Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Irs Form 1040 Ez Instructions

Amendment FormAmended Returns1040nr Form 2011E File State Return1040ez Tax FileWww Myfreetaxes Com Unitedwayhoco OrgIncome Tax Amendment FormHow To Amend 2012 Tax ReturnTurbo Taxes 2011Can I File My State Taxes Online For FreeCan 1040x Filed Electronically2012 Form 1040 FormFree File Tax ExtensionCan I Amend My Tax ReturnWhere Can I Do My State Taxes Online For FreePrepare 1040x OnlineState Income Tax ChartsIrs Form 1040 2011How To Amend A Tax Return 2012Filing Taxes For FreeOnline 1040 EzHow To File An Amended Tax Return For 2011Taxact 1040xFile Taxes Online Free H&r Block1040ez 2012 FormIrs Tax FormsTaxact 2007How To File 1040nrIrs Gov 1040x FormAmending A Tax Return With TurbotaxFile 2007 Taxes FreeFederal Income Tax Forms 1040ezCan I File My 2012 Taxes Late1040x Forms2010 1040ezFiling State Taxes For Free2010 Income Tax FormsState Tax Forms 2014Www Irs Gov 2011 Tax FormsFree Tax Filing 2013

Irs Form 1040 Ez Instructions

Irs form 1040 ez instructions 3. Irs form 1040 ez instructions   Savings Incentive Match Plans for Employees (SIMPLE) Table of Contents Introduction What Is a SIMPLE Plan?Eligible Employees How Are Contributions Made? How Much Can Be Contributed on Your Behalf?Matching contributions less than 3%. Irs form 1040 ez instructions Traditional IRA mistakenly moved to SIMPLE IRA. Irs form 1040 ez instructions When Can You Withdraw or Use Assets?Are Distributions Taxable? Introduction This chapter is for employees who need information about savings incentive match plans for employees (SIMPLE plans). Irs form 1040 ez instructions It explains what a SIMPLE plan is, contributions to a SIMPLE plan, and distributions from a SIMPLE plan. Irs form 1040 ez instructions Under a SIMPLE plan, SIMPLE retirement accounts for participating employees can be set up either as: Part of a 401(k) plan, or A plan using IRAs (SIMPLE IRA). Irs form 1040 ez instructions This chapter only discusses the SIMPLE plan rules that relate to SIMPLE IRAs. Irs form 1040 ez instructions See chapter 3 of Publication 560 for information on any special rules for SIMPLE plans that do not use IRAs. Irs form 1040 ez instructions If your employer maintains a SIMPLE plan, you must be notified, in writing, that you can choose the financial institution that will serve as trustee for your SIMPLE IRA and that you can roll over or transfer your SIMPLE IRA to another financial institution. Irs form 1040 ez instructions See Rollovers and Transfers Exception, later under When Can You Withdraw or Use Assets. Irs form 1040 ez instructions What Is a SIMPLE Plan? A SIMPLE plan is a tax-favored retirement plan that certain small employers (including self-employed individuals) can set up for the benefit of their employees. Irs form 1040 ez instructions See chapter 3 of Publication 560 for information on the requirements employers must satisfy to set up a SIMPLE plan. Irs form 1040 ez instructions A SIMPLE plan is a written agreement (salary reduction agreement) between you and your employer that allows you, if you are an eligible employee (including a self-employed individual), to choose to: Reduce your compensation (salary) by a certain percentage each pay period, and Have your employer contribute the salary reductions to a SIMPLE IRA on your behalf. Irs form 1040 ez instructions These contributions are called salary reduction contributions. Irs form 1040 ez instructions All contributions under a SIMPLE IRA plan must be made to SIMPLE IRAs, not to any other type of IRA. Irs form 1040 ez instructions The SIMPLE IRA can be an individual retirement account or an individual retirement annuity, described in chapter 1. Irs form 1040 ez instructions Contributions are made on behalf of eligible employees. Irs form 1040 ez instructions (See Eligible Employees below. Irs form 1040 ez instructions ) Contributions are also subject to various limits. Irs form 1040 ez instructions (See How Much Can Be Contributed on Your Behalf , later. Irs form 1040 ez instructions ) In addition to salary reduction contributions, your employer must make either matching contributions or nonelective contributions. Irs form 1040 ez instructions See How Are Contributions Made , later. Irs form 1040 ez instructions You may be able to claim a credit for contributions to your SIMPLE plan. Irs form 1040 ez instructions For more information, see chapter 4. Irs form 1040 ez instructions Eligible Employees You must be allowed to participate in your employer's SIMPLE plan if you: Received at least $5,000 in compensation from your employer during any 2 years prior to the current year, and Are reasonably expected to receive at least $5,000 in compensation during the calendar year for which contributions are made. Irs form 1040 ez instructions Self-employed individual. Irs form 1040 ez instructions   For SIMPLE plan purposes, the term employee includes a self-employed individual who received earned income. Irs form 1040 ez instructions Excludable employees. Irs form 1040 ez instructions   Your employer can exclude the following employees from participating in the SIMPLE plan. Irs form 1040 ez instructions Employees whose retirement benefits are covered by a collective bargaining agreement (union contract). Irs form 1040 ez instructions Employees who are nonresident aliens and received no earned income from sources within the United States. Irs form 1040 ez instructions Employees who would not have been eligible employees if an acquisition, disposition, or similar transaction had not occurred during the year. Irs form 1040 ez instructions Compensation. Irs form 1040 ez instructions   For purposes of the SIMPLE plan rules, your compensation for a year generally includes the following amounts. Irs form 1040 ez instructions Wages, tips, and other pay from your employer that is subject to income tax withholding. Irs form 1040 ez instructions Deferred amounts elected under any 401(k) plans, 403(b) plans, government (section 457) plans, SEP plans, and SIMPLE plans. Irs form 1040 ez instructions Self-employed individual compensation. Irs form 1040 ez instructions   For purposes of the SIMPLE plan rules, if you are self-employed, your compensation for a year is your net earnings from self-employment (Schedule SE (Form 1040), Section A, line 4, or Section B, line 6) before subtracting any contributions made to a SIMPLE IRA on your behalf. Irs form 1040 ez instructions   For these purposes, net earnings from self-employment include services performed while claiming exemption from self-employment tax as a member of a group conscientiously opposed to social security benefits. Irs form 1040 ez instructions How Are Contributions Made? Contributions under a salary reduction agreement are called salary reduction contributions. Irs form 1040 ez instructions They are made on your behalf by your employer. Irs form 1040 ez instructions Your employer must also make either matching contributions or nonelective contributions. Irs form 1040 ez instructions Salary reduction contributions. Irs form 1040 ez instructions   During the 60-day period before the beginning of any year, and during the 60-day period before you are eligible, you can choose salary reduction contributions expressed either as a percentage of compensation, or as a specific dollar amount (if your employer offers this choice). Irs form 1040 ez instructions You can choose to cancel the election at any time during the year. Irs form 1040 ez instructions   Salary reduction contributions are also referred to as “elective deferrals. Irs form 1040 ez instructions ”   Your employer cannot place restrictions on the contributions amount (such as by limiting the contributions percentage), except to comply with the salary reduction contributions limit, discussed under How Much Can Be Contributed on Your Behalf, later. Irs form 1040 ez instructions Matching contributions. Irs form 1040 ez instructions   Unless your employer chooses to make nonelective contributions, your employer must make contributions equal to the salary reduction contributions you choose (elect), but only up to certain limits. Irs form 1040 ez instructions See How Much Can Be Contributed on Your Behalf below. Irs form 1040 ez instructions These contributions are in addition to the salary reduction contributions and must be made to the SIMPLE IRAs of all eligible employees (defined earlier) who chose salary reductions. Irs form 1040 ez instructions These contributions are referred to as matching contributions. Irs form 1040 ez instructions   Matching contributions on behalf of a self-employed individual are not treated as salary reduction contributions. Irs form 1040 ez instructions Nonelective contributions. Irs form 1040 ez instructions   Instead of making matching contributions, your employer may be able to choose to make nonelective contributions on behalf of all eligible employees. Irs form 1040 ez instructions These nonelective contributions must be made on behalf of each eligible employee who has at least $5,000 of compensation from your employer, whether or not the employee chose salary reductions. Irs form 1040 ez instructions   One of the requirements your employer must satisfy is notifying the employees that the election was made. Irs form 1040 ez instructions For other requirements that your employer must satisfy, see chapter 3 of Publication 560. Irs form 1040 ez instructions How Much Can Be Contributed on Your Behalf? The limits on contributions to a SIMPLE IRA vary with the type of contribution that is made. Irs form 1040 ez instructions Salary reduction contributions limit. Irs form 1040 ez instructions   Salary reduction contributions (employee-chosen contributions or elective deferrals) that your employer can make on your behalf under a SIMPLE plan are limited to $12,000 for 2013. Irs form 1040 ez instructions The limitation remains at $12,000 for 2014. Irs form 1040 ez instructions If you are a participant in any other employer plans during 2013 and you have elective salary reductions or deferred compensation under those plans, the salary reduction contributions under the SIMPLE plan also are included in the annual limit of $17,500 for 2013 on exclusions of salary reductions and other elective deferrals. Irs form 1040 ez instructions You, not your employer, are responsible for monitoring compliance with these limits. Irs form 1040 ez instructions Additional elective deferrals can be contributed to your SIMPLE plan if: You reached age 50 by the end of 2013, and No other elective deferrals can be made for you to the plan for the year because of limits or restrictions, such as the regular annual limit. Irs form 1040 ez instructions The most that can be contributed in additional elective deferrals to your SIMPLE plan is the lesser of the following two amounts. Irs form 1040 ez instructions $2,500 for 2013, or Your compensation for the year reduced by your other elective deferrals for the year. Irs form 1040 ez instructions The additional deferrals are not subject to any other contribution limit and are not taken into account in applying other contribution limits. Irs form 1040 ez instructions The additional deferrals are not subject to the nondiscrimination rules as long as all eligible participants are allowed to make them. Irs form 1040 ez instructions Matching employer contributions limit. Irs form 1040 ez instructions   Generally, your employer must make matching contributions to your SIMPLE IRA in an amount equal to your salary reduction contributions. Irs form 1040 ez instructions These matching contributions cannot be more than 3% of your compensation for the calendar year. Irs form 1040 ez instructions See Matching contributions less than 3% below. Irs form 1040 ez instructions Example 1. Irs form 1040 ez instructions In 2013, Joshua was a participant in his employer's SIMPLE plan. Irs form 1040 ez instructions His compensation, before SIMPLE plan contributions, was $41,600 ($800 per week). Irs form 1040 ez instructions Instead of taking it all in cash, Joshua elected to have 12. Irs form 1040 ez instructions 5% of his weekly pay ($100) contributed to his SIMPLE IRA. Irs form 1040 ez instructions For the full year, Joshua's salary reduction contributions were $5,200, which is less than the $12,000 limit on these contributions. Irs form 1040 ez instructions Under the plan, Joshua's employer was required to make matching contributions to Joshua's SIMPLE IRA. Irs form 1040 ez instructions Because his employer's matching contributions must equal Joshua's salary reductions, but cannot be more than 3% of his compensation (before salary reductions) for the year, his employer's matching contribution was limited to $1,248 (3% of $41,600). Irs form 1040 ez instructions Example 2. Irs form 1040 ez instructions Assume the same facts as in Example 1 , except that Joshua's compensation for the year was $408,163 and he chose to have 2. Irs form 1040 ez instructions 94% of his weekly pay contributed to his SIMPLE IRA. Irs form 1040 ez instructions In this example, Joshua's salary reduction contributions for the year (2. Irs form 1040 ez instructions 94% × $408,163) were equal to the 2013 limit for salary reduction contributions ($12,000). Irs form 1040 ez instructions Because 3% of Joshua's compensation ($12,245) is more than the amount his employer was required to match ($12,000), his employer's matching contributions were limited to $12,000. Irs form 1040 ez instructions In this example, total contributions made on Joshua's behalf for the year were $24,000 ($12,000 (Joshua's contributions) + $12,000 (matching contributions)), the maximum contributions permitted under a SIMPLE IRA for 2013. Irs form 1040 ez instructions Matching contributions less than 3%. Irs form 1040 ez instructions   Your employer can reduce the 3% limit on matching contributions for a calendar year, but only if: The limit is not reduced below 1%, The limit is not reduced for more than 2 years out of the 5-year period that ends with (and includes) the year for which the election is effective, and Employees are notified of the reduced limit within a reasonable period of time before the 60-day election period during which they can enter into salary reduction agreements. Irs form 1040 ez instructions   For purposes of applying the rule in item (2) in determining whether the limit was reduced below 3% for the year, any year before the first year in which your employer (or a former employer) maintains a SIMPLE IRA plan will be treated as a year for which the limit was 3%. Irs form 1040 ez instructions If your employer chooses to make nonelective contributions for a year, that year also will be treated as a year for which the limit was 3%. Irs form 1040 ez instructions Nonelective employer contributions limit. Irs form 1040 ez instructions   If your employer chooses to make nonelective contributions, instead of matching contributions, to each eligible employee's SIMPLE IRA, contributions must be 2% of your compensation for the entire year. Irs form 1040 ez instructions For 2013, only $255,000 of your compensation can be taken into account to figure the contribution limit. Irs form 1040 ez instructions   Your employer can substitute the 2% nonelective contribution for the matching contribution for a year if both of the following requirements are met. Irs form 1040 ez instructions Eligible employees are notified that a 2% nonelective contribution will be made instead of a matching contribution. Irs form 1040 ez instructions This notice is provided within a reasonable period during which employees can enter into salary reduction agreements. Irs form 1040 ez instructions Example 3. Irs form 1040 ez instructions Assume the same facts as in Example 2 , except that Joshua's employer chose to make nonelective contributions instead of matching contributions. Irs form 1040 ez instructions Because his employer's nonelective contributions are limited to 2% of up to $255,000 of Joshua's compensation, his employer's contribution to Joshua's SIMPLE IRA was limited to $5,100. Irs form 1040 ez instructions In this example, total contributions made on Joshua's behalf for the year were $17,100 (Joshua's salary reductions of $12,000 plus his employer's contribution of $5,100). Irs form 1040 ez instructions Traditional IRA mistakenly moved to SIMPLE IRA. Irs form 1040 ez instructions   If you mistakenly roll over or transfer an amount from a traditional IRA to a SIMPLE IRA, you can later recharacterize the amount as a contribution to another traditional IRA. Irs form 1040 ez instructions For more information, see Recharacterizations in chapter 1. Irs form 1040 ez instructions Recharacterizing employer contributions. Irs form 1040 ez instructions   You cannot recharacterize employer contributions (including elective deferrals) under a SEP or SIMPLE plan as contributions to another IRA. Irs form 1040 ez instructions SEPs are discussed in chapter 2 of Publication 560. Irs form 1040 ez instructions SIMPLE plans are discussed in this chapter. Irs form 1040 ez instructions Converting from a SIMPLE IRA. Irs form 1040 ez instructions   Generally, you can convert an amount in your SIMPLE IRA to a Roth IRA under the same rules explained in chapter 1 under Converting From Any Traditional IRA Into a Roth IRA . Irs form 1040 ez instructions    However, you cannot convert any amount distributed from the SIMPLE IRA during the 2-year period beginning on the date you first participated in any SIMPLE IRA plan maintained by your employer. Irs form 1040 ez instructions When Can You Withdraw or Use Assets? Generally, the same distribution (withdrawal) rules that apply to traditional IRAs apply to SIMPLE IRAs. Irs form 1040 ez instructions These rules are discussed in chapter 1. Irs form 1040 ez instructions Your employer cannot restrict you from taking distributions from a SIMPLE IRA. Irs form 1040 ez instructions Are Distributions Taxable? Generally, distributions from a SIMPLE IRA are fully taxable as ordinary income. Irs form 1040 ez instructions If the distribution is an early distribution (discussed in chapter 1), it may be subject to the additional tax on early distributions. Irs form 1040 ez instructions See Additional Tax on Early Distributions, later. Irs form 1040 ez instructions Rollovers and Transfers Exception Generally, rollovers and trustee-to-trustee transfers are not taxable distributions. Irs form 1040 ez instructions Two-year rule. Irs form 1040 ez instructions   To qualify as a tax-free rollover (or a tax-free trustee-to-trustee transfer), a rollover distribution (or a transfer) made from a SIMPLE IRA during the 2-year period beginning on the date on which you first participated in your employer's SIMPLE plan must be contributed (or transferred) to another SIMPLE IRA. Irs form 1040 ez instructions The 2-year period begins on the first day on which contributions made by your employer are deposited in your SIMPLE IRA. Irs form 1040 ez instructions   After the 2-year period, amounts in a SIMPLE IRA can be rolled over or transferred tax free to an IRA other than a SIMPLE IRA, or to a qualified plan, a tax-sheltered annuity plan (section 403(b) plan), or deferred compensation plan of a state or local government (section 457 plan). Irs form 1040 ez instructions Additional Tax on Early Distributions The additional tax on early distributions (discussed in chapter 1) applies to SIMPLE IRAs. Irs form 1040 ez instructions If a distribution is an early distribution and occurs during the 2-year period following the date on which you first participated in your employer's SIMPLE plan, the additional tax on early distributions is increased from 10% to 25%. Irs form 1040 ez instructions If a rollover distribution (or transfer) from a SIMPLE IRA does not satisfy the 2-year rule, and is otherwise an early distribution, the additional tax imposed because of the early distribution is increased from 10% to 25% of the amount distributed. Irs form 1040 ez instructions Prev  Up  Next   Home   More Online Publications
Español

Better Business Bureaus (BBBs) are nonprofit organizations that encourage honest advertising and selling practices and are supported primarily by local businesses. They offer a variety of consumer services, including consumer education materials; business reports, particularly unanswered or unsettled complaints or other problems; mediation and arbitration services; and information about charities and other organizations that are seeking public donations. They also provide ratings (A, B, C, D, or F) of local companies to express the BBB's confidence that the company operates in a trustworthy manner and demonstrates a willingness to resolve customer concerns.

Grand Rapids, MI

Website: Better Business Bureau

Email: info@westernmichigan.bbb.org

Address: Better Business Bureau
2627 E. Beltline Ave., SE, Suite 320
Grand Rapids, MI 49546

Phone Number: 616-774-8236

Southfield, MI

Website: Better Business Bureau

Email: info@easternmichiganbbb.org

Address: Better Business Bureau
26777 Central Park Blvd., Suite 100
Southfield, MI 48076-4163

Phone Number: 248-223-9400

The Irs Form 1040 Ez Instructions

Irs form 1040 ez instructions 28. Irs form 1040 ez instructions   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. Irs form 1040 ez instructions  The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs form 1040 ez instructions Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). Irs form 1040 ez instructions You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Irs form 1040 ez instructions This chapter covers the following topics. Irs form 1040 ez instructions Deductions subject to the 2% limit. Irs form 1040 ez instructions Deductions not subject to the 2% limit. Irs form 1040 ez instructions Expenses you cannot deduct. Irs form 1040 ez instructions You must keep records to verify your deductions. Irs form 1040 ez instructions You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. Irs form 1040 ez instructions For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. Irs form 1040 ez instructions Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). Irs form 1040 ez instructions You can claim the amount of expenses that is more than 2% of your adjusted gross income. Irs form 1040 ez instructions You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Irs form 1040 ez instructions Your adjusted gross income is the amount on Form 1040, line 38. Irs form 1040 ez instructions Generally, you apply the 2% limit after you apply any other deduction limit. Irs form 1040 ez instructions For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. Irs form 1040 ez instructions Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). Irs form 1040 ez instructions Unreimbursed employee expenses (line 21). Irs form 1040 ez instructions Tax preparation fees (line 22). Irs form 1040 ez instructions Other expenses (line 23). Irs form 1040 ez instructions Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Irs form 1040 ez instructions An expense is ordinary if it is common and accepted in your trade, business, or profession. Irs form 1040 ez instructions An expense is necessary if it is appropriate and helpful to your business. Irs form 1040 ez instructions An expense does not have to be required to be considered necessary. Irs form 1040 ez instructions Examples of unreimbursed employee expenses are listed next. Irs form 1040 ez instructions The list is followed by discussions of additional unreimbursed employee expenses. Irs form 1040 ez instructions Business bad debt of an employee. Irs form 1040 ez instructions Education that is work related. Irs form 1040 ez instructions (See chapter 27. Irs form 1040 ez instructions ) Legal fees related to your job. Irs form 1040 ez instructions Licenses and regulatory fees. Irs form 1040 ez instructions Malpractice insurance premiums. Irs form 1040 ez instructions Medical examinations required by an employer. Irs form 1040 ez instructions Occupational taxes. Irs form 1040 ez instructions Passport for a business trip. Irs form 1040 ez instructions Subscriptions to professional journals and trade magazines related to your work. Irs form 1040 ez instructions Travel, transportation, entertainment, and gifts related to your work. Irs form 1040 ez instructions (See chapter 26. Irs form 1040 ez instructions ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Irs form 1040 ez instructions Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. Irs form 1040 ez instructions Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Irs form 1040 ez instructions For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. Irs form 1040 ez instructions Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Irs form 1040 ez instructions Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Irs form 1040 ez instructions Lobbying and political activities. Irs form 1040 ez instructions   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Irs form 1040 ez instructions See Dues used for lobbying under Nondeductible Expenses, later. Irs form 1040 ez instructions Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Irs form 1040 ez instructions If you file Form 1040A, you can deduct these expenses on line 16. Irs form 1040 ez instructions If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Irs form 1040 ez instructions However, neither spouse can deduct more than $250 of his or her qualified expenses. Irs form 1040 ez instructions Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Irs form 1040 ez instructions You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Irs form 1040 ez instructions The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Irs form 1040 ez instructions See Publication 587 for more detailed information and a worksheet. Irs form 1040 ez instructions Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Irs form 1040 ez instructions You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Irs form 1040 ez instructions Employment and outplacement agency fees. Irs form 1040 ez instructions   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Irs form 1040 ez instructions Employer pays you back. Irs form 1040 ez instructions   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Irs form 1040 ez instructions (See Recoveries in chapter 12. Irs form 1040 ez instructions ) Employer pays the employment agency. Irs form 1040 ez instructions   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Irs form 1040 ez instructions Résumé. Irs form 1040 ez instructions   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Irs form 1040 ez instructions Travel and transportation expenses. Irs form 1040 ez instructions   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Irs form 1040 ez instructions You can deduct the travel expenses if the trip is primarily to look for a new job. Irs form 1040 ez instructions The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Irs form 1040 ez instructions   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Irs form 1040 ez instructions   You can choose to use the standard mileage rate to figure your car expenses. Irs form 1040 ez instructions The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs form 1040 ez instructions See chapter 26 for more information. Irs form 1040 ez instructions Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Irs form 1040 ez instructions Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Irs form 1040 ez instructions If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Irs form 1040 ez instructions Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Irs form 1040 ez instructions If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Irs form 1040 ez instructions Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Irs form 1040 ez instructions You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Irs form 1040 ez instructions However, you cannot deduct the cost of travel as a form of education. Irs form 1040 ez instructions Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Irs form 1040 ez instructions You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Irs form 1040 ez instructions For more information about depreciation, see Publication 946. Irs form 1040 ez instructions Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Irs form 1040 ez instructions You can also deduct assessments for benefit payments to unemployed union members. Irs form 1040 ez instructions However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Irs form 1040 ez instructions Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. Irs form 1040 ez instructions You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Irs form 1040 ez instructions See Lobbying Expenses under Nondeductible Expenses, later. Irs form 1040 ez instructions Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Irs form 1040 ez instructions You must wear them as a condition of your employment. Irs form 1040 ez instructions The clothes are not suitable for everyday wear. Irs form 1040 ez instructions It is not enough that you wear distinctive clothing. Irs form 1040 ez instructions The clothing must be specifically required by your employer. Irs form 1040 ez instructions Nor is it enough that you do not, in fact, wear your work clothes away from work. Irs form 1040 ez instructions The clothing must not be suitable for taking the place of your regular clothing. Irs form 1040 ez instructions Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Irs form 1040 ez instructions ). Irs form 1040 ez instructions Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Irs form 1040 ez instructions However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Irs form 1040 ez instructions Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Irs form 1040 ez instructions Protective clothing. Irs form 1040 ez instructions   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Irs form 1040 ez instructions   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Irs form 1040 ez instructions Military uniforms. Irs form 1040 ez instructions   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Irs form 1040 ez instructions However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Irs form 1040 ez instructions In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Irs form 1040 ez instructions   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Irs form 1040 ez instructions   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Irs form 1040 ez instructions Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. Irs form 1040 ez instructions Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Irs form 1040 ez instructions These fees include the cost of tax preparation software programs and tax publications. Irs form 1040 ez instructions They also include any fee you paid for electronic filing of your return. Irs form 1040 ez instructions Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. Irs form 1040 ez instructions On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Irs form 1040 ez instructions You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. Irs form 1040 ez instructions Some of these other expenses are explained in the following discussions. Irs form 1040 ez instructions If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. Irs form 1040 ez instructions Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Irs form 1040 ez instructions Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Irs form 1040 ez instructions First report the loss in Section B of Form 4684, Casualties and Thefts. Irs form 1040 ez instructions You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Irs form 1040 ez instructions To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Irs form 1040 ez instructions For other casualty and theft losses, see chapter 25. Irs form 1040 ez instructions Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Irs form 1040 ez instructions Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Irs form 1040 ez instructions The fees are deductible in the year paid. Irs form 1040 ez instructions Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Irs form 1040 ez instructions You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Irs form 1040 ez instructions But if you work as an employee and also use the computer in that work, see Publication 946. Irs form 1040 ez instructions Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Irs form 1040 ez instructions Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Irs form 1040 ez instructions The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Irs form 1040 ez instructions For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Irs form 1040 ez instructions Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Irs form 1040 ez instructions But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Irs form 1040 ez instructions You must add the fee to the cost of the property. Irs form 1040 ez instructions You cannot deduct the fee you pay to a broker to sell securities. Irs form 1040 ez instructions You can use the fee only to figure gain or loss from the sale. Irs form 1040 ez instructions See the Instructions for Form 8949 for information on how to report the fee. Irs form 1040 ez instructions Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Irs form 1040 ez instructions A hobby is not a business because it is not carried on to make a profit. Irs form 1040 ez instructions See Activity not for profit in chapter 12 under Other Income. Irs form 1040 ez instructions Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Irs form 1040 ez instructions Deductions of pass-through entities are passed through to the partners or shareholders. Irs form 1040 ez instructions The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Irs form 1040 ez instructions Example. Irs form 1040 ez instructions You are a member of an investment club that is formed solely to invest in securities. Irs form 1040 ez instructions The club is treated as a partnership. Irs form 1040 ez instructions The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Irs form 1040 ez instructions In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Irs form 1040 ez instructions However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Irs form 1040 ez instructions Publicly offered mutual funds. Irs form 1040 ez instructions   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Irs form 1040 ez instructions A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Irs form 1040 ez instructions   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Irs form 1040 ez instructions This net figure is the amount you report on your return as income. Irs form 1040 ez instructions You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Irs form 1040 ez instructions Information returns. Irs form 1040 ez instructions   You should receive information returns from pass-through entities. Irs form 1040 ez instructions Partnerships and S corporations. Irs form 1040 ez instructions   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. Irs form 1040 ez instructions Nonpublicly offered mutual funds. Irs form 1040 ez instructions   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. Irs form 1040 ez instructions You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Irs form 1040 ez instructions Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Irs form 1040 ez instructions Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Irs form 1040 ez instructions You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Irs form 1040 ez instructions You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. Irs form 1040 ez instructions You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). Irs form 1040 ez instructions See Tax Preparation Fees , earlier. Irs form 1040 ez instructions Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. Irs form 1040 ez instructions Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Irs form 1040 ez instructions If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Irs form 1040 ez instructions If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Irs form 1040 ez instructions Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. Irs form 1040 ez instructions Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Irs form 1040 ez instructions You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Irs form 1040 ez instructions Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Irs form 1040 ez instructions These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Irs form 1040 ez instructions Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Irs form 1040 ez instructions For more information about IRAs, see chapter 17. Irs form 1040 ez instructions Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Irs form 1040 ez instructions They are not subject to the 2% limit. Irs form 1040 ez instructions Report these items on Schedule A (Form 1040), line 28. Irs form 1040 ez instructions List of Deductions Each of the following items is discussed in detail after the list (except where indicated). Irs form 1040 ez instructions Amortizable premium on taxable bonds. Irs form 1040 ez instructions Casualty and theft losses from income- producing property. Irs form 1040 ez instructions Federal estate tax on income in respect of a decedent. Irs form 1040 ez instructions Gambling losses up to the amount of gambling winnings. Irs form 1040 ez instructions Impairment-related work expenses of persons with disabilities. Irs form 1040 ez instructions Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Irs form 1040 ez instructions Losses from Ponzi-type investment schemes. Irs form 1040 ez instructions See Losses from Ponzi-type investment schemes under Theft in chapter 25. Irs form 1040 ez instructions Repayments of more than $3,000 under a claim of right. Irs form 1040 ez instructions Unrecovered investment in an annuity. Irs form 1040 ez instructions Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Irs form 1040 ez instructions You can elect to amortize the premium on taxable bonds. Irs form 1040 ez instructions The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Irs form 1040 ez instructions Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. Irs form 1040 ez instructions For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. Irs form 1040 ez instructions Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Irs form 1040 ez instructions First, report the loss in Form 4684, Section B. Irs form 1040 ez instructions You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. Irs form 1040 ez instructions To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Irs form 1040 ez instructions For more information on casualty and theft losses, see chapter 25. Irs form 1040 ez instructions Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Irs form 1040 ez instructions Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Irs form 1040 ez instructions See Publication 559 for more information. Irs form 1040 ez instructions Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Irs form 1040 ez instructions You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Irs form 1040 ez instructions You cannot deduct gambling losses that are more than your winnings. Irs form 1040 ez instructions You cannot reduce your gambling winnings by your gambling losses and report the difference. Irs form 1040 ez instructions You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Irs form 1040 ez instructions Therefore, your records should show your winnings separately from your losses. Irs form 1040 ez instructions Diary of winnings and losses. Irs form 1040 ez instructions You must keep an accurate diary or similar record of your losses and winnings. Irs form 1040 ez instructions Your diary should contain at least the following information. Irs form 1040 ez instructions The date and type of your specific wager or wagering activity. Irs form 1040 ez instructions The name and address or location of the gambling establishment. Irs form 1040 ez instructions The names of other persons present with you at the gambling establishment. Irs form 1040 ez instructions The amount(s) you won or lost. Irs form 1040 ez instructions See Publication 529 for more information. Irs form 1040 ez instructions Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Irs form 1040 ez instructions Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. Irs form 1040 ez instructions Self-employed. Irs form 1040 ez instructions   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Irs form 1040 ez instructions Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. Irs form 1040 ez instructions It is not subject to the passive activity limitations. Irs form 1040 ez instructions Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. Irs form 1040 ez instructions See Repayments in chapter 12 for more information. Irs form 1040 ez instructions Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Irs form 1040 ez instructions If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Irs form 1040 ez instructions See chapter 10 for more information about the tax treatment of pensions and annuities. Irs form 1040 ez instructions Nondeductible Expenses Examples of nondeductible expenses are listed next. Irs form 1040 ez instructions The list is followed by discussions of additional nondeductible expenses. Irs form 1040 ez instructions List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. Irs form 1040 ez instructions Burial or funeral expenses, including the cost of a cemetery lot. Irs form 1040 ez instructions Capital expenses. Irs form 1040 ez instructions Fees and licenses, such as car licenses, marriage licenses, and dog tags. Irs form 1040 ez instructions Hobby losses, but see Hobby Expenses , earlier. Irs form 1040 ez instructions Home repairs, insurance, and rent. Irs form 1040 ez instructions Illegal bribes and kickbacks. Irs form 1040 ez instructions See Bribes and kickbacks in chapter 11 of Publication 535. Irs form 1040 ez instructions Losses from the sale of your home, furniture, personal car, etc. Irs form 1040 ez instructions Personal disability insurance premiums. Irs form 1040 ez instructions Personal, living, or family expenses. Irs form 1040 ez instructions The value of wages never received or lost vacation time. Irs form 1040 ez instructions Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. Irs form 1040 ez instructions See chapter 37. Irs form 1040 ez instructions Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Irs form 1040 ez instructions These include qualification and registration fees for primary elections. Irs form 1040 ez instructions Legal fees. Irs form 1040 ez instructions   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Irs form 1040 ez instructions Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Irs form 1040 ez instructions Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Irs form 1040 ez instructions This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Irs form 1040 ez instructions You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Irs form 1040 ez instructions Dues paid to airline, hotel, and luncheon clubs are not deductible. Irs form 1040 ez instructions Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Irs form 1040 ez instructions If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. Irs form 1040 ez instructions Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Irs form 1040 ez instructions This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Irs form 1040 ez instructions Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Irs form 1040 ez instructions Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Irs form 1040 ez instructions Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Irs form 1040 ez instructions However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Irs form 1040 ez instructions See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. Irs form 1040 ez instructions Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Irs form 1040 ez instructions Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Irs form 1040 ez instructions You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Irs form 1040 ez instructions See chapter 18 for information on alimony. Irs form 1040 ez instructions Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Irs form 1040 ez instructions These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Irs form 1040 ez instructions Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Irs form 1040 ez instructions Dues used for lobbying. Irs form 1040 ez instructions   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Irs form 1040 ez instructions See Lobbying Expenses in Publication 529 for information on exceptions. Irs form 1040 ez instructions Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Irs form 1040 ez instructions However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Irs form 1040 ez instructions See chapter 25. Irs form 1040 ez instructions Example. Irs form 1040 ez instructions A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Irs form 1040 ez instructions The diamond falls from the ring and is never found. Irs form 1040 ez instructions The loss of the diamond is a casualty. Irs form 1040 ez instructions Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Irs form 1040 ez instructions See chapter 26 for information on deductible expenses while traveling away from home. Irs form 1040 ez instructions Meals While Working Late You cannot deduct the cost of meals while working late. Irs form 1040 ez instructions However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. Irs form 1040 ez instructions See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. Irs form 1040 ez instructions Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Irs form 1040 ez instructions Custody of children. Irs form 1040 ez instructions Breach of promise to marry suit. Irs form 1040 ez instructions Civil or criminal charges resulting from a personal relationship. Irs form 1040 ez instructions Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. Irs form 1040 ez instructions Preparation of a title (or defense or perfection of a title). Irs form 1040 ez instructions Preparation of a will. Irs form 1040 ez instructions Property claims or property settlement in a divorce. Irs form 1040 ez instructions You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Irs form 1040 ez instructions Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Irs form 1040 ez instructions Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Irs form 1040 ez instructions Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Irs form 1040 ez instructions Accounting certificate fees paid for the initial right to practice accounting. Irs form 1040 ez instructions Bar exam fees and incidental expenses in securing initial admission to the bar. Irs form 1040 ez instructions Medical and dental license fees paid to get initial licensing. Irs form 1040 ez instructions Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Irs form 1040 ez instructions Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Irs form 1040 ez instructions Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Irs form 1040 ez instructions Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Irs form 1040 ez instructions You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Irs form 1040 ez instructions Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Irs form 1040 ez instructions You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. Irs form 1040 ez instructions If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. Irs form 1040 ez instructions Example. Irs form 1040 ez instructions During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. Irs form 1040 ez instructions In earning this income, you had total expenses of $500 during the year. Irs form 1040 ez instructions You cannot identify the amount of each expense item that is for each income item. Irs form 1040 ez instructions Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. Irs form 1040 ez instructions You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). Irs form 1040 ez instructions Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. Irs form 1040 ez instructions See chapter 26 for more information on deductible travel expenses. Irs form 1040 ez instructions Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. Irs form 1040 ez instructions However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. Irs form 1040 ez instructions Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. Irs form 1040 ez instructions Prev  Up  Next   Home   More Online Publications