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Irs 1040x Forms

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Irs 1040x Forms

Irs 1040x forms Publication 526 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. Irs 1040x forms Tax questions. Irs 1040x forms Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 526 (such as legislation enacted after we release it), go to www. Irs 1040x forms irs. Irs 1040x forms gov/pub526. Irs 1040x forms What's New Limit on itemized deductions. Irs 1040x forms  For 2013, you may have to reduce the total amount of certain itemized deductions, including charitable contributions, if your adjusted gross income is more than: $150,000 if married filing separately, $250,000 if single, $275,000 if head of household, or $300,000 if married filing jointly or qualifying widow(er). Irs 1040x forms For more information and a worksheet, see the instructions for Schedule A (Form 1040). Irs 1040x forms Reminders Disaster relief. Irs 1040x forms  You can deduct contributions for flood relief, hurricane relief, or other disaster relief to a qualified organization (defined under Organizations That Qualify To Receive Deductible Contributions ). Irs 1040x forms However, you cannot deduct contributions earmarked for relief of a particular individual or family. Irs 1040x forms Publication 3833, Disaster Relief: Providing Assistance through Charitable Organizations, has more information about disaster relief, including how to establish a new charitable organization. Irs 1040x forms You can also find more information on IRS. Irs 1040x forms gov. Irs 1040x forms Enter “disaster relief” in the search box. Irs 1040x forms Photographs of missing children. Irs 1040x forms  The IRS is a proud partner with the National Center for Missing and Exploited Children. Irs 1040x forms Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Irs 1040x forms You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Irs 1040x forms Introduction This publication explains how to claim a deduction for your charitable contributions. Irs 1040x forms It discusses the types of organizations to which you can make deductible charitable contributions and the types of contributions you can deduct. Irs 1040x forms It also discusses how much you can deduct, what records you must keep, and how to report charitable contributions. Irs 1040x forms A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Irs 1040x forms It is voluntary and is made without getting, or expecting to get, anything of equal value. Irs 1040x forms Qualified organizations. Irs 1040x forms   Qualified organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. Irs 1040x forms You will find descriptions of these organizations under Organizations That Qualify To Receive Deductible Contributions . Irs 1040x forms Form 1040 required. Irs 1040x forms   To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A (Form 1040). Irs 1040x forms The amount of your deduction may be limited if certain rules and limits explained in this publication apply to you. Irs 1040x forms Comments and suggestions. Irs 1040x forms   We welcome your comments about this publication and your suggestions for future editions. Irs 1040x forms   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Irs 1040x forms NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Irs 1040x forms Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Irs 1040x forms   You can send your comments from www. Irs 1040x forms irs. Irs 1040x forms gov/formspubs/. Irs 1040x forms Click on “More Information” and then on “Comment on Tax Forms and Publications. Irs 1040x forms ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Irs 1040x forms Ordering forms and publications. Irs 1040x forms   Visit www. Irs 1040x forms irs. Irs 1040x forms gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Irs 1040x forms Internal Revenue Service 1201 N. Irs 1040x forms Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Irs 1040x forms   If you have a tax question, check the information available on IRS. Irs 1040x forms gov or call 1-800-829-1040. Irs 1040x forms We cannot answer tax questions sent to either of the above addresses. Irs 1040x forms Useful Items - You may want to see: Publication 561 Determining the Value of Donated Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 8283 Noncash Charitable Contributions  See How To Get Tax Help near the end of this publication for information about getting these publications and forms. Irs 1040x forms Table 1. Irs 1040x forms Examples of Charitable Contributions—A Quick Check Use the following lists for a quick check of whether you can deduct a contribution. Irs 1040x forms See the rest of this publication for more information and additional rules and limits that may apply. Irs 1040x forms Deductible As Charitable Contributions Not Deductible As Charitable Contributions Money or property you give to: Money or property you give to: Churches, synagogues, temples, mosques, and other religious organizations  Federal, state, and local governments, if your contribution is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park)  Nonprofit schools and hospitals  The Salvation Army, American Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts of America, Girl Scouts of America, Boys and Girls Clubs of America, etc. Irs 1040x forms   War veterans' groups    Expenses paid for a student living with you, sponsored by a qualified organization  Out-of-pocket expenses when you serve a qualified organization as a volunteer Civic leagues, social and sports clubs, labor unions, and chambers of commerce  Foreign organizations (except certain Canadian, Israeli, and Mexican charities)  Groups that are run for personal profit  Groups whose purpose is to lobby for law changes  Homeowners' associations  Individuals  Political groups or candidates for public office    Cost of raffle, bingo, or lottery tickets  Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups  Tuition  Value of your time or services  Value of blood given to a blood bank   Prev  Up  Next   Home   More Online Publications
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The Irs 1040x Forms

Irs 1040x forms 1. Irs 1040x forms   Travel Table of Contents Traveling Away From HomeTax Home Tax Home Different From Family Home Temporary Assignment or Job What Travel Expenses Are Deductible?Employee. Irs 1040x forms Business associate. Irs 1040x forms Bona fide business purpose. Irs 1040x forms Meals Travel in the United States Travel Outside the United States Luxury Water Travel Conventions If you temporarily travel away from your tax home, you can use this chapter to determine if you have deductible travel expenses. Irs 1040x forms This chapter discusses: Traveling away from home, Temporary assignment or job, and What travel expenses are deductible. Irs 1040x forms It also discusses the standard meal allowance, rules for travel inside and outside the United States, luxury water travel, and deductible convention expenses. Irs 1040x forms Travel expenses defined. Irs 1040x forms   For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. Irs 1040x forms   An ordinary expense is one that is common and accepted in your trade or business. Irs 1040x forms A necessary expense is one that is helpful and appropriate for your business. Irs 1040x forms An expense does not have to be required to be considered necessary. Irs 1040x forms   You will find examples of deductible travel expenses in Table 1-1 , later. Irs 1040x forms Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Irs 1040x forms This rest requirement is not satisfied by merely napping in your car. Irs 1040x forms You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Irs 1040x forms Example 1. Irs 1040x forms You are a railroad conductor. Irs 1040x forms You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Irs 1040x forms During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Irs 1040x forms You are considered to be away from home. Irs 1040x forms Example 2. Irs 1040x forms You are a truck driver. Irs 1040x forms You leave your terminal and return to it later the same day. Irs 1040x forms You get an hour off at your turnaround point to eat. Irs 1040x forms Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Irs 1040x forms Members of the Armed Forces. Irs 1040x forms   If you are a member of the U. Irs 1040x forms S. Irs 1040x forms Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Irs 1040x forms You cannot deduct your expenses for meals and lodging. Irs 1040x forms You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Irs 1040x forms If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Irs 1040x forms   A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home (explained next) aboard the ship for travel expense purposes. Irs 1040x forms Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Irs 1040x forms Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Irs 1040x forms It includes the entire city or general area in which your business or work is located. Irs 1040x forms If you have more than one regular place of business, your tax home is your main place of business. Irs 1040x forms See Main place of business or work , later. Irs 1040x forms If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Irs 1040x forms See No main place of business or work , later. Irs 1040x forms If you do not have a regular or main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Irs 1040x forms As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Irs 1040x forms Main place of business or work. Irs 1040x forms   If you have more than one place of work, consider the following when determining which one is your main place of business or work. Irs 1040x forms The total time you ordinarily spend in each place. Irs 1040x forms The level of your business activity in each place. Irs 1040x forms Whether your income from each place is significant or insignificant. Irs 1040x forms Example. Irs 1040x forms You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Irs 1040x forms You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Irs 1040x forms Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Irs 1040x forms No main place of business or work. Irs 1040x forms   You may have a tax home even if you do not have a regular or main place of work. Irs 1040x forms Your tax home may be the home where you regularly live. Irs 1040x forms Factors used to determine tax home. Irs 1040x forms   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Irs 1040x forms You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Irs 1040x forms You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Irs 1040x forms You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Irs 1040x forms   If you satisfy all three factors, your tax home is the home where you regularly live. Irs 1040x forms If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Irs 1040x forms If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Irs 1040x forms Example 1. Irs 1040x forms You are single and live in Boston in an apartment you rent. Irs 1040x forms You have worked for your employer in Boston for a number of years. Irs 1040x forms Your employer enrolls you in a 12-month executive training program. Irs 1040x forms You do not expect to return to work in Boston after you complete your training. Irs 1040x forms During your training, you do not do any work in Boston. Irs 1040x forms Instead, you receive classroom and on-the-job training throughout the United States. Irs 1040x forms You keep your apartment in Boston and return to it frequently. Irs 1040x forms You use your apartment to conduct your personal business. Irs 1040x forms You also keep up your community contacts in Boston. Irs 1040x forms When you complete your training, you are transferred to Los Angeles. Irs 1040x forms You do not satisfy factor (1) because you did not work in Boston. Irs 1040x forms You satisfy factor (2) because you had duplicate living expenses. Irs 1040x forms You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Irs 1040x forms Therefore, you have a tax home in Boston. Irs 1040x forms Example 2. Irs 1040x forms You are an outside salesperson with a sales territory covering several states. Irs 1040x forms Your employer's main office is in Newark, but you do not conduct any business there. Irs 1040x forms Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. Irs 1040x forms You have a room in your married sister's house in Dayton. Irs 1040x forms You stay there for one or two weekends a year, but you do no work in the area. Irs 1040x forms You do not pay your sister for the use of the room. Irs 1040x forms You do not satisfy any of the three factors listed earlier. Irs 1040x forms You are an itinerant and have no tax home. Irs 1040x forms Tax Home Different From Family Home If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Irs 1040x forms You also cannot deduct the cost of meals and lodging while at your tax home. Irs 1040x forms See Example 1 , later. Irs 1040x forms If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Irs 1040x forms See Example 2 , later. Irs 1040x forms Example 1. Irs 1040x forms You are a truck driver and you and your family live in Tucson. Irs 1040x forms You are employed by a trucking firm that has its terminal in Phoenix. Irs 1040x forms At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Irs 1040x forms You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Irs 1040x forms This is because Phoenix is your tax home. Irs 1040x forms Example 2. Irs 1040x forms Your family home is in Pittsburgh, where you work 12 weeks a year. Irs 1040x forms The rest of the year you work for the same employer in Baltimore. Irs 1040x forms In Baltimore, you eat in restaurants and sleep in a rooming house. Irs 1040x forms Your salary is the same whether you are in Pittsburgh or Baltimore. Irs 1040x forms Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Irs 1040x forms You cannot deduct any expenses you have for meals and lodging there. Irs 1040x forms However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Irs 1040x forms You can deduct the cost of your round trip between Baltimore and Pittsburgh. Irs 1040x forms You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Irs 1040x forms Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Irs 1040x forms It may not be practical to return to your tax home from this other location at the end of each work day. Irs 1040x forms Temporary assignment vs. Irs 1040x forms indefinite assignment. Irs 1040x forms   If your assignment or job away from your main place of work is temporary, your tax home does not change. Irs 1040x forms You are considered to be away from home for the whole period you are away from your main place of work. Irs 1040x forms You can deduct your travel expenses if they otherwise qualify for deduction. Irs 1040x forms Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Irs 1040x forms    However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Irs 1040x forms An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Irs 1040x forms   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Irs 1040x forms You may be able to deduct the cost of relocating to your new tax home as a moving expense. Irs 1040x forms See Publication 521 for more information. Irs 1040x forms Exception for federal crime investigations or prosecutions. Irs 1040x forms   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Irs 1040x forms This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year provided you meet the other requirements for deductibility. Irs 1040x forms   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Irs 1040x forms Determining temporary or indefinite. Irs 1040x forms   You must determine whether your assignment is temporary or indefinite when you start work. Irs 1040x forms If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Irs 1040x forms An assignment or job that is initially temporary may become indefinite due to changed circumstances. Irs 1040x forms A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Irs 1040x forms   The following examples illustrate whether an assignment or job is temporary or indefinite. Irs 1040x forms Example 1. Irs 1040x forms You are a construction worker. Irs 1040x forms You live and regularly work in Los Angeles. Irs 1040x forms You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. Irs 1040x forms Your tax home is Los Angeles. Irs 1040x forms Because of a shortage of work, you took a job on a construction project in Fresno. Irs 1040x forms Your job was scheduled to end in 8 months. Irs 1040x forms The job actually lasted 10 months. Irs 1040x forms You realistically expected the job in Fresno to last 8 months. Irs 1040x forms The job actually did last less than 1 year. Irs 1040x forms The job is temporary and your tax home is still in Los Angeles. Irs 1040x forms Example 2. Irs 1040x forms The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 18 months. Irs 1040x forms The job actually was completed in 10 months. Irs 1040x forms Your job in Fresno is indefinite because you realistically expected the work to last longer than 1 year, even though it actually lasted less than 1 year. Irs 1040x forms You cannot deduct any travel expenses you had in Fresno because Fresno became your tax home. Irs 1040x forms Example 3. Irs 1040x forms The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 9 months. Irs 1040x forms After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months). Irs 1040x forms Initially, you realistically expected the job in Fresno to last for only 9 months. Irs 1040x forms However, due to changed circumstances occurring after 8 months, it was no longer realistic for you to expect that the job in Fresno would last for 1 year or less. Irs 1040x forms You can only deduct your travel expenses for the first 8 months. Irs 1040x forms You cannot deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite. Irs 1040x forms Going home on days off. Irs 1040x forms   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Irs 1040x forms You cannot deduct the cost of your meals and lodging there. Irs 1040x forms However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Irs 1040x forms You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Irs 1040x forms   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Irs 1040x forms In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Irs 1040x forms Probationary work period. Irs 1040x forms   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Irs 1040x forms You cannot deduct any of your expenses for meals and lodging during the probationary period. Irs 1040x forms What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Irs 1040x forms You can deduct ordinary and necessary expenses you have when you travel away from home on business. Irs 1040x forms The type of expense you can deduct depends on the facts and your circumstances. Irs 1040x forms Table 1-1 summarizes travel expenses you may be able to deduct. Irs 1040x forms You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Irs 1040x forms When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Irs 1040x forms You can use a log, diary, notebook, or any other written record to keep track of your expenses. Irs 1040x forms The types of expenses you need to record, along with supporting documentation, are described in Table 5-1 (see chapter 5). Irs 1040x forms Separating costs. Irs 1040x forms   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Irs 1040x forms You must have a reasonable basis for making this allocation. Irs 1040x forms For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Irs 1040x forms Travel expenses for another individual. Irs 1040x forms    If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Irs 1040x forms Employee. Irs 1040x forms   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Irs 1040x forms Business associate. Irs 1040x forms   If a business associate travels with you and meets the conditions in (2) and (3), earlier, you can deduct the travel expenses you have for that person. Irs 1040x forms A business associate is someone with whom you could reasonably expect to actively conduct business. Irs 1040x forms A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Irs 1040x forms Bona fide business purpose. Irs 1040x forms   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Irs 1040x forms Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Irs 1040x forms Table 1-1. Irs 1040x forms Travel Expenses You Can Deduct   This chart summarizes expenses you can deduct when you travel away from home for business purposes. Irs 1040x forms IF you have expenses for. Irs 1040x forms . Irs 1040x forms . Irs 1040x forms THEN you can deduct the cost of. Irs 1040x forms . Irs 1040x forms . Irs 1040x forms transportation travel by airplane, train, bus, or car between your home and your business destination. Irs 1040x forms If you were provided with a free ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Irs 1040x forms If you travel by ship, see Luxury Water Travel and Cruise Ships (under Conventions) for additional rules and limits. Irs 1040x forms taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Irs 1040x forms baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Irs 1040x forms car operating and maintaining your car when traveling away from home on business. Irs 1040x forms You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking. Irs 1040x forms If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Irs 1040x forms lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Irs 1040x forms Meals include amounts spent for food, beverages, taxes, and related tips. Irs 1040x forms See Meals for additional rules and limits. Irs 1040x forms cleaning dry cleaning and laundry. Irs 1040x forms telephone business calls while on your business trip. Irs 1040x forms This includes business communication by fax machine or other communication devices. Irs 1040x forms tips tips you pay for any expenses in this chart. Irs 1040x forms other other similar ordinary and necessary expenses related to your business travel. Irs 1040x forms These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Irs 1040x forms Example. Irs 1040x forms Jerry drives to Chicago on business and takes his wife, Linda, with him. Irs 1040x forms Linda is not Jerry's employee. Irs 1040x forms Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Irs 1040x forms The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Irs 1040x forms Her expenses are not deductible. Irs 1040x forms Jerry pays $199 a day for a double room. Irs 1040x forms A single room costs $149 a day. Irs 1040x forms He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Irs 1040x forms If he uses public transportation, he can deduct only his fare. Irs 1040x forms Meals You can deduct the cost of meals in either of the following situations. Irs 1040x forms It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Irs 1040x forms The meal is business-related entertainment. Irs 1040x forms Business-related entertainment is discussed in chapter 2 . Irs 1040x forms The following discussion deals only with meals that are not business-related entertainment. Irs 1040x forms Lavish or extravagant. Irs 1040x forms   You cannot deduct expenses for meals that are lavish or extravagant. Irs 1040x forms An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Irs 1040x forms Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Irs 1040x forms 50% limit on meals. Irs 1040x forms   You can figure your meals expense using either of the following methods. Irs 1040x forms Actual cost. Irs 1040x forms The standard meal allowance. Irs 1040x forms Both of these methods are explained below. Irs 1040x forms But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Irs 1040x forms   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Irs 1040x forms If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Irs 1040x forms Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans. Irs 1040x forms Actual Cost You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Irs 1040x forms If you use this method, you must keep records of your actual cost. Irs 1040x forms Standard Meal Allowance Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Irs 1040x forms It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Irs 1040x forms The set amount varies depending on where and when you travel. Irs 1040x forms In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Irs 1040x forms If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Irs 1040x forms See the recordkeeping rules for travel in chapter 5 . Irs 1040x forms Incidental expenses. Irs 1040x forms   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Irs 1040x forms   Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Irs 1040x forms Incidental-expenses-only method. Irs 1040x forms   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Irs 1040x forms The amount of the deduction is $5 a day. Irs 1040x forms You can use this method only if you did not pay or incur any meal expenses. Irs 1040x forms You cannot use this method on any day that you use the standard meal allowance. Irs 1040x forms This method is subject to the proration rules for partial days. Irs 1040x forms See Travel for days you depart and return , later in this chapter. Irs 1040x forms Note. Irs 1040x forms The incidental-expenses-only method is not subject to the 50% limit discussed below. Irs 1040x forms Federal employees should refer to the Federal Travel Regulations at www. Irs 1040x forms gsa. Irs 1040x forms gov. Irs 1040x forms Find the “Most Requested Links” on the upper left and click on “Regulations: FAR, FMR, FTR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Irs 1040x forms 50% limit may apply. Irs 1040x forms   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Irs 1040x forms If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Irs 1040x forms The 50% limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6. Irs 1040x forms There is no optional standard lodging amount similar to the standard meal allowance. Irs 1040x forms Your allowable lodging expense deduction is your actual cost. Irs 1040x forms Who can use the standard meal allowance. Irs 1040x forms   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Irs 1040x forms Use of the standard meal allowance for other travel. Irs 1040x forms   You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Irs 1040x forms You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Irs 1040x forms You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Irs 1040x forms Amount of standard meal allowance. Irs 1040x forms   The standard meal allowance is the federal M&IE rate. Irs 1040x forms For travel in 2013, the rate for most small localities in the United States is $46 a day. Irs 1040x forms    Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Irs 1040x forms    You can find this information (organized by state) on the Internet at www. Irs 1040x forms gsa. Irs 1040x forms gov/perdiem. Irs 1040x forms Enter a zip code or select a city and state for the per diem rates for the current fiscal year. Irs 1040x forms Per diem rates for prior fiscal years are available by using the drop down menu under “Search by State. Irs 1040x forms ”   Per diem rates are listed by the Federal government's fiscal year which runs from October 1 to September 30. Irs 1040x forms You can choose to use the rates from the 2013 fiscal year per diem tables or the rates from the 2014 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return for the year. Irs 1040x forms   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Irs 1040x forms If you work in the transportation industry, however, see Special rate for transportation workers , later. Irs 1040x forms Standard meal allowance for areas outside the continental United States. Irs 1040x forms   The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Irs 1040x forms The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Irs 1040x forms S. Irs 1040x forms Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Irs 1040x forms The Department of State establishes per diem rates for all other foreign areas. Irs 1040x forms    You can access per diem rates for non-foreign areas outside the continental United States at: www. Irs 1040x forms defensetravel. Irs 1040x forms dod. Irs 1040x forms mil/site/perdiemCalc. Irs 1040x forms cfm. Irs 1040x forms You can access all other foreign per diem rates at: www. Irs 1040x forms state. Irs 1040x forms gov/travel/. Irs 1040x forms Click on “Travel Per Diem Allowances for Foreign Areas,” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates. Irs 1040x forms Special rate for transportation workers. Irs 1040x forms   You can use a special standard meal allowance if you work in the transportation industry. Irs 1040x forms You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Irs 1040x forms If this applies to you, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). Irs 1040x forms   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. Irs 1040x forms If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Irs 1040x forms Travel for days you depart and return. Irs 1040x forms   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Irs 1040x forms You can do so by one of two methods. Irs 1040x forms Method 1: You can claim 3/4 of the standard meal allowance. Irs 1040x forms Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Irs 1040x forms Example. Irs 1040x forms Jen is employed in New Orleans as a convention planner. Irs 1040x forms In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Irs 1040x forms She left her home in New Orleans at 10 a. Irs 1040x forms m. Irs 1040x forms on Wednesday and arrived in Washington, DC, at 5:30 p. Irs 1040x forms m. Irs 1040x forms After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Irs 1040x forms m. Irs 1040x forms Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Irs 1040x forms Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Irs 1040x forms Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Irs 1040x forms For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Irs 1040x forms Travel in the United States The following discussion applies to travel in the United States. Irs 1040x forms For this purpose, the United States includes the 50 states and the District of Columbia. Irs 1040x forms The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Irs 1040x forms See Part of Trip Outside the United States , later. Irs 1040x forms Trip Primarily for Business You can deduct all of your travel expenses if your trip was entirely business related. Irs 1040x forms If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. Irs 1040x forms These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Irs 1040x forms Example. Irs 1040x forms You work in Atlanta and take a business trip to New Orleans in May. Irs 1040x forms Your business travel totals 850 miles round trip. Irs 1040x forms On your way, you stop in Mobile to visit your parents. Irs 1040x forms You spend $2,120 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Irs 1040x forms If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,820. Irs 1040x forms You can deduct $1,820 for your trip, including the cost of round-trip transportation to and from New Orleans. Irs 1040x forms The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Irs 1040x forms Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Irs 1040x forms However, you can deduct any expenses you have while at your destination that are directly related to your business. Irs 1040x forms A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Irs 1040x forms The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Irs 1040x forms Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later in this chapter under Travel Outside the United States for that part of the trip. Irs 1040x forms For the part of your trip that is inside the United States, use the rules for travel in the United States. Irs 1040x forms Travel outside the United States does not include travel from one point in the United States to another point in the United States. Irs 1040x forms The following discussion can help you determine whether your trip was entirely within the United States. Irs 1040x forms Public transportation. Irs 1040x forms   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Irs 1040x forms Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Irs 1040x forms Example. Irs 1040x forms You fly from New York to Puerto Rico with a scheduled stop in Miami. Irs 1040x forms You return to New York nonstop. Irs 1040x forms The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Irs 1040x forms Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Irs 1040x forms Private car. Irs 1040x forms   Travel by private car in the United States is travel between points in the United States, even though you are on your way to a destination outside the United States. Irs 1040x forms Example. Irs 1040x forms You travel by car from Denver to Mexico City and return. Irs 1040x forms Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Irs 1040x forms The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Irs 1040x forms Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Irs 1040x forms For this purpose, the United States includes the 50 states and the District of Columbia. Irs 1040x forms How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Irs 1040x forms Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Irs 1040x forms Travel entirely for business. Irs 1040x forms   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Irs 1040x forms Travel considered entirely for business. Irs 1040x forms   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Irs 1040x forms Exception 1 - No substantial control. Irs 1040x forms   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Irs 1040x forms The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Irs 1040x forms   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, and Are not related to your employer, or Are not a managing executive. Irs 1040x forms    “Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances . Irs 1040x forms   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Irs 1040x forms   A self-employed person generally has substantial control over arranging business trips. Irs 1040x forms Exception 2 - Outside United States no more than a week. Irs 1040x forms   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Irs 1040x forms One week means 7 consecutive days. Irs 1040x forms In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Irs 1040x forms Example. Irs 1040x forms You traveled to Brussels primarily for business. Irs 1040x forms You left Denver on Tuesday and flew to New York. Irs 1040x forms On Wednesday, you flew from New York to Brussels, arriving the next morning. Irs 1040x forms On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. Irs 1040x forms You flew back to New York, arriving Wednesday afternoon. Irs 1040x forms On Thursday, you flew back to Denver. Irs 1040x forms Although you were away from your home in Denver for more than a week, you were not outside the United States for more than a week. Irs 1040x forms This is because the day you depart does not count as a day outside the United States. Irs 1040x forms You can deduct your cost of the round-trip flight between Denver and Brussels. Irs 1040x forms You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. Irs 1040x forms However, you cannot deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities. Irs 1040x forms Exception 3 - Less than 25% of time on personal activities. Irs 1040x forms   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Irs 1040x forms For this purpose, count both the day your trip began and the day it ended. Irs 1040x forms Example. Irs 1040x forms You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. Irs 1040x forms You then flew back to Seattle. Irs 1040x forms You spent 1 day flying in each direction. Irs 1040x forms Because only 5/21 (less than 25%) of your total time abroad was for nonbusiness activities, you can deduct as travel expenses what it would have cost you to make the trip if you had not engaged in any nonbusiness activity. Irs 1040x forms The amount you can deduct is the cost of the round-trip plane fare and 16 days of meals (subject to the 50% limit), lodging, and other related expenses. Irs 1040x forms Exception 4 - Vacation not a major consideration. Irs 1040x forms   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Irs 1040x forms Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on other activities, you generally cannot deduct all of your travel expenses. Irs 1040x forms You can only deduct the business portion of your cost of getting to and from your destination. Irs 1040x forms You must allocate the costs between your business and other activities to determine your deductible amount. Irs 1040x forms See Travel allocation rules , later. Irs 1040x forms You do not have to allocate your travel expenses if you meet one of the four exceptions listed earlier under Travel considered entirely for business . Irs 1040x forms In those cases, you can deduct the total cost of getting to and from your destination. Irs 1040x forms Travel allocation rules. Irs 1040x forms   If your trip outside the United States was primarily for business, you must allocate your travel time on a day-to-day basis between business days and nonbusiness days. Irs 1040x forms The days you depart from and return to the United States are both counted as days outside the United States. Irs 1040x forms   To figure the deductible amount of your round-trip travel expenses, use the following fraction. Irs 1040x forms The numerator (top number) is the total number of business days outside the United States. Irs 1040x forms The denominator (bottom number) is the total number of business and nonbusiness days of travel. Irs 1040x forms Counting business days. Irs 1040x forms   Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays. Irs 1040x forms Transportation day. Irs 1040x forms   Count as a business day any day you spend traveling to or from a business destination. Irs 1040x forms However, if because of a nonbusiness activity you do not travel by a direct route, your business days are the days it would take you to travel a reasonably direct route to your business destination. Irs 1040x forms Extra days for side trips or nonbusiness activities cannot be counted as business days. Irs 1040x forms Presence required. Irs 1040x forms   Count as a business day any day your presence is required at a particular place for a specific business purpose. Irs 1040x forms Count it as a business day even if you spend most of the day on nonbusiness activities. Irs 1040x forms Day spent on business. Irs 1040x forms   If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. Irs 1040x forms Also, count as a business day any day you are prevented from working because of circumstances beyond your control. Irs 1040x forms Certain weekends and holidays. Irs 1040x forms   Count weekends, holidays, and other necessary standby days as business days if they fall between business days. Irs 1040x forms But if they follow your business meetings or activity and you remain at your business destination for nonbusiness or personal reasons, do not count them as business days. Irs 1040x forms Example 1. Irs 1040x forms Your tax home is New York City. Irs 1040x forms You travel to Quebec, where you have a business appointment on Friday. Irs 1040x forms You have another appointment on the following Monday. Irs 1040x forms Because your presence was required on both Friday and Monday, they are business days. Irs 1040x forms Because the weekend is between business days, Saturday and Sunday are counted as business days. Irs 1040x forms This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity. Irs 1040x forms Example 2. Irs 1040x forms If, in Example 1, you had no business in Quebec after Friday, but stayed until Monday before starting home, Saturday and Sunday would be nonbusiness days. Irs 1040x forms Nonbusiness activity on the way to or from your business destination. Irs 1040x forms   If you stopped for a vacation or other nonbusiness activity either on the way from the United States to your business destination, or on the way back to the United States from your business destination, you must allocate part of your travel expenses to the nonbusiness activity. Irs 1040x forms   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your nonbusiness destination and a return to the point where travel outside the United States ends. Irs 1040x forms   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Irs 1040x forms The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. Irs 1040x forms Example. Irs 1040x forms You live in New York. Irs 1040x forms On May 4 you flew to Paris to attend a business conference that began on May 5. Irs 1040x forms The conference ended at noon on May 14. Irs 1040x forms That evening you flew to Dublin where you visited with friends until the afternoon of May 21, when you flew directly home to New York. Irs 1040x forms The primary purpose for the trip was to attend the conference. Irs 1040x forms If you had not stopped in Dublin, you would have arrived home the evening of May 14. Irs 1040x forms You do not meet any of the exceptions that would allow you to consider your travel entirely for business. Irs 1040x forms May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days. Irs 1040x forms You can deduct the cost of your meals (subject to the 50% limit), lodging, and other business-related travel expenses while in Paris. Irs 1040x forms You cannot deduct your expenses while in Dublin. Irs 1040x forms You also cannot deduct 7/18 of what it would have cost you to travel round-trip between New York and Dublin. Irs 1040x forms You paid $750 to fly from New York to Paris, $400 to fly from Paris to Dublin, and $700 to fly from Dublin back to New York. Irs 1040x forms Round-trip airfare from New York to Dublin would have been $1,250. Irs 1040x forms You figure the deductible part of your air travel expenses by subtracting 7/18 of the round-trip fare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7/18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850). Irs 1040x forms Your deductible air travel expense is $1,364 ($1,850 − $486). Irs 1040x forms Nonbusiness activity at, near, or beyond business destination. Irs 1040x forms   If you had a vacation or other nonbusiness activity at, near, or beyond your business destination, you must allocate part of your travel expenses to the nonbusiness activity. Irs 1040x forms   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your business destination and a return to the point where travel outside the United States ends. Irs 1040x forms   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Irs 1040x forms The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. Irs 1040x forms   None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible. Irs 1040x forms Example. Irs 1040x forms Assume that the dates are the same as in the previous example but that instead of going to Dublin for your vacation, you fly to Venice, Italy, for a vacation. Irs 1040x forms You cannot deduct any part of the cost of your trip from Paris to Venice and return to Paris. Irs 1040x forms In addition, you cannot deduct 7/18 of the airfare and other expenses from New York to Paris and back to New York. Irs 1040x forms You can deduct 11/18 of the round-trip plane fare and other travel expenses from New York to Paris, plus your meals (subject to the 50% limit), lodging, and any other business expenses you had in Paris. Irs 1040x forms (Assume these expenses total $4,939. Irs 1040x forms ) If the round-trip plane fare and other travel-related expenses (such as food during the trip) are $1,750, you can deduct travel costs of $1,069 (11/18 × $1,750), plus the full $4,939 for the expenses you had in Paris. Irs 1040x forms Other methods. Irs 1040x forms   You can use another method of counting business days if you establish that it more clearly reflects the time spent on other than business activities outside the United States. Irs 1040x forms Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Irs 1040x forms However, if you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Irs 1040x forms Example. Irs 1040x forms The university from which you graduated has a continuing education program for members of its alumni association. Irs 1040x forms This program consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. Irs 1040x forms However, none of the conferences are directed toward specific occupations or professions. Irs 1040x forms It is up to each participant to seek out specialists and organizational settings appropriate to his or her occupational interests. Irs 1040x forms Three-hour sessions are held each day over a 5-day period at each of the selected overseas facilities where participants can meet with individual practitioners. Irs 1040x forms These sessions are composed of a variety of activities including workshops, mini-lectures, role playing, skill development, and exercises. Irs 1040x forms Professional conference directors schedule and conduct the sessions. Irs 1040x forms Participants can choose those sessions they wish to attend. Irs 1040x forms You can participate in this program since you are a member of the alumni association. Irs 1040x forms You and your family take one of the trips. Irs 1040x forms You spend about 2 hours at each of the planned sessions. Irs 1040x forms The rest of the time you go touring and sightseeing with your family. Irs 1040x forms The trip lasts less than 1 week. Irs 1040x forms Your travel expenses for the trip are not deductible since the trip was primarily a vacation. Irs 1040x forms However, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. Irs 1040x forms These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses. Irs 1040x forms Luxury Water Travel If you travel by ocean liner, cruise ship, or other form of luxury water transportation for business purposes, there is a daily limit on the amount you can deduct. Irs 1040x forms The limit is twice the highest federal per diem rate allowable at the time of your travel. Irs 1040x forms (Generally, the federal per diem is the amount paid to federal government employees for daily living expenses when they travel away from home, but in the United States, for business purposes. Irs 1040x forms ) Daily limit on luxury water travel. Irs 1040x forms   The highest federal per diem rate allowed and the daily limit for luxury water travel in 2013 is shown in the following table. Irs 1040x forms   2013 Dates Highest Federal Per Diem Daily Limit on Luxury Water Travel   Jan. Irs 1040x forms 1 – Mar. Irs 1040x forms 31 $367 $734   Apr. Irs 1040x forms 1 – June 30 312 624   July 1 – Aug. Irs 1040x forms 31 310 620   Sept. Irs 1040x forms 1 – Sept. Irs 1040x forms 30 366 732   Oct. Irs 1040x forms 1 – Dec. Irs 1040x forms 31 374 748 Example. Irs 1040x forms Caroline, a travel agent, traveled by ocean liner from New York to London, England, on business in May. Irs 1040x forms Her expense for the 6-day cruise was $5,200. Irs 1040x forms Caroline's deduction for the cruise cannot exceed $3,744 (6 days × $624 daily limit). Irs 1040x forms Meals and entertainment. Irs 1040x forms   If your expenses for luxury water travel include separately stated amounts for meals or entertainment, those amounts are subject to the 50% limit on meals and entertainment before you apply the daily limit. Irs 1040x forms For a discussion of the 50% Limit , see chapter 2. Irs 1040x forms Example. Irs 1040x forms In the previous example, Caroline's luxury water travel had a total cost of $5,200. Irs 1040x forms Of that amount, $3,700 was separately stated as meals and entertainment. Irs 1040x forms Caroline, who is self-employed, is not reimbursed for any of her travel expenses. Irs 1040x forms Caroline figures her deductible travel expenses as follows. Irs 1040x forms Meals and entertainment $3,700   50% limit × . Irs 1040x forms 50   Allowable meals &     entertainment $1,850   Other travel expenses + 1,800   Allowable cost before the daily limit $3,650 Daily limit for May 2013 $624   Times number of days × 6   Maximum luxury water travel     deduction $3,744 Amount of allowable deduction $3,650 Caroline's deduction for her cruise is limited to $3,650, even though the limit on luxury water travel is slightly higher. Irs 1040x forms Not separately stated. Irs 1040x forms   If your meal or entertainment charges are not separately stated or are not clearly identifiable, you do not have to allocate any portion of the total charge to meals or entertainment. Irs 1040x forms Exceptions The daily limit on luxury water travel (discussed earlier) does not apply to expenses you have to attend a convention, seminar, or meeting on board a cruise ship. Irs 1040x forms See Cruise Ships under Conventions. Irs 1040x forms Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Irs 1040x forms You cannot deduct the travel expenses for your family. Irs 1040x forms If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Irs 1040x forms Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Irs 1040x forms You can deduct your travel expenses only if your attendance is connected to your own trade or business. Irs 1040x forms Convention agenda. Irs 1040x forms   The convention agenda or program generally shows the purpose of the convention. Irs 1040x forms You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Irs 1040x forms The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Irs 1040x forms Conventions Held Outside the North American Area You cannot deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless: The meeting is directly related to your trade or business, and It is reasonable to hold the meeting outside the North American area. Irs 1040x forms See Reasonableness test , later. Irs 1040x forms If the meeting meets these requirements, you also must satisfy the rules for deducting expenses for business trips in general, discussed earlier under Travel Outside the United States . Irs 1040x forms North American area. Irs 1040x forms   The North American area includes the following locations. Irs 1040x forms American Samoa Johnston Island Antigua and Barbuda Kingman Reef Aruba Marshall Islands Bahamas Mexico Baker Island Micronesia Barbados Midway Islands Bermuda Netherlands Antilles Canada Northern Mariana Costa Rica Islands Dominica Palau Dominican Republic Palmyra Atoll Grenada Panama Guam Puerto Rico Guyana Trinidad and Tobago Honduras USA Howland Island U. Irs 1040x forms S. Irs 1040x forms Virgin Islands Jamaica Wake Island Jarvis Island   The North American area also includes U. Irs 1040x forms S. Irs 1040x forms islands, cays, and reefs that are possessions of the United States and not part of the fifty states or the District of Columbia. Irs 1040x forms Reasonableness test. Irs 1040x forms   The following factors are taken into account to determine if it was reasonable to hold the meeting outside the North American area. Irs 1040x forms The purpose of the meeting and the activities taking place at the meeting. Irs 1040x forms The purposes and activities of the sponsoring organizations or groups. Irs 1040x forms The homes of the active members of the sponsoring organizations and the places at which other meetings of the sponsoring organizations or groups have been or will be held. Irs 1040x forms Other relevant factors you may present. Irs 1040x forms Cruise Ships You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. Irs 1040x forms All ships that sail are considered cruise ships. Irs 1040x forms You can deduct these expenses only if all of the following requirements are met. Irs 1040x forms The convention, seminar, or meeting is directly related to your trade or business. Irs 1040x forms The cruise ship is a vessel registered in the United States. Irs 1040x forms All of the cruise ship's ports of call are in the United States or in possessions of the United States. Irs 1040x forms You attach to your return a written statement signed by you that includes information about: The total days of the trip (not including the days of transportation to and from the cruise ship port), The number of hours each day that you devoted to scheduled business activities, and A program of the scheduled business activities of the meeting. Irs 1040x forms You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes: A schedule of the business activities of each day of the meeting, and The number of hours you attended the scheduled business activities. Irs 1040x forms Prev  Up  Next   Home   More Online Publications