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Irs 1040

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Irs 1040

Irs 1040 Publication 907 - Main Content Table of Contents IncomeDependent Care Benefits Social Security and Railroad Retirement Benefits Disability Pensions Military and Government Disability Pensions Other Payments Itemized DeductionsMedical Expenses Impairment-Related Work Expenses Tax CreditsChild and Dependent Care Credit Credit for the Elderly or the Disabled Earned Income Credit Household Employers Business Tax Incentives How To Get Tax Help Income All income is taxable unless it is specifically excluded by law. Irs 1040 The following discussions highlight some income items (both taxable and nontaxable) that are of particular interest to people with disabilities and those who care for people with disabilities. Irs 1040 Dependent Care Benefits Dependent care benefits include: Amounts your employer paid directly to either you or your care provider for the care of your qualifying person(s) while you worked, The fair market value of care in a daycare facility provided or sponsored by your employer, and Pre-tax contributions you made under a dependent care flexible spending arrangement. Irs 1040 Exclusion or deduction. Irs 1040   If your employer provides dependent care benefits under a qualified plan, you may be able to exclude these benefits from your income. Irs 1040 Your employer can tell you whether your benefit plan qualifies. Irs 1040 To claim the exclusion, you must complete Part III of Form 2441, Child and Dependent Care Expenses. Irs 1040 You cannot use Form 1040EZ. Irs 1040   If you are self-employed and receive benefits from a qualified dependent care benefit plan, you are treated as both employer and employee. Irs 1040 Therefore, you would not get an exclusion from wages. Irs 1040 Instead, you would get a deduction on Form 1040, Schedule C, line 14; Schedule E, line 19 or 28; or Schedule F, line 15. Irs 1040 To claim the deduction, you must use Form 2441. Irs 1040   The amount you can exclude or deduct is limited to the smallest of: The total amount of dependent care benefits you received during the year, The total amount of qualified expenses you incurred during the year, Your earned income, Your spouse's earned income, or $5,000 ($2,500 if married filing separately). Irs 1040 Statement for employee. Irs 1040   Your employer must give you a Form W-2 (or similar statement), showing in box 10 the total amount of dependent care benefits provided to you during the year under a qualified plan. Irs 1040 Your employer will also include any dependent care benefits over $5,000 in your wages shown on your Form W-2 in box 1. Irs 1040 Qualifying person(s). Irs 1040   A qualifying person is: A qualifying child who is under age 13 whom you can claim as a dependent. Irs 1040 If the child turned 13 during the year, the child is a qualifying person for the part of the year he or she was under age 13. Irs 1040 Your disabled spouse who is not physically or mentally able to care for himself or herself. Irs 1040 Any disabled person who was not physically or mentally able to care for himself or herself whom you can claim as a dependent (or could claim as a dependent except that the person had gross income of $3,900 or more or filed a joint return). Irs 1040 Any disabled person who was not physically or mentally able to care for himself or herself whom you could claim as a dependent except that you (or your spouse if filing jointly) could be claimed as a dependent on another taxpayer's 2013 return. Irs 1040 For information about excluding benefits on Form 1040, Form 1040NR, or Form 1040A, see Form 2441 and its instructions. Irs 1040 Social Security and Railroad Retirement Benefits If you received social security or equivalent Tier 1 railroad retirement (RRTA) benefits during the year, part of the amount you received may be taxable. Irs 1040 Are any of your benefits taxable?   If the only income you received during the year was your social security or equivalent Tier 1 railroad retirement (RRTA) benefits, your benefits generally are not taxable. Irs 1040   If you received income during the year in addition to social security or equivalent Tier 1 railroad retirement (RRTA) benefits, part of your benefits may be taxable if all of your other income, including tax-exempt interest, plus half of your benefits are more than: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Irs 1040   For more information, see the instructions for Form 1040, lines 20a and 20b, or Form 1040A, lines 14a and 14b. Irs 1040 Publication 915, Social Security and Equivalent Railroad Retirement Benefits, contains more detailed information. Irs 1040 Supplemental security income (SSI) payments. Irs 1040   Social security benefits do not include SSI payments, which are not taxable. Irs 1040 Do not include these payments in your income. Irs 1040 Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. Irs 1040 You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A until you reach minimum retirement age. Irs 1040 Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled. Irs 1040 You may be entitled to a tax credit if you were permanently and totally disabled when you retired. Irs 1040 For information on this credit, see Publication 524, Credit for the Elderly or the Disabled. Irs 1040 Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Irs 1040 Report the payments on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A. Irs 1040 For more information on pensions and annuities, see Publication 575, Pension and Annuity Income. Irs 1040 Retirement and profit-sharing plans. Irs 1040   If you receive payments from a retirement or profit-sharing plan that does not provide for disability retirement, do not treat the payments as a disability pension. Irs 1040 The payments must be reported as a pension or annuity. Irs 1040 Accrued leave payment. Irs 1040   If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. Irs 1040 The payment is not a disability payment. Irs 1040 Include it in your income in the tax year you receive it. Irs 1040 See Publication 525, Taxable and Nontaxable Income, for more information. Irs 1040 Military and Government Disability Pensions Generally, you must report disability pensions as income, but do not include certain military and government disability pensions. Irs 1040 For information about military and government disability pensions, see Publication 525. Irs 1040 VA disability benefits. Irs 1040   Do not include disability benefits you receive from the Department of Veterans Affairs (VA) in your gross income. Irs 1040 If you are a military retiree and do not receive your disability benefits from the VA, see Publication 525 for more information. Irs 1040   Do not include in your income any veterans' benefits paid under any law, regulation, or administrative practice administered by the VA. Irs 1040 These include: Education, training, and subsistence allowances, Disability compensation and pension payments for disabilities paid either to veterans or their families, Grants for homes designed for wheelchair living, Grants for motor vehicles for veterans who lost their sight or the use of their limbs, Veterans' insurance proceeds and dividends paid either to veterans or their beneficiaries, including the proceeds of a veteran's endowment policy paid before death, Interest on insurance dividends left on deposit with the VA, Benefits under a dependent-care assistance program, The death gratuity paid to a survivor of a member of the Armed Forces who died after September 10, 2001, or Payments made under the VA's compensated work therapy program. Irs 1040 Other Payments You may receive other payments that are related to your disability. Irs 1040 The following payments are not taxable. Irs 1040 Benefit payments from a public welfare fund, such as payments due to blindness. Irs 1040 Workers' compensation for an occupational sickness or injury if paid under a workers' compensation act or similar law. Irs 1040 Compensatory (but not punitive) damages for physical injury or physical sickness. Irs 1040 Disability benefits under a “no-fault” car insurance policy for loss of income or earning capacity as a result of injuries. Irs 1040 Compensation for permanent loss or loss of use of a part or function of your body, or for your permanent disfigurement. Irs 1040 Long-Term Care Insurance Long-term care insurance contracts generally are treated as accident and health insurance contracts. Irs 1040 Amounts you receive from them (other than policyholder dividends or premium refunds) generally are excludable from income as amounts received for personal injury or sickness. Irs 1040 More detailed information can be found in Publication 525. Irs 1040 Accelerated Death Benefits You can exclude from income accelerated death benefits you receive on the life of an insured individual if certain requirements are met. Irs 1040 Accelerated death benefits are amounts received under a life insurance contract before the death of the insured. Irs 1040 These benefits also include amounts received on the sale or assignment of the contract to a viatical settlement provider. Irs 1040 This exclusion applies only if the insured was a terminally ill individual or a chronically ill individual. Irs 1040 For more information, see Publication 525. Irs 1040 Itemized Deductions If you file Form 1040, you generally can either claim the standard deduction or itemize your deductions. Irs 1040 You must use Schedule A (Form 1040) to itemize your deductions. Irs 1040 See your form instructions for information on the standard deduction and the deductions you can itemize. Irs 1040 The following discussions highlight some itemized deductions that are of particular interest to persons with disabilities. Irs 1040 Medical Expenses When figuring your deduction for medical expenses, you can generally include medical and dental expenses you pay for yourself, your spouse, and your dependents. Irs 1040 Medical expenses are the cost of diagnosis, cure, mitigation, treatment, or prevention of disease and the costs for treatments affecting any part or function of the body. Irs 1040 They include the costs of equipment, supplies, diagnostic devices, and transportation for needed medical care and payments for medical insurance. Irs 1040 You can deduct only the amount of your medical and dental expenses that is more than 10% (7. Irs 1040 5% if either you or your spouse was born before January 2, 1949) of your adjusted gross income shown on Form 1040, line 38. Irs 1040 The following list highlights some of the medical expenses you can include in figuring your medical expense deduction. Irs 1040 For more detailed information, see Publication 502, Medical and Dental Expenses (Including the Health Coverage Tax Credit). Irs 1040 Artificial limbs, contact lenses, eyeglasses, and hearing aids. Irs 1040 The part of the cost of Braille books and magazines that is more than the price of regular printed editions. Irs 1040 Cost and repair of special telephone equipment for hearing-impaired persons. Irs 1040 Cost and maintenance of a wheelchair or a three-wheel motor vehicle commercially known as an “autoette. Irs 1040 ” Cost and care of a guide dog or other animal aiding a person with a physical disability. Irs 1040 Costs for a school that furnishes special education if a principal reason for using the school is its resources for relieving a mental or physical disability. Irs 1040 This includes the cost of teaching Braille and lip reading and the cost of remedial language training to correct a condition caused by a birth defect. Irs 1040 Premiums for qualified long-term care insurance, up to certain amounts. Irs 1040 Improvements to a home that do not increase its value if the main purpose is medical care. Irs 1040 An example is constructing entrance or exit ramps. Irs 1040 Improvements that increase a home's value, if the main purpose is medical care, may be partly included as a medical expense. Irs 1040 See Publication 502 for more information. Irs 1040 Impairment-Related Work Expenses If you are disabled, you can take a business deduction for expenses that are necessary for you to be able to work. Irs 1040 If you take a business deduction for these impairment-related work expenses, they are not subject to the 10% (7. Irs 1040 5% if you or your spouse is age 65 or older) limit that applies to medical expenses. Irs 1040 You are disabled if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (including, but not limited to, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. Irs 1040 Impairment-related expenses defined. Irs 1040   Impairment-related expenses are those ordinary and necessary business expenses that are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. Irs 1040 Publication 502 contains more detailed information. Irs 1040 Tax Credits This discussion highlights three tax credits that may be of interest to people with disabilities and those who care for people with disabilities. Irs 1040 Child and Dependent Care Credit If you pay someone to care for either your dependent under age 13 or your spouse or dependent who is not able to care for himself or herself, you may be able to get a credit of up to 35% of your expenses. Irs 1040 To qualify, you must pay these expenses so you can work or look for work. Irs 1040 The care must be provided for: Your qualifying child who is your dependent and who was under age 13 when the care was provided, Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year, or A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either: Was your dependent, or Would have been your dependent except that: He or she received gross income of $3,900 or more, He or she filed a joint return, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Irs 1040 You can claim the credit on Form 1040 or 1040A. Irs 1040 You cannot claim the credit on Form 1040EZ or Form 1040NR-EZ. Irs 1040 You figure the credit on Form 2441. Irs 1040 For more information, see the instructions for Form 1040, line 48, or Form 1040A, line 29. Irs 1040 Publication 503, Child and Dependent Care Expenses, contains more detailed information. Irs 1040 Credit for the Elderly or the Disabled You may be able to claim this credit if you are a U. Irs 1040 S. Irs 1040 citizen or a resident alien and either of the following apply. Irs 1040 You were 65 or older at the end of 2013, You were under 65 at the end of 2013, and retired on permanent or total disability. Irs 1040 You can claim the credit on Form 1040 or 1040A. Irs 1040 You figure the credit on Schedule R. Irs 1040 For more information, see the instructions for Form 1040, line 53, or Form 1040A, line 30. Irs 1040 Publication 524, Credit for the Elderly or the Disabled, contains more detailed information. Irs 1040 Earned Income Credit This credit is based on the amount of your earned income. Irs 1040 You can get the credit if your adjusted gross income for 2013 is less than: $14,340 ($19,680 for married filing jointly) if you do not have a qualifying child, $37,870 ($43,210 for married filing jointly) if you have one qualifying child, $43,038 ($48,378 for married filing jointly) if you have two qualifying children, or $46,227 ($51,567 for married filing jointly) if you have three or more qualifying children. Irs 1040 To figure the credit, use the worksheet in the instructions for Form 1040, 1040A, or 1040EZ. Irs 1040 If you have a qualifying child, also complete Schedule EIC, Earned Income Credit, and attach it to your Form 1040 or 1040A. Irs 1040 You cannot use Form 1040EZ if you have a qualifying child. Irs 1040 Qualifying child. Irs 1040   To be a qualifying child, your child must be younger than you (or your spouse if married filing jointly) and under age 19 or a full-time student under age 24 at the end of 2013, or permanently and totally disabled at any time during 2013, regardless of age. Irs 1040 Earned income. Irs 1040   If you are retired on disability, benefits you receive under your employer's disability retirement plan are considered earned income until you reach minimum retirement age. Irs 1040 However, payments you received from a disability insurance policy that you paid the premiums for are not earned income. Irs 1040 More information. Irs 1040   For more information, including all the requirements to claim the earned income credit, see the instructions for Form 1040, line 64a; Form 1040A, line 38a; or Form 1040EZ, line 8a. Irs 1040 Publication 596, Earned Income Credit (EIC), contains more detailed information. Irs 1040 Household Employers If you pay someone to work in your home, such as a babysitter or housekeeper, you may be a household employer who has to pay employment taxes. Irs 1040 A person you hire through an agency is not your employee if the agency controls what work is done and how it is done. Irs 1040 This control could include setting the fee, requiring regular reports, and providing rules of conduct and appearance. Irs 1040 In this case you do not have to pay employment taxes on the amount you pay. Irs 1040 But if you control what work is done and how it is done, the worker is your employee. Irs 1040 If you possess the right to discharge a worker, that worker is generally considered to be your employee. Irs 1040 If a worker is your employee, it does not matter that you hired the worker through an agency or from a list provided by an agency. Irs 1040 To find out if you have to pay employment taxes, see Publication 926, Household Employer's Tax Guide For Wages Paid in 2013. Irs 1040 Business Tax Incentives If you own or operate a business, or you are looking for work, you should be aware of the following tax incentives for businesses to help persons with disabilities. Irs 1040 Deduction for costs of removing barriers to the disabled and the elderly—This is a deduction a business can take for making a facility or public transportation vehicle more accessible to and usable by persons who are disabled or elderly. Irs 1040 For more information, see chapter 7 of Publication 535, Business Expenses. Irs 1040 Disabled access credit—This is a nonrefundable tax credit for an eligible small business that pays or incurs expenses to provide access to persons with disabilities. Irs 1040 The expenses must be to enable the eligible small business to comply with the Americans With Disabilities Act of 1990. Irs 1040 See Form 8826, Disabled Access Credit, for more information. Irs 1040 Work opportunity credit—This credit provides businesses with an incentive to hire individuals from targeted groups that have a particularly high unemployment rate or other special employment needs. Irs 1040 One targeted group consists of vocational rehabilitation referrals. Irs 1040 These are individuals who have a physical or mental disability that results in a substantial handicap to employment. Irs 1040 See Form 5884, Work Opportunity Credit. Irs 1040 How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Irs 1040 Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Irs 1040 Free help with your tax return. Irs 1040   Free help in preparing your return is available nationwide from IRS-certified volunteers. Irs 1040 The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Irs 1040 The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs 1040 Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs 1040 Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Irs 1040 To find the nearest VITA or TCE site, visit IRS. Irs 1040 gov or call 1-800-906-9887. Irs 1040   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs 1040 To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs 1040 aarp. Irs 1040 org/money/taxaide or call 1-888-227-7669. Irs 1040   For more information on these programs, go to IRS. Irs 1040 gov and enter “VITA” in the search box. Irs 1040 Internet. Irs 1040 IRS. Irs 1040 gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Irs 1040 Apply for an Employer Identification Number (EIN). Irs 1040 Go to IRS. Irs 1040 gov and enter Apply for an EIN in the search box. Irs 1040 Request an Electronic Filing PIN by going to IRS. Irs 1040 gov and entering Electronic Filing PIN in the search box. Irs 1040 Check the status of your 2013 refund with Where's My Refund? Go to IRS. Irs 1040 gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs 1040 Check the status of your amended return. Irs 1040 Go to IRS. Irs 1040 gov and enter Where's My Amended Return in the search box. Irs 1040 Download forms, instructions, and publications, including some accessible versions. Irs 1040 Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Irs 1040 gov or IRS2Go. Irs 1040 Tax return and tax account transcripts are generally available for the current year and past three years. Irs 1040 Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs 1040 gov. Irs 1040 Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs 1040 Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs 1040 gov. Irs 1040 Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Irs 1040 gov or IRS2Go. Irs 1040 Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Irs 1040 An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Irs 1040 Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Irs 1040 If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Irs 1040 Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs 1040 Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Irs 1040 gov. Irs 1040 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Irs 1040 Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Irs 1040 AARP offers the Tax-Aide counseling program as part of the TCE program. Irs 1040 Visit AARP's website to find the nearest Tax-Aide location. Irs 1040 Research your tax questions. Irs 1040 Search publications and instructions by topic or keyword. Irs 1040 Read the Internal Revenue Code, regulations, or other official guidance. Irs 1040 Read Internal Revenue Bulletins. Irs 1040 Sign up to receive local and national tax news by email. Irs 1040 Phone. Irs 1040 You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs 1040 Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Irs 1040 Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs 1040 Call to locate the nearest volunteer help site, 1-800-906-9887. Irs 1040 Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs 1040 The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Irs 1040 Most VITA and TCE sites offer free electronic filing. Irs 1040 Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs 1040 Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs 1040 Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Irs 1040 The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Irs 1040 If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs 1040 Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Irs 1040 Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs 1040 Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Irs 1040 Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs 1040 Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Irs 1040 You should receive your order within 10 business days. Irs 1040 Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Irs 1040 Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Irs 1040 Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Irs 1040 Call to ask tax questions, 1-800-829-1040. Irs 1040 Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs 1040 The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs 1040 These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Irs 1040 gsa. Irs 1040 gov/fedrelay. Irs 1040 Walk-in. Irs 1040 You can find a selection of forms, publications and services — in-person, face-to-face. Irs 1040 Products. Irs 1040 You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs 1040 Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs 1040 Services. Irs 1040 You can walk in to your local TAC most business days for personal, face-to-face tax help. Irs 1040 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs 1040 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Irs 1040 No appointment is necessary—just walk in. Irs 1040 Before visiting, check www. Irs 1040 irs. Irs 1040 gov/localcontacts for hours of operation and services provided. Irs 1040 Mail. Irs 1040 You can send your order for forms, instructions, and publications to the address below. Irs 1040 You should receive a response within 10 business days after your request is received. Irs 1040  Internal Revenue Service 1201 N. Irs 1040 Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Irs 1040   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs 1040 Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs 1040 What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Irs 1040 We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Irs 1040 You face (or your business is facing) an immediate threat of adverse action. Irs 1040 You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs 1040   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Irs 1040 Here's why we can help: TAS is an independent organization within the IRS. Irs 1040 Our advocates know how to work with the IRS. Irs 1040 Our services are free and tailored to meet your needs. Irs 1040 We have offices in every state, the District of Columbia, and Puerto Rico. Irs 1040 How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Irs 1040 irs. Irs 1040 gov/advocate, or call us toll-free at 1-877-777-4778. Irs 1040 How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs 1040 If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Irs 1040 irs. Irs 1040 gov/sams. Irs 1040 Low Income Taxpayer Clinics. Irs 1040   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Irs 1040 Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Irs 1040 Visit www. Irs 1040 TaxpayerAdvocate. Irs 1040 irs. Irs 1040 gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Irs 1040 Prev  Up  Next   Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Office of the Attorney General

Website: Office of the Attorney General

Address: Office of the Attorney General
Consumer Protection Unit
123 State Capitol
200 W. 24th St.
Cheyenne, WY 82002

Phone Number: 307-777-7841

TTY: 307-777-5351

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Audit

Website: Department of Audit

Address: Department of Audit
Division of Banking
122 W. 25th St.
Herschler Building, 3rd Floor, East
Cheyenne, WY 82002

Phone Number: 307-777-7797

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Insurance

Website: Department of Insurance

Address: Department of Insurance
Consumer Affairs Section
106 E. 6th Ave.
Cheyenne, WY 82002

Phone Number: 307-777-7401

Toll-free: 1-800-438-5768 (WY)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Office of the Secretary of State

Website: Office of the Secretary of State

Address: Office of the Secretary of State
Compliance Division
State Capitol Building
200 W. 24th St.
Cheyenne, WY 82002-0020

Phone Number: 307-777-7370

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Service Commission

Website: Public Service Commission

Address: Public Service Commission
2515 Warren Ave., Suite 300
Cheyenne, WY 82002

Phone Number: 307-777-7427

Toll-free: 1-888-570-9905 (WY)

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The Irs 1040

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