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H&r Block State Taxes

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H&r Block State Taxes

H&r block state taxes Publication 587 - Main Content Table of Contents Qualifying for a DeductionExclusive Use Regular Use Trade or Business Use Principal Place of Business Place To Meet Patients, Clients, or Customers Separate Structure Figuring the DeductionUsing Actual Expenses Using the Simplified Method Daycare Facility Standard meal and snack rates. H&r block state taxes Sale or Exchange of Your HomeGain on Sale Depreciation Basis Adjustment Reporting the Sale More Information Business Furniture and EquipmentListed Property Property Bought for Business Use Personal Property Converted to Business Use Recordkeeping Where To DeductSelf-Employed Persons Employees Partners How To Get Tax HelpLow Income Taxpayer Clinics Worksheet To Figure the Deduction for Business Use of Your HomeInstructions for the Worksheet Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Instructions for the Simplified Method Worksheet Instructions for the Daycare Facility Worksheet Instructions for the Area Adjustment Worksheet Qualifying for a Deduction Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. H&r block state taxes However, you may be able to deduct expenses related to the business use of part of your home if you meet specific requirements. H&r block state taxes Even then, the deductible amount of these types of expenses may be limited. H&r block state taxes Use this section and Figure A, later, to decide if you can deduct expenses for the business use of your home. H&r block state taxes To qualify to deduct expenses for business use of your home, you must use part of your home: Exclusively and regularly as your principal place of business (defined later), Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, In the case of a separate structure which is not attached to your home, in connection with your trade or business, On a regular basis for certain storage use (see Storage of inventory or product samples , later), For rental use (see Publication 527), or As a daycare facility (see Daycare Facility , later). H&r block state taxes Additional tests for employee use. H&r block state taxes   If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. H&r block state taxes You must meet the tests discussed earlier plus: Your business use must be for the convenience of your employer, and You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer. H&r block state taxes If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home. H&r block state taxes Exclusive Use To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. H&r block state taxes The area used for business can be a room or other separately identifiable space. H&r block state taxes The space does not need to be marked off by a permanent partition. H&r block state taxes You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. H&r block state taxes Example. H&r block state taxes You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. H&r block state taxes Your family also uses the den for recreation. H&r block state taxes The den is not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den. H&r block state taxes Exceptions to Exclusive Use You do not have to meet the exclusive use test if either of the following applies. H&r block state taxes You use part of your home for the storage of inventory or product samples (discussed next). H&r block state taxes You use part of your home as a daycare facility, discussed later under Daycare Facility . H&r block state taxes Note. H&r block state taxes With the exception of these two uses, any portion of the home used for business purposes must meet the exclusive use test. H&r block state taxes Storage of inventory or product samples. H&r block state taxes    If you use part of your home for storage of inventory or product samples, you can deduct expenses for the business use of your home without meeting the exclusive use test. H&r block state taxes However, you must meet all the following tests. H&r block state taxes You sell products at wholesale or retail as your trade or business. H&r block state taxes You keep the inventory or product samples in your home for use in your trade or business. H&r block state taxes Your home is the only fixed location of your trade or business. H&r block state taxes You use the storage space on a regular basis. H&r block state taxes The space you use is a separately identifiable space suitable for storage. H&r block state taxes Example. H&r block state taxes Your home is the only fixed location of your business of selling mechanics' tools at retail. H&r block state taxes You regularly use half of your basement for storage of inventory and product samples. H&r block state taxes You sometimes use the area for personal purposes. H&r block state taxes The expenses for the storage space are deductible even though you do not use this part of your basement exclusively for business. H&r block state taxes Regular Use To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. H&r block state taxes Incidental or occasional business use is not regular use. H&r block state taxes You must consider all facts and circumstances in determining whether your use is on a regular basis. H&r block state taxes Trade or Business Use To qualify under the trade-or-business-use test, you must use part of your home in connection with a trade or business. H&r block state taxes If you use your home for a profit-seeking activity that is not a trade or business, you cannot take a deduction for its business use. H&r block state taxes Example. H&r block state taxes You use part of your home exclusively and regularly to read financial periodicals and reports, clip bond coupons, and carry out similar activities related to your own investments. H&r block state taxes You do not make investments as a broker or dealer. H&r block state taxes So, your activities are not part of a trade or business and you cannot take a deduction for the business use of your home. H&r block state taxes Principal Place of Business You can have more than one business location, including your home, for a single trade or business. H&r block state taxes To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that trade or business. H&r block state taxes To determine whether your home is your principal place of business, you must consider: The relative importance of the activities performed at each place where you conduct business, and The amount of time spent at each place where you conduct business. H&r block state taxes Your home office will qualify as your principal place of business if you meet the following requirements. H&r block state taxes You use it exclusively and regularly for administrative or management activities of your trade or business. H&r block state taxes You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. H&r block state taxes If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. H&r block state taxes However, see the later discussions under Place To Meet Patients, Clients, or Customers and Separate Structure for other ways to qualify to deduct home office expenses. H&r block state taxes Administrative or management activities. H&r block state taxes   There are many activities that are administrative or managerial in nature. H&r block state taxes The following are a few examples. H&r block state taxes Billing customers, clients, or patients. H&r block state taxes Keeping books and records. H&r block state taxes Ordering supplies. H&r block state taxes Setting up appointments. H&r block state taxes Forwarding orders or writing reports. H&r block state taxes Administrative or management activities performed at other locations. H&r block state taxes   The following activities performed by you or others will not disqualify your home office from being your principal place of business. H&r block state taxes You have others conduct your administrative or management activities at locations other than your home. H&r block state taxes (For example, another company does your billing from its place of business. H&r block state taxes ) You conduct administrative or management activities at places that are not fixed locations of your business, such as in a car or a hotel room. H&r block state taxes You occasionally conduct minimal administrative or management activities at a fixed location outside your home. H&r block state taxes You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home. H&r block state taxes (For example, you meet with or provide services to customers, clients, or patients at a fixed location of the business outside your home. H&r block state taxes ) You have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activities instead. H&r block state taxes Please click here for the text description of the image. H&r block state taxes Can you deduct business use of the home expenses? Example 1. H&r block state taxes John is a self-employed plumber. H&r block state taxes Most of John's time is spent at customers' homes and offices installing and repairing plumbing. H&r block state taxes He has a small office in his home that he uses exclusively and regularly for the administrative or management activities of his business, such as phoning customers, ordering supplies, and keeping his books. H&r block state taxes John writes up estimates and records of work completed at his customers' premises. H&r block state taxes He does not conduct any substantial administrative or management activities at any fixed location other than his home office. H&r block state taxes John does not do his own billing. H&r block state taxes He uses a local bookkeeping service to bill his customers. H&r block state taxes John's home office qualifies as his principal place of business for deducting expenses for its use. H&r block state taxes He uses the home office for the administrative or managerial activities of his plumbing business and he has no other fixed location where he conducts these administrative or managerial activities. H&r block state taxes His choice to have his billing done by another company does not disqualify his home office from being his principal place of business. H&r block state taxes He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. H&r block state taxes Example 2. H&r block state taxes Pamela is a self-employed sales representative for several different product lines. H&r block state taxes She has an office in her home that she uses exclusively and regularly to set up appointments and write up orders and other reports for the companies whose products she sells. H&r block state taxes She occasionally writes up orders and sets up appointments from her hotel room when she is away on business overnight. H&r block state taxes Pamela's business is selling products to customers at various locations throughout her territory. H&r block state taxes To make these sales, she regularly visits customers to explain the available products and take orders. H&r block state taxes Pamela's home office qualifies as her principal place of business for deducting expenses for its use. H&r block state taxes She conducts administrative or management activities there and she has no other fixed location where she conducts substantial administrative or management activities. H&r block state taxes The fact that she conducts some administrative or management activities in her hotel room (not a fixed location) does not disqualify her home office from being her principal place of business. H&r block state taxes She meets all the qualifications, including principal place of business, so she can deduct expenses (subject to certain limitations, explained later) for the business use of her home. H&r block state taxes Example 3. H&r block state taxes Paul is a self-employed anesthesiologist. H&r block state taxes He spends the majority of his time administering anesthesia and postoperative care in three local hospitals. H&r block state taxes One of the hospitals provides him with a small shared office where he could conduct administrative or management activities. H&r block state taxes Paul very rarely uses the office the hospital provides. H&r block state taxes He uses a room in his home that he has converted to an office. H&r block state taxes He uses this room exclusively and regularly to conduct all the following activities. H&r block state taxes Contacting patients, surgeons, and hospitals regarding scheduling. H&r block state taxes Preparing for treatments and presentations. H&r block state taxes Maintaining billing records and patient logs. H&r block state taxes Satisfying continuing medical education requirements. H&r block state taxes Reading medical journals and books. H&r block state taxes Paul's home office qualifies as his principal place of business for deducting expenses for its use. H&r block state taxes He conducts administrative or management activities for his business as an anesthesiologist there and he has no other fixed location where he conducts substantial administrative or management activities for this business. H&r block state taxes His choice to use his home office instead of the one provided by the hospital does not disqualify his home office from being his principal place of business. H&r block state taxes His performance of substantial nonadministrative or nonmanagement activities at fixed locations outside his home also does not disqualify his home office from being his principal place of business. H&r block state taxes He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. H&r block state taxes Example 4. H&r block state taxes Kathleen is employed as a teacher. H&r block state taxes She is required to teach and meet with students at the school and to grade papers and tests. H&r block state taxes The school provides her with a small office where she can work on her lesson plans, grade papers and tests, and meet with parents and students. H&r block state taxes The school does not require her to work at home. H&r block state taxes Kathleen prefers to use the office she has set up in her home and does not use the one provided by the school. H&r block state taxes She uses this home office exclusively and regularly for the administrative duties of her teaching job. H&r block state taxes Kathleen must meet the convenience-of-the-employer test, even if her home qualifies as her principal place of business for deducting expenses for its use. H&r block state taxes Her employer provides her with an office and does not require her to work at home, so she does not meet the convenience-of-the-employer test and cannot claim a deduction for the business use of her home. H&r block state taxes More Than One Trade or Business The same home office can be the principal place of business for two or more separate business activities. H&r block state taxes Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. H&r block state taxes You must use the home office exclusively and regularly for one or more of the following purposes. H&r block state taxes As the principal place of business for one or more of your trades or businesses. H&r block state taxes As a place to meet or deal with patients, clients, or customers in the normal course of one or more of your trades or businesses. H&r block state taxes If your home office is a separate structure, in connection with one or more of your trades or businesses. H&r block state taxes You can use your home office for more than one business activity, but you cannot use it for any nonbusiness (i. H&r block state taxes e. H&r block state taxes , personal) activities. H&r block state taxes If you are an employee, any use of the home office in connection with your employment must be for the convenience of your employer. H&r block state taxes See Rental to employer , later, if you rent part of your home to your employer. H&r block state taxes Example. H&r block state taxes Tracy White is employed as a teacher. H&r block state taxes Her principal place of work is the school, which provides her office space to do her school work. H&r block state taxes She also has a mail order jewelry business. H&r block state taxes All her work in the jewelry business is done in her home office and the office is used exclusively for that business. H&r block state taxes If she meets all the other tests, she can deduct expenses for the business use of her home for the jewelry business. H&r block state taxes If Tracy also uses the office for work related to her teaching, she must meet the exclusive use test for both businesses to qualify for the deduction. H&r block state taxes As an employee, Tracy must also meet the convenience-of-the-employer test to qualify for the deduction. H&r block state taxes She does not meet this test for her work as a teacher, so she cannot claim a deduction for the business use of her home for either activity. H&r block state taxes Place To Meet Patients, Clients, or Customers If you meet or deal with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business if you meet both the following tests. H&r block state taxes You physically meet with patients, clients, or customers on your premises. H&r block state taxes Their use of your home is substantial and integral to the conduct of your business. H&r block state taxes Doctors, dentists, attorneys, and other professionals who maintain offices in their homes generally will meet this requirement. H&r block state taxes Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the business use of your home. H&r block state taxes The part of your home you use exclusively and regularly to meet patients, clients, or customers does not have to be your principal place of business. H&r block state taxes Example. H&r block state taxes June Quill, a self-employed attorney, works 3 days a week in her city office. H&r block state taxes She works 2 days a week in her home office used only for business. H&r block state taxes She regularly meets clients there. H&r block state taxes Her home office qualifies for a business deduction because she meets clients there in the normal course of her business. H&r block state taxes Separate Structure You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. H&r block state taxes The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers. H&r block state taxes Example. H&r block state taxes John Berry operates a floral shop in town. H&r block state taxes He grows the plants for his shop in a greenhouse behind his home. H&r block state taxes He uses the greenhouse exclusively and regularly in his business, so he can deduct the expenses for its use, subject to certain limitations, explained later. H&r block state taxes Figuring the Deduction After you determine that you meet the tests under Qualifying for a Deduction , you can begin to figure how much you can deduct. H&r block state taxes When figuring the amount you can deduct for the business use of your home, you will use either your actual expenses or a simplified method. H&r block state taxes Electing to use the simplified method. H&r block state taxes   The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. H&r block state taxes You choose whether or not to figure your deduction using the simplified method each taxable year. H&r block state taxes See Using the Simplified Method , later. H&r block state taxes Rental to employer. H&r block state taxes   If you rent part of your home to your employer and you use the rented part in performing services for your employer as an employee, your deduction for the business use of your home is limited. H&r block state taxes You can deduct mortgage interest, qualified mortgage insurance premiums, real estate taxes, and personal casualty losses for the rented part, subject to any limitations. H&r block state taxes However, you cannot deduct otherwise allowable trade or business expenses, business casualty losses, or depreciation related to the use of your home (or use the simplified method as an alternative to deducting these actual expenses) in performing services for your employer. H&r block state taxes Using Actual Expenses If you do not or cannot elect to use the simplified method for a home, you will figure your deduction for that home using your actual expenses. H&r block state taxes You will also need to figure the percentage of your home used for business and the limit on the deduction. H&r block state taxes If you are an employee or a partner, or you use your home in your farming business and you file Schedule F (Form 1040), you can use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, to help you figure your deduction. H&r block state taxes If you use your home in a trade or business and you file Schedule C (Form 1040), you will use Form 8829 to figure your deduction. H&r block state taxes Part-year use. H&r block state taxes   You cannot deduct expenses for the business use of your home incurred during any part of the year you did not use your home for business purposes. H&r block state taxes For example, if you begin using part of your home for business on July 1, and you meet all the tests from that date until the end of the year, consider only your expenses for the last half of the year in figuring your allowable deduction. H&r block state taxes Expenses related to tax-exempt income. H&r block state taxes   Generally, you cannot deduct expenses that are related to tax-exempt allowances. H&r block state taxes However, if you receive a tax-exempt parsonage allowance or a tax-exempt military allowance, your expenses for mortgage interest and real estate taxes are deductible under the normal rules. H&r block state taxes No deduction is allowed for other expenses related to the tax-exempt allowance. H&r block state taxes   If your housing is provided free of charge and the value of the housing is tax exempt, you cannot deduct the rental value of any portion of the housing. H&r block state taxes Actual Expenses You must divide the expenses of operating your home between personal and business use. H&r block state taxes The part of a home operating expense you can use to figure your deduction depends on both of the following. H&r block state taxes Whether the expense is direct, indirect, or unrelated. H&r block state taxes The percentage of your home used for business. H&r block state taxes Table 1, next, describes the types of expenses you may have and the extent to which they are deductible. H&r block state taxes Table 1. H&r block state taxes Types of Expenses  Expense  Description  Deductibility Direct Expenses only for  the business part  of your home. H&r block state taxes Deductible in full. H&r block state taxes *   Examples:  Painting or repairs  only in the area  used for business. H&r block state taxes Exception: May be only partially  deductible in a daycare facility. H&r block state taxes See Daycare Facility , later. H&r block state taxes Indirect Expenses for  keeping up and running your  entire home. H&r block state taxes Deductible based on the percentage of your home used for business. H&r block state taxes *   Examples:  Insurance, utilities, and  general repairs. H&r block state taxes   Unrelated Expenses only for  the parts of your  home not used  for business. H&r block state taxes Not deductible. H&r block state taxes   Examples:  Lawn care or painting  a room not used  for business. H&r block state taxes   *Subject to the deduction limit, discussed later. H&r block state taxes Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses. H&r block state taxes Certain expenses are deductible whether or not you use your home for business. H&r block state taxes If you qualify to deduct business use of the home expenses, use the business percentage of these expenses to figure your total business use of the home deduction. H&r block state taxes These expenses include the following. H&r block state taxes Real estate taxes. H&r block state taxes Qualified mortgage insurance premiums. H&r block state taxes Deductible mortgage interest. H&r block state taxes Casualty losses. H&r block state taxes Other expenses are deductible only if you use your home for business. H&r block state taxes You can use the business percentage of these expenses to figure your total business use of the home deduction. H&r block state taxes These expenses generally include (but are not limited to) the following. H&r block state taxes Depreciation (covered under Depreciating Your Home , later). H&r block state taxes Insurance. H&r block state taxes Rent paid for the use of property you do not own but use in your trade or business. H&r block state taxes Repairs. H&r block state taxes Security system. H&r block state taxes Utilities and services. H&r block state taxes Real estate taxes. H&r block state taxes   To figure the business part of your real estate taxes, multiply the real estate taxes paid by the percentage of your home used for business. H&r block state taxes   For more information on the deduction for real estate taxes, see Publication 530, Tax Information for Homeowners. H&r block state taxes Deductible mortgage interest. H&r block state taxes   To figure the business part of your deductible mortgage interest, multiply this interest by the percentage of your home used for business. H&r block state taxes You can include interest on a second mortgage in this computation. H&r block state taxes If your total mortgage debt is more than $1,000,000 or your home equity debt is more than $100,000, your deduction may be limited. H&r block state taxes For more information on what interest is deductible, see Publication 936, Home Mortgage Interest Deduction. H&r block state taxes Qualified mortgage insurance premiums. H&r block state taxes   To figure the business part of your qualified mortgage insurance premiums, multiply the premiums by the percentage of your home used for business. H&r block state taxes You can include premiums for insurance on a second mortgage in this computation. H&r block state taxes If your adjusted gross income is more than $100,000 ($50,000 if your filing status is married filing separately), your deduction may be limited. H&r block state taxes For more information, see Publication 936, and Line 13 in the Instructions for Schedule A (Form 1040). H&r block state taxes Casualty losses. H&r block state taxes    If you have a casualty loss on your home that you use for business, treat the casualty loss as a direct expense, an indirect expense, or an unrelated expense, depending on the property affected. H&r block state taxes A direct expense is the loss on the portion of the property you use only in your business. H&r block state taxes Use the entire loss to figure the business use of the home deduction. H&r block state taxes An indirect expense is the loss on property you use for both business and personal purposes. H&r block state taxes Use only the business portion to figure the deduction. H&r block state taxes An unrelated expense is the loss on property you do not use in your business. H&r block state taxes Do not use any of the loss to figure the deduction. H&r block state taxes Example. H&r block state taxes You meet the rules to take a deduction for an office in your home that is 10% of the total area of your house. H&r block state taxes A storm damages your roof. H&r block state taxes This is an indirect expense as the roof is part of the whole house and is considered to be used both for business and personal purposes. H&r block state taxes You would complete Form 4684, Casualties and Thefts, to report your loss. H&r block state taxes You complete both section A (Personal Use Property) and section B (Business and Income-Producing Property) as your home is used both for business and personal purposes. H&r block state taxes Since you use 90% of your home for personal purposes, use 90% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 2, 3, 5, and 6 of Form 4684. H&r block state taxes Since you use 10% of your home for business purposes, use 10% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 20, 21, 23, and 24 of Form 4684. H&r block state taxes Forms and worksheets to use. H&r block state taxes   If you are filing Schedule C (Form 1040), get Form 8829 and follow the instructions for casualty losses. H&r block state taxes If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. H&r block state taxes You will also need to get Form 4684. H&r block state taxes More information. H&r block state taxes   For more information on casualty losses, see Publication 547, Casualties, Disasters, and Thefts. H&r block state taxes Insurance. H&r block state taxes   You can deduct the cost of insurance that covers the business part of your home. H&r block state taxes However, if your insurance premium gives you coverage for a period that extends past the end of your tax year, you can deduct only the business percentage of the part of the premium that gives you coverage for your tax year. H&r block state taxes You can deduct the business percentage of the part that applies to the following year in that year. H&r block state taxes Rent. H&r block state taxes   If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. H&r block state taxes To figure your deduction, multiply your rent payments by the percentage of your home used for business. H&r block state taxes   If you own your home, you cannot deduct the fair rental value of your home. H&r block state taxes However, see Depreciating Your Home , later. H&r block state taxes Repairs. H&r block state taxes   The cost of repairs that relate to your business, including labor (other than your own labor), is a deductible expense. H&r block state taxes For example, a furnace repair benefits the entire home. H&r block state taxes If you use 10% of your home for business, you can deduct 10% of the cost of the furnace repair. H&r block state taxes   Repairs keep your home in good working order over its useful life. H&r block state taxes Examples of common repairs are patching walls and floors, painting, wallpapering, repairing roofs and gutters, and mending leaks. H&r block state taxes However, repairs are sometimes treated as a permanent improvement and are not deductible. H&r block state taxes See Permanent improvements , later, under Depreciating Your Home. H&r block state taxes Security system. H&r block state taxes   If you install a security system that protects all the doors and windows in your home, you can deduct the business part of the expenses you incur to maintain and monitor the system. H&r block state taxes You also can take a depreciation deduction for the part of the cost of the security system relating to the business use of your home. H&r block state taxes Utilities and services. H&r block state taxes   Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning services, are primarily personal expenses. H&r block state taxes However, if you use part of your home for business, you can deduct the business part of these expenses. H&r block state taxes Generally, the business percentage for utilities is the same as the percentage of your home used for business. H&r block state taxes Telephone. H&r block state taxes   The basic local telephone service charge, including taxes, for the first telephone line into your home (i. H&r block state taxes e. H&r block state taxes , landline) is a nondeductible personal expense. H&r block state taxes However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. H&r block state taxes Do not include these expenses as a cost of using your home for business. H&r block state taxes Deduct these charges separately on the appropriate form or schedule. H&r block state taxes For example, if you file Schedule C (Form 1040), deduct these expenses on line 25, Utilities (instead of line 30, Expenses for business use of your home). H&r block state taxes Depreciating Your Home If you own your home and qualify to deduct expenses for its business use, you can claim a deduction for depreciation. H&r block state taxes Depreciation is an allowance for the wear and tear on the part of your home used for business. H&r block state taxes You cannot depreciate the cost or value of the land. H&r block state taxes You recover its cost when you sell or otherwise dispose of the property. H&r block state taxes Before you figure your depreciation deduction, you need to know the following information. H&r block state taxes The month and year you started using your home for business. H&r block state taxes The adjusted basis and fair market value of your home (excluding land) at the time you began using it for business. H&r block state taxes The cost of any improvements before and after you began using the property for business. H&r block state taxes The percentage of your home used for business. H&r block state taxes See Business Percentage , later. H&r block state taxes Adjusted basis defined. H&r block state taxes   The adjusted basis of your home is generally its cost, plus the cost of any permanent improvements you made to it, minus any casualty losses or depreciation deducted in earlier tax years. H&r block state taxes For a discussion of adjusted basis, see Publication 551. H&r block state taxes Permanent improvements. H&r block state taxes   A permanent improvement increases the value of property, adds to its life, or gives it a new or different use. H&r block state taxes Examples of improvements are replacing electric wiring or plumbing, adding a new roof or addition, paneling, or remodeling. H&r block state taxes    You must carefully distinguish between repairs and improvements. H&r block state taxes See Repairs , earlier, under Actual Expenses. H&r block state taxes You also must keep accurate records of these expenses. H&r block state taxes These records will help you decide whether an expense is a deductible or a capital (added to the basis) expense. H&r block state taxes However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement. H&r block state taxes Example. H&r block state taxes You buy an older home and fix up two rooms as a beauty salon. H&r block state taxes You patch the plaster on the ceilings and walls, paint, repair the floor, install an outside door, and install new wiring, plumbing, and other equipment. H&r block state taxes Normally, the patching, painting, and floor work are repairs and the other expenses are permanent improvements. H&r block state taxes However, because the work gives your property a new use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. H&r block state taxes You cannot deduct any portion of it as a repair expense. H&r block state taxes Adjusting for depreciation deducted in earlier years. H&r block state taxes   Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you properly selected. H&r block state taxes If you deducted less depreciation than you could have under the method you selected, decrease the basis by the amount you could have deducted under that method. H&r block state taxes If you did not deduct any depreciation, decrease the basis by the amount you could have deducted. H&r block state taxes   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any year. H&r block state taxes   If you deducted the incorrect amount of depreciation, see Publication 946. H&r block state taxes Fair market value defined. H&r block state taxes   The fair market value of your home is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. H&r block state taxes Sales of similar property, on or about the date you begin using your home for business, may be helpful in determining the property's fair market value. H&r block state taxes Figuring the depreciation deduction for the current year. H&r block state taxes   If you began using your home for business before 2013, continue to use the same depreciation method you used in past tax years. H&r block state taxes   If you began using your home for business for the first time in 2013, depreciate the business part as nonresidential real property under the modified accelerated cost recovery system (MACRS). H&r block state taxes Under MACRS, nonresidential real property is depreciated using the straight line method over 39 years. H&r block state taxes For more information on MACRS and other methods of depreciation, see Publication 946. H&r block state taxes   To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). H&r block state taxes The depreciable basis is figured by multiplying the percentage of your home used for business by the smaller of the following. H&r block state taxes The adjusted basis of your home (excluding land) on the date you began using your home for business. H&r block state taxes The fair market value of your home (excluding land) on the date you began using your home for business. H&r block state taxes Depreciation table. H&r block state taxes   If 2013 was the first year you used your home for business, you can figure your 2013 depreciation for the business part of your home by using the appropriate percentage from the following table. H&r block state taxes Table 2. H&r block state taxes MACRS Percentage Table for 39-Year Nonresidential Real Property Month First Used for Business Percentage To Use 1 2. H&r block state taxes 461% 2 2. H&r block state taxes 247% 3 2. H&r block state taxes 033% 4 1. H&r block state taxes 819% 5 1. H&r block state taxes 605% 6 1. H&r block state taxes 391% 7 1. H&r block state taxes 177% 8 0. H&r block state taxes 963% 9 0. H&r block state taxes 749% 10 0. H&r block state taxes 535% 11 0. H&r block state taxes 321% 12 0. H&r block state taxes 107%   Multiply the depreciable basis of the business part of your home by the percentage from the table for the first month you use your home for business. H&r block state taxes See Publication 946 for the percentages for the remaining tax years of the recovery period. H&r block state taxes Example. H&r block state taxes In May, George Miller began to use one room in his home exclusively and regularly to meet clients. H&r block state taxes This room is 8% of the square footage of his home. H&r block state taxes He bought the home in 2003 for $125,000. H&r block state taxes He determined from his property tax records that his adjusted basis in the house (exclusive of land) is $115,000. H&r block state taxes In May, the house had a fair market value of $165,000. H&r block state taxes He multiplies his adjusted basis of $115,000 (which is less than the fair market value) by 8%. H&r block state taxes The result is $9,200, his depreciable basis for the business part of the house. H&r block state taxes George files his return based on the calendar year. H&r block state taxes May is the 5th month of his tax year. H&r block state taxes He multiplies his depreciable basis of $9,200 by 1. H&r block state taxes 605% (. H&r block state taxes 01605), the percentage from the table for the 5th month. H&r block state taxes His depreciation deduction is $147. H&r block state taxes 66. H&r block state taxes Depreciating permanent improvements. H&r block state taxes   Add the costs of permanent improvements made before you began using your home for business to the basis of your property. H&r block state taxes Depreciate these costs as part of the cost of your home as explained earlier. H&r block state taxes The costs of improvements made after you begin using your home for business (that affect the business part of your home, such as a new roof) are depreciated separately. H&r block state taxes Multiply the cost of the improvement by the business-use percentage and depreciate the result over the recovery period that would apply to your home if you began using it for business at the same time as the improvement. H&r block state taxes For improvements made this year, the recovery period is 39 years. H&r block state taxes For the percentage to use for the first year, see Table 2, earlier. H&r block state taxes For more information on recovery periods, see Publication 946. H&r block state taxes Business Percentage To find the business percentage, compare the size of the part of your home that you use for business to your whole house. H&r block state taxes Use the resulting percentage to figure the business part of the expenses for operating your entire home. H&r block state taxes You can use any reasonable method to determine the business percentage. H&r block state taxes The following are two commonly used methods for figuring the percentage. H&r block state taxes Divide the area (length multiplied by the width) used for business by the total area of your home. H&r block state taxes If the rooms in your home are all about the same size, you can divide the number of rooms used for business by the total number of rooms in your home. H&r block state taxes Example 1. H&r block state taxes Your office is 240 square feet (12 feet × 20 feet). H&r block state taxes Your home is 1,200 square feet. H&r block state taxes Your office is 20% (240 ÷ 1,200) of the total area of your home. H&r block state taxes Your business percentage is 20%. H&r block state taxes Example 2. H&r block state taxes You use one room in your home for business. H&r block state taxes Your home has 10 rooms, all about equal size. H&r block state taxes Your office is 10% (1 ÷ 10) of the total area of your home. H&r block state taxes Your business percentage is 10%. H&r block state taxes Use lines 1-7 of Form 8829, or lines 1-3 on the Worksheet To Figure the Deduction for Business Use of Your Home (near the end of this publication) to figure your business percentage. H&r block state taxes Deduction Limit If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. H&r block state taxes If your gross income from the business use of your home is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. H&r block state taxes Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation of your home (with depreciation of your home taken last), that are allocable to the business, is limited to the gross income from the business use of your home minus the sum of the following. H&r block state taxes The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). H&r block state taxes These expenses are discussed in detail under Actual Expenses , earlier. H&r block state taxes The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. H&r block state taxes If you are self-employed, do not include in (2) above your deduction for one-half of your self-employment tax. H&r block state taxes Carryover of unallowed expenses. H&r block state taxes   If your deductions are greater than the current year's limit, you can carry over the excess to the next year in which you use actual expenses. H&r block state taxes They are subject to the deduction limit for that year, whether or not you live in the same home during that year. H&r block state taxes Figuring the deduction limit and carryover. H&r block state taxes   If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. H&r block state taxes If you file Schedule C (Form 1040), figure your deduction limit and carryover on Form 8829. H&r block state taxes Example. H&r block state taxes You meet the requirements for deducting expenses for the business use of your home. H&r block state taxes You use 20% of your home for business. H&r block state taxes In 2013, your business expenses and the expenses for the business use of your home are deducted from your gross income in the following order. H&r block state taxes    Gross income from business $6,000 Minus:   Deductible mortgage interest and real estate taxes (20%) 3,000 Business expenses not related to the use of your home (100%) (business phone, supplies, and depreciation on equipment) 2,000 Deduction limit $1,000 Minus other expenses allocable to business use of home:   Maintenance, insurance, and utilities (20%) 800 Depreciation allowed (20% = $1,600 allowable, but subject to balance of deduction limit) 200 Other expenses up to the deduction limit $1,000 Depreciation carryover to 2014 ($1,600 − $200) (subject to deduction limit in 2014) $1,400   You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). H&r block state taxes You also can deduct all of your business expenses not related to the use of your home ($2,000). H&r block state taxes Additionally, you can deduct all of the business part of your expenses for maintenance, insurance, and utilities, because the total ($800) is less than the $1,000 deduction limit. H&r block state taxes Your deduction for depreciation for the business use of your home is limited to $200 ($1,000 minus $800) because of the deduction limit. H&r block state taxes You can carry over the $1,400 balance and add it to your depreciation for 2014, subject to your deduction limit in 2014. H&r block state taxes More than one place of business. H&r block state taxes   If part of the gross income from your trade or business is from the business use of part of your home and part is from a place other than your home, you must determine the part of your gross income from the business use of your home before you figure the deduction limit. H&r block state taxes In making this determination, consider the time you spend at each location, the business investment in each location, and any other relevant facts and circumstances. H&r block state taxes If your home office qualifies as your 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 state taxes For more information on transportation costs, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. H&r block state taxes Using the Simplified Method The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. H&r block state taxes In most cases, you will figure your deduction by multiplying $5, the prescribed rate, by the area of your home used for a qualified business use. H&r block state taxes The area you use to figure your deduction is limited to 300 square feet. H&r block state taxes See Simplified Amount , later, for information about figuring the amount of the deduction. H&r block state taxes For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06 I. H&r block state taxes R. H&r block state taxes B. H&r block state taxes 478, available at www. H&r block state taxes irs. H&r block state taxes gov/irb/2013-06_IRB/ar09. H&r block state taxes html. H&r block state taxes Actual expenses and depreciation of your home. H&r block state taxes   If you elect to use the simplified method, you cannot deduct any actual expenses for the business except for business expenses that are not related to the use of the home. H&r block state taxes You also cannot deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of the home that is used for a qualified business use. H&r block state taxes The depreciation deduction allowable for that portion of the home is deemed to be zero for a year you use the simplified method. H&r block state taxes If you figure your deduction for business use of the home using actual expenses in a subsequent year, you will have to use the appropriate optional depreciation table for MACRS to figure your depreciation. H&r block state taxes More information. H&r block state taxes   For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I. H&r block state taxes R. H&r block state taxes B. H&r block state taxes 478, available at www. H&r block state taxes irs. H&r block state taxes gov/irb/2013-06_IRB/ar09. H&r block state taxes html. H&r block state taxes See Publication 946 for the optional depreciation tables Although you cannot deduct any depreciation or section 179 expense for the portion of your home used for a qualified business use, you may still claim depreciation or the section 179 expense deduction on other assets used in the business (for example, furniture and equipment). H&r block state taxes Expenses deductible without regard to business use. H&r block state taxes   When using the simplified method, treat as personal expenses those business expenses related to the use of the home that are deductible without regard to whether there is a qualified business use of the home. H&r block state taxes These expenses include mortgage interest, real estate taxes, and casualty losses, subject to any limitations. H&r block state taxes See Where To Deduct , later. H&r block state taxes If you also rent part of your home, you must still allocate these expenses between rental use and personal use (for this purpose, personal use includes business use reported using the simplified method). H&r block state taxes No deduction of carryover of actual expenses. H&r block state taxes   If you used actual expenses to figure your deduction for business use of the home in a prior year and your deduction was limited, you cannot deduct the disallowed amount carried over from the prior year during a year you figure your deduction using the simplified method. H&r block state taxes Instead, you will continue to carry over the disallowed amount to the next year that you use actual expenses to figure your deduction. H&r block state taxes Electing the Simplified Method You choose whether or not to figure your deduction using the simplified method each taxable year. H&r block state taxes Make the election for a home by using the simplified method to figure the deduction for the qualified business use of that home on a timely filed, original federal income tax return. H&r block state taxes An election for a taxable year, once made, is irrevocable. H&r block state taxes A change from using the simplified method in one year to actual expenses in a succeeding taxable year, or vice-versa, is not a change in method of accounting and does not require the consent of the Commissioner. H&r block state taxes Shared use. H&r block state taxes   If you share your home with someone else who also uses the home in a business that qualifies for this deduction, each of you make your own election. H&r block state taxes More than one qualified business use. H&r block state taxes   If you conduct more than one business that qualifies for this deduction in your home, your election to use the simplified method applies to all your qualified business uses of that home. H&r block state taxes More than one home. H&r block state taxes   If you used more than one home during the year (for example, you moved during the year), you can elect to use the simplified method for only one of the homes. H&r block state taxes You must figure the deduction for any other home using actual expenses. H&r block state taxes Simplified Amount Your deduction for the qualified business use of a home is the sum of each amount you figure for a separate qualified business use of your home. H&r block state taxes To figure your deduction for the business use of a home using the simplified method, you will need to know the following information for each qualified business use of the home. H&r block state taxes The allowable area of your home used in conducting the business. H&r block state taxes If you did not conduct the business for the entire year in the home or the area changed during the year, you will need to know the allowable area you used and the number of days you conducted the business for each month. H&r block state taxes The gross income from the business use of your home. H&r block state taxes The amount of the business expenses that are not related to the use of your home. H&r block state taxes If the qualified business use is for a daycare facility that uses space in your home on a regular (but not exclusive) basis, you will also need to know the percentage of time that part of your home is used for daycare. H&r block state taxes To figure the amount you can deduct for qualified business use of your home using the simplified method, follow these 3 steps. H&r block state taxes Multiply the allowable area by $5 (or less than $5 if the qualified business use is for a daycare that uses space in your home on a regular, but not exclusive, basis). H&r block state taxes See Allowable area and Space used regularly for daycare , later. H&r block state taxes Subtract the expenses from the business that are not related to the use of the home from the gross income related to the business use of the home. H&r block state taxes If these expenses are greater than the gross income from the business use of the home, then you cannot take a deduction for this business use of the home. H&r block state taxes See Gross income limitation , later. H&r block state taxes Take the smaller of the amounts from (1) and (2). H&r block state taxes This is the amount you can deduct for this qualified business use of your home using the simplified method. H&r block state taxes If you are an employee or a partner, or you use your home in your farming business and file Schedule F (Form 1040), you can use the Simplified Method Worksheet, near the end of this publication, to help you figure your deduction. H&r block state taxes If you use your home in a trade or business and you file Schedule C (Form 1040), you will use the Simplified Method Worksheet in your Instructions for Schedule C to figure your deduction. H&r block state taxes Allowable area. H&r block state taxes   In most cases, the allowable area is the smaller of the actual area (in square feet) of your home used in conducting the business and 300 square feet. H&r block state taxes Your allowable area may be smaller if you conducted the business as a qualified joint venture with your spouse, the area used by the business was shared with another qualified business use, you used the home for the business for only part of the year, or the area used by the business changed during the year. H&r block state taxes You can use the Area Adjustment Worksheet (for simplified method), near the end of this publication, to help you figure your allowable area for a qualified business use. H&r block state taxes Area used by a qualified joint venture. H&r block state taxes   If the qualified business use of the home is also a qualified joint venture, you and your spouse will figure the deduction for the business use separately. H&r block state taxes Split the actual area used in conducting business between you and your spouse in the same manner you split your other tax attributes. H&r block state taxes Then, each spouse will figure the allowable area separately. H&r block state taxes For more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C. H&r block state taxes Shared use. H&r block state taxes   If you share your home with someone else who uses the home to conduct business that also qualifies for this deduction, you may not include the same square feet to figure your deduction as the other person. H&r block state taxes You must allocate the shared space between you and the other person in a reasonable manner. H&r block state taxes Example. H&r block state taxes Kristin and Lindsey are roommates. H&r block state taxes Kristin uses 300 square feet of their home for a qualified business use. H&r block state taxes Lindsey uses 200 square feet of their home for a separate qualified business use. H&r block state taxes The qualified business uses share 100 square feet. H&r block state taxes In addition to the portion that they do not share, Kristin and Lindsey can both claim 50 of the 100 square feet or divide the 100 square feet between them in any reasonable manner. H&r block state taxes If divided evenly, Kristin could claim 250 square feet using the simplified method and Lindsey could claim 150 square feet. H&r block state taxes More than one qualified business use. H&r block state taxes   If you conduct more than one business qualifying for the deduction, you are limited to a maximum of 300 square feet for all of the businesses. H&r block state taxes Allocate the actual square footage used (up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. H&r block state taxes However, do not allocate more square feet to a qualified business use than you actually use for that business. H&r block state taxes Rental use. H&r block state taxes   The simplified method does not apply to rental use. H&r block state taxes A rental use that qualifies for the deduction must be figured using actual expenses. H&r block state taxes If the rental use and a qualified business use share the same area, you will have to allocate the actual area used between the two uses. H&r block state taxes You cannot use the same area to figure a deduction for the qualified business use as you are using to figure the deduction for the rental use. H&r block state taxes Part-year use or area changes. H&r block state taxes   If your qualified business use was for a portion of the taxable year (for example, a seasonal business or a business that begins during the taxable year) or you changed the square footage of your qualified business use, your deduction is limited to the average monthly allowable square footage. H&r block state taxes You calculate the average monthly allowable square footage by adding the amount of allowable square feet you used in each month and dividing the sum by 12. H&r block state taxes When determining the average monthly allowable square footage, you cannot take more than 300 square feet into account for any one month. H&r block state taxes Additionally, if your qualified business use was less than 15 days in a month, you must use -0- for that month. H&r block state taxes Example 1. H&r block state taxes Andy files his federal income tax return on a calendar year basis. H&r block state taxes On July 20, he began using 420 square feet of his home for a qualified business use. H&r block state taxes He continued to use the 420 square feet until the end of the year. H&r block state taxes His average monthly allowable square footage is 125 square feet, which is figured using 300 square feet for each month August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12). H&r block state taxes Example 2. H&r block state taxes Amy files her federal income tax return on a calendar year basis. H&r block state taxes On April 20, she began using 100 square feet of her home for a qualified business use. H&r block state taxes On August 5, she expanded the area of her qualified use to 330 square feet. H&r block state taxes Amy continued to use the 330 square feet until the end of the year. H&r block state taxes Her average monthly allowable square footage is 150 square feet, which is figured using 100 square feet for May through July and 300 square feet for August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 300 + 300 + 300 + 300 + 300)/12). H&r block state taxes Gross income limitation. H&r block state taxes   Your deduction for business use of the home is limited to an amount equal to the gross income derived from the qualified business use of the home reduced by the business deductions that are unrelated to the use of your home. H&r block state taxes If the business deductions that are unrelated to the use of your home are greater than the gross income derived from the qualified business use of your home, then you cannot take a deduction for this qualified business use of your home. H&r block state taxes Business expenses not related to use of the home. H&r block state taxes   These expenses relate to the business activity in the home, but not to the use of the home itself. H&r block state taxes You can still deduct business expenses that are unrelated to the use of the home. H&r block state taxes See Where To Deduct , later. H&r block state taxes Examples of business expenses that are unrelated to the use of the home are advertising, wages, supplies, dues, and depreciation for equipment. H&r block state taxes Space used regularly for daycare. H&r block state taxes   If you do not use the area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot) before figuring your deduction. H&r block state taxes The reduced rate will equal the prescribed rate times a fraction. H&r block state taxes The numerator of the fraction is the number of hours that the space was used during the year for daycare and the denominator is the total number of hours during the year that the space was available for all uses. H&r block state taxes You can use the Daycare Facility Worksheet (for simplified method), near the end of this publication, to help you figure the reduced rate. H&r block state taxes    If you used at least 300 square feet for daycare regularly and exclusively during the year, then you do not need to reduce the prescribed rate or complete the Daycare Facility Worksheet. H&r block state taxes Daycare Facility If you use space in your home on a regular basis for providing daycare, you may be able to claim a deduction for that part of your home even if you use the same space for nonbusiness purposes. H&r block state taxes To qualify for this exception to the exclusive use rule, you must meet both of the following requirements. H&r block state taxes You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons who are physically or mentally unable to care for themselves. H&r block state taxes You must have applied for, been granted, or be exempt from having, a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law. H&r block state taxes You do not meet this requirement if your application was rejected or your license or other authorization was revoked. H&r block state taxes Figuring the deduction. H&r block state taxes   If you elect to use the simplified method for your home, figure your deduction as described earlier in Using the Simplified Method under Figuring the Deduction. H&r block state taxes    If you are figuring your deduction using actual expenses and you regularly use part of your home for daycare, figure what part is used for daycare, as explained in Business Percentage , earlier, under Figuring the Deduction. H&r block state taxes If you also use that part exclusively for daycare, deduct all the allocable expenses, subject to the deduction limit, as explained earlier. H&r block state taxes   If the use of part of your home as a daycare facility is regular, but not exclusive, you must figure the percentage of time that part of your home is used for daycare. H&r block state taxes A room that is available for use throughout each business day and that you regularly use in your business is considered to be used for daycare throughout each business day. H&r block state taxes You do not have to keep records to show the specific hours the area was used for business. H&r block state taxes You can use the area occasionally for personal reasons. H&r block state taxes However, a room you use only occasionally for business does not qualify for the deduction. H&r block state taxes To find the percentage of time you actually use your home for business, compare the total time used for business to the total time that part of your home can be used for all purposes. H&r block state taxes You can compare the hours of business use in a week with the number of hours in a week (168). H&r block state taxes Or you can compare the hours of business use for the year with the number of hours in the year (8,760 in 2013). H&r block state taxes If you started or stopped using your home for daycare in 2013, you must prorate the number of hours based on the number of days the home was available for daycare. H&r block state taxes Example 1. H&r block state taxes Mary Lake used her basement to operate a daycare business for children. H&r block state taxes She figures the business percentage of the basement as follows. H&r block state taxes Square footage of the basement Square footage of her home = 1,600 3,200 = 50%           She used the basement for daycare an average of 12 hours a day, 5 days a week, for 50 weeks a year. H&r block state taxes During the other 12 hours a day, the family could use the basement. H&r block state taxes She figures the percentage of time the basement was used for daycare as follows. H&r block state taxes Number of hours used for daycare (12 x 5 x 50) Total number of hours in the year (24 x 365) = 3,000 8,760 = 34. H&r block state taxes 25%           Mary can deduct 34. H&r block state taxes 25% of any direct expenses for the basement. H&r block state taxes However, because her indirect expenses are for the entire house, she can deduct only 17. H&r block state taxes 13% of the indirect expenses. H&r block state taxes She figures the percentage for her indirect expenses as follows. H&r block state taxes Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 34. H&r block state taxes 25% Percentage for indirect expenses 17. H&r block state taxes 13% Mary completes Form 8829, Part I, figuring the percentage of her home used for business, including the percentage of time the basement was used. H&r block state taxes In Part II, Mary figures her deductible expenses. H&r block state taxes She uses the following information to complete Part II. H&r block state taxes Gross income from her daycare business $50,000 Expenses not related to the business use of the home $25,000 Tentative profit $25,000 Rent $8,400 Utilities $850 Painting the basement $500 Mary enters her tentative profit, $25,000, on line 8. H&r block state taxes (This figure is the same as the amount on line 29 of her Schedule C (Form 1040). H&r block state taxes ) The expenses she paid for rent and utilities relate to her entire home. H&r block state taxes Therefore, she enters the amount paid for rent on line 18, column (b), and the amount paid for utilities on line 20, column (b). H&r block state taxes She shows the total of these expenses on line 22, column (b). H&r block state taxes For line 23, she multiplies the amount on line 22, column (b) by the percentage on line 7 and enters the result, $1,585. H&r block state taxes Mary paid $500 to have the basement painted. H&r block state taxes The painting is a direct expense. H&r block state taxes However, because she did not use the basement exclusively for daycare, she must multiply $500 by the percentage of time the basement was used for daycare (34. H&r block state taxes 25% – line 6). H&r block state taxes She enters $171 (34. H&r block state taxes 25% × $500) on line 19, column (a). H&r block state taxes She adds line 22, column (a), and line 23 and enters $1,756 ($171 + $1,585) on line 25. H&r block state taxes This is less than her deduction limit (line 15), so she can deduct the entire amount. H&r block state taxes She follows the instructions to complete the rest of Part II and enters $1,756 on lines 33 and 35. H&r block state taxes She then carries the $1,756 to line 30 of her Schedule C (Form 1040). H&r block state taxes Example 2. H&r block state taxes Assume the same facts as in Example 1 except that Mary also has another room that was available each business day for children to take naps in. H&r block state taxes Although she did not keep a record of the number of hours the room was actually used for naps, it was used for part of each business day. H&r block state taxes Since the room was available for business use during regular operating hours each business day and was used regularly in the business, it is considered used for daycare throughout each business day. H&r block state taxes The basement and room are 60% of the total area of her home. H&r block state taxes In figuring her expenses, 34. H&r block state taxes 25% of any direct expenses for the basement and room are deductible. H&r block state taxes In addition, 20. H&r block state taxes 55% (34. H&r block state taxes 25% × 60%) of her indirect expenses are deductible. H&r block state taxes Example 3. H&r block state taxes Assume the same facts as in Example 1 except that Mary stopped using her home for a daycare facility on June 24, 2013. H&r block state taxes She used the basement for daycare an average of 12 hours a day, 5 days a week, but for only 25 weeks of the year. H&r block state taxes During the other 12 hours a day, the family could still use the basement. H&r block state taxes She figures the percentage of time the basement was used for business as follows. H&r block state taxes Number of hours used for daycare (12 x 5 x 25) Total number of hours during period used (24 x 175) = 1,500 4,200 = 35. H&r block state taxes 71%           Mary can deduct 35. H&r block state taxes 71% of any direct expenses for the basement. H&r block state taxes However, because her indirect expenses are for the entire house, she can deduct only 17. H&r block state taxes 86% of the indirect expenses. H&r block state taxes She figures the percentage for her indirect expenses as follows. H&r block state taxes Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 35. H&r block state taxes 71% Percentage for indirect expenses 17. H&r block state taxes 86% Meals. H&r block state taxes   If you provide food for your daycare recipients, do not include the expense as a cost of using your home for business. H&r block state taxes Claim it as a separate deduction on your Schedule C (Form 1040). H&r block state taxes You can never deduct the cost of food consumed by you or your family. H&r block state taxes You can deduct as a business expense 100% of the actual cost of food consumed by your daycare recipients (see Standard meal and snack rates , later, for an optional method for eligible children) and generally only 50% of the cost of food consumed by your employees. H&r block state taxes However, you can deduct 100% of the cost of food consumed by your employees if its value can be excluded from their wages as a de minimis fringe benefit. H&r block state taxes For more information on meals that meet these requirements, see Meals in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits. H&r block state taxes   If you deduct the actual cost of food for your daycare business, keep a separate record (with receipts) of your family's food costs. H&r block state taxes   Reimbursements you receive from a sponsor under the Child and Adult Care Food Program of the Department of Agriculture are taxable only to the extent they exceed your expenses for food for eligible children. H&r block state taxes If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). H&r block state taxes If your food expenses are greater than the reimbursements, show the difference as an expense in Part V of Schedule C (Form 1040). H&r block state taxes Do not include payments or expenses for your own children if they are eligible for the program. H&r block state taxes Follow this procedure even if you receive a Form 1099-MISC, Miscellaneous Income, reporting a payment from the sponsor. H&r block state taxes Standard meal and snack rates. H&r block state taxes   If you qualify as a family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. H&r block state taxes For these purposes: A family daycare provider is a person engaged in the business of providing family daycare. H&r block state taxes Family daycare is childcare provided to eligible children in the home of the family daycare provider. H&r block state taxes The care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours each day. H&r block state taxes Eligible children are minor children receiving family daycare in the home of the family daycare provider. H&r block state taxes Eligible children do not include children who are full-time or part-time residents in the home where the childcare is provided or children whose parents or guardians are residents of the same home. H&r block state taxes Eligible children do not include children who receive daycare services for personal reasons of the provider. H&r block state taxes For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child. H&r block state taxes   You can compute the deductible cost of each meal and snack you actually purchased and served to an eligible child during the time period you provided family daycare using the standard meal and snack rates shown in Table 3, later. H&r block state taxes You can use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. H&r block state taxes If you receive reimbursement for a particular meal or snack, you can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement. H&r block state taxes   You can use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. H&r block state taxes If you choose to use the standard meal and snack rates for a particular tax year, you must use the rates for all your deductible food costs for eligible children during that tax year. H&r block state taxes However, if you use the standard meal and snack rates in any tax year, you can use actual costs to compute the deductible cost of food in any other tax year. H&r block state taxes   If you use the standard meal and snack rates, you must maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. H&r block state taxes The records kept should include the name of each child, dates and hours of attendance in the daycare, and the type and quantity of meals and snacks served. H&r block state taxes This information can be recorded in a log similar to the one shown in Exhibit A, near the end of this publication. H&r block state taxes   The standard meal and snack rates include beverages, but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper products, or utensils. H&r block state taxes These expenses can be claimed as a separate deduction on your Schedule C (Form 1040). H&r block state taxes     Table 3. H&r block state taxes Standard Meal and Snack Rates1 Location of Family Daycare Provider Breakfast Lunch Dinner Snack States other than Alaska an
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The H&r Block State Taxes

H&r block state taxes Index A Abroad, citizens living, filing requirements, U. H&r block state taxes S. H&r block state taxes Citizens or Resident Aliens Living Abroad Absence, temporary, Temporary absences. H&r block state taxes , Temporary absences. H&r block state taxes , Temporary absences. H&r block state taxes Accounting periods, joint returns, Accounting period. H&r block state taxes Adopted child, Exception for adopted child. H&r block state taxes , Adopted child. H&r block state taxes , Adopted child. H&r block state taxes Taxpayer identification number, Taxpayer identification numbers for adoptees. H&r block state taxes Age Filing status determination, Age. H&r block state taxes Gross income and filing requirements (Table 1), Table 1. H&r block state taxes 2013 Filing Requirements Chart for Most Taxpayers Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Test, Age Test Aliens Dual-status (see Dual-status taxpayers) Nonresident (see Nonresident aliens) Alimony, Alimony. H&r block state taxes Alternative minimum tax (AMT), effect on filing requirements (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Amended returns, Joint Return After Separate Returns, Changing your mind. H&r block state taxes (see also Form 1040X) Change from itemized to standard deduction (or vice versa), Electing to itemize for state tax or other purposes. H&r block state taxes American citizens abroad, U. H&r block state taxes S. H&r block state taxes Citizens or Resident Aliens Living Abroad Annulled marriages, filing status, Annulled marriages. H&r block state taxes Armed forces Combat zone, signing return for spouse, Spouse in combat zone. H&r block state taxes Dependency allotments, Armed Forces dependency allotments. H&r block state taxes GI Bill benefits, Tuition payments and allowances under the GI Bill. H&r block state taxes Military quarters allotments, Tax-exempt military quarters allowances. H&r block state taxes Assistance (see Tax help) ATINs (Adoption taxpayer identification numbers), Taxpayer identification numbers for adoptees. H&r block state taxes B Birth of child, Death or birth. H&r block state taxes Blind persons, standard deduction, Higher Standard Deduction for Blindness C Canada, resident of, U. H&r block state taxes S. H&r block state taxes citizen or resident alien. H&r block state taxes , Citizen or Resident Test, Child in Canada or Mexico. H&r block state taxes Capital expenses, Capital expenses. H&r block state taxes Child born alive, Child born alive. H&r block state taxes Child care expenses, Child care expenses. H&r block state taxes Child custody, Custodial parent and noncustodial parent. H&r block state taxes Child support under pre-1985 agreement, Child support under pre-1985 agreement. H&r block state taxes Child tax credit, Child tax credit. H&r block state taxes Child, qualifying, Qualifying Child Children Adopted child (see Adoption) Adoption (see Adopted child) Birth of child, Death or birth. H&r block state taxes , Death or birth. H&r block state taxes Claiming parent, when child is head of household, Special rule for parent. H&r block state taxes Custody of, Custodial parent and noncustodial parent. H&r block state taxes Death of child, Death or birth. H&r block state taxes , Death or birth. H&r block state taxes Dividends of, Unearned income. H&r block state taxes Filing requirements as dependents (Table 2), Table 2. H&r block state taxes 2013 Filing Requirements for Dependents Investment income of child under age 18, Table 2. H&r block state taxes 2013 Filing Requirements for Dependents , Unearned income. H&r block state taxes Kidnapped, Kidnapped child. H&r block state taxes , Kidnapped child. H&r block state taxes Social security number, Social Security Numbers for Dependents Stillborn, Stillborn child. H&r block state taxes Church employees, filing requirements (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Citizen or resident test, Citizen or Resident Test Citizens outside U. H&r block state taxes S. H&r block state taxes , filing requirements, U. H&r block state taxes S. H&r block state taxes Citizens or Resident Aliens Living Abroad Common law marriage, Considered married. H&r block state taxes Community property states, Community property states. H&r block state taxes Cousin, Cousin. H&r block state taxes Custody of child, Custodial parent and noncustodial parent. H&r block state taxes D Death Of child, Death or birth of child. H&r block state taxes Of dependent, Death or birth. H&r block state taxes , Death or birth. H&r block state taxes Of spouse, Spouse died during the year. H&r block state taxes , Spouse died. H&r block state taxes , Spouse died before signing. H&r block state taxes , Death of spouse. H&r block state taxes Decedents, Spouse died during the year. H&r block state taxes , Decedent's final return. H&r block state taxes (see also Death of spouse) Filing requirements, Deceased Persons Deductions Personal exemption, Personal Exemptions Standard deduction, Standard Deduction Dependent taxpayer test, Dependent Taxpayer Test Dependents Birth of, Death or birth. H&r block state taxes Born and died within year, Born and died in 2013. H&r block state taxes Child's earnings, Child's earnings. H&r block state taxes Death of, Death or birth. H&r block state taxes Earned income, Earned income. H&r block state taxes Exemption for, Exemptions for Dependents Filing requirements, Table 2. H&r block state taxes 2013 Filing Requirements for Dependents , Dependents Married, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Not allowed to claim dependents, Dependent Taxpayer Test Qualifying child, Qualifying Child Qualifying relative, Qualifying Relative Social security number, Social Security Numbers for Dependents, Taxpayer identification numbers for adoptees. H&r block state taxes Standard deduction for, Standard Deduction for Dependents Unearned income, Unearned income. H&r block state taxes Disabled Child, Permanently and totally disabled. H&r block state taxes Dependent, Disabled dependent working at sheltered workshop. H&r block state taxes Divorced parents, Children of divorced or separated parents (or parents who live apart). H&r block state taxes Divorced taxpayers Child custody, Custodial parent and noncustodial parent. H&r block state taxes Filing status, Divorced persons. H&r block state taxes , Divorce and remarriage. H&r block state taxes , Divorced persons. H&r block state taxes Joint returns, responsibility for, Divorced taxpayer. H&r block state taxes Personal exemption, Divorced or separated spouse. H&r block state taxes Domestic help, no exemption for, Housekeepers, maids, or servants. H&r block state taxes Dual-status taxpayers Exemptions, Dual-status taxpayers. H&r block state taxes Joint returns not available, Nonresident alien or dual-status alien. H&r block state taxes E Earned income Defined for purposes of standard deduction, Earned income defined. H&r block state taxes Dependent filing requirements (Table 2), Table 2. H&r block state taxes 2013 Filing Requirements for Dependents Earned income credit Two persons with same qualifying child, Special Rule for Qualifying Child of More Than One Person Elderly persons Home for the aged, Home for the aged. H&r block state taxes Standard deduction for age 65 or older, Higher Standard Deduction for Age (65 or Older) Equitable relief, Innocent spouse, Relief from joint responsibility. H&r block state taxes Exemptions, Exemptions, Taxpayer identification numbers for adoptees. H&r block state taxes Dependents, Exemptions for Dependents Personal (see Personal exemption) F Fair rental value, Fair rental value defined. H&r block state taxes Figures (see Tables and figures) Filing requirements, Who Must File, Filing Status Filing status, Filing Status, Qualifying Widow(er) With Dependent Child Annulled marriages, Annulled marriages. H&r block state taxes Change to Joint return after separate returns, Joint Return After Separate Returns Separate returns after joint return, Separate Returns After Joint Return, Kidnapped child. H&r block state taxes Determination of, Filing status. H&r block state taxes , Filing Status Head of household, Head of household or qualifying widow(er) with dependent child. H&r block state taxes , Head of Household Marital status, determination of, Marital Status Married filing jointly (see Joint returns) Married filing separately (see Married filing separately) Unmarried persons (see Single taxpayers) Food benefits, Support provided by the state (welfare, food benefits, housing, etc. H&r block state taxes ). H&r block state taxes Foreign employment, filing requirements, U. H&r block state taxes S. H&r block state taxes Citizens or Resident Aliens Living Abroad Foreign students, Foreign students' place of residence. H&r block state taxes Form 1040 Personal exemption, Form 1040 filers. H&r block state taxes Social security numbers, Social Security Numbers for Dependents Use of, How to file. H&r block state taxes , How to file. H&r block state taxes , How to file. H&r block state taxes Form 1040A Personal exemption, Form 1040A filers. H&r block state taxes Social security numbers, Social Security Numbers for Dependents Use of, How to file. H&r block state taxes , How to file. H&r block state taxes , How to file. H&r block state taxes Form 1040EZ Personal exemption, Form 1040EZ filers. H&r block state taxes Use of, How to file. H&r block state taxes , How to file. H&r block state taxes Form 1040X Change of filing status, Joint Return After Separate Returns Itemized deductions, change to standard deduction, Changing your mind. H&r block state taxes Standard deduction, change to itemized deductions, Changing your mind. H&r block state taxes Form 1099-B, Form 1099-B received. H&r block state taxes Form 8814, parents' election to report child's interest and dividends, Election to report child's unearned income on parent's return. H&r block state taxes Form 8857, innocent spouse relief, Relief from joint responsibility. H&r block state taxes Form SS-5, social security number request, No SSN. H&r block state taxes Form W-7, individual taxpayer identification number request, Taxpayer identification numbers for aliens. H&r block state taxes Form W-7A, adoption taxpayer identification number request, Taxpayer identification numbers for adoptees. H&r block state taxes Foster care payments and expenses, Foster care payments and expenses. H&r block state taxes , Foster care. H&r block state taxes Foster child, Foster child. H&r block state taxes , Foster care payments and expenses. H&r block state taxes , Foster child. H&r block state taxes , Foster care. H&r block state taxes Free tax services, Free help with your tax return. H&r block state taxes Funeral expenses, Do Not Include in Total Support G GI Bill benefits, Tuition payments and allowances under the GI Bill. H&r block state taxes Gross income Defined, Gross income. H&r block state taxes Filing requirements (Table 1), Table 1. H&r block state taxes 2013 Filing Requirements Chart for Most Taxpayers Dependent filing requirements (Table 2), Table 2. H&r block state taxes 2013 Filing Requirements for Dependents Test, Gross Income Test Group-term life insurance, Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return H Head of household, Head of Household, Kidnapped child. H&r block state taxes Exemption for spouse, Head of household. H&r block state taxes Filing requirements (Table 1), Table 1. H&r block state taxes 2013 Filing Requirements Chart for Most Taxpayers Health insurance premiums, Medical insurance premiums. H&r block state taxes Help (see Tax help) Home Aged, home for, Home for the aged. H&r block state taxes Cost of keeping up, Keeping Up a Home Household workers, no exemption for, Housekeepers, maids, or servants. H&r block state taxes I Income Gross, Gross Income Test Tax exempt, Tax-exempt income. H&r block state taxes Individual retirement arrangements (IRAs) Filing requirements (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Married filing separately, Individual retirement arrangements (IRAs). H&r block state taxes Individual taxpayer identification numbers (ITINs), Reminders, Taxpayer identification numbers for aliens. H&r block state taxes Innocent spouse relief, Relief from joint responsibility. H&r block state taxes Insurance premiums Life, Do Not Include in Total Support Medical, Medical insurance premiums. H&r block state taxes IRAs (see Individual retirement arrangements (IRAs)) Itemized deductions Changing from standard to itemized deduction (or vice versa), Changing your mind. H&r block state taxes Choosing to itemize, Who Should Itemize Married filing separately, Married persons who filed separate returns. H&r block state taxes When to itemize, When to itemize. H&r block state taxes ITINs (Individual taxpayer identification numbers), Taxpayer identification numbers for aliens. H&r block state taxes J Joint return test, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Joint returns, Married Filing Jointly, Nonresident alien or dual-status alien. H&r block state taxes Dependents on, Joint return. H&r block state taxes Personal exemption, Joint return. H&r block state taxes K Kidnapped children Qualifying child, Kidnapped child. H&r block state taxes Qualifying relative, Kidnapped child. H&r block state taxes Widow(er) with dependent child, Death or birth. H&r block state taxes L Life insurance premiums, Do Not Include in Total Support Local income taxes, itemized deductions, Electing to itemize for state tax or other purposes. H&r block state taxes Local law violated, Local law violated. H&r block state taxes Lodging, Lodging. H&r block state taxes Losses, rental real estate, Rental activity losses. H&r block state taxes M Marital status, determination of, Marital Status Married dependents, filing joint return, Joint Return Test, Joint Return Test (To Be a Qualifying Child) Married filing jointly (see Joint returns) Married filing separately, Married Filing Separately Changing method from or to itemized deductions, Changing your mind. H&r block state taxes Exemption for spouse, Separate return. H&r block state taxes Itemized deductions, Married persons who filed separate returns. H&r block state taxes Married taxpayers, Married Filing Jointly (see also Joint returns) Age 65 or older spouse, standard deduction, Higher Standard Deduction for Age (65 or Older), Spouse 65 or Older or Blind Blind spouse, standard deduction, Higher Standard Deduction for Blindness, Spouse 65 or Older or Blind Dual-status alien spouse, Nonresident alien or dual-status alien. H&r block state taxes Filing status, Married persons. H&r block state taxes Medical insurance premiums, Medical insurance premiums. H&r block state taxes Medical savings accounts (MSAs, effect on filing requirements (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Medicare taxes, not support, Do Not Include in Total Support Member of household or relationship test, Member of Household or Relationship Test Mexico, resident of, U. H&r block state taxes S. H&r block state taxes citizen or resident alien. H&r block state taxes , Citizen or Resident Test, Child in Canada or Mexico. H&r block state taxes Military (see Armed forces) Missing children, photographs of in IRS publications, Reminders Multiple support agreement, Multiple Support Agreement N National of the United States, U. H&r block state taxes S. H&r block state taxes national. H&r block state taxes Nonresident aliens, Nonresident aliens. H&r block state taxes Dependents, Taxpayer identification numbers for aliens. H&r block state taxes Exemptions, Nonresident aliens. H&r block state taxes Joint return, Nonresident alien or dual-status alien. H&r block state taxes Spouse, Nonresident alien spouse. H&r block state taxes Taxpayer identification number, Taxpayer identification numbers for aliens. H&r block state taxes O Overseas taxpayers, U. H&r block state taxes S. H&r block state taxes Citizens or Resident Aliens Living Abroad P Parent, claiming head of household for, Special rule for parent. H&r block state taxes Parents who never married, Parents who never married. H&r block state taxes Parents, divorced or separated, Children of divorced or separated parents (or parents who live apart). H&r block state taxes Penalty, failure to file, Who Must File Personal exemption, Personal Exemptions Photographs of missing children in IRS publications, Reminders Publications (see Tax help) Puerto Rico, residents of, Residents of Puerto Rico Q Qualifying Child, Qualifying Child Relative, Qualifying Relative Surviving spouse, Qualifying Widow(er) With Dependent Child Widow/widower, Qualifying Widow(er) With Dependent Child R Recapture taxes, Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Relationship test, Relationship Test, Member of Household or Relationship Test Relative, qualifying, Qualifying Relative Remarriage after divorce, Divorce and remarriage. H&r block state taxes Rental losses, Rental activity losses. H&r block state taxes Residency test, Residency Test S Same-sex marriage Filing status, Same-sex marriage. H&r block state taxes Scholarships, Earned income. H&r block state taxes , Scholarships. H&r block state taxes , Gross income defined. H&r block state taxes , Do Not Include in Total Support , Earned income defined. H&r block state taxes Self-employed persons Filing requirements (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Gross income, Self-employed persons. H&r block state taxes Separate returns (see Married filing separately) Separated parents, Children of divorced or separated parents (or parents who live apart). H&r block state taxes Separated taxpayers Filing status, Considered married. H&r block state taxes , Married persons living apart. H&r block state taxes Living apart but not legally separated, Considered married. H&r block state taxes Personal exemption, Divorced or separated spouse. H&r block state taxes Signatures, joint returns, Signing a joint return. H&r block state taxes Single taxpayers Filing status, Unmarried persons. H&r block state taxes , Single Gross income filing requirements (Table 1), Table 1. H&r block state taxes 2013 Filing Requirements Chart for Most Taxpayers How to file and forms, How to file. H&r block state taxes Personal exemption, Your Own Exemption Social security and Medicare taxes Reporting of (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Support, not included in, Do Not Include in Total Support Social security benefits, Social security benefits. H&r block state taxes Social security numbers (SSNs) for dependents, Social Security Numbers for Dependents Spouse Deceased, Spouse died. H&r block state taxes , Spouse died before signing. H&r block state taxes , Death of spouse. H&r block state taxes Dual-status alien spouse, Nonresident alien or dual-status alien. H&r block state taxes Exemption for, Your Spouse's Exemption Innocent spouse relief, Relief from joint responsibility. H&r block state taxes Nonresident alien, Nonresident alien spouse. H&r block state taxes Signing joint returns, Signing a joint return. H&r block state taxes Surviving (see Surviving spouse) SSNs (see Social security numbers (SSNs) for dependents) Standard deduction, What's New, Standard Deduction, Married persons who filed separate returns. H&r block state taxes Married filing jointly, Married Filing Jointly State or local income taxes, Electing to itemize for state tax or other purposes. H&r block state taxes Stillborn child, Stillborn child. H&r block state taxes Students Defined, Student defined. H&r block state taxes Foreign, Foreign students' place of residence. H&r block state taxes Support test Qualifying child, Support Test (To Be a Qualifying Child) Qualifying relative, Support Test (To Be a Qualifying Relative) Surviving spouse Death of spouse (see Death of spouse) Gross income filing requirements (Table 1), Table 1. H&r block state taxes 2013 Filing Requirements Chart for Most Taxpayers Single filing status, Widow(er). H&r block state taxes Widow(er) with dependent child, Qualifying Widow(er) With Dependent Child, How to file. H&r block state taxes , Death or birth. H&r block state taxes T Tables and figures, Keeping Up a Home, Worksheet 2. H&r block state taxes Worksheet for Determining Support (see also Worksheets) Filing requirements Dependents (Table 2), Table 2. H&r block state taxes 2013 Filing Requirements for Dependents Gross income levels (Table 1), Table 1. H&r block state taxes 2013 Filing Requirements Chart for Most Taxpayers Other situations requiring filing (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Tax help, How To Get Tax Help Tax returns Amended (see Form 1040X) Filing of (see Filing requirements) Joint returns (see Joint returns) Who must file, What's New, Who Must File, Filing Requirements for Most Taxpayers, Who Should File Tax-exempt income, Tax-exempt income. H&r block state taxes Taxes, not support, Do Not Include in Total Support Temporary absences, Temporary absences. H&r block state taxes , Temporary absences. H&r block state taxes Tiebreaker rules, Tiebreaker rules. H&r block state taxes Tips, reporting of (Table 3), Table 3. H&r block state taxes Other Situations When You Must File a 2013 Return Total support, Total Support Tuition, benefits under GI Bill, Tuition payments and allowances under the GI Bill. H&r block state taxes U U. H&r block state taxes S. H&r block state taxes citizen or resident, Citizen or Resident Test U. H&r block state taxes S. H&r block state taxes citizens filing abroad, filing requirements Filing requirements, U. H&r block state taxes S. H&r block state taxes Citizens or Resident Aliens Living Abroad U. H&r block state taxes S. H&r block state taxes national, U. H&r block state taxes S. H&r block state taxes national. H&r block state taxes U. H&r block state taxes S. H&r block state taxes possessions, income from, Individuals With Income From U. H&r block state taxes S. H&r block state taxes Possessions Unmarried persons (see Single taxpayers) W Welfare benefits, Support provided by the state (welfare, food benefits, housing, etc. H&r block state taxes ). H&r block state taxes What's New, What's New Widow/widower (see Surviving spouse) Worksheets Exemption Phaseout, Worksheet 3. H&r block state taxes Worksheet for Determining the Deduction for Exemptions Head of household status and cost of keeping up home, Keeping Up a Home Support test, Worksheet 2. H&r block state taxes Worksheet for Determining Support Prev  Up     Home   More Online Publications