advantage You may be able to deduct the cost of relocating to your new tax home as a moving expense. H&r block advantage See Publication 521 for more information. H&r block advantage Exception for federal crime investigations or prosecutions. H&r block advantage   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. H&r block advantage This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. H&r block advantage   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. H&r block advantage Determining temporary or indefinite. H&r block advantage   You must determine whether your assignment is temporary or indefinite when you start work. H&r block advantage If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. H&r block advantage An assignment or job that is initially temporary may become indefinite due to changed circumstances. H&r block advantage A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. H&r block advantage Going home on days off. H&r block advantage   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. H&r block advantage You cannot deduct the cost of your meals and lodging there. H&r block advantage However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. H&r block advantage You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. H&r block advantage   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. H&r block advantage In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. H&r block advantage Probationary work period. H&r block advantage   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. H&r block advantage You cannot deduct any of your expenses for meals and lodging during the probationary period. H&r block advantage What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. H&r block advantage You can deduct ordinary and necessary expenses you have when you travel away from home on business. H&r block advantage The type of expense you can deduct depends on the facts and your circumstances. H&r block advantage Table 26-1 summarizes travel expenses you may be able to deduct. H&r block advantage You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. H&r block advantage When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. H&r block advantage You can use a log, diary, notebook, or any other written record to keep track of your expenses. H&r block advantage The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. H&r block advantage Separating costs. H&r block advantage   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. H&r block advantage You must have a reasonable basis for making this allocation. H&r block advantage For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. H&r block advantage Travel expenses for another individual. H&r block advantage   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. H&r block advantage Employee. H&r block advantage   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. H&r block advantage Business associate. H&r block advantage   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. H&r block advantage A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. H&r block advantage A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. H&r block advantage Bona fide business purpose. H&r block advantage   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. H&r block advantage Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. H&r block advantage Example. H&r block advantage Jerry drives to Chicago on business and takes his wife, Linda, with him. H&r block advantage Linda is not Jerry's employee. H&r block advantage Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. H&r block advantage The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. H&r block advantage Her expenses are not deductible. H&r block advantage Jerry pays $199 a day for a double room. H&r block advantage A single room costs $149 a day. H&r block advantage He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. H&r block advantage If he uses public transportation, he can deduct only his fare. H&r block advantage Table 26-1. H&r block advantage Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. H&r block advantage IF you have expenses for. H&r block advantage . H&r block advantage . H&r block advantage THEN you can deduct the cost of. H&r block advantage . H&r block advantage . H&r block advantage transportation travel by airplane, train, bus, or car between your home and your business destination. H&r block advantage If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. H&r block advantage If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. H&r block advantage taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. H&r block advantage baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. H&r block advantage car operating and maintaining your car when traveling away from home on business. H&r block advantage You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. H&r block advantage If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. H&r block advantage lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. H&r block advantage Meals include amounts spent for food, beverages, taxes, and related tips. H&r block advantage See Meals and Incidental Expenses for additional rules and limits. H&r block advantage cleaning dry cleaning and laundry. H&r block advantage telephone business calls while on your business trip. H&r block advantage This includes business communication by fax machine or other communication devices. H&r block advantage tips tips you pay for any expenses in this chart. H&r block advantage other other similar ordinary and necessary expenses related to your business travel. H&r block advantage These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. H&r block advantage Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. H&r block advantage It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. H&r block advantage The meal is business-related entertainment. H&r block advantage Business-related entertainment is discussed under Entertainment Expenses , later. H&r block advantage The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. H&r block advantage Lavish or extravagant. H&r block advantage   You cannot deduct expenses for meals that are lavish or extravagant. H&r block advantage An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. H&r block advantage Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. H&r block advantage 50% limit on meals. H&r block advantage   You can figure your meal expenses using either of the following methods. H&r block advantage Actual cost. H&r block advantage The standard meal allowance. H&r block advantage Both of these methods are explained below. H&r block advantage But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. H&r block advantage   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. H&r block advantage If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. H&r block advantage The 50% limit is explained later under Entertainment Expenses . H&r block advantage Accountable and nonaccountable plans are discussed later under Reimbursements . H&r block advantage Actual cost. H&r block advantage   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. H&r block advantage If you use this method, you must keep records of your actual cost. H&r block advantage Standard meal allowance. H&r block advantage   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. H&r block advantage It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. H&r block advantage The set amount varies depending on where and when you travel. H&r block advantage In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . H&r block advantage If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. H&r block advantage See Recordkeeping , later. H&r block advantage Incidental expenses. H&r block advantage   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. H&r block advantage Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. H&r block advantage Incidental expenses only method. H&r block advantage   You can use an optional method (instead of actual cost) for deducting incidental expenses only. H&r block advantage The amount of the deduction is $5 a day. H&r block advantage You can use this method only if you did not pay or incur any meal expenses. H&r block advantage You cannot use this method on any day that you use the standard meal allowance. H&r block advantage    Federal employees should refer to the Federal Travel Regulations at  www. H&r block advantage gsa. H&r block advantage gov. H&r block advantage Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. H&r block advantage 50% limit may apply. H&r block advantage   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. H&r block advantage If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. H&r block advantage The 50% limit is explained later under Entertainment Expenses . H&r block advantage Accountable and nonaccountable plans are discussed later under Reimbursements . H&r block advantage There is no optional standard lodging amount similar to the standard meal allowance. H&r block advantage Your allowable lodging expense deduction is your actual cost. H&r block advantage Who can use the standard meal allowance. H&r block advantage   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. H&r block advantage   Use of the standard meal allowance for other travel. H&r block advantage    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. H&r block advantage You can also use it to figure your meal expenses when you travel for qualifying educational purposes. H&r block advantage You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. H&r block advantage Amount of standard meal allowance. H&r block advantage   The standard meal allowance is the federal M&IE rate. H&r block advantage For travel in 2013, the daily rate for most small localities in the United States is $46. H&r block advantage   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. H&r block advantage You can find this information (organized by state) on the Internet at www. H&r block advantage gsa. H&r block advantage gov. H&r block advantage Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. H&r block advantage However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. H&r block advantage You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. H&r block advantage   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. H&r block advantage If you work in the transportation industry, however, see Special rate for transportation workers , later. H&r block advantage Standard meal allowance for areas outside the continental United States. H&r block advantage    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. H&r block advantage The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. H&r block advantage S. H&r block advantage Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. H&r block advantage The Department of State establishes per diem rates for all other foreign areas. H&r block advantage    You can access per diem rates for non-foreign areas outside the continental United States at: www. H&r block advantage defensetravel. H&r block advantage dod. H&r block advantage mil/site/perdiemCalc. H&r block advantage cfm. H&r block advantage You can access all other foreign per diem rates at www. H&r block advantage state. H&r block advantage gov/travel/. H&r block advantage Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. H&r block advantage Special rate for transportation workers. H&r block advantage   You can use a special standard meal allowance if you work in the transportation industry. H&r block advantage You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. H&r block advantage If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). H&r block advantage   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. H&r block advantage If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. H&r block advantage Travel for days you depart and return. H&r block advantage   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). H&r block advantage You can do so by one of two methods. H&r block advantage Method 1: You can claim 3/4 of the standard meal allowance. H&r block advantage Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. H&r block advantage Example. H&r block advantage Jen is employed in New Orleans as a convention planner. H&r block advantage In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. H&r block advantage She left her home in New Orleans at 10 a. H&r block advantage m. H&r block advantage on Wednesday and arrived in Washington, DC, at 5:30 p. H&r block advantage m. H&r block advantage After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. H&r block advantage m. H&r block advantage Jen's employer gave her a flat amount to cover her expenses and included it with her wages. H&r block advantage Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. H&r block advantage Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. H&r block advantage For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. H&r block advantage Travel in the United States The following discussion applies to travel in the United States. H&r block advantage For this purpose, the United States includes only the 50 states and the District of Columbia. H&r block advantage The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. H&r block advantage See Part of Trip Outside the United States , later. H&r block advantage Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. H&r block advantage If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. H&r block advantage These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. H&r block advantage Example. H&r block advantage You work in Atlanta and take a business trip to New Orleans in May. H&r block advantage On your way home, you stop in Mobile to visit your parents. H&r block advantage You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. H&r block advantage If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. H&r block advantage You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. H&r block advantage The deduction for your meals is subject to the 50% limit on meals mentioned earlier. H&r block advantage Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. H&r block advantage However, you can deduct any expenses you have while at your destination that are directly related to your business. H&r block advantage A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. H&r block advantage The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. H&r block advantage Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. H&r block advantage For the part of your trip that is inside the United States, use the rules for travel in the United States. H&r block advantage Travel outside the United States does not include travel from one point in the United States to another point in the United States. H&r block advantage The following discussion can help you determine whether your trip was entirely within the United States. H&r block advantage Public transportation. H&r block advantage   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. H&r block advantage Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . H&r block advantage Example. H&r block advantage You fly from New York to Puerto Rico with a scheduled stop in Miami. H&r block advantage You return to New York nonstop. H&r block advantage The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. H&r block advantage Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. H&r block advantage Private car. H&r block advantage   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. H&r block advantage Example. H&r block advantage You travel by car from Denver to Mexico City and return. H&r block advantage Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. H&r block advantage The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. H&r block advantage Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. H&r block advantage For this purpose, the United States includes only the 50 states and the District of Columbia. H&r block advantage How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. H&r block advantage See chapter 1 of Publication 463 for information on luxury water travel. H&r block advantage Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. H&r block advantage Travel entirely for business. H&r block advantage   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. H&r block advantage Travel considered entirely for business. H&r block advantage   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. H&r block advantage Exception 1 - No substantial control. H&r block advantage   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. H&r block advantage The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. H&r block advantage   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. H&r block advantage    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . H&r block advantage   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. H&r block advantage    A self-employed person generally has substantial control over arranging business trips. H&r block advantage Exception 2 - Outside United States no more than a week. H&r block advantage   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. H&r block advantage One week means 7 consecutive days. H&r block advantage In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. H&r block advantage Exception 3 - Less than 25% of time on personal activities. H&r block advantage   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. H&r block advantage For this purpose, count both the day your trip began and the day it ended. H&r block advantage Exception 4 - Vacation not a major consideration. H&r block advantage   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. H&r block advantage Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. H&r block advantage You can only deduct the business portion of your cost of getting to and from your destination. H&r block advantage You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. H&r block advantage These travel allocation rules are discussed in chapter 1 of Publication 463. H&r block advantage You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. H&r block advantage In those cases, you can deduct the total cost of getting to and from your destination. H&r block advantage Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. H&r block advantage If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. H&r block advantage Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. H&r block advantage You cannot deduct the travel expenses for your family. H&r block advantage If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. H&r block advantage Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. H&r block advantage You can deduct your travel expenses only if your attendance is connected to your own trade or business. H&r block advantage Convention agenda. H&r block advantage   The convention agenda or program generally shows the purpose of the convention. H&r block advantage You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. H&r block advantage The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. H&r block advantage Conventions held outside the North American area. H&r block advantage    See chapter 1 of Publication 463 for information on conventions held outside the North American area. H&r block advantage Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. H&r block advantage You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. H&r block advantage Directly-related test. H&r block advantage Associated test. H&r block advantage Both of these tests are explained in chapter 2 of Publication 463. H&r block advantage The amount you can deduct for entertainment expenses may be limited. H&r block advantage Generally, you can deduct only 50% of your unreimbursed entertainment expenses. H&r block advantage This limit is discussed next. H&r block advantage 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. H&r block advantage (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. H&r block advantage See Individuals subject to “hours of service” limits , later. H&r block advantage ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. H&r block advantage Figure 26-A summarizes the general rules explained in this section. H&r block advantage The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. H&r block advantage Included expenses. H&r block advantage   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. H&r block advantage However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. H&r block advantage Application of 50% limit. H&r block advantage   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later in this section. H&r block advantage   The 50% limit also applies to certain meal and entertainment expenses that are not business related. H&r block advantage It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. H&r block advantage It also applies to the cost of meals included in deductible educational expenses. H&r block advantage When to apply the 50% limit. H&r block advantage   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. H&r block advantage You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. H&r block advantage Example 1. H&r block advantage You spend $200 for a business-related meal. H&r block advantage If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. H&r block advantage Your deduction cannot be more than $45 (. H&r block advantage 50 × $90). H&r block advantage Example 2. H&r block advantage You purchase two tickets to a concert and give them to a client. H&r block advantage You purchased the tickets through a ticket agent. H&r block advantage You paid $200 for the two tickets, which had a face value of $80 each ($160 total). H&r block advantage Your deduction cannot be more than $80 (. H&r block advantage 50 × $160). H&r block advantage Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. H&r block advantage Figure 26-A can help you determine if the 50% limit applies to you. H&r block advantage Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. H&r block advantage Employee's reimbursed expenses. H&r block advantage   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. H&r block advantage Accountable plans are discussed later under Reimbursements . H&r block advantage Individuals subject to “hours of service” limits. H&r block advantage   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. H&r block advantage The percentage is 80%. H&r block advantage   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. H&r block advantage Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. H&r block advantage Interstate truck operators and bus drivers who are under Department of Transportation regulations. H&r block advantage Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. H&r block advantage Certain merchant mariners who are under Coast Guard regulations. H&r block advantage Other exceptions. H&r block advantage   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. H&r block advantage These are discussed in Publication 463. H&r block advantage Figure 26-A. H&r block advantage Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. H&r block advantage See Exceptions to the 50% Limit . H&r block advantage Please click here for the text description of the image. H&r block advantage Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. H&r block advantage Entertainment. H&r block advantage    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. H&r block advantage Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. H&r block advantage A meal as a form of entertainment. H&r block advantage   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. H&r block advantage A meal expense includes the cost of food, beverages, taxes, and tips for the meal. H&r block advantage To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. H&r block advantage You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. H&r block advantage Separating costs. H&r block advantage   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. H&r block advantage You must have a reasonable basis for making this allocation. H&r block advantage For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. H&r block advantage Taking turns paying for meals or entertainment. H&r block advantage   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. H&r block advantage Lavish or extravagant expenses. H&r block advantage   You cannot deduct expenses for entertainment that are lavish or extravagant. H&r block advantage An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. H&r block advantage Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. H&r block advantage Trade association meetings. H&r block advantage    You can deduct entertainment expenses that are directly related to, and necessary for, attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. H&r block advantage These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. H&r block advantage Entertainment tickets. H&r block advantage   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. H&r block advantage For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. H&r block advantage What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. H&r block advantage Club dues and membership fees. H&r block advantage   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. H&r block advantage This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities. H&r block advantage   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. H&r block advantage You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. H&r block advantage Entertainment facilities. H&r block advantage   Generally, you cannot deduct any expense for the use of an entertainment facility. H&r block advantage This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. H&r block advantage   An entertainment facility is any property you own, rent, or use for entertainment. H&r block advantage Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. H&r block advantage Out-of-pocket expenses. H&r block advantage   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. H&r block advantage These are not expenses for the use of an entertainment facility. H&r block advantage However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. H&r block advantage Additional information. H&r block advantage   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. H&r block advantage Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. H&r block advantage This section explains the limits and rules for deducting the costs of gifts. H&r block advantage $25 limit. H&r block advantage   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. H&r block advantage A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. H&r block advantage   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. H&r block advantage This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. H&r block advantage   If you and your spouse both give gifts, both of you are treated as one taxpayer. H&r block advantage It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. H&r block advantage If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. H&r block advantage Incidental costs. H&r block advantage   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. H&r block advantage   A cost is incidental only if it does not add substantial value to the gift. H&r block advantage For example, the cost of customary gift wrapping is an incidental cost. H&r block advantage However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. H&r block advantage Exceptions. H&r block advantage   The following items are not considered gifts for purposes of the $25 limit. H&r block advantage An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. H&r block advantage Examples include pens, desk sets, and plastic bags and cases. H&r block advantage Signs, display racks, or other promotional material to be used on the business premises of the recipient. H&r block advantage Gift or entertainment. H&r block advantage   Any item that might be considered either a gift or entertainment generally will be considered entertainment. H&r block advantage However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. H&r block advantage    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. H&r block advantage You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. H&r block advantage    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. H&r block advantage You cannot choose, in this case, to treat the cost of the tickets as a gift expense. H&r block advantage Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . H&r block advantage These expenses include the cost of transportation by air, rail, bus, taxi, etc. H&r block advantage , and the cost of driving and maintaining your car. H&r block advantage Transportation expenses include the ordinary and necessary costs of all of the following. H&r block advantage Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. H&r block advantage (Tax home is defined earlier under Travel Expenses . H&r block advantage ) Visiting clients or customers. H&r block advantage Going to a business meeting away from your regular workplace. H&r block advantage Getting from your home to a temporary workplace when you have one or more regular places of work. H&r block advantage These temporary workplaces can be either within the area of your tax home or outside that area. H&r block advantage Transportation expenses do not include expenses you have while traveling away from home overnight. H&r block advantage Those expenses are travel expenses, discussed earlier. H&r block advantage However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. H&r block advantage See Car Expenses , later. H&r block advantage Illustration of transportation expenses. H&r block advantage    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. H&r block advantage You may want to refer to it when deciding whether you can deduct your transportation expenses. H&r block advantage Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. H&r block advantage However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. H&r block advantage Temporary work location. H&r block advantage   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. H&r block advantage   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. H&r block advantage   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. H&r block advantage   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. H&r block advantage It will not be treated as temporary after the date you determine it will last more than 1 year. H&r block advantage   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. H&r block advantage You may have deductible travel expenses as discussed earlier in this chapter. H&r block advantage No regular place of work. H&r block advantage   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. H&r block advantage   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. H&r block advantage   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. H&r block advantage These are nondeductible commuting expenses. H&r block advantage Two places of work. H&r block advantage   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. H&r block advantage However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. H&r block advantage   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. H&r block advantage You cannot deduct them. H&r block advantage Armed Forces reservists. H&r block advantage   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. H&r block advantage You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. H&r block advantage   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. H&r block advantage In this case, your transportation generally is a nondeductible commuting expense. H&r block advantage However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. H&r block advantage   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. H&r block advantage   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. H&r block advantage These expenses are discussed earlier under Travel Expenses . H&r block advantage   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. H&r block advantage See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. H&r block advantage Commuting expenses. H&r block advantage   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. H&r block advantage These costs are personal commuting expenses. H&r block advantage You cannot deduct commuting expenses no matter how far your home is from your regular place of work. H&r block advantage You cannot deduct commuting expenses even if you work during the commuting trip. H&r block advantage Example. H&r block advantage You sometimes use your cell phone to make business calls while commuting to and from work. H&r block advantage Sometimes business associates ride with you to and from work, and you have a business discussion in the car. H&r block advantage These activities do not change the trip from personal to business. H&r block advantage You cannot deduct your commuting expenses. H&r block advantage Parking fees. H&r block advantage   Fees you pay to park your car at your place of business are nondeductible commuting expenses. H&r block advantage You can, however, deduct business-related parking fees when visiting a customer or client. H&r block advantage Advertising display on car. H&r block advantage   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. H&r block advantage If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. H&r block advantage Car pools. H&r block advantage   You cannot deduct the cost of using your car in a nonprofit car pool. H&r block advantage Do not include payments you receive from the passengers in your income. H&r block advantage These payments are considered reimbursements of your expenses. H&r block advantage However, if you operate a car pool for a profit, you must include payments from passengers in your income. H&r block advantage You can then deduct your car expenses (using the rules in this chapter). H&r block advantage Hauling tools or instruments. H&r block advantage   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. H&r block advantage However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). H&r block advantage Union members' trips from a union hall. H&r block advantage   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. H&r block advantage Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. H&r block advantage Office in the home. H&r block advantage   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. H&r block advantage (See chapter 28 for information on determining if your home office qualifies as a principal place of business. H&r block advantage ) Figure 26-B. H&r block advantage When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. H&r block advantage (Do not use this chart if your home is your principal place of business. H&r block advantage See Office in the home . H&r block advantage ) Please click here for the text description of the image. H&r block advantage Figure 26-B. H&r block advantage Local Transportation Examples of deductible transportation. H&r block advantage   The following examples show when you can deduct transportation expenses based on the location of your work and your home. H&r block advantage Example 1. H&r block advantage You regularly work in an office in the city where you live. H&r block advantage Your employer sends you to a 1-week training session at a different office in the same city. H&r block advantage You travel directly from your home to the training location and return each day. H&r block advantage You can deduct the cost of your daily round-trip transportation between your home and the training location. H&r block advantage Example 2. H&r block advantage Your principal place of business is in your home. H&r block advantage You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. H&r block advantage Example 3. H&r block advantage You have no regular office, and you do not have an office in your home. H&r block advantage In this case, the location of your first business contact inside the metropolitan area is considered your office. H&r block advantage Transportation expenses between your home and this first contact are nondeductible commuting expenses. H&r block advantage Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. H&r block advantage While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. H&r block advantage With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. H&r block advantage Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. H&r block advantage You generally can use one of the two following methods to figure your deductible expenses. H&r block advantage Standard mileage rate. H&r block advantage Actual car expenses. H&r block advantage If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. H&r block advantage See Leasing a car under Actual Car Expenses, later. H&r block advantage In this chapter, “car” includes a van, pickup, or panel truck. H&r block advantage Rural mail carriers. H&r block advantage   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. H&r block advantage Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. H&r block advantage   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). H&r block advantage You must complete Form 2106 and attach it to your Form 1040. H&r block advantage   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. H&r block advantage It is given as an equipment maintenance allowance (EMA) to employees of the U. H&r block advantage S. H&r block advantage Postal Service. H&r block advantage It is at the rate contained in the 1991 collective bargaining agreement. H&r block advantage Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. H&r block advantage See your employer for information on your reimbursement. H&r block advantage If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. H&r block advantage Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. H&r block advantage For 2013, the standard mileage rate for business use is 56½ cents per mile. H&r block advantage If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. H&r block advantage You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. H&r block advantage See Reimbursements under How To Report, later. H&r block advantage Choosing the standard mileage rate. H&r block advantage   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. H&r block advantage Then in later years, you can choose to use either the standard mileage rate or actual expenses. H&r block advantage   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. H&r block advantage   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. H&r block advantage You cannot revoke the choice. H&r block advantage However, in a later year, you can switch from the standard mileage rate to the actual expenses method. H&r block advantage If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. H&r block advantage Example. H&r block advantage Larry is an employee who occasionally uses his own car for business purposes. H&r block advantage He purchased the car in 2011, but he did not claim any unreimburse