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Irs Forms 1040ez Instructions

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Irs Forms 1040ez Instructions

Irs forms 1040ez instructions 35. Irs forms 1040ez instructions   Education Credits Table of Contents Introduction Useful Items - You may want to see: Who Can Claim an Education Credit Qualified Education ExpensesNo Double Benefit Allowed Adjustments to Qualified Education Expenses Introduction For 2013, there are two tax credits available to persons who pay expenses for higher (postsecondary) education. Irs forms 1040ez instructions They are: The American opportunity credit, and The lifetime learning credit. Irs forms 1040ez instructions The chapter will present an overview of these education credits. Irs forms 1040ez instructions To get the detailed information you will need to claim either of the credits, and for examples illustrating that information, see chapters 2 and 3 of Publication 970. Irs forms 1040ez instructions Can you claim more than one education credit this year?   For each student, you can choose for any year only one of the credits. Irs forms 1040ez instructions For example, if you choose to take the American opportunity credit for a child on your 2013 tax return, you cannot, for that same child, also claim the lifetime learning credit for 2013. Irs forms 1040ez instructions   If you are eligible to claim the American opportunity credit and you are also eligible to claim the lifetime learning credit for the same student in the same year, you can choose to claim either credit, but not both. Irs forms 1040ez instructions   If you pay qualified education expenses for more than one student in the same year, you can choose to take the American opportunity and the lifetime learning credits on a per-student, per-year basis. Irs forms 1040ez instructions This means that, for example, you can claim the American opportunity credit for one student and the lifetime learning credit for another student in the same year. Irs forms 1040ez instructions Table 35-1. Irs forms 1040ez instructions Comparison of Education Credits Caution. Irs forms 1040ez instructions You can claim both the American opportunity credit and the lifetime learning credit on the same return—but not for the same student. Irs forms 1040ez instructions   American Opportunity Credit Lifetime Learning Credit Maximum credit Up to $2,500 credit per eligible student Up to $2,000 credit per return Limit on modified adjusted gross income (MAGI) $180,000 if married filing jointly;  $90,000 if single, head of household, or qualifying widow(er) $127,000 if married filing jointly;  $63,000 if single, head of household, or qualifying widow(er) Refundable or nonrefundable 40% of credit may be refundable Credit limited to the amount of tax you must pay on your taxable income Number of years of postsecondary education Available ONLY if the student had not completed the first 4 years of postsecondary education before 2013 Available for all years of postsecondary education and for courses to acquire or improve job skills Number of tax years credit available Available ONLY for 4 tax years per eligible student (including any year(s) the Hope credit was claimed) Available for an unlimited number of years Type of program required Student must be pursuing a program leading to a degree or other recognized education credential Student does not need to be pursuing a program leading to a degree or other recognized education credential Number of courses Student must be enrolled at least half time for at least one academic period beginning during the tax year Available for one or more courses Felony drug conviction At the end of 2013, the student had not been convicted of a felony for possessing or distributing a controlled substance Felony drug convictions do not make the student ineligible Qualified expenses Tuition, required enrollment fees, and course materials that the student needs for a course of study whether or not the materials are bought at the educational institution as a condition of enrollment or attendance Tuition and fees required for enrollment or attendance (including amounts required to be paid to the institution for course-related books, supplies, and equipment) Payments for academic periods Payments made in 2013 for academic periods beginning in 2013 or beginning in the first 3 months of 2014 Differences between the American opportunity and lifetime learning credits. Irs forms 1040ez instructions   There are several differences between these two credits. Irs forms 1040ez instructions These differences are summarized in Table 35-1, later. Irs forms 1040ez instructions Useful Items - You may want to see: Publication 970 Tax Benefits for Education Form (and Instructions) 8863 Education Credits (American Opportunity and Lifetime Learning Credits) Who Can Claim an Education Credit You may be able to claim an education credit if you, your spouse, or a dependent you claim on your tax return was a student enrolled at or attending an eligible educational institution. Irs forms 1040ez instructions The credits are based on the amount of qualified education expenses paid for the student in 2013 for academic periods beginning in 2013 and in the first 3 months of 2014. Irs forms 1040ez instructions For example, if you paid $1,500 in December 2013 for qualified tuition for the spring 2014 semester beginning in January 2014, you may be able to use that $1,500 in figuring your 2013 education credit(s). Irs forms 1040ez instructions Academic period. Irs forms 1040ez instructions   An academic period includes a semester, trimester, quarter, or other period of study (such as a summer school session) as reasonably determined by an educational institution. Irs forms 1040ez instructions In the case of an educational institution that uses credit hours or clock hours and does not have academic terms, each payment period can be treated as an academic period. Irs forms 1040ez instructions Eligible educational institution. Irs forms 1040ez instructions   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions Department of Education. Irs forms 1040ez instructions It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Irs forms 1040ez instructions The educational institution should be able to tell you if it is an eligible educational institution. Irs forms 1040ez instructions   Certain educational institutions located outside the United States also participate in the U. Irs forms 1040ez instructions S. Irs forms 1040ez instructions Department of Education's Federal Student Aid (FSA) programs. Irs forms 1040ez instructions Who can claim a dependent's expenses. Irs forms 1040ez instructions   If an exemption is allowed as a deduction for any person who claims the student as a dependent, all qualified education expenses of the student are treated as having been paid by that person. Irs forms 1040ez instructions Therefore, only that person can claim an education credit for the student. Irs forms 1040ez instructions If a student is not claimed as a dependent on another person's tax return, only the student can claim a credit. Irs forms 1040ez instructions Expenses paid by a third party. Irs forms 1040ez instructions   Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as paid by the student. Irs forms 1040ez instructions However, qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you. Irs forms 1040ez instructions Therefore, you are treated as having paid expenses that were paid by the third party. Irs forms 1040ez instructions For more information and an example see Who Can Claim a Dependent's Expenses in Pub. Irs forms 1040ez instructions 970, chapter 2 or 3. Irs forms 1040ez instructions Who cannot claim a credit. Irs forms 1040ez instructions   You cannot take an education credit if any of the following apply. Irs forms 1040ez instructions You are claimed as a dependent on another person's tax return, such as your parent's return. Irs forms 1040ez instructions Your filing status is married filing separately. Irs forms 1040ez instructions You (or your spouse) were a nonresident alien for any part of 2013 and did not elect to be treated as a resident alien for tax purposes. Irs forms 1040ez instructions Your MAGI is one of the following. Irs forms 1040ez instructions American opportunity credit: $180,000 or more if married filing jointly, or $90,000 or more if single, head of household, or qualifying widow(er). Irs forms 1040ez instructions Lifetime learning credit: $127,000 or more if married filing jointly, or $63,000 or more if single, head of household, or qualifying widow(er) . Irs forms 1040ez instructions   Generally, your MAGI is the amount on your Form 1040, line 38, or Form 1040A, line 22. Irs forms 1040ez instructions However, if you are filing Form 2555, Form 2555–EZ, or Form 4563, or are excluding income from Puerto RIco, add to the amount on your Form 1040, line 38, or Form 1040A, line 22, the amount of income you excluded. Irs forms 1040ez instructions For details, see Pub. Irs forms 1040ez instructions 970. Irs forms 1040ez instructions    Figure 35-A may be helpful in determining if you can claim an education credit on your tax return. Irs forms 1040ez instructions The American opportunity credit will always be greater than or equal to the lifetime learning credit for any student who is eligible for both credits. Irs forms 1040ez instructions However, if any of the conditions for the American opportunity credit, listed in Table 35-1 earlier, are not met for any student, you cannot take the American opportunity credit for that student. Irs forms 1040ez instructions You may be able to take the lifetime learning credit for part or all of that student's qualified education expenses instead. Irs forms 1040ez instructions See Pub. Irs forms 1040ez instructions 970 for information on other education benefits. Irs forms 1040ez instructions Qualified Education Expenses Generally, qualified education expenses are amounts paid in 2013 for tuition and fees required for the student's enrollment or attendance at an eligible educational institution. Irs forms 1040ez instructions It does not matter whether the expenses were paid in cash, by check, by credit or debit card, or with borrowed funds. Irs forms 1040ez instructions For course-related books, supplies, and equipment, only certain expenses qualify. Irs forms 1040ez instructions American opportunity credit: Qualified education expenses include amounts spent on books, supplies, and equipment needed for a course of study, whether or not the materials are purchased from the educational institution as a condition of enrollment or attendance. Irs forms 1040ez instructions Lifetime learning credit: Qualified education expenses include amounts for books, supplies, and equipment only if required to be paid to the institution as a condition of enrollment or attendance. Irs forms 1040ez instructions Qualified education expenses include nonacademic fees, such as student activity fees, athletic fees, or other expenses unrelated to the academic course of instruction, only if the fee must be paid to the institution as a condition of enrollment or attendance. Irs forms 1040ez instructions However, fees for personal expenses (described below) are never qualified education expenses. Irs forms 1040ez instructions Qualified education expenses for either credit do not include amounts paid for: Personal expenses. Irs forms 1040ez instructions This means room and board, insurance, medical expenses (including student health fees), transportation, and other similar personal, living, or family expenses. Irs forms 1040ez instructions Any course or other education involving sports, games, or hobbies, or any noncredit course, unless such course or other education is part of the student's degree program or (for the lifetime learning credit only) helps the student acquire or improve job skills. Irs forms 1040ez instructions You should receive Form 1098–T, Tuition Statement, from the institution reporting either payments received in 2013 (box 1) or amounts billed in 2013 (box 2). Irs forms 1040ez instructions However, the amount in box 1 or 2 of Form 1098–T may be different from the amount you paid (or are treated as having paid). Irs forms 1040ez instructions In completing Form 8863, use only the amounts you actually paid (plus any amounts you are treated as having paid) in 2013, reduced as necessary, as described in Adjustments to Qualified Education Expenses , later. Irs forms 1040ez instructions Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative) are treated as paid by the student. Irs forms 1040ez instructions Qualified education expenses paid (or treated as paid) by a student who is claimed as a dependent on your tax return are treated as paid by you. Irs forms 1040ez instructions If you or the student takes a deduction for higher education expenses, such as on Schedule A or C (Form 1040), you cannot use those expenses in your qualified education expenses when figuring your education credits. Irs forms 1040ez instructions Qualified education expenses for any academic period must be reduced by any tax-free educational assistance allocable to that academic period. Irs forms 1040ez instructions See Adjustments to Qualified Education Expenses, later. Irs forms 1040ez instructions Prepaid Expenses. Irs forms 1040ez instructions   Qualified education expenses paid in 2013 for an academic period that begins in the first 3 months of 2014 can be used in figuring an education credit for 2013 only. Irs forms 1040ez instructions See Academic period , earlier. Irs forms 1040ez instructions For example, if you pay $2,000 in December 2013 for qualified tuition for the 2014 winter quarter that begins in January 2014, you can use that $2,000 in figuring an education credit for 2013 only (if you meet all the other requirements). Irs forms 1040ez instructions    You cannot use any amount you paid in 2012 or 2014 to figure the qualified education expenses you use to figure your 2013 education credit(s). Irs forms 1040ez instructions Paid with borrowed funds. Irs forms 1040ez instructions   You can claim an education credit for qualified education expenses paid with the proceeds of a loan. Irs forms 1040ez instructions Use the expenses to figure the credit for the year in which the expenses are paid, not the year in which the loan is repaid. Irs forms 1040ez instructions Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account. Irs forms 1040ez instructions Student withdraws from class(es). Irs forms 1040ez instructions   You can claim an education credit for qualified education expenses not refunded when a student withdraws. Irs forms 1040ez instructions No Double Benefit Allowed You cannot do any of the following. Irs forms 1040ez instructions Deduct higher education expenses on your income tax return (as, for example, a business expense) and also claim an education credit based on those same expenses. Irs forms 1040ez instructions Claim more than one education credit based on the same qualified education expenses. Irs forms 1040ez instructions Claim an education credit based on the same expenses used to figure the tax-free portion of a distribution from a Coverdell education savings account (ESA) or qualified tuition program (QTP). Irs forms 1040ez instructions Claim an education credit based on qualified education expenses paid with educational assistance, such as a tax-free scholarship, grant, or employer-provided educational assistance. Irs forms 1040ez instructions See Adjustments to Qualified Education Expenses, next. Irs forms 1040ez instructions Adjustments to Qualified Education Expenses For each student, reduce the qualified education expenses paid in 2013 by or on behalf of that student under the following rules. Irs forms 1040ez instructions The result is the amount of adjusted qualified education expenses for each student. Irs forms 1040ez instructions Tax-free educational assistance. Irs forms 1040ez instructions   For tax-free educational assistance received in 2013, reduce the qualified educational expenses for each academic period by the amount of tax-free educational assistance allocable to that academic period. Irs forms 1040ez instructions See Academic period , earlier. Irs forms 1040ez instructions      Tax-free educational assistance includes:    Tax-free parts of scholarships and fellowships (see chapter 12 of this publication and chapter 1 of Pub. Irs forms 1040ez instructions 970), The tax-free part of Pell grants (see chapter 1 of Pub. Irs forms 1040ez instructions 970), The tax-free part of employer-provided educational assistance (see Pub. Irs forms 1040ez instructions 970), Veterans' educational assistance (see chapter 1 of Pub. Irs forms 1040ez instructions 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Irs forms 1040ez instructions Generally, any scholarship or fellowship is treated as tax-free educational assistance. Irs forms 1040ez instructions However, a scholarship or fellowship is not treated as tax-free educational assistance to the extent the student includes it in gross income (if the student is required to file a tax return) for the year the scholarship or fellowship is received and either: The scholarship or fellowship (or any part of it) must be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. Irs forms 1040ez instructions 970, chapter 1; or The scholarship or fellowship (or any part of it) may be applied (by its terms) to expenses (such as room and board) other than qualified education expenses as defined in Qualified education expenses in Pub. Irs forms 1040ez instructions 970, chapter 1. Irs forms 1040ez instructions You may be able to increase the combined value of an education credit and certain educational assistance if the student includes some or all of the educational assistance in income in the year received. Irs forms 1040ez instructions For details, see Adjustments of Qualified Education Expenses, in chapters 2 and 3 of Pub. Irs forms 1040ez instructions 970. Irs forms 1040ez instructions Some tax-free educational assistance received after 2013 may be treated as a refund of qualified education expenses paid in 2013. Irs forms 1040ez instructions This tax-free educational assistance is any tax-free educational assistance received by you or anyone else after 2013 for qualified education expenses paid on behalf of a student in 2013 (or attributable to enrollment at an eligible educational institution during 2013). Irs forms 1040ez instructions If this tax-free educational assistance is received after 2013 but before you file your 2013 income tax return, see Refunds received after 2013 but before your income tax return is filed, later. Irs forms 1040ez instructions If this tax-free educational assistance is received after 2013 and after you file your 2013 income tax return, see Refunds received after 2013 and after your income tax return is filed, later. Irs forms 1040ez instructions Refunds. Irs forms 1040ez instructions   A refund of qualified education expenses may reduce qualified education expenses for the tax year or may require you to repay (recapture) the credit that you claimed in an earlier year. Irs forms 1040ez instructions Some tax-free educational assistance received after 2013 may be treated as a refund. Irs forms 1040ez instructions See Tax-free educational assistance, earlier. Irs forms 1040ez instructions Refunds received in 2013. Irs forms 1040ez instructions   For each student, figure the adjusted qualified education expenses for 2013 by adding all the qualified education expenses paid in 2013 and subtracting any refunds of those expenses received from the eligible educational institution during 2013. Irs forms 1040ez instructions Refunds received after 2013 but before your income tax return is filed. Irs forms 1040ez instructions   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is received before you file your 2013 income tax return, reduce the amount of qualified education expenses for 2013 by the amount of the refund. Irs forms 1040ez instructions Refunds received after 2013 and after your income tax return is filed. Irs forms 1040ez instructions   If anyone receives a refund after 2013 of qualified education expenses paid on behalf of a student in 2013 and the refund is received after you file your 2013 income tax return, you may need to repay some or all of the credit that you claimed. Irs forms 1040ez instructions See Credit recapture, next. Irs forms 1040ez instructions Credit recapture. Irs forms 1040ez instructions    If any tax-free educational assistance for the qualified education expenses paid in 2013, or any refund of your qualified education expenses paid in 2013, is received after you file your 2013 income tax return, you must recapture (repay) any excess credit. Irs forms 1040ez instructions You do this by refiguring the amount of your adjusted qualified education expenses for 2013 by reducing the expenses by the amount of the refund or tax-free educational assistance. Irs forms 1040ez instructions You then refigure your education credit(s) for 2013 and figure the amount by which your 2013 tax liability would have increased if you had claimed the refigured credit(s). Irs forms 1040ez instructions Include that amount as an additional tax for the year the refund or tax-free assistance was received. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions    You paid $8,000 tuition and fees in December 2013 for your child's Spring semester beginning in January 2014. Irs forms 1040ez instructions You filed your 2013 tax return on February 3, 2014, and claimed a lifetime learning credit of $1,600 ($8,000 qualified education expense paid x . Irs forms 1040ez instructions 20). Irs forms 1040ez instructions You claimed no other tax credits. Irs forms 1040ez instructions After you filed your return, your child withdrew from two courses and you received a refund of $1,400. Irs forms 1040ez instructions You must refigure your 2013 lifetime learning credit using $6,600 ($8,000 qualified education expenses − $1,400 refund). Irs forms 1040ez instructions The refigured credit is $1,320 and your tax liability increased by $280. Irs forms 1040ez instructions You must include the difference of $280 ($1,600 credit originally claimed − $1,320 refigured credit) as additional tax on your 2014 income tax return. Irs forms 1040ez instructions See the instructions for your 2014 income tax return to determine where to include this tax. Irs forms 1040ez instructions If you also pay qualified education expenses in 2014 for an academic period that begins in the first 3 months of 2014 and you receive tax-free educational assistance, or a refund, as described above, you may choose to reduce your qualified education expenses for 2014 instead of reducing your expenses for 2013. Irs forms 1040ez instructions Amounts that do not reduce qualified education expenses. Irs forms 1040ez instructions   Do not reduce qualified education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Irs forms 1040ez instructions   Do not reduce the qualified education expenses by any scholarship or fellowship reported as income on the student's tax return in the following situations. Irs forms 1040ez instructions The use of the money is restricted, by the terms of the scholarship or fellowship, to costs of attendance (such as room and board) other than qualified education expenses, as defined in Chapter 1 of Pub. Irs forms 1040ez instructions 970. Irs forms 1040ez instructions The use of the money is not restricted. Irs forms 1040ez instructions   For examples, see chapter 2 in Pub. Irs forms 1040ez instructions 970. Irs forms 1040ez instructions Figure 35-A. Irs forms 1040ez instructions Can You Claim an Education Credit for 2013? This image is too large to be displayed in the current screen. Irs forms 1040ez instructions Please click the link to view the image. Irs forms 1040ez instructions Figure 35-A. Irs forms 1040ez instructions Can You Claim an Education Credit for 2013? Prev  Up  Next   Home   More Online Publications
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The Irs Forms 1040ez Instructions

Irs forms 1040ez instructions 28. Irs forms 1040ez 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 forms 1040ez instructions  The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs forms 1040ez instructions Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). Irs forms 1040ez instructions You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Irs forms 1040ez instructions This chapter covers the following topics. Irs forms 1040ez instructions Deductions subject to the 2% limit. Irs forms 1040ez instructions Deductions not subject to the 2% limit. Irs forms 1040ez instructions Expenses you cannot deduct. Irs forms 1040ez instructions You must keep records to verify your deductions. Irs forms 1040ez instructions You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. Irs forms 1040ez instructions For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. Irs forms 1040ez 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 forms 1040ez instructions You can claim the amount of expenses that is more than 2% of your adjusted gross income. Irs forms 1040ez instructions You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Irs forms 1040ez instructions Your adjusted gross income is the amount on Form 1040, line 38. Irs forms 1040ez instructions Generally, you apply the 2% limit after you apply any other deduction limit. Irs forms 1040ez 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 forms 1040ez instructions Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). Irs forms 1040ez instructions Unreimbursed employee expenses (line 21). Irs forms 1040ez instructions Tax preparation fees (line 22). Irs forms 1040ez instructions Other expenses (line 23). Irs forms 1040ez 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 forms 1040ez instructions An expense is ordinary if it is common and accepted in your trade, business, or profession. Irs forms 1040ez instructions An expense is necessary if it is appropriate and helpful to your business. Irs forms 1040ez instructions An expense does not have to be required to be considered necessary. Irs forms 1040ez instructions Examples of unreimbursed employee expenses are listed next. Irs forms 1040ez instructions The list is followed by discussions of additional unreimbursed employee expenses. Irs forms 1040ez instructions Business bad debt of an employee. Irs forms 1040ez instructions Education that is work related. Irs forms 1040ez instructions (See chapter 27. Irs forms 1040ez instructions ) Legal fees related to your job. Irs forms 1040ez instructions Licenses and regulatory fees. Irs forms 1040ez instructions Malpractice insurance premiums. Irs forms 1040ez instructions Medical examinations required by an employer. Irs forms 1040ez instructions Occupational taxes. Irs forms 1040ez instructions Passport for a business trip. Irs forms 1040ez instructions Subscriptions to professional journals and trade magazines related to your work. Irs forms 1040ez instructions Travel, transportation, entertainment, and gifts related to your work. Irs forms 1040ez instructions (See chapter 26. Irs forms 1040ez instructions ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. Irs forms 1040ez 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 forms 1040ez instructions Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Irs forms 1040ez instructions Lobbying and political activities. Irs forms 1040ez instructions   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Irs forms 1040ez instructions See Dues used for lobbying under Nondeductible Expenses, later. Irs forms 1040ez 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 forms 1040ez instructions If you file Form 1040A, you can deduct these expenses on line 16. Irs forms 1040ez instructions If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Irs forms 1040ez instructions However, neither spouse can deduct more than $250 of his or her qualified expenses. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions See Publication 587 for more detailed information and a worksheet. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Employment and outplacement agency fees. Irs forms 1040ez instructions   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Irs forms 1040ez instructions Employer pays you back. Irs forms 1040ez 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 forms 1040ez instructions (See Recoveries in chapter 12. Irs forms 1040ez instructions ) Employer pays the employment agency. Irs forms 1040ez 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 forms 1040ez instructions Résumé. Irs forms 1040ez 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 forms 1040ez instructions Travel and transportation expenses. Irs forms 1040ez 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 forms 1040ez instructions You can deduct the travel expenses if the trip is primarily to look for a new job. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions   You can choose to use the standard mileage rate to figure your car expenses. Irs forms 1040ez instructions The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs forms 1040ez instructions See chapter 26 for more information. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions However, you cannot deduct the cost of travel as a form of education. Irs forms 1040ez 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 forms 1040ez instructions You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Irs forms 1040ez instructions For more information about depreciation, see Publication 946. Irs forms 1040ez instructions Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Irs forms 1040ez instructions You can also deduct assessments for benefit payments to unemployed union members. Irs forms 1040ez 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 forms 1040ez instructions Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. Irs forms 1040ez instructions You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Irs forms 1040ez instructions See Lobbying Expenses under Nondeductible Expenses, later. Irs forms 1040ez instructions Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Irs forms 1040ez instructions You must wear them as a condition of your employment. Irs forms 1040ez instructions The clothes are not suitable for everyday wear. Irs forms 1040ez instructions It is not enough that you wear distinctive clothing. Irs forms 1040ez instructions The clothing must be specifically required by your employer. Irs forms 1040ez instructions Nor is it enough that you do not, in fact, wear your work clothes away from work. Irs forms 1040ez instructions The clothing must not be suitable for taking the place of your regular clothing. Irs forms 1040ez 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 forms 1040ez instructions ). Irs forms 1040ez instructions Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Protective clothing. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Military uniforms. Irs forms 1040ez instructions   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Irs forms 1040ez 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 forms 1040ez instructions In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Irs forms 1040ez 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 forms 1040ez instructions   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Irs forms 1040ez instructions Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. Irs forms 1040ez instructions Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Irs forms 1040ez instructions These fees include the cost of tax preparation software programs and tax publications. Irs forms 1040ez instructions They also include any fee you paid for electronic filing of your return. Irs forms 1040ez instructions Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Some of these other expenses are explained in the following discussions. Irs forms 1040ez instructions If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions First report the loss in Section B of Form 4684, Casualties and Thefts. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions For other casualty and theft losses, see chapter 25. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions The fees are deductible in the year paid. Irs forms 1040ez 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 forms 1040ez instructions You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Irs forms 1040ez instructions But if you work as an employee and also use the computer in that work, see Publication 946. Irs forms 1040ez 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 forms 1040ez instructions Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Irs forms 1040ez 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 forms 1040ez instructions For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Irs forms 1040ez 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 forms 1040ez instructions But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Irs forms 1040ez instructions You must add the fee to the cost of the property. Irs forms 1040ez instructions You cannot deduct the fee you pay to a broker to sell securities. Irs forms 1040ez instructions You can use the fee only to figure gain or loss from the sale. Irs forms 1040ez instructions See the Instructions for Form 8949 for information on how to report the fee. Irs forms 1040ez instructions Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Irs forms 1040ez instructions A hobby is not a business because it is not carried on to make a profit. Irs forms 1040ez instructions See Activity not for profit in chapter 12 under Other Income. Irs forms 1040ez instructions Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Irs forms 1040ez instructions Deductions of pass-through entities are passed through to the partners or shareholders. Irs forms 1040ez 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 forms 1040ez instructions Example. Irs forms 1040ez instructions You are a member of an investment club that is formed solely to invest in securities. Irs forms 1040ez instructions The club is treated as a partnership. Irs forms 1040ez instructions The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Publicly offered mutual funds. Irs forms 1040ez instructions   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions This net figure is the amount you report on your return as income. Irs forms 1040ez 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 forms 1040ez instructions Information returns. Irs forms 1040ez instructions   You should receive information returns from pass-through entities. Irs forms 1040ez instructions Partnerships and S corporations. Irs forms 1040ez 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 forms 1040ez instructions Nonpublicly offered mutual funds. Irs forms 1040ez 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 forms 1040ez instructions You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). Irs forms 1040ez instructions See Tax Preparation Fees , earlier. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Irs forms 1040ez instructions Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions For more information about IRAs, see chapter 17. Irs forms 1040ez instructions Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Irs forms 1040ez instructions They are not subject to the 2% limit. Irs forms 1040ez instructions Report these items on Schedule A (Form 1040), line 28. Irs forms 1040ez instructions List of Deductions Each of the following items is discussed in detail after the list (except where indicated). Irs forms 1040ez instructions Amortizable premium on taxable bonds. Irs forms 1040ez instructions Casualty and theft losses from income- producing property. Irs forms 1040ez instructions Federal estate tax on income in respect of a decedent. Irs forms 1040ez instructions Gambling losses up to the amount of gambling winnings. Irs forms 1040ez instructions Impairment-related work expenses of persons with disabilities. Irs forms 1040ez instructions Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Irs forms 1040ez instructions Losses from Ponzi-type investment schemes. Irs forms 1040ez instructions See Losses from Ponzi-type investment schemes under Theft in chapter 25. Irs forms 1040ez instructions Repayments of more than $3,000 under a claim of right. Irs forms 1040ez instructions Unrecovered investment in an annuity. Irs forms 1040ez 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 forms 1040ez instructions You can elect to amortize the premium on taxable bonds. Irs forms 1040ez instructions The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Irs forms 1040ez instructions Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions First, report the loss in Form 4684, Section B. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions For more information on casualty and theft losses, see chapter 25. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions See Publication 559 for more information. Irs forms 1040ez 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 forms 1040ez instructions You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Irs forms 1040ez instructions You cannot deduct gambling losses that are more than your winnings. Irs forms 1040ez instructions You cannot reduce your gambling winnings by your gambling losses and report the difference. Irs forms 1040ez 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 forms 1040ez instructions Therefore, your records should show your winnings separately from your losses. Irs forms 1040ez instructions Diary of winnings and losses. Irs forms 1040ez instructions You must keep an accurate diary or similar record of your losses and winnings. Irs forms 1040ez instructions Your diary should contain at least the following information. Irs forms 1040ez instructions The date and type of your specific wager or wagering activity. Irs forms 1040ez instructions The name and address or location of the gambling establishment. Irs forms 1040ez instructions The names of other persons present with you at the gambling establishment. Irs forms 1040ez instructions The amount(s) you won or lost. Irs forms 1040ez instructions See Publication 529 for more information. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Self-employed. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions It is not subject to the passive activity limitations. Irs forms 1040ez 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 forms 1040ez instructions See Repayments in chapter 12 for more information. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions See chapter 10 for more information about the tax treatment of pensions and annuities. Irs forms 1040ez instructions Nondeductible Expenses Examples of nondeductible expenses are listed next. Irs forms 1040ez instructions The list is followed by discussions of additional nondeductible expenses. Irs forms 1040ez instructions List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. Irs forms 1040ez instructions Burial or funeral expenses, including the cost of a cemetery lot. Irs forms 1040ez instructions Capital expenses. Irs forms 1040ez instructions Fees and licenses, such as car licenses, marriage licenses, and dog tags. Irs forms 1040ez instructions Hobby losses, but see Hobby Expenses , earlier. Irs forms 1040ez instructions Home repairs, insurance, and rent. Irs forms 1040ez instructions Illegal bribes and kickbacks. Irs forms 1040ez instructions See Bribes and kickbacks in chapter 11 of Publication 535. Irs forms 1040ez instructions Losses from the sale of your home, furniture, personal car, etc. Irs forms 1040ez instructions Personal disability insurance premiums. Irs forms 1040ez instructions Personal, living, or family expenses. Irs forms 1040ez instructions The value of wages never received or lost vacation time. Irs forms 1040ez 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 forms 1040ez instructions See chapter 37. Irs forms 1040ez 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 forms 1040ez instructions These include qualification and registration fees for primary elections. Irs forms 1040ez instructions Legal fees. Irs forms 1040ez instructions   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Irs forms 1040ez 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 forms 1040ez instructions Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Irs forms 1040ez instructions This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Irs forms 1040ez 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 forms 1040ez instructions Dues paid to airline, hotel, and luncheon clubs are not deductible. Irs forms 1040ez instructions Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Irs forms 1040ez 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 forms 1040ez instructions Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Irs forms 1040ez instructions This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Irs forms 1040ez instructions Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Irs forms 1040ez 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 forms 1040ez instructions Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Irs forms 1040ez 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 forms 1040ez instructions See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. Irs forms 1040ez instructions Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Irs forms 1040ez instructions Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Irs forms 1040ez instructions You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Irs forms 1040ez instructions See chapter 18 for information on alimony. Irs forms 1040ez instructions Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Irs forms 1040ez 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 forms 1040ez instructions Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Irs forms 1040ez instructions Dues used for lobbying. Irs forms 1040ez 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 forms 1040ez instructions See Lobbying Expenses in Publication 529 for information on exceptions. Irs forms 1040ez instructions Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Irs forms 1040ez 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 forms 1040ez instructions See chapter 25. Irs forms 1040ez instructions Example. Irs forms 1040ez instructions A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Irs forms 1040ez instructions The diamond falls from the ring and is never found. Irs forms 1040ez instructions The loss of the diamond is a casualty. Irs forms 1040ez instructions Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Irs forms 1040ez instructions See chapter 26 for information on deductible expenses while traveling away from home. Irs forms 1040ez instructions Meals While Working Late You cannot deduct the cost of meals while working late. Irs forms 1040ez 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 forms 1040ez instructions See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. Irs forms 1040ez instructions Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Irs forms 1040ez instructions Custody of children. Irs forms 1040ez instructions Breach of promise to marry suit. Irs forms 1040ez instructions Civil or criminal charges resulting from a personal relationship. Irs forms 1040ez instructions Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. Irs forms 1040ez instructions Preparation of a title (or defense or perfection of a title). Irs forms 1040ez instructions Preparation of a will. Irs forms 1040ez instructions Property claims or property settlement in a divorce. Irs forms 1040ez instructions You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Irs forms 1040ez instructions Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Irs forms 1040ez instructions Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Irs forms 1040ez instructions Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Irs forms 1040ez instructions Accounting certificate fees paid for the initial right to practice accounting. Irs forms 1040ez instructions Bar exam fees and incidental expenses in securing initial admission to the bar. Irs forms 1040ez instructions Medical and dental license fees paid to get initial licensing. Irs forms 1040ez instructions Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Irs forms 1040ez instructions You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. Irs forms 1040ez 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 forms 1040ez instructions Example. Irs forms 1040ez instructions During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. Irs forms 1040ez instructions In earning this income, you had total expenses of $500 during the year. Irs forms 1040ez instructions You cannot identify the amount of each expense item that is for each income item. Irs forms 1040ez 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 forms 1040ez instructions You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). Irs forms 1040ez 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 forms 1040ez instructions See chapter 26 for more information on deductible travel expenses. Irs forms 1040ez 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 forms 1040ez 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 forms 1040ez 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 forms 1040ez instructions Prev  Up  Next   Home   More Online Publications