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Printable 1040ez Form 2011

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Printable 1040ez Form 2011

Printable 1040ez form 2011 Publication 502 - Main Content Table of Contents What Are Medical Expenses? What Expenses Can You Include This Year?Community property states. Printable 1040ez form 2011 How Much of the Expenses Can You Deduct? Whose Medical Expenses Can You Include?Spouse Dependent Decedent What Medical Expenses Are Includible?Abortion Acupuncture Alcoholism Ambulance Annual Physical Examination Artificial Limb Artificial Teeth Bandages Birth Control Pills Body Scan Braille Books and Magazines Breast Pumps and Supplies Breast Reconstruction Surgery Capital Expenses Car Chiropractor Christian Science Practitioner Contact Lenses Crutches Dental Treatment Diagnostic Devices Disabled Dependent Care Expenses Drug Addiction Drugs Eye Exam Eyeglasses Eye Surgery Fertility Enhancement Founder's Fee Guide Dog or Other Service Animal Health Institute Health Maintenance Organization (HMO) Hearing Aids Home Care Home Improvements Hospital Services Insurance Premiums Intellectually and Developmentally Disabled, Special Home for Laboratory Fees Lactation Expenses Lead-Based Paint Removal Learning Disability Legal Fees Lifetime Care—Advance Payments Lodging Long-Term Care Meals Medical Conferences Medical Information Plan Medicines Nursing Home Nursing Services Operations Optometrist Organ Donors Osteopath Oxygen Physical Examination Pregnancy Test Kit Prosthesis Psychiatric Care Psychoanalysis Psychologist Special Education Sterilization Stop-Smoking Programs Surgery Telephone Television Therapy Transplants Transportation Trips Tuition Vasectomy Vision Correction Surgery Weight-Loss Program Wheelchair Wig X-ray What Expenses Are Not Includible?Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby Controlled Substances Cosmetic Surgery Dancing Lessons Diaper Service Electrolysis or Hair Removal Flexible Spending Account Funeral Expenses Future Medical Care Hair Transplant Health Club Dues Health Coverage Tax Credit Health Savings Accounts Household Help Illegal Operations and Treatments Insurance Premiums Maternity Clothes Medical Savings Account (MSA) Medicines and Drugs From Other Countries Nonprescription Drugs and Medicines Nutritional Supplements Personal Use Items Swimming Lessons Teeth Whitening Veterinary Fees Weight-Loss Program How Do You Treat Reimbursements?Insurance Reimbursement How Do You Figure and Report the Deduction on Your Tax Return?What Tax Form Do You Use? Sale of Medical Equipment or Property Damages for Personal Injuries Impairment-Related Work Expenses Health Insurance Costs for Self-Employed Persons COBRA Premium Assistance Health Coverage Tax CreditWho Can Take This Credit? Qualifying Family Member Qualified Health Insurance Nonqualified Health Insurance Eligible Coverage Month How To Take the Credit How To Get Tax HelpLow Income Taxpayer Clinics What Are Medical Expenses? Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. Printable 1040ez form 2011 These expenses include payments for legal medical services rendered by physicians, surgeons, dentists, and other medical practitioners. Printable 1040ez form 2011 They include the costs of equipment, supplies, and diagnostic devices needed for these purposes. Printable 1040ez form 2011 Medical care expenses must be primarily to alleviate or prevent a physical or mental defect or illness. Printable 1040ez form 2011 They do not include expenses that are merely beneficial to general health, such as vitamins or a vacation. Printable 1040ez form 2011 Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. Printable 1040ez form 2011 Medical expenses also include amounts paid for qualified long-term care services and limited amounts paid for any qualified long-term care insurance contract. Printable 1040ez form 2011 What Expenses Can You Include This Year? You can include only the medical and dental expenses you paid this year, regardless of when the services were provided. Printable 1040ez form 2011 (But see Decedent under Whose Medical Expenses Can You Include, for an exception. Printable 1040ez form 2011 ) If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Printable 1040ez form 2011 If you use a “pay-by-phone” or “online” account to pay your medical expenses, the date reported on the statement of the financial institution showing when payment was made is the date of payment. Printable 1040ez form 2011 If you use a credit card, include medical expenses you charge to your credit card in the year the charge is made, not when you actually pay the amount charged. Printable 1040ez form 2011 If you did not claim a medical or dental expense that would have been deductible in an earlier year, you can file Form 1040X, Amended U. Printable 1040ez form 2011 S. Printable 1040ez form 2011 Individual Income Tax Return, for the year in which you overlooked the expense. Printable 1040ez form 2011 Do not claim the expense on this year's return. Printable 1040ez form 2011 Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. Printable 1040ez form 2011 You cannot include medical expenses that were paid by insurance companies or other sources. Printable 1040ez form 2011 This is true whether the payments were made directly to you, to the patient, or to the provider of the medical services. Printable 1040ez form 2011 Separate returns. Printable 1040ez form 2011   If you and your spouse live in a noncommunity property state and file separate returns, each of you can include only the medical expenses each actually paid. Printable 1040ez form 2011 Any medical expenses paid out of a joint checking account in which you and your spouse have the same interest are considered to have been paid equally by each of you, unless you can show otherwise. Printable 1040ez form 2011 Community property states. Printable 1040ez form 2011   If you and your spouse live in a community property state and file separate returns or are registered domestic partners in Nevada, Washington, or California, any medical expenses paid out of community funds are divided equally. Printable 1040ez form 2011 Generally, each of you should include half the expenses. Printable 1040ez form 2011 If medical expenses are paid out of the separate funds of one individual, only the individual who paid the medical expenses can include them. Printable 1040ez form 2011 If you live in a community property state and are not filing a joint return, see Publication 555, Community Property. Printable 1040ez form 2011 How Much of the Expenses Can You Deduct? Generally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 10% of your AGI. Printable 1040ez form 2011 But if either you or your spouse was born before January 2, 1949, you can deduct the amount of your medical and dental expenses that is more than 7. Printable 1040ez form 2011 5% of your AGI. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 You are unmarried and were born after January 2, 1949, and your AGI is $40,000, 10% of which is $4,000. Printable 1040ez form 2011 You paid medical expenses of $2,500. Printable 1040ez form 2011 You cannot deduct any of your medical expenses because they are not more than 10% of your AGI. Printable 1040ez form 2011 Whose Medical Expenses Can You Include? You can generally include medical expenses you pay for yourself, as well as those you pay for someone who was your spouse or your dependent either when the services were provided or when you paid for them. Printable 1040ez form 2011 There are different rules for decedents and for individuals who are the subject of multiple support agreements. Printable 1040ez form 2011 See Support claimed under a multiple support agreement , later under Qualifying Relative. Printable 1040ez form 2011 Spouse You can include medical expenses you paid for your spouse. Printable 1040ez form 2011 To include these expenses, you must have been married either at the time your spouse received the medical services or at the time you paid the medical expenses. Printable 1040ez form 2011 Example 1. Printable 1040ez form 2011 Mary received medical treatment before she married Bill. Printable 1040ez form 2011 Bill paid for the treatment after they married. Printable 1040ez form 2011 Bill can include these expenses in figuring his medical expense deduction even if Bill and Mary file separate returns. Printable 1040ez form 2011 If Mary had paid the expenses, Bill could not include Mary's expenses in his separate return. Printable 1040ez form 2011 Mary would include the amounts she paid during the year in her separate return. Printable 1040ez form 2011 If they filed a joint return, the medical expenses both paid during the year would be used to figure their medical expense deduction. Printable 1040ez form 2011 Example 2. Printable 1040ez form 2011 This year, John paid medical expenses for his wife Louise, who died last year. Printable 1040ez form 2011 John married Belle this year and they file a joint return. Printable 1040ez form 2011 Because John was married to Louise when she received the medical services, he can include those expenses in figuring his medical expense deduction for this year. Printable 1040ez form 2011 Dependent You can include medical expenses you paid for your dependent. Printable 1040ez form 2011 For you to include these expenses, the person must have been your dependent either at the time the medical services were provided or at the time you paid the expenses. Printable 1040ez form 2011 A person generally qualifies as your dependent for purposes of the medical expense deduction if both of the following requirements are met. Printable 1040ez form 2011 The person was a qualifying child (defined later) or a qualifying relative (defined later), and The person was a U. Printable 1040ez form 2011 S. Printable 1040ez form 2011 citizen or national or a resident of the United States, Canada, or Mexico. Printable 1040ez form 2011 If your qualifying child was adopted, see Exception for adopted child , later. Printable 1040ez form 2011 You can include medical expenses you paid for an individual that would have been your dependent except that: He or she received gross income of $3,900 or more in 2013, He or she filed a joint return for 2013, or You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2013 return. Printable 1040ez form 2011 Exception for adopted child. Printable 1040ez form 2011   If you are a U. Printable 1040ez form 2011 S. Printable 1040ez form 2011 citizen or national and your adopted child lived with you as a member of your household for 2013, that child does not have to be a U. Printable 1040ez form 2011 S. Printable 1040ez form 2011 citizen or national, or a resident of the United States, Canada, or Mexico. Printable 1040ez form 2011 Qualifying Child A qualifying child is a child who: Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew), Was: Under age 19 at the end of 2013 and younger than you (or your spouse, if filing jointly), Under age 24 at the end of 2013, a full-time student, and younger than you (or your spouse, if filing jointly), or Any age and permanently and totally disabled, Lived with you for more than half of 2013, Did not provide over half of his or her own support for 2013, and Did not file a joint return, other than to claim a refund. Printable 1040ez form 2011 Adopted child. Printable 1040ez form 2011   A legally adopted child is treated as your own child. Printable 1040ez form 2011 This child includes a child lawfully placed with you for legal adoption. Printable 1040ez form 2011   You can include medical expenses that you paid for a child before adoption if the child qualified as your dependent when the medical services were provided or when the expenses were paid. Printable 1040ez form 2011   If you pay back an adoption agency or other persons for medical expenses they paid under an agreement with you, you are treated as having paid those expenses provided you clearly substantiate that the payment is directly attributable to the medical care of the child. Printable 1040ez form 2011   But if you pay the agency or other person for medical care that was provided and paid for before adoption negotiations began, you cannot include them as medical expenses. Printable 1040ez form 2011    You may be able to take a credit for other expenses related to an adoption. Printable 1040ez form 2011 See the Instructions for Form 8839, Qualified Adoption Expenses, for more information. Printable 1040ez form 2011 Child of divorced or separated parents. Printable 1040ez form 2011   For purposes of the medical and dental expenses deduction, a child of divorced or separated parents can be treated as a dependent of both parents. Printable 1040ez form 2011 Each parent can include the medical expenses he or she pays for the child, even if the other parent claims the child's dependency exemption, if: The child is in the custody of one or both parents for more than half the year, The child receives over half of his or her support during the year from his or her parents, and The child's parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Live apart at all times during the last 6 months of the year. Printable 1040ez form 2011 This does not apply if the child's exemption is being claimed under a multiple support agreement (discussed later). Printable 1040ez form 2011 Qualifying Relative A qualifying relative is a person: Who is your: Son, daughter, stepchild, or foster child, or a descendant of any of them (for example, your grandchild), Brother, sister, half brother, half sister, or a son or daughter of any of them, Father, mother, or an ancestor or sibling of either of them (for example, your grandmother, grandfather, aunt, or uncle), Stepbrother, stepsister, stepfather, stepmother, son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law, or Any other person (other than your spouse) who lived with you all year as a member of your household if your relationship did not violate local law, Who was not a qualifying child (see Qualifying Child, earlier) of any taxpayer for 2013, and For whom you provided over half of the support in 2013. Printable 1040ez form 2011 But see Child of divorced or separated parents , earlier, Support claimed under a multiple support agreement, next, and Kidnapped child under Qualifying Relative in Publication 501. Printable 1040ez form 2011 Support claimed under a multiple support agreement. Printable 1040ez form 2011   If you are considered to have provided more than half of a qualifying relative's support under a multiple support agreement, you can include medical expenses you pay for that person. Printable 1040ez form 2011 A multiple support agreement is used when two or more people provide more than half of a person's support, but no one alone provides more than half. Printable 1040ez form 2011   Any medical expenses paid by others who joined you in the agreement cannot be included as medical expenses by anyone. Printable 1040ez form 2011 However, you can include the entire unreimbursed amount you paid for medical expenses. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 You and your three brothers each provide one-fourth of your mother's total support. Printable 1040ez form 2011 Under a multiple support agreement, you treat your mother as your dependent. Printable 1040ez form 2011 You paid all of her medical expenses. Printable 1040ez form 2011 Your brothers repaid you for three-fourths of these expenses. Printable 1040ez form 2011 In figuring your medical expense deduction, you can include only one-fourth of your mother's medical expenses. Printable 1040ez form 2011 Your brothers cannot include any part of the expenses. Printable 1040ez form 2011 However, if you and your brothers share the nonmedical support items and you separately pay all of your mother's medical expenses, you can include the unreimbursed amount you paid for her medical expenses in your medical expenses. Printable 1040ez form 2011 Decedent Medical expenses paid before death by the decedent are included in figuring any deduction for medical and dental expenses on the decedent's final income tax return. Printable 1040ez form 2011 This includes expenses for the decedent's spouse and dependents as well as for the decedent. Printable 1040ez form 2011 The survivor or personal representative of a decedent can choose to treat certain expenses paid by the decedent's estate for the decedent's medical care as paid by the decedent at the time the medical services were provided. Printable 1040ez form 2011 The expenses must be paid within the 1-year period beginning with the day after the date of death. Printable 1040ez form 2011 If you are the survivor or personal representative making this choice, you must attach a statement to the decedent's Form 1040 (or the decedent's amended return, Form 1040X) saying that the expenses have not been and will not be claimed on the estate tax return. Printable 1040ez form 2011 Qualified medical expenses paid before death by the decedent are not deductible if paid with a tax-free distribution from any Archer MSA, Medicare Advantage MSA, or health savings account. Printable 1040ez form 2011 What if the decedent's return had been filed and the medical expenses were not included?   Form 1040X can be filed for the year or years the expenses are treated as paid, unless the period for filing an amended return for that year has passed. Printable 1040ez form 2011 Generally, an amended return must be filed within 3 years of the date the original return was filed, or within 2 years from the time the tax was paid, whichever date is later. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 John properly filed his 2012 income tax return. Printable 1040ez form 2011 He died in 2013 with unpaid medical expenses of $1,500 from 2012 and $1,800 in 2013. Printable 1040ez form 2011 If the expenses are paid within the 1-year period, his survivor or personal representative can file an amended return for 2012 claiming a deduction based on the $1,500 medical expenses. Printable 1040ez form 2011 The $1,800 of medical expenses from 2013 can be included on the decedent's final return for 2013. Printable 1040ez form 2011 What if you pay medical expenses of a deceased spouse or dependent?   If you paid medical expenses for your deceased spouse or dependent, include them as medical expenses on your Form 1040 in the year paid, whether they are paid before or after the decedent's death. Printable 1040ez form 2011 The expenses can be included if the person was your spouse or dependent either at the time the medical services were provided or at the time you paid the expenses. Printable 1040ez form 2011 What Medical Expenses Are Includible? Following is a list of items that you can include in figuring your medical expense deduction. Printable 1040ez form 2011 The items are listed in alphabetical order. Printable 1040ez form 2011 This list does not include all possible medical expenses. Printable 1040ez form 2011 To determine if an expense not listed can be included in figuring your medical expense deduction, see What Are Medical Expenses , earlier. Printable 1040ez form 2011 Abortion You can include in medical expenses the amount you pay for a legal abortion. Printable 1040ez form 2011 Acupuncture You can include in medical expenses the amount you pay for acupuncture. Printable 1040ez form 2011 Alcoholism You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for alcohol addiction. Printable 1040ez form 2011 This includes meals and lodging provided by the center during treatment. Printable 1040ez form 2011 You can also include in medical expenses amounts you pay for transportation to and from Alcoholics Anonymous meetings in your community if the attendance is pursuant to medical advice that membership in Alcoholics Anonymous is necessary for the treatment of a disease involving the excessive use of alcoholic liquors. Printable 1040ez form 2011 Ambulance You can include in medical expenses amounts you pay for ambulance service. Printable 1040ez form 2011 Annual Physical Examination See Physical Examination , later. Printable 1040ez form 2011 Artificial Limb You can include in medical expenses the amount you pay for an artificial limb. Printable 1040ez form 2011 Artificial Teeth You can include in medical expenses the amount you pay for artificial teeth. Printable 1040ez form 2011 Bandages You can include in medical expenses the cost of medical supplies such as bandages. Printable 1040ez form 2011 Birth Control Pills You can include in medical expenses the amount you pay for birth control pills prescribed by a doctor. Printable 1040ez form 2011 Body Scan You can include in medical expenses the cost of an electronic body scan. Printable 1040ez form 2011 Braille Books and Magazines You can include in medical expenses the part of the cost of Braille books and magazines for use by a visually impaired person that is more than the cost of regular printed editions. Printable 1040ez form 2011 Breast Pumps and Supplies You can include in medical expenses the cost of breast pumps and supplies that assist lactation. Printable 1040ez form 2011 Breast Reconstruction Surgery You can include in medical expenses the amounts you pay for breast reconstruction surgery, as well as breast prosthesis, following a mastectomy for cancer. Printable 1040ez form 2011 See Cosmetic Surgery , later. Printable 1040ez form 2011 Capital Expenses You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. Printable 1040ez form 2011 The cost of permanent improvements that increase the value of your property may be partly included as a medical expense. Printable 1040ez form 2011 The cost of the improvement is reduced by the increase in the value of your property. Printable 1040ez form 2011 The difference is a medical expense. Printable 1040ez form 2011 If the value of your property is not increased by the improvement, the entire cost is included as a medical expense. Printable 1040ez form 2011 Certain improvements made to accommodate a home to your disabled condition, or that of your spouse or your dependents who live with you, do not usually increase the value of the home and the cost can be included in full as medical expenses. Printable 1040ez form 2011 These improvements include, but are not limited to, the following items. Printable 1040ez form 2011 Constructing entrance or exit ramps for your home. Printable 1040ez form 2011 Widening doorways at entrances or exits to your home. Printable 1040ez form 2011 Widening or otherwise modifying hallways and interior doorways. Printable 1040ez form 2011 Installing railings, support bars, or other modifications to bathrooms. Printable 1040ez form 2011 Lowering or modifying kitchen cabinets and equipment. Printable 1040ez form 2011 Moving or modifying electrical outlets and fixtures. Printable 1040ez form 2011 Installing porch lifts and other forms of lifts (but elevators generally add value to the house). Printable 1040ez form 2011 Modifying fire alarms, smoke detectors, and other warning systems. Printable 1040ez form 2011 Modifying stairways. Printable 1040ez form 2011 Adding handrails or grab bars anywhere (whether or not in bathrooms). Printable 1040ez form 2011 Modifying hardware on doors. Printable 1040ez form 2011 Modifying areas in front of entrance and exit doorways. Printable 1040ez form 2011 Grading the ground to provide access to the residence. Printable 1040ez form 2011 Only reasonable costs to accommodate a home to a disabled condition are considered medical care. Printable 1040ez form 2011 Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses. Printable 1040ez form 2011 Capital expense worksheet. Printable 1040ez form 2011   Use Worksheet A to figure the amount of your capital expense to include in your medical expenses. Printable 1040ez form 2011 Worksheet A. Printable 1040ez form 2011 Capital Expense Worksheet Instructions: Use this worksheet to figure the amount, if any, of your medical expenses due to a home improvement. Printable 1040ez form 2011 1. Printable 1040ez form 2011 Enter the amount you paid for the home improvement 1. Printable 1040ez form 2011   2. Printable 1040ez form 2011 Enter the value of your home immediately after the improvement 2. Printable 1040ez form 2011       3. Printable 1040ez form 2011 Enter the value of your home immediately before the improvement 3. Printable 1040ez form 2011       4. Printable 1040ez form 2011 Subtract line 3 from line 2. Printable 1040ez form 2011 This is the increase in the value of your home due to the improvement 4. Printable 1040ez form 2011     • If line 4 is more than or equal to line 1, you have no medical expenses due to the home improvement; stop here. Printable 1040ez form 2011       • If line 4 is less than line 1, go to line 5. Printable 1040ez form 2011     5. Printable 1040ez form 2011 Subtract line 4 from line 1. Printable 1040ez form 2011 These are your medical expenses due to the home improvement 5. Printable 1040ez form 2011   Operation and upkeep. Printable 1040ez form 2011   Amounts you pay for operation and upkeep of a capital asset qualify as medical expenses, as long as the main reason for them is medical care. Printable 1040ez form 2011 This rule applies even if none or only part of the original cost of the capital asset qualified as a medical care expense. Printable 1040ez form 2011 Improvements to property rented by a person with a disability. Printable 1040ez form 2011   Amounts paid to buy and install special plumbing fixtures for a person with a disability, mainly for medical reasons, in a rented house are medical expenses. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 John has arthritis and a heart condition. Printable 1040ez form 2011 He cannot climb stairs or get into a bathtub. Printable 1040ez form 2011 On his doctor's advice, he installs a bathroom with a shower stall on the first floor of his two-story rented house. Printable 1040ez form 2011 The landlord did not pay any of the cost of buying and installing the special plumbing and did not lower the rent. Printable 1040ez form 2011 John can include in medical expenses the entire amount he paid. Printable 1040ez form 2011 Car You can include in medical expenses the cost of special hand controls and other special equipment installed in a car for the use of a person with a disability. Printable 1040ez form 2011 Special design. Printable 1040ez form 2011   You can include in medical expenses the difference between the cost of a regular car and a car specially designed to hold a wheelchair. Printable 1040ez form 2011 Cost of operation. Printable 1040ez form 2011   The includible costs of using a car for medical reasons are explained under Transportation , later. Printable 1040ez form 2011 Chiropractor You can include in medical expenses fees you pay to a chiropractor for medical care. Printable 1040ez form 2011 Christian Science Practitioner You can include in medical expenses fees you pay to Christian Science practitioners for medical care. Printable 1040ez form 2011 Contact Lenses You can include in medical expenses amounts you pay for contact lenses needed for medical reasons. Printable 1040ez form 2011 You can also include the cost of equipment and materials required for using contact lenses, such as saline solution and enzyme cleaner. Printable 1040ez form 2011 See Eyeglasses and Eye Surgery , later. Printable 1040ez form 2011 Crutches You can include in medical expenses the amount you pay to buy or rent crutches. Printable 1040ez form 2011 Dental Treatment You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. Printable 1040ez form 2011 Preventive treatment includes the services of a dental hygienist or dentist for such procedures as teeth cleaning, the application of sealants, and fluoride treatments to prevent tooth decay. Printable 1040ez form 2011 Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments. Printable 1040ez form 2011 But see Teeth Whitening under What Expenses Are Not Includible, later. Printable 1040ez form 2011 Diagnostic Devices You can include in medical expenses the cost of devices used in diagnosing and treating illness and disease. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 You have diabetes and use a blood sugar test kit to monitor your blood sugar level. Printable 1040ez form 2011 You can include the cost of the blood sugar test kit in your medical expenses. Printable 1040ez form 2011 Disabled Dependent Care Expenses Some disabled dependent care expenses may qualify as either: Medical expenses, or Work-related expenses for purposes of taking a credit for dependent care. Printable 1040ez form 2011 (See Publication 503, Child and Dependent Care Expenses. Printable 1040ez form 2011 ) You can choose to apply them either way as long as you do not use the same expenses to claim both a credit and a medical expense deduction. Printable 1040ez form 2011 Drug Addiction You can include in medical expenses amounts you pay for an inpatient's treatment at a therapeutic center for drug addiction. Printable 1040ez form 2011 This includes meals and lodging at the center during treatment. Printable 1040ez form 2011 Drugs See Medicines , later. Printable 1040ez form 2011 Eye Exam You can include in medical expenses the amount you pay for eye examinations. Printable 1040ez form 2011 Eyeglasses You can include in medical expenses amounts you pay for eyeglasses and contact lenses needed for medical reasons. Printable 1040ez form 2011 See Contact Lenses , earlier, for more information. Printable 1040ez form 2011 Eye Surgery You can include in medical expenses the amount you pay for eye surgery to treat defective vision, such as laser eye surgery or radial keratotomy. Printable 1040ez form 2011 Fertility Enhancement You can include in medical expenses the cost of the following procedures to overcome an inability to have children. Printable 1040ez form 2011 Procedures such as in vitro fertilization (including temporary storage of eggs or sperm). Printable 1040ez form 2011 Surgery, including an operation to reverse prior surgery that prevented the person operated on from having children. Printable 1040ez form 2011 Founder's Fee See Lifetime Care—Advance Payments , later. Printable 1040ez form 2011 Guide Dog or Other Service Animal You can include in medical expenses the costs of buying, training, and maintaining a guide dog or other service animal to assist a visually impaired or hearing disabled person, or a person with other physical disabilities. Printable 1040ez form 2011 In general, this includes any costs, such as food, grooming, and veterinary care, incurred in maintaining the health and vitality of the service animal so that it may perform its duties. Printable 1040ez form 2011 Health Institute You can include in medical expenses fees you pay for treatment at a health institute only if the treatment is prescribed by a physician and the physician issues a statement that the treatment is necessary to alleviate a physical or mental defect or illness of the individual receiving the treatment. Printable 1040ez form 2011 Health Maintenance Organization (HMO) You can include in medical expenses amounts you pay to entitle you, your spouse, or a dependent to receive medical care from an HMO. Printable 1040ez form 2011 These amounts are treated as medical insurance premiums. Printable 1040ez form 2011 See Insurance Premiums , later. Printable 1040ez form 2011 Hearing Aids You can include in medical expenses the cost of a hearing aid and batteries, repairs, and maintenance needed to operate it. Printable 1040ez form 2011 Home Care See Nursing Services , later. Printable 1040ez form 2011 Home Improvements See Capital Expenses , earlier. Printable 1040ez form 2011 Hospital Services You can include in medical expenses amounts you pay for the cost of inpatient care at a hospital or similar institution if a principal reason for being there is to receive medical care. Printable 1040ez form 2011 This includes amounts paid for meals and lodging. Printable 1040ez form 2011 Also see Lodging , later. Printable 1040ez form 2011 Insurance Premiums You can include in medical expenses insurance premiums you pay for policies that cover medical care. Printable 1040ez form 2011 Medical care policies can provide payment for treatment that includes: Hospitalization, surgical services, X-rays, Prescription drugs and insulin, Dental care, Replacement of lost or damaged contact lenses, and Long-term care (subject to additional limitations). Printable 1040ez form 2011 See Qualified Long-Term Care Insurance Contracts under Long-Term Care, later. Printable 1040ez form 2011 If you have a policy that provides payments for other than medical care, you can include the premiums for the medical care part of the policy if the charge for the medical part is reasonable. Printable 1040ez form 2011 The cost of the medical part must be separately stated in the insurance contract or given to you in a separate statement. Printable 1040ez form 2011 Health coverage tax credit. Printable 1040ez form 2011   If, during 2013, you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient, you must complete Form 8885 before completing Schedule A. Printable 1040ez form 2011 When figuring the amount of insurance premiums you can deduct on Schedule A, do not include: Any amounts you included on Form 8885, Any qualified health insurance premiums you paid to “U. Printable 1040ez form 2011 S. Printable 1040ez form 2011 Treasury–HCTC,” or Any health coverage tax credit advance payments shown on Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Printable 1040ez form 2011 Employer-Sponsored Health Insurance Plan Do not include in your medical and dental expenses any insurance premiums paid by an employer-sponsored health insurance plan unless the premiums are included on your Form W-2, Wage and Tax Statement. Printable 1040ez form 2011 Also, do not include any other medical and dental expenses paid by the plan unless the amount paid is included on your Form W-2. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 You are a federal employee participating in the premium conversion plan of the Federal Employee Health Benefits (FEHB) program. Printable 1040ez form 2011 Your share of the FEHB premium is paid by making a pre-tax reduction in your salary. Printable 1040ez form 2011 Because you are an employee whose insurance premiums are paid with money that is never included in your gross income, you cannot deduct the premiums paid with that money. Printable 1040ez form 2011 Long-term care services. Printable 1040ez form 2011   Contributions made by your employer to provide coverage for qualified long-term care services under a flexible spending or similar arrangement must be included in your income. Printable 1040ez form 2011 This amount will be reported as wages on your Form W-2. Printable 1040ez form 2011 Retired public safety officers. Printable 1040ez form 2011   If you are a retired public safety officer, do not include as medical expenses any health or long-term care insurance premiums that you elected to have paid with tax-free distributions from a retirement plan. Printable 1040ez form 2011 This applies only to distributions that would otherwise be included in income. Printable 1040ez form 2011 Health reimbursement arrangement (HRA). Printable 1040ez form 2011   If you have medical expenses that are reimbursed by a health reimbursement arrangement, you cannot include those expenses in your medical expenses. Printable 1040ez form 2011 This is because an HRA is funded solely by the employer. Printable 1040ez form 2011 Medicare A If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare A. Printable 1040ez form 2011 The payroll tax paid for Medicare A is not a medical expense. Printable 1040ez form 2011 If you are not covered under social security (or were not a government employee who paid Medicare tax), you can voluntarily enroll in Medicare A. Printable 1040ez form 2011 In this situation you can include the premiums you paid for Medicare A as a medical expense. Printable 1040ez form 2011 Medicare B Medicare B is a supplemental medical insurance. Printable 1040ez form 2011 Premiums you pay for Medicare B are a medical expense. Printable 1040ez form 2011 Check the information you received from the Social Security Administration to find out your premium. Printable 1040ez form 2011 Medicare D Medicare D is a voluntary prescription drug insurance program for persons with Medicare A or B. Printable 1040ez form 2011 You can include as a medical expense premiums you pay for Medicare D. Printable 1040ez form 2011 Prepaid Insurance Premiums Premiums you pay before you are age 65 for insurance for medical care for yourself, your spouse, or your dependents after you reach age 65 are medical care expenses in the year paid if they are: Payable in equal yearly installments or more often, and Payable for at least 10 years, or until you reach age 65 (but not for less than 5 years). Printable 1040ez form 2011 Unused Sick Leave Used To Pay Premiums You must include in gross income cash payments you receive at the time of retirement for unused sick leave. Printable 1040ez form 2011 You also must include in gross income the value of unused sick leave that, at your option, your employer applies to the cost of your continuing participation in your employer's health plan after you retire. Printable 1040ez form 2011 You can include this cost of continuing participation in the health plan as a medical expense. Printable 1040ez form 2011 If you participate in a health plan where your employer automatically applies the value of unused sick leave to the cost of your continuing participation in the health plan (and you do not have the option to receive cash), do not include the value of the unused sick leave in gross income. Printable 1040ez form 2011 You cannot include this cost of continuing participation in that health plan as a medical expense. Printable 1040ez form 2011 Insurance Premiums You Cannot Include You cannot include premiums you pay for: Life insurance policies, Policies providing payment for loss of earnings, Policies for loss of life, limb, sight, etc. Printable 1040ez form 2011 , Policies that pay you a guaranteed amount each week for a stated number of weeks if you are hospitalized for sickness or injury, The part of your car insurance that provides medical insurance coverage for all persons injured in or by your car because the part of the premium providing insurance for you, your spouse, and your dependents is not stated separately from the part of the premium providing insurance for medical care for others, or Health or long-term care insurance if you elected to pay these premiums with tax-free distributions from a retirement plan made directly to the insurance provider and these distributions would otherwise have been included in income. Printable 1040ez form 2011 Taxes imposed by any governmental unit, such as Medicare taxes, are not insurance premiums. Printable 1040ez form 2011 Coverage for nondependents. Printable 1040ez form 2011   Generally, you cannot deduct any additional premium you pay as the result of including on your policy someone who is not your spouse or dependent, even if that person is your child under age 27. Printable 1040ez form 2011 However, you can deduct the additional premium if that person is: Your child whom you do not claim as a dependent because of the rules for children of divorced or separated parents, Any person you could have claimed as a dependent on your return except that person received $3,900 or more of gross income or filed a joint return, or Any person you could have claimed as a dependent except that you, or your spouse if filing jointly, can be claimed as a dependent on someone else's 2013 return. Printable 1040ez form 2011  Also, if you had family coverage when you added this individual to your policy and your premiums did not increase, you can enter on Schedule A (Form 1040) the full amount of your medical and dental insurance premiums. Printable 1040ez form 2011 Intellectually and Developmentally Disabled, Special Home for You can include in medical expenses the cost of keeping a person who is intellectually and developmentally disabled in a special home, not the home of a relative, on the recommendation of a psychiatrist to help the person adjust from life in a mental hospital to community living. Printable 1040ez form 2011 Laboratory Fees You can include in medical expenses the amounts you pay for laboratory fees that are part of medical care. Printable 1040ez form 2011 Lactation Expenses See Breast Pumps and Supplies , earlier. Printable 1040ez form 2011 Lead-Based Paint Removal You can include in medical expenses the cost of removing lead-based paints from surfaces in your home to prevent a child who has or had lead poisoning from eating the paint. Printable 1040ez form 2011 These surfaces must be in poor repair (peeling or cracking) or within the child's reach. Printable 1040ez form 2011 The cost of repainting the scraped area is not a medical expense. Printable 1040ez form 2011 If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. Printable 1040ez form 2011 See Capital Expenses , earlier. Printable 1040ez form 2011 Do not include the cost of painting the wallboard as a medical expense. Printable 1040ez form 2011 Learning Disability See Special Education , later. Printable 1040ez form 2011 Legal Fees You can include in medical expenses legal fees you paid that are necessary to authorize treatment for mental illness. Printable 1040ez form 2011 However, you cannot include in medical expenses fees for the management of a guardianship estate, fees for conducting the affairs of the person being treated, or other fees that are not necessary for medical care. Printable 1040ez form 2011 Lifetime Care—Advance Payments You can include in medical expenses a part of a life-care fee or “founder's fee” you pay either monthly or as a lump sum under an agreement with a retirement home. Printable 1040ez form 2011 The part of the payment you include is the amount properly allocable to medical care. Printable 1040ez form 2011 The agreement must require that you pay a specific fee as a condition for the home's promise to provide lifetime care that includes medical care. Printable 1040ez form 2011 You can use a statement from the retirement home to prove the amount properly allocable to medical care. Printable 1040ez form 2011 The statement must be based either on the home's prior experience or on information from a comparable home. Printable 1040ez form 2011 Dependents with disabilities. Printable 1040ez form 2011   You can include in medical expenses advance payments to a private institution for lifetime care, treatment, and training of your physically or mentally impaired child upon your death or when you become unable to provide care. Printable 1040ez form 2011 The payments must be a condition for the institution's future acceptance of your child and must not be refundable. Printable 1040ez form 2011 Payments for future medical care. Printable 1040ez form 2011   Generally, you cannot include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. Printable 1040ez form 2011 This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care of the type described earlier. Printable 1040ez form 2011 Lodging You can include in medical expenses the cost of meals and lodging at a hospital or similar institution if a principal reason for being there is to receive medical care. Printable 1040ez form 2011 See Nursing Home , later. Printable 1040ez form 2011 You may be able to include in medical expenses the cost of lodging not provided in a hospital or similar institution. Printable 1040ez form 2011 You can include the cost of such lodging while away from home if all of the following requirements are met. Printable 1040ez form 2011 The lodging is primarily for and essential to medical care. Printable 1040ez form 2011 The medical care is provided by a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital. Printable 1040ez form 2011 The lodging is not lavish or extravagant under the circumstances. Printable 1040ez form 2011 There is no significant element of personal pleasure, recreation, or vacation in the travel away from home. Printable 1040ez form 2011 The amount you include in medical expenses for lodging cannot be more than $50 for each night for each person. Printable 1040ez form 2011 You can include lodging for a person traveling with the person receiving the medical care. Printable 1040ez form 2011 For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Printable 1040ez form 2011 Meals are not included. Printable 1040ez form 2011 Do not include the cost of lodging while away from home for medical treatment if that treatment is not received from a doctor in a licensed hospital or in a medical care facility related to, or the equivalent of, a licensed hospital or if that lodging is not primarily for or essential to the medical care received. Printable 1040ez form 2011 Long-Term Care You can include in medical expenses amounts paid for qualified long-term care services and premiums paid for qualified long-term care insurance contracts. Printable 1040ez form 2011 Qualified Long-Term Care Services Qualified long-term care services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative services, and maintenance and personal care services (defined later) that are: Required by a chronically ill individual, and Provided pursuant to a plan of care prescribed by a licensed health care practitioner. Printable 1040ez form 2011 Chronically ill individual. Printable 1040ez form 2011   An individual is chronically ill if, within the previous 12 months, a licensed health care practitioner has certified that the individual meets either of the following descriptions. Printable 1040ez form 2011 He or she is unable to perform at least two activities of daily living without substantial assistance from another individual for at least 90 days, due to a loss of functional capacity. Printable 1040ez form 2011 Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. Printable 1040ez form 2011 He or she requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Printable 1040ez form 2011 Maintenance and personal care services. Printable 1040ez form 2011    Maintenance or personal care services is care which has as its primary purpose the providing of a chronically ill individual with needed assistance with his or her disabilities (including protection from threats to health and safety due to severe cognitive impairment). Printable 1040ez form 2011 Qualified Long-Term Care Insurance Contracts A qualified long-term care insurance contract is an insurance contract that provides only coverage of qualified long-term care services. Printable 1040ez form 2011 The contract must: Be guaranteed renewable, Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed, Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract must be used only to reduce future premiums or increase future benefits, and Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses. Printable 1040ez form 2011 The amount of qualified long-term care premiums you can include is limited. Printable 1040ez form 2011 You can include the following as medical expenses on Schedule A (Form 1040). Printable 1040ez form 2011 Qualified long-term care premiums up to the following amounts. Printable 1040ez form 2011 Age 40 or under – $360. Printable 1040ez form 2011 Age 41 to 50 – $680. Printable 1040ez form 2011 Age 51 to 60 – $1,360. Printable 1040ez form 2011 Age 61 to 70 – $3,640. Printable 1040ez form 2011 Age 71 or over – $4,550. Printable 1040ez form 2011 Unreimbursed expenses for qualified long-term care services. Printable 1040ez form 2011 Note. Printable 1040ez form 2011 The limit on premiums is for each person. Printable 1040ez form 2011 Also, if you are an eligible retired public safety officer, you cannot include premiums for long-term care insurance if you elected to pay these premiums with tax-free distributions from a qualified retirement plan made directly to the insurance provider and these distributions would otherwise have been included in your income. Printable 1040ez form 2011 Meals You can include in medical expenses the cost of meals at a hospital or similar institution if a principal reason for being there is to get medical care. Printable 1040ez form 2011 You cannot include in medical expenses the cost of meals that are not part of inpatient care. Printable 1040ez form 2011 Also see Weight-Loss Program and Nutritional Supplements , later. Printable 1040ez form 2011 Medical Conferences You can include in medical expenses amounts paid for admission and transportation to a medical conference if the medical conference concerns the chronic illness of yourself, your spouse, or your dependent. Printable 1040ez form 2011 The costs of the medical conference must be primarily for and necessary to the medical care of you, your spouse, or your dependent. Printable 1040ez form 2011 The majority of the time spent at the conference must be spent attending sessions on medical information. Printable 1040ez form 2011 The cost of meals and lodging while attending the conference is not deductible as a medical expense. Printable 1040ez form 2011 Medical Information Plan You can include in medical expenses amounts paid to a plan that keeps medical information in a computer data bank and retrieves and furnishes the information upon request to an attending physician. Printable 1040ez form 2011 Medicines You can include in medical expenses amounts you pay for prescribed medicines and drugs. Printable 1040ez form 2011 A prescribed drug is one that requires a prescription by a doctor for its use by an individual. Printable 1040ez form 2011 You can also include amounts you pay for insulin. Printable 1040ez form 2011 Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Printable 1040ez form 2011 Imported medicines and drugs. Printable 1040ez form 2011   If you imported medicines or drugs from other countries, see Medicines and Drugs From Other Countries , under What Expenses Are Not Includible, later. Printable 1040ez form 2011 Nursing Home You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. Printable 1040ez form 2011 This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care. Printable 1040ez form 2011 Do not include the cost of meals and lodging if the reason for being in the home is personal. Printable 1040ez form 2011 You can, however, include in medical expenses the part of the cost that is for medical or nursing care. Printable 1040ez form 2011 Nursing Services You can include in medical expenses wages and other amounts you pay for nursing services. Printable 1040ez form 2011 The services need not be performed by a nurse as long as the services are of a kind generally performed by a nurse. Printable 1040ez form 2011 This includes services connected with caring for the patient's condition, such as giving medication or changing dressings, as well as bathing and grooming the patient. Printable 1040ez form 2011 These services can be provided in your home or another care facility. Printable 1040ez form 2011 Generally, only the amount spent for nursing services is a medical expense. Printable 1040ez form 2011 If the attendant also provides personal and household services, amounts paid to the attendant must be divided between the time spent performing household and personal services and the time spent for nursing services. Printable 1040ez form 2011 For example, because of your medical condition you pay a visiting nurse $300 per week for medical and household services. Printable 1040ez form 2011 She spends 10% of her time doing household services such as washing dishes and laundry. Printable 1040ez form 2011 You can include only $270 per week as medical expenses. Printable 1040ez form 2011 The $30 (10% × $300) allocated to household services cannot be included. Printable 1040ez form 2011 However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Printable 1040ez form 2011 See Maintenance and personal care services under Long-Term Care, earlier. Printable 1040ez form 2011 Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. Printable 1040ez form 2011 See Publication 503. Printable 1040ez form 2011 You can also include in medical expenses part of the amount you pay for that attendant's meals. Printable 1040ez form 2011 Divide the food expense among the household members to find the cost of the attendant's food. Printable 1040ez form 2011 Then divide that cost in the same manner as in the preceding paragraph. Printable 1040ez form 2011 If you had to pay additional amounts for household upkeep because of the attendant, you can include the extra amounts with your medical expenses. Printable 1040ez form 2011 This includes extra rent or utilities you pay because you moved to a larger apartment to provide space for the attendant. Printable 1040ez form 2011 Employment taxes. Printable 1040ez form 2011   You can include as a medical expense social security tax, FUTA, Medicare tax, and state employment taxes you pay for an attendant who provides medical care. Printable 1040ez form 2011 If the attendant also provides personal and household services, you can include as a medical expense only the amount of employment taxes paid for medical services as explained earlier. Printable 1040ez form 2011 For information on employment tax responsibilities of household employers, see Publication 926, Household Employer's Tax Guide. Printable 1040ez form 2011 Operations You can include in medical expenses amounts you pay for legal operations that are not for unnecessary cosmetic surgery. Printable 1040ez form 2011 See Cosmetic Surgery under What Expenses Are Not Includible, later. Printable 1040ez form 2011 Optometrist See Eyeglasses , earlier. Printable 1040ez form 2011 Organ Donors See Transplants , later. Printable 1040ez form 2011 Osteopath You can include in medical expenses amounts you pay to an osteopath for medical care. Printable 1040ez form 2011 Oxygen You can include in medical expenses amounts you pay for oxygen and oxygen equipment to relieve breathing problems caused by a medical condition. Printable 1040ez form 2011 Physical Examination You can include in medical expenses the amount you pay for an annual physical examination and diagnostic tests by a physician. Printable 1040ez form 2011 You do not have to be ill at the time of the examination. Printable 1040ez form 2011 Pregnancy Test Kit You can include in medical expenses the amount you pay to purchase a pregnancy test kit to determine if you are pregnant. Printable 1040ez form 2011 Prosthesis See Artificial Limb and Breast Reconstruction Surgery , earlier. Printable 1040ez form 2011 Psychiatric Care You can include in medical expenses amounts you pay for psychiatric care. Printable 1040ez form 2011 This includes the cost of supporting a mentally ill dependent at a specially equipped medical center where the dependent receives medical care. Printable 1040ez form 2011 See Psychoanalysis, next, and Transportation , later. Printable 1040ez form 2011 Psychoanalysis You can include in medical expenses payments for psychoanalysis. Printable 1040ez form 2011 However, you cannot include payments for psychoanalysis that is part of required training to be a psychoanalyst. Printable 1040ez form 2011 Psychologist You can include in medical expenses amounts you pay to a psychologist for medical care. Printable 1040ez form 2011 Special Education You can include in medical expenses fees you pay on a doctor's recommendation for a child's tutoring by a teacher who is specially trained and qualified to work with children who have learning disabilities caused by mental or physical impairments, including nervous system disorders. Printable 1040ez form 2011 You can include in medical expenses the cost (tuition, meals, and lodging) of attending a school that furnishes special education to help a child to overcome learning disabilities. Printable 1040ez form 2011 A doctor must recommend that the child attend the school. Printable 1040ez form 2011 Overcoming the learning disabilities must be a principal reason for attending the school, and any ordinary education received must be incidental to the special education provided. Printable 1040ez form 2011 Special education includes: Teaching Braille to a visually impaired person, Teaching lip reading to a hearing disabled person, or Giving remedial language training to correct a condition caused by a birth defect. Printable 1040ez form 2011 Sterilization You can include in medical expenses the cost of a legal sterilization (a legally performed operation to make a person unable to have children). Printable 1040ez form 2011 Also see Vasectomy , later. Printable 1040ez form 2011 Stop-Smoking Programs You can include in medical expenses amounts you pay for a program to stop smoking. Printable 1040ez form 2011 However, you cannot include in medical expenses amounts you pay for drugs that do not require a prescription, such as nicotine gum or patches, that are designed to help stop smoking. Printable 1040ez form 2011 Surgery See Operations , earlier. Printable 1040ez form 2011 Telephone You can include in medical expenses the cost of special telephone equipment that lets a person who is deaf, hard of hearing or has a speech disability communicate over a regular telephone. Printable 1040ez form 2011 This includes teletypewriter (TTY) and telecommunications device for the deaf (TDD) equipment. Printable 1040ez form 2011 You can also include the cost of repairing the equipment. Printable 1040ez form 2011 Television You can include in medical expenses the cost of equipment that displays the audio part of television programs as subtitles for persons with a hearing disability. Printable 1040ez form 2011 This may be the cost of an adapter that attaches to a regular set. Printable 1040ez form 2011 It also may be the part of the cost of a specially equipped television that exceeds the cost of the same model regular television set. Printable 1040ez form 2011 Therapy You can include in medical expenses amounts you pay for therapy received as medical treatment. Printable 1040ez form 2011 Transplants You can include in medical expenses amounts paid for medical care you receive because you are a donor or a possible donor of a kidney or other organ. Printable 1040ez form 2011 This includes transportation. Printable 1040ez form 2011 You can include any expenses you pay for the medical care of a donor in connection with the donating of an organ. Printable 1040ez form 2011 This includes transportation. Printable 1040ez form 2011 Transportation You can include in medical expenses amounts paid for transportation primarily for, and essential to, medical care. Printable 1040ez form 2011 You can include:    Bus, taxi, train, or plane fares or ambulance service, Transportation expenses of a parent who must go with a child who needs medical care, Transportation expenses of a nurse or other person who can give injections, medications, or other treatment required by a patient who is traveling to get medical care and is unable to travel alone, and Transportation expenses for regular visits to see a mentally ill dependent, if these visits are recommended as a part of treatment. Printable 1040ez form 2011 Car expenses. Printable 1040ez form 2011   You can include out-of-pocket expenses, such as the cost of gas and oil, when you use a car for medical reasons. Printable 1040ez form 2011 You cannot include depreciation, insurance, general repair, or maintenance expenses. Printable 1040ez form 2011   If you do not want to use your actual expenses for 2013, you can use the standard medical mileage rate of 24 cents a mile. Printable 1040ez form 2011    You can also include parking fees and tolls. Printable 1040ez form 2011 You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 In 2013, Bill Jones drove 2,800 miles for medical reasons. Printable 1040ez form 2011 He spent $500 for gas, $30 for oil, and $100 for tolls and parking. Printable 1040ez form 2011 He wants to figure the amount he can include in medical expenses both ways to see which gives him the greater deduction. Printable 1040ez form 2011 He figures the actual expenses first. Printable 1040ez form 2011 He adds the $500 for gas, the $30 for oil, and the $100 for tolls and parking for a total of $630. Printable 1040ez form 2011 He then figures the standard mileage amount. Printable 1040ez form 2011 He multiplies 2,800 miles by 24 cents a mile for a total of $672. Printable 1040ez form 2011 He then adds the $100 tolls and parking for a total of $772. Printable 1040ez form 2011 Bill includes the $772 of car expenses with his other medical expenses for the year because the $772 is more than the $630 he figured using actual expenses. Printable 1040ez form 2011 Transportation expenses you cannot include. Printable 1040ez form 2011    You cannot include in medical expenses the cost of transportation in the following situations. Printable 1040ez form 2011 Going to and from work, even if your condition requires an unusual means of transportation. Printable 1040ez form 2011 Travel for purely personal reasons to another city for an operation or other medical care. Printable 1040ez form 2011 Travel that is merely for the general improvement of one's health. Printable 1040ez form 2011 The costs of operating a specially equipped car for other than medical reasons. Printable 1040ez form 2011 Trips You can include in medical expenses amounts you pay for transportation to another city if the trip is primarily for, and essential to, receiving medical services. Printable 1040ez form 2011 You may be able to include up to $50 for each night for each person. Printable 1040ez form 2011 You can include lodging for a person traveling with the person receiving the medical care. Printable 1040ez form 2011 For example, if a parent is traveling with a sick child, up to $100 per night can be included as a medical expense for lodging. Printable 1040ez form 2011 Meals are not included. Printable 1040ez form 2011 See Lodging , earlier. Printable 1040ez form 2011 You cannot include in medical expenses a trip or vacation taken merely for a change in environment, improvement of morale, or general improvement of health, even if the trip is made on the advice of a doctor. Printable 1040ez form 2011 However, see Medical Conferences , earlier. Printable 1040ez form 2011 Tuition Under special circumstances, you can include charges for tuition in medical expenses. Printable 1040ez form 2011 See Special Education , earlier. Printable 1040ez form 2011 You can include charges for a health plan included in a lump-sum tuition fee if the charges are separately stated or can easily be obtained from the school. Printable 1040ez form 2011 Vasectomy You can include in medical expenses the amount you pay for a vasectomy. Printable 1040ez form 2011 Vision Correction Surgery See Eye Surgery , earlier. Printable 1040ez form 2011 Weight-Loss Program You can include in medical expenses amounts you pay to lose weight if it is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). Printable 1040ez form 2011 This includes fees you pay for membership in a weight reduction group as well as fees for attendance at periodic meetings. Printable 1040ez form 2011 You cannot include membership dues in a gym, health club, or spa as medical expenses, but you can include separate fees charged there for weight loss activities. Printable 1040ez form 2011 You cannot include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. Printable 1040ez form 2011 You can include the cost of special food in medical expenses only if: The food does not satisfy normal nutritional needs, The food alleviates or treats an illness, and The need for the food is substantiated by a physician. Printable 1040ez form 2011 The amount you can include in medical expenses is limited to the amount by which the cost of the special food exceeds the cost of a normal diet. Printable 1040ez form 2011 See also Weight-Loss Program under What Expenses Are Not Includible, later. Printable 1040ez form 2011 Wheelchair You can include in medical expenses amounts you pay for a wheelchair used mainly for the relief of sickness or disability, and not just to provide transportation to and from work. Printable 1040ez form 2011 The cost of operating and maintaining the wheelchair is also a medical expense. Printable 1040ez form 2011 Wig You can include in medical expenses the cost of a wig purchased upon the advice of a physician for the mental health of a patient who has lost all of his or her hair from disease. Printable 1040ez form 2011 X-ray You can include in medical expenses amounts you pay for X-rays for medical reasons. Printable 1040ez form 2011 What Expenses Are Not Includible? Following is a list of some items that you cannot include in figuring your medical expense deduction. Printable 1040ez form 2011 The items are listed in alphabetical order. Printable 1040ez form 2011 Baby Sitting, Childcare, and Nursing Services for a Normal, Healthy Baby You cannot include in medical expenses amounts you pay for the care of children, even if the expenses enable you, your spouse, or your dependent to get medical or dental treatment. Printable 1040ez form 2011 Also, any expense allowed as a childcare credit cannot be treated as an expense paid for medical care. Printable 1040ez form 2011 Controlled Substances You cannot include in medical expenses amounts you pay for controlled substances (such as marijuana, laetrile, etc. Printable 1040ez form 2011 ), even if such substances are legalized by state law. Printable 1040ez form 2011 Such substances are not legal under federal law and cannot be included in medical expenses. Printable 1040ez form 2011 Cosmetic Surgery Generally, you cannot include in medical expenses the amount you pay for unnecessary cosmetic surgery. Printable 1040ez form 2011 This includes any procedure that is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease. Printable 1040ez form 2011 You generally cannot include in medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis), and liposuction. Printable 1040ez form 2011 You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 An individual undergoes surgery that removes a breast as part of treatment for cancer. Printable 1040ez form 2011 She pays a surgeon to reconstruct the breast. Printable 1040ez form 2011 The surgery to reconstruct the breast corrects a deformity directly related to the disease. Printable 1040ez form 2011 The cost of the surgery is includible in her medical expenses. Printable 1040ez form 2011 Dancing Lessons You cannot include in medical expenses the cost of dancing lessons, swimming lessons, etc. Printable 1040ez form 2011 , even if they are recommended by a doctor, if they are only for the improvement of general health. Printable 1040ez form 2011 Diaper Service You cannot include in medical expenses the amount you pay for diapers or diaper services, unless they are needed to relieve the effects of a particular disease. Printable 1040ez form 2011 Electrolysis or Hair Removal See Cosmetic Surgery , earlier. Printable 1040ez form 2011 Flexible Spending Account You cannot include in medical expenses amounts for which you are fully reimbursed by your flexible spending account if you contribute a part of your income on a pre-tax basis to pay for the qualified benefit. Printable 1040ez form 2011 Funeral Expenses You cannot include in medical expenses amounts you pay for funerals. Printable 1040ez form 2011 Future Medical Care Generally, you cannot include in medical expenses current payments for medical care (including medical insurance) to be provided substantially beyond the end of the year. Printable 1040ez form 2011 This rule does not apply in situations where the future care is purchased in connection with obtaining lifetime care or long-term care of the type described at Lifetime Care—Advance Payments or Long-Term Care, earlier under What Medical Expenses Are Includible. Printable 1040ez form 2011 Hair Transplant See Cosmetic Surgery , earlier. Printable 1040ez form 2011 Health Club Dues You cannot include in medical expenses health club dues or amounts paid to improve one's general health or to relieve physical or mental discomfort not related to a particular medical condition. Printable 1040ez form 2011 You cannot include in medical expenses the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Printable 1040ez form 2011 Health Coverage Tax Credit You cannot include in medical expenses amounts you pay for health insurance that you use in figuring your health coverage tax credit. Printable 1040ez form 2011 For more information, see Health Coverage Tax Credit , later. Printable 1040ez form 2011 Health Savings Accounts You cannot include in medical expenses any payment or distribution for medical expenses out of a health savings account. Printable 1040ez form 2011 Contributions to health savings accounts are deducted separately. Printable 1040ez form 2011 See Publication 969. Printable 1040ez form 2011 Household Help You cannot include in medical expenses the cost of household help, even if such help is recommended by a doctor. Printable 1040ez form 2011 This is a personal expense that is not deductible. Printable 1040ez form 2011 However, you may be able to include certain expenses paid to a person providing nursing-type services. Printable 1040ez form 2011 For more information, see Nursing Services , earlier under What Medical Expenses Are Includible. Printable 1040ez form 2011 Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. Printable 1040ez form 2011 For more information, see Long-Term Care , earlier under What Medical Expenses Are Includible. Printable 1040ez form 2011 Illegal Operations and Treatments You cannot include in medical expenses amounts you pay for illegal operations, treatments, or controlled substances whether rendered or prescribed by licensed or unlicensed practitioners. Printable 1040ez form 2011 Insurance Premiums See Insurance Premiums under What Medical Expenses Are Includible, earlier. Printable 1040ez form 2011 Maternity Clothes You cannot include in medical expenses amounts you pay for maternity clothes. Printable 1040ez form 2011 Medical Savings Account (MSA) You cannot include in medical expenses amounts you contribute to an Archer MSA. Printable 1040ez form 2011 You cannot include expenses you pay for with a tax-free distribution from your Archer MSA. Printable 1040ez form 2011 You also cannot use other funds equal to the amount of the distribution and include the expenses. Printable 1040ez form 2011 For more information on Archer MSAs, see Publication 969. Printable 1040ez form 2011 Medicines and Drugs From Other Countries In general, you cannot include in your medical expenses the cost of a prescribed drug brought in (or ordered shipped) from another country. Printable 1040ez form 2011 You can only include the cost of a drug that was imported legally. Printable 1040ez form 2011 For example, you can include the cost of a prescribed drug the Food and Drug Administration announces can be legally imported by individuals. Printable 1040ez form 2011 You can include the cost of a prescribed drug you purchase and consume in another country if the drug is legal in both the other country and the United States. Printable 1040ez form 2011 Nonprescription Drugs and Medicines Except for insulin, you cannot include in medical expenses amounts you pay for a drug that is not prescribed. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 Your doctor recommends that you take aspirin. Printable 1040ez form 2011 Because aspirin is a drug that does not require a physician's prescription, you cannot include its cost in your medical expenses. Printable 1040ez form 2011 Nutritional Supplements You cannot include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, “natural medicines,” etc. Printable 1040ez form 2011 unless they are recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician. Printable 1040ez form 2011 Otherwise, these items are taken to maintain your ordinary good health, and are not for medical care. Printable 1040ez form 2011 Personal Use Items You cannot include in medical expenses the cost of an item ordinarily used for personal, living, or family purposes unless it is used primarily to prevent or alleviate a physical or mental defect or illness. Printable 1040ez form 2011 For example, the cost of a toothbrush and toothpaste is a nondeductible personal expense. Printable 1040ez form 2011 In order to accommodate an individual with a physical defect, you may have to purchase an item ordinarily used as a personal, living, or family item in a special form. Printable 1040ez form 2011 You can include the excess of the cost of the item in a special form over the cost of the item in normal form as a medical expense. Printable 1040ez form 2011 (See Braille Books and Magazines under What Medical Expenses Are Includible, earlier. Printable 1040ez form 2011 ) Swimming Lessons See Dancing Lessons , earlier. Printable 1040ez form 2011 Teeth Whitening You cannot include in medical expenses amounts paid to whiten teeth. Printable 1040ez form 2011 See Cosmetic Surgery , earlier. Printable 1040ez form 2011 Veterinary Fees You generally cannot include veterinary fees in your medical expenses, but see Guide Dog or Other Service Animal under What Medical Expenses Are Includible, earlier. Printable 1040ez form 2011 Weight-Loss Program You cannot include in medical expenses the cost of a weight-loss program if the purpose of the weight loss is the improvement of appearance, general health, or sense of well-being. Printable 1040ez form 2011 You cannot include amounts you pay to lose weight unless the weight loss is a treatment for a specific disease diagnosed by a physician (such as obesity, hypertension, or heart disease). Printable 1040ez form 2011 If the weight-loss treatment is not for a specific disease diagnosed by a physician, you cannot include either the fees you pay for membership in a weight reduction group or fees for attendance at periodic meetings. Printable 1040ez form 2011 Also, you cannot include membership dues in a gym, health club, or spa. Printable 1040ez form 2011 You cannot include the cost of diet food or beverages in medical expenses because the diet food and beverages substitute for what is normally consumed to satisfy nutritional needs. Printable 1040ez form 2011 See Weight-Loss Program under What Medical Expenses Are Includible, earlier. Printable 1040ez form 2011 How Do You Treat Reimbursements? You can include in medical expenses only those amounts paid during the tax year for which you received no insurance or other reimbursement. Printable 1040ez form 2011 Insurance Reimbursement You must reduce your total medical expenses for the year by all reimbursements for medical expenses that you receive from insurance or other sources during the year. Printable 1040ez form 2011 This includes payments from Medicare. Printable 1040ez form 2011 Even if a policy provides reimbursement only for certain specific medical expenses, you must use amounts you receive from that policy to reduce your total medical expenses, including those it does not reimburse. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 You have insurance policies that cover your hospital and doctors' bills but not your nursing bills. Printable 1040ez form 2011 The insurance you receive for the hospital and doctors' bills is more than their charges. Printable 1040ez form 2011 In figuring your medical deduction, you must reduce the total amount you spent for medical care by the total amount of insurance you received, even if the policies do not cover some of your medical expenses. Printable 1040ez form 2011 Health reimbursement arrange
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The Printable 1040ez Form 2011

Printable 1040ez form 2011 6. Printable 1040ez form 2011   How To Report Table of Contents Where To ReportGifts. Printable 1040ez form 2011 Statutory employees. Printable 1040ez form 2011 Vehicle Provided by Your Employer ReimbursementsAccountable Plans Nonaccountable Plans Rules for Independent Contractors and Clients How To Use Per Diem Rate TablesThe Two Substantiation Methods Transition Rules Completing Forms 2106 and 2106-EZInformation on use of cars. Printable 1040ez form 2011 Standard mileage rate. Printable 1040ez form 2011 Actual expenses. Printable 1040ez form 2011 Car rentals. Printable 1040ez form 2011 Hours of service limits. Printable 1040ez form 2011 Allocating your reimbursement. Printable 1040ez form 2011 1. Printable 1040ez form 2011 Limit on meals and entertainment. Printable 1040ez form 2011 2. Printable 1040ez form 2011 Limit on miscellaneous itemized deductions. Printable 1040ez form 2011 3. Printable 1040ez form 2011 Limit on total itemized deductions. Printable 1040ez form 2011 Special Rules This chapter explains where and how to report the expenses discussed in this publication. Printable 1040ez form 2011 It discusses reimbursements and how to treat them under accountable and nonaccountable plans. Printable 1040ez form 2011 It also explains rules for independent contractors and clients, fee-basis officials, certain performing artists, Armed Forces reservists, and certain disabled employees. Printable 1040ez form 2011 The chapter ends with illustrations of how to report travel, entertainment, gift, and car expenses on Forms 2106 and 2106-EZ. Printable 1040ez form 2011 Where To Report This section provides general information on where to report the expenses discussed in this publication. Printable 1040ez form 2011 Self-employed. Printable 1040ez form 2011   You must report your income and expenses on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) if you are a sole proprietor, or on Schedule F (Form 1040) if you are a farmer. Printable 1040ez form 2011 You do not use Form 2106 or 2106-EZ. Printable 1040ez form 2011    If you claim car or truck expenses, you must provide certain information on the use of your vehicle. Printable 1040ez form 2011 You provide this information on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Form 4562. Printable 1040ez form 2011   If you file Schedule C (Form 1040): Report your travel expenses, except meals, on line 24a, Report your deductible meals (actual cost or standard meal allowance) and entertainment on line 24b, Report your gift expenses and transportation expenses, other than car expenses, on line 27a, and Report your car expenses on line 9. Printable 1040ez form 2011 Complete Part IV of the form unless you have to file Form 4562 for depreciation or amortization. Printable 1040ez form 2011   If you file Schedule C-EZ (Form 1040), report the total of all business expenses on line 2. Printable 1040ez form 2011 You can only include 50% of your meals and entertainment in that total. Printable 1040ez form 2011 If you include car expenses, you must also complete Part III of the form. Printable 1040ez form 2011    If you file Schedule F (Form 1040): Report your car expenses on line 10. Printable 1040ez form 2011 Attach Form 4562 and provide information on the use of your car in Part V of Form 4562. Printable 1040ez form 2011 Report all other business expenses discussed in this publication on line 32. Printable 1040ez form 2011 You can only include 50% of your meals and entertainment on that line. Printable 1040ez form 2011 See your form instructions for more information on how to complete your tax return. Printable 1040ez form 2011 Both self-employed and an employee. Printable 1040ez form 2011   If you are both self-employed and an employee, you must keep separate records for each business activity. Printable 1040ez form 2011 Report your business expenses for self-employment on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040), as discussed earlier. Printable 1040ez form 2011 Report your business expenses for your work as an employee on Form 2106 or 2106-EZ, as discussed next. Printable 1040ez form 2011 Employees. Printable 1040ez form 2011    If you are an employee, you generally must complete Form 2106 to deduct your travel, transportation, and entertainment expenses. Printable 1040ez form 2011 However, you can use the shorter Form 2106-EZ instead of Form 2106 if you meet all of the following conditions. Printable 1040ez form 2011 You are an employee deducting expenses attributable to your job. Printable 1040ez form 2011 You were not reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 are not considered reimbursements). Printable 1040ez form 2011 If you claim car expenses, you use the standard mileage rate. Printable 1040ez form 2011   For more information on how to report your expenses on Forms 2106 and 2106-EZ, see Completing Forms 2106 and 2106-EZ , later. Printable 1040ez form 2011 Gifts. Printable 1040ez form 2011   If you did not receive any reimbursements (or the reimbursements were all included in box 1 of your Form W-2), the only business expense you are claiming is for gifts, and the Special Rules discussed later do not apply to you, do not complete Form 2106 or 2106-EZ. Printable 1040ez form 2011 Instead, claim the amount of your deductible gifts directly on line 21 of Schedule A (Form 1040). Printable 1040ez form 2011 Statutory employees. Printable 1040ez form 2011    If you received a Form W-2 and the “Statutory employee” box in box 13 was checked, report your income and expenses related to that income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040). Printable 1040ez form 2011 Do not complete Form 2106 or 2106-EZ. Printable 1040ez form 2011   Statutory employees include full-time life insurance salespersons, certain agent or commission drivers, traveling salespersons, and certain homeworkers. Printable 1040ez form 2011 If you are entitled to a reimbursement from your employer but you do not claim it, you cannot claim a deduction for the expenses to which that unclaimed reimbursement applies. Printable 1040ez form 2011 Reimbursement for personal expenses. Printable 1040ez form 2011    If your employer reimburses you for nondeductible personal expenses, such as for vacation trips, your employer must report the reimbursement as wage income in box 1 of your Form W-2. Printable 1040ez form 2011 You cannot deduct personal expenses. Printable 1040ez form 2011 Income-producing property. Printable 1040ez form 2011   If you have travel or transportation expenses related to income-producing property, report your deductible expenses on the form appropriate for that activity. Printable 1040ez form 2011   For example, if you have rental real estate income and expenses, report your expenses on Schedule E (Form 1040), Supplemental Income and Loss. Printable 1040ez form 2011 See Publication 527, Residential Rental Property, for more information on the rental of real estate. Printable 1040ez form 2011 If you have deductible investment-related transportation expenses, report them on Schedule A (Form 1040), line 23. Printable 1040ez form 2011 Vehicle Provided by Your Employer If your employer provides you with a car, you may be able to deduct the actual expenses of operating that car for business purposes. Printable 1040ez form 2011 The amount you can deduct depends on the amount that your employer included in your income and the business and personal miles you drove during the year. Printable 1040ez form 2011 You cannot use the standard mileage rate. Printable 1040ez form 2011 Value reported on Form W-2. Printable 1040ez form 2011   Your employer can figure and report either the actual value of your personal use of the car or the value of the car as if you used it only for personal purposes (100% income inclusion). Printable 1040ez form 2011 Your employer must separately state the amount if 100% of the annual lease value was included in your income. Printable 1040ez form 2011 If you are unsure of the amount included on your Form W-2, ask your employer. Printable 1040ez form 2011 Full value included in your income. Printable 1040ez form 2011   You can deduct the value of the business use of an employer-provided car if your employer reported 100% of the value of the car in your income. Printable 1040ez form 2011 On your 2013 Form W-2, the amount of the value will be included in box 1, Wages, tips, other compensation, and box 14. Printable 1040ez form 2011    To claim your expenses, complete Form 2106, Part II, Sections A and C. Printable 1040ez form 2011 Enter your actual expenses on line 23 of Section C and include the entire value of the employer-provided car on line 25. Printable 1040ez form 2011 Complete the rest of the form. Printable 1040ez form 2011 Less than full value included in your income. Printable 1040ez form 2011   If less than the full annual lease value of the car was included on your Form W-2, this means that your Form W-2 only includes the value of your personal use of the car. Printable 1040ez form 2011 Do not enter this value on your Form 2106 because it is not deductible. Printable 1040ez form 2011   If you paid any actual costs (that your employer did not provide or reimburse you for) to operate the car, you can deduct the business portion of those costs. Printable 1040ez form 2011 Examples of costs that you may have are gas, oil, and repairs. Printable 1040ez form 2011 Complete Form 2106, Part II, Sections A and C. Printable 1040ez form 2011 Enter your actual costs on line 23 of Section C and leave line 25 blank. Printable 1040ez form 2011 Complete the rest of the form. Printable 1040ez form 2011 Reimbursements This section explains what to do when you receive an advance or are reimbursed for any of the employee business expenses discussed in this publication. Printable 1040ez form 2011 If you received an advance, allowance, or reimbursement for your expenses, how you report this amount and your expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan. Printable 1040ez form 2011 This section explains the two types of plans, how per diem and car allowances simplify proving the amount of your expenses, and the tax treatment of your reimbursements and expenses. Printable 1040ez form 2011 It also covers rules for independent contractors. Printable 1040ez form 2011 No reimbursement. Printable 1040ez form 2011   You are not reimbursed or given an allowance for your expenses if you are paid a salary or commission with the understanding that you will pay your own expenses. Printable 1040ez form 2011 In this situation, you have no reimbursement or allowance arrangement, and you do not have to read this section on reimbursements. Printable 1040ez form 2011 Instead, see Completing Forms 2106 and 2106-EZ , later, for information on completing your tax return. Printable 1040ez form 2011 Reimbursement, allowance, or advance. Printable 1040ez form 2011   A reimbursement or other expense allowance arrangement is a system or plan that an employer uses to pay, substantiate, and recover the expenses, advances, reimbursements, and amounts charged to the employer for employee business expenses. Printable 1040ez form 2011 Arrangements include per diem and car allowances. Printable 1040ez form 2011    A per diem allowance is a fixed amount of daily reimbursement your employer gives you for your lodging, meals, and incidental expenses when you are away from home on business. Printable 1040ez form 2011 (The term “ incidental expenses ” is defined in chapter 1 under Standard Meal Allowance. Printable 1040ez form 2011 ) A car allowance is an amount your employer gives you for the business use of your car. Printable 1040ez form 2011   Your employer should tell you what method of reimbursement is used and what records you must provide. Printable 1040ez form 2011 Employers. Printable 1040ez form 2011   If you are an employer and you reimburse employee business expenses, how you treat this reimbursement on your employee's Form W-2 depends in part on whether you have an accountable plan. Printable 1040ez form 2011 Reimbursements treated as paid under an accountable plan, as explained next, are not reported as pay. Printable 1040ez form 2011 Reimbursements treated as paid under nonaccountable plans , as explained later, are reported as pay. Printable 1040ez form 2011 See Publication 15 (Circular E), Employer's Tax Guide, for information on employee pay. Printable 1040ez form 2011 Accountable Plans To be an accountable plan, your employer's reimbursement or allowance arrangement must include all of the following rules: Your expenses must have a business connection — that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Printable 1040ez form 2011 You must adequately account to your employer for these expenses within a reasonable period of time. Printable 1040ez form 2011 You must return any excess reimbursement or allowance within a reasonable period of time. Printable 1040ez form 2011 “ Adequate accounting ” and “ returning excess reimbursements ” are discussed later. Printable 1040ez form 2011 An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. Printable 1040ez form 2011 Reasonable period of time. Printable 1040ez form 2011   The definition of reasonable period of time depends on the facts and circumstances of your situation. Printable 1040ez form 2011 However, regardless of the facts and circumstances of your situation, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Printable 1040ez form 2011 You receive an advance within 30 days of the time you have an expense. Printable 1040ez form 2011 You adequately account for your expenses within 60 days after they were paid or incurred. Printable 1040ez form 2011 You return any excess reimbursement within 120 days after the expense was paid or incurred. Printable 1040ez form 2011 You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Printable 1040ez form 2011 Employee meets accountable plan rules. Printable 1040ez form 2011   If you meet the three rules for accountable plans, your employer should not include any reimbursements in your income in box 1 of your Form W-2. Printable 1040ez form 2011 If your expenses equal your reimbursements, you do not complete Form 2106. Printable 1040ez form 2011 You have no deduction since your expenses and reimbursement are equal. Printable 1040ez form 2011    If your employer included reimbursements in box 1 of your Form W-2 and you meet all the rules for accountable plans, ask your employer for a corrected Form W-2. Printable 1040ez form 2011 Accountable plan rules not met. Printable 1040ez form 2011   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules. Printable 1040ez form 2011 All reimbursements that fail to meet all three rules for accountable plans are generally treated as having been reimbursed under a nonaccountable plan (discussed later). Printable 1040ez form 2011 Failure to return excess reimbursements. Printable 1040ez form 2011   If you are reimbursed under an accountable plan, but you fail to return, within a reasonable time, any amounts in excess of the substantiated amounts, the amounts paid in excess of the substantiated expenses are treated as paid under a nonaccountable plan. Printable 1040ez form 2011 See Reasonable period of time , earlier, and Returning Excess Reimbursements , later. Printable 1040ez form 2011 Reimbursement of nondeductible expenses. Printable 1040ez form 2011   You may be reimbursed under your employer's accountable plan for expenses related to that employer's business, some of which are deductible as employee business expenses and some of which are not deductible. Printable 1040ez form 2011 The reimbursements you receive for the nondeductible expenses do not meet rule (1) for accountable plans, and they are treated as paid under a nonaccountable plan. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 Your employer's plan reimburses you for travel expenses while away from home on business and also for meals when you work late at the office, even though you are not away from home. Printable 1040ez form 2011 The part of the arrangement that reimburses you for the nondeductible meals when you work late at the office is treated as paid under a nonaccountable plan. Printable 1040ez form 2011 The employer makes the decision whether to reimburse employees under an accountable plan or a nonaccountable plan. Printable 1040ez form 2011 If you are an employee who receives payments under a nonaccountable plan, you cannot convert these amounts to payments under an accountable plan by voluntarily accounting to your employer for the expenses and voluntarily returning excess reimbursements to the employer. Printable 1040ez form 2011 Adequate Accounting One of the rules for an accountable plan is that you must adequately account to your employer for your expenses. Printable 1040ez form 2011 You adequately account by giving your employer a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it, along with documentary evidence (such as receipts) of your travel, mileage, and other employee business expenses. Printable 1040ez form 2011 (See Table 5-1 in chapter 5 for details you need to enter in your record and documents you need to prove certain expenses. Printable 1040ez form 2011 ) A per diem or car allowance satisfies the adequate accounting requirement under certain conditions. Printable 1040ez form 2011 See Per Diem and Car Allowances , later. Printable 1040ez form 2011 You must account for all amounts you received from your employer during the year as advances, reimbursements, or allowances. Printable 1040ez form 2011 This includes amounts you charged to your employer by credit card or other method. Printable 1040ez form 2011 You must give your employer the same type of records and supporting information that you would have to give to the IRS if the IRS questioned a deduction on your return. Printable 1040ez form 2011 You must pay back the amount of any reimbursement or other expense allowance for which you do not adequately account or that is more than the amount for which you accounted. Printable 1040ez form 2011 Per Diem and Car Allowances If your employer reimburses you for your expenses using a per diem or a car allowance, you can generally use the allowance as proof for the amount of your expenses. Printable 1040ez form 2011 A per diem or car allowance satisfies the adequate accounting requirements for the amount of your expenses only if all the following conditions apply. Printable 1040ez form 2011 Your employer reasonably limits payments of your expenses to those that are ordinary and necessary in the conduct of the trade or business. Printable 1040ez form 2011 The allowance is similar in form to and not more than the federal rate (defined later). Printable 1040ez form 2011 You prove the time (dates), place, and business purpose of your expenses to your employer (as explained in Table 5-1 ) within a reasonable period of time. Printable 1040ez form 2011 You are not related to your employer (as defined next). Printable 1040ez form 2011 If you are related to your employer, you must be able to prove your expenses to the IRS even if you have already adequately accounted to your employer and returned any excess reimbursement. Printable 1040ez form 2011 If the IRS finds that an employer's travel allowance practices are not based on reasonably accurate estimates of travel costs (including recognition of cost differences in different areas for per diem amounts), you will not be considered to have accounted to your employer. Printable 1040ez form 2011 In this case, you must be able to prove your expenses to the IRS. Printable 1040ez form 2011 Related to employer. Printable 1040ez form 2011   You are related to your employer if: Your employer is your brother or sister, half brother or half sister, spouse, ancestor, or lineal descendant, Your employer is a corporation in which you own, directly or indirectly, more than 10% in value of the outstanding stock, or Certain relationships (such as grantor, fiduciary, or beneficiary) exist between you, a trust, and your employer. Printable 1040ez form 2011 You may be considered to indirectly own stock, for purposes of (2), if you have an interest in a corporation, partnership, estate, or trust that owns the stock or if a member of your family or your partner owns the stock. Printable 1040ez form 2011 The federal rate. Printable 1040ez form 2011   The federal rate can be figured using any one of the following methods. Printable 1040ez form 2011 For per diem amounts: The regular federal per diem rate. Printable 1040ez form 2011 The standard meal allowance. Printable 1040ez form 2011 The high-low rate. Printable 1040ez form 2011 For car expenses: The standard mileage rate. Printable 1040ez form 2011 A fixed and variable rate (FAVR). Printable 1040ez form 2011    For per diem amounts, use the rate in effect for the area where you stop for sleep or rest. Printable 1040ez form 2011 Regular federal per diem rate. Printable 1040ez form 2011   The regular federal per diem rate is the highest amount that the federal government will pay to its employees for lodging, meals, and incidental expenses (or meals and incidental expenses only) while they are traveling away from home in a particular area. Printable 1040ez form 2011 The rates are different for different locations. Printable 1040ez form 2011 Your employer should have these rates available. Printable 1040ez form 2011 You can also find federal per diem rates at www. Printable 1040ez form 2011 gsa. Printable 1040ez form 2011 gov/perdiem. Printable 1040ez form 2011 The standard meal allowance. Printable 1040ez form 2011   The standard meal allowance (discussed in chapter 1) is the federal rate for meals and incidental expenses (M&IE). Printable 1040ez form 2011 The rate for most small localities in the United States is $46 a day. Printable 1040ez form 2011 Most major cities and many other localities qualify for higher rates. Printable 1040ez form 2011 You can find this information on the Internet at www. Printable 1040ez form 2011 gsa. Printable 1040ez form 2011 gov/perdiem. Printable 1040ez form 2011   You receive an allowance only for meals and incidental expenses when your employer does one of the following. Printable 1040ez form 2011 Provides you with lodging (furnishes it in kind). Printable 1040ez form 2011 Reimburses you, based on your receipts, for the actual cost of your lodging. Printable 1040ez form 2011 Pays the hotel, motel, etc. Printable 1040ez form 2011 , directly for your lodging. Printable 1040ez form 2011 Does not have a reasonable belief that you had (or will have) lodging expenses, such as when you stay with friends or relatives or sleep in the cab of your truck. Printable 1040ez form 2011 Figures the allowance on a basis similar to that used in computing your compensation, such as number of hours worked or miles traveled. Printable 1040ez form 2011 High-low rate. Printable 1040ez form 2011   This is a simplified method of computing the federal per diem rate for travel within the continental United States. Printable 1040ez form 2011 It eliminates the need to keep a current list of the per diem rates for each city. Printable 1040ez form 2011   Under the high-low method, the per diem amount for travel during January through September of 2013 is $242 (including $65 for M&IE) for certain high-cost locations. Printable 1040ez form 2011 All other areas have a per diem amount of $163 (including $52 for M&IE). Printable 1040ez form 2011 For more information, see Notice 2012-63, which can be found on the Internet at www. Printable 1040ez form 2011 irs. Printable 1040ez form 2011 gov/irb/2012-42_IRB/ar12. Printable 1040ez form 2011 html. Printable 1040ez form 2011    Effective October 1, 2013, the per diem rate for certain high-cost locations increased to $251 (including $65 for M&IE). Printable 1040ez form 2011 The rate for all other locations increased to $170 (including $52 for M&IE). Printable 1040ez form 2011 Employers who did not use the high-low method during the first 9 months of 2013 cannot begin to use it before 2014. Printable 1040ez form 2011 For more information, see Notice 2013-65, which can be found on the Internet at www. Printable 1040ez form 2011 irs. Printable 1040ez form 2011 gov/pub/irs-drop/n-13–65. Printable 1040ez form 2011 pdf and Revenue Procedure 2011-47 at www. Printable 1040ez form 2011 irs. Printable 1040ez form 2011 gov/irb/2011-42_IRB/ar12. Printable 1040ez form 2011 html. Printable 1040ez form 2011 Prorating the standard meal allowance on partial days of travel. Printable 1040ez form 2011   The standard meal allowance is for a full 24-hour day of travel. Printable 1040ez form 2011 If you travel for part of a day, such as on the days you depart and return, you must prorate the full-day M&IE rate. Printable 1040ez form 2011 This rule also applies if your employer uses the regular federal per diem rate or the high-low rate. Printable 1040ez form 2011   You can use either of the following methods to figure the federal M&IE for that day. Printable 1040ez form 2011 Method 1: For the day you depart, add 3/4 of the standard meal allowance amount for that day. Printable 1040ez form 2011 For the day you return, add 3/4 of the standard meal allowance amount for the preceding day. Printable 1040ez form 2011 Method 2: Prorate the standard meal allowance using any method you consistently apply in accordance with reasonable business practice. Printable 1040ez form 2011 For example, an employer can treat 2 full days of per diem (that includes M&IE) paid for travel away from home from 9 a. Printable 1040ez form 2011 m. Printable 1040ez form 2011 of one day to 5 p. Printable 1040ez form 2011 m. Printable 1040ez form 2011 of the next day as being no more than the federal rate. Printable 1040ez form 2011 This is true even though a federal employee would be limited to a reimbursement of M&IE for only 1½ days of the federal M&IE rate. Printable 1040ez form 2011 The standard mileage rate. Printable 1040ez form 2011   This is a set rate per mile that you can use to compute your deductible car expenses. Printable 1040ez form 2011 For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Printable 1040ez form 2011 Fixed and variable rate (FAVR). Printable 1040ez form 2011   This is an allowance your employer may use to reimburse your car expenses. Printable 1040ez form 2011 Under this method, your employer pays an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your variable operating costs (such as gas, oil, etc. Printable 1040ez form 2011 ) plus a flat amount to cover your fixed costs (such as depreciation (or lease payments), insurance, etc. Printable 1040ez form 2011 ). Printable 1040ez form 2011 If your employer chooses to use this method, your employer will request the necessary records from you. Printable 1040ez form 2011 Reporting your expenses with a per diem or car allowance. Printable 1040ez form 2011   If your reimbursement is in the form of an allowance received under an accountable plan, the following facts affect your reporting. Printable 1040ez form 2011 The federal rate. Printable 1040ez form 2011 Whether the allowance or your actual expenses were more than the federal rate. Printable 1040ez form 2011 The following discussions explain where to report your expenses depending upon how the amount of your allowance compares to the federal rate. Printable 1040ez form 2011 Allowance less than or equal to the federal rate. Printable 1040ez form 2011   If your allowance is less than or equal to the federal rate, the allowance will not be included in box 1 of your Form W-2. Printable 1040ez form 2011 You do not need to report the related expenses or the allowance on your return if your expenses are equal to or less than the allowance. Printable 1040ez form 2011   However, if your actual expenses are more than your allowance, you can complete Form 2106 and deduct the excess amount on Schedule A (Form 1040). Printable 1040ez form 2011 If you are using actual expenses, you must be able to prove to the IRS the total amount of your expenses and reimbursements for the entire year. Printable 1040ez form 2011 If you are using the standard meal allowance or the standard mileage rate, you do not have to prove that amount. Printable 1040ez form 2011 Example 1. Printable 1040ez form 2011 In April, Jeremy takes a 2-day business trip to Denver. Printable 1040ez form 2011 The federal rate for Denver is $215 per day. Printable 1040ez form 2011 As required by his employer's accountable plan, he accounts for the time (dates), place, and business purpose of the trip. Printable 1040ez form 2011 His employer reimburses him $215 a day ($430 total) for living expenses. Printable 1040ez form 2011 Jeremy's living expenses in Denver are not more than $215 a day. Printable 1040ez form 2011 Jeremy's employer does not include any of the reimbursement on his Form W-2 and Jeremy does not deduct the expenses on his return. Printable 1040ez form 2011 Example 2. Printable 1040ez form 2011 In June, Matt takes a 2-day business trip to Boston. Printable 1040ez form 2011 Matt's employer uses the high-low method to reimburse employees. Printable 1040ez form 2011 Since Boston is a high-cost area, Matt is given an advance of $242 a day ($484 total) for his lodging, meals, and incidental expenses. Printable 1040ez form 2011 Matt's actual expenses totaled $700. Printable 1040ez form 2011 Since Matt's $700 of expenses are more than his $484 advance, he includes the excess expenses when he itemizes his deductions. Printable 1040ez form 2011 Matt completes Form 2106 (showing all of his expenses and reimbursements). Printable 1040ez form 2011 He must also allocate his reimbursement between his meals and other expenses as discussed later under Completing Forms 2106 and 2106-EZ . Printable 1040ez form 2011 Example 3. Printable 1040ez form 2011 Nicole drives 10,000 miles in 2013 for business. Printable 1040ez form 2011 Under her employer's accountable plan, she accounts for the time (dates), place, and business purpose of each trip. Printable 1040ez form 2011 Her employer pays her a mileage allowance of 40 cents a mile. Printable 1040ez form 2011 Since Nicole's $5,650 expense computed under the standard mileage rate (10,000 miles x 56½ cents) is more than her $4,000 reimbursement (10,000 miles × 40 cents), she itemizes her deductions to claim the excess expense. Printable 1040ez form 2011 Nicole completes Form 2106 (showing all her expenses and reimbursements) and enters $1,650 ($5,650 − $4,000) as an itemized deduction. Printable 1040ez form 2011 Allowance more than the federal rate. Printable 1040ez form 2011   If your allowance is more than the federal rate, your employer must include the allowance amount up to the federal rate in box 12 of your Form W-2. Printable 1040ez form 2011 This amount is not taxable. Printable 1040ez form 2011 However, the excess allowance will be included in box 1 of your Form W-2. Printable 1040ez form 2011 You must report this part of your allowance as if it were wage income. Printable 1040ez form 2011   If your actual expenses are less than or equal to the federal rate, you do not complete Form 2106 or claim any of your expenses on your return. Printable 1040ez form 2011   However, if your actual expenses are more than the federal rate, you can complete Form 2106 and deduct those excess expenses. Printable 1040ez form 2011 You must report on Form 2106 your reimbursements up to the federal rate (as shown in box 12 of your Form W-2) and all your expenses. Printable 1040ez form 2011 You should be able to prove these amounts to the IRS. Printable 1040ez form 2011 Example 1. Printable 1040ez form 2011 Laura lives and works in Austin. Printable 1040ez form 2011 In July her employer sent her to Albuquerque for 4 days on business. Printable 1040ez form 2011 Laura's employer paid the hotel directly for her lodging and reimbursed Laura $65 a day ($260 total) for meals and incidental expenses. Printable 1040ez form 2011 Laura's actual meal expenses were not more than the federal rate for Albuquerque, which is $56 per day. Printable 1040ez form 2011 Table 6-1. Printable 1040ez form 2011 Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements IF the type of reimbursement (or  other expense allowance)  arrangement is under: THEN the employer reports on Form W-2: AND the employee reports on  Form 2106: * An accountable plan with: Actual expense reimbursement: Adequate accounting made and excess returned. Printable 1040ez form 2011 No amount. Printable 1040ez form 2011 No amount. Printable 1040ez form 2011 Actual expense reimbursement: Adequate accounting and return of excess both required but excess not returned. Printable 1040ez form 2011 The excess amount as wages in box 1. Printable 1040ez form 2011 No amount. Printable 1040ez form 2011 Per diem or mileage allowance up to the federal rate: Adequate accounting made and excess returned. Printable 1040ez form 2011 No amount. Printable 1040ez form 2011 All expenses and reimbursements only if excess expenses are claimed. Printable 1040ez form 2011 Otherwise, form is not filed. Printable 1040ez form 2011 Per diem or mileage allowance up to the federal rate: Adequate accounting and return of excess both required but excess not returned. Printable 1040ez form 2011 The excess amount as wages in box 1. Printable 1040ez form 2011 The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Printable 1040ez form 2011 No amount. Printable 1040ez form 2011 Per diem or mileage allowance exceeds the federal rate: Adequate accounting up to the federal rate only and excess not returned. Printable 1040ez form 2011 The excess amount as wages in box 1. Printable 1040ez form 2011 The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Printable 1040ez form 2011 All expenses (and reimbursements reported on Form W-2, box 12) only if expenses in excess of the federal rate are claimed. Printable 1040ez form 2011 Otherwise, form is not filed. Printable 1040ez form 2011 A nonaccountable plan with: Either adequate accounting or return of excess, or both, not required by plan. Printable 1040ez form 2011 The entire amount as wages in box 1. Printable 1040ez form 2011 All expenses. Printable 1040ez form 2011 No reimbursement plan: The entire amount as wages in box 1. Printable 1040ez form 2011 All expenses. Printable 1040ez form 2011 * You may be able to use Form 2106-EZ. Printable 1040ez form 2011 See Completing Forms 2106 and 2106-EZ . Printable 1040ez form 2011 Her employer included the $36 that was more than the federal rate (($65 − $56) × 4) in box 1 of Laura's Form W-2. Printable 1040ez form 2011 Her employer shows $224 ($56 a day × 4) in box 12 of her Form W-2. Printable 1040ez form 2011 This amount is not included in Laura's income. Printable 1040ez form 2011 Laura does not have to complete Form 2106; however, she must include the $36 in her gross income as wages (by reporting the total amount shown in box 1 of her Form W-2). Printable 1040ez form 2011 Example 2. Printable 1040ez form 2011 Joe also lives in Austin and works for the same employer as Laura. Printable 1040ez form 2011 In May the employer sent Joe to San Diego for 4 days and paid the hotel directly for Joe's hotel bill. Printable 1040ez form 2011 The employer reimbursed Joe $75 a day for his meals and incidental expenses. Printable 1040ez form 2011 The federal rate for San Diego is $71 a day. Printable 1040ez form 2011 Joe can prove that his actual meal expenses totaled $380. Printable 1040ez form 2011 His employer's accountable plan will not pay more than $75 a day for travel to San Diego, so Joe does not give his employer the records that prove that he actually spent $380. Printable 1040ez form 2011 However, he does account for the time, place, and business purpose of the trip. Printable 1040ez form 2011 This is Joe's only business trip this year. Printable 1040ez form 2011 Joe was reimbursed $300 ($75 × 4 days), which is $16 more than the federal rate of $284 ($71 × 4 days). Printable 1040ez form 2011 The employer includes the $16 as income on Joe's Form W-2 in box 1. Printable 1040ez form 2011 The employer also enters $284 in box 12 of Joe's Form W-2. Printable 1040ez form 2011 Joe completes Form 2106 to figure his deductible expenses. Printable 1040ez form 2011 He enters the total of his actual expenses for the year ($380) on Form 2106. Printable 1040ez form 2011 He also enters the reimbursements that were not included in his income ($284). Printable 1040ez form 2011 His total deductible expense, before the 50% limit, is $96. Printable 1040ez form 2011 After he figures the 50% limit on his unreimbursed meals and entertainment, he will include the balance, $48, as an itemized deduction. Printable 1040ez form 2011 Example 3. Printable 1040ez form 2011 Debbie drives 10,000 miles in 2013 for business. Printable 1040ez form 2011 Under her employer's accountable plan, she gets reimbursed 60 cents a mile, which is more than the standard mileage rate. Printable 1040ez form 2011 Her total reimbursement is $6,000. Printable 1040ez form 2011 Debbie's employer must include the reimbursement amount up to the standard mileage rate, $5,650 (10,000 × 56½ cents), in box 12 of her Form W-2. Printable 1040ez form 2011 That amount is not taxable. Printable 1040ez form 2011 Her employer must also include $350 ($6,000 − $5,650) in box 1 of her Form W-2. Printable 1040ez form 2011 This is the reimbursement that is more than the standard mileage rate. Printable 1040ez form 2011 If Debbie's expenses are equal to or less than the standard mileage rate, she would not complete Form 2106. Printable 1040ez form 2011 If her expenses are more than the standard mileage rate, she would complete Form 2106 and report her total expenses and reimbursement (shown in box 12 of her Form W-2). Printable 1040ez form 2011 She would then claim the excess expenses as an itemized deduction. Printable 1040ez form 2011 Returning Excess Reimbursements Under an accountable plan, you are required to return any excess reimbursement or other expense allowances for your business expenses to the person paying the reimbursement or allowance. Printable 1040ez form 2011 Excess reimbursement means any amount for which you did not adequately account within a reasonable period of time. Printable 1040ez form 2011 For example, if you received a travel advance and you did not spend all the money on business-related expenses or you do not have proof of all your expenses, you have an excess reimbursement. Printable 1040ez form 2011 “ Adequate accounting ” and “ reasonable period of time ” were discussed earlier in this chapter. Printable 1040ez form 2011 Travel advance. Printable 1040ez form 2011   You receive a travel advance if your employer provides you with an expense allowance before you actually have the expense, and the allowance is reasonably expected to be no more than your expense. Printable 1040ez form 2011 Under an accountable plan, you are required to adequately account to your employer for this advance and to return any excess within a reasonable period of time. Printable 1040ez form 2011   If you do not adequately account for or do not return any excess advance within a reasonable period of time, the amount you do not account for or return will be treated as having been paid under a nonaccountable plan (discussed later). Printable 1040ez form 2011 Unproved amounts. Printable 1040ez form 2011   If you do not prove that you actually traveled on each day for which you received a per diem or car allowance (proving the elements described in Table 5-1 ), you must return this unproved amount of the travel advance within a reasonable period of time. Printable 1040ez form 2011 If you do not do this, the unproved amount will be considered paid under a nonaccountable plan (discussed later). Printable 1040ez form 2011 Per diem allowance more than federal rate. Printable 1040ez form 2011   If your employer's accountable plan pays you an allowance that is higher than the federal rate, you do not have to return the difference between the two rates for the period you can prove business-related travel expenses. Printable 1040ez form 2011 However, the difference will be reported as wages on your Form W-2. Printable 1040ez form 2011 This excess amount is considered paid under a nonaccountable plan (discussed later). Printable 1040ez form 2011 Example. Printable 1040ez form 2011 Your employer sends you on a 5-day business trip to Phoenix in March 2013 and gives you a $400 ($80 × 5 days) advance to cover your meals and incidental expenses. Printable 1040ez form 2011 The federal per diem for meals and incidental expenses for Phoenix is $71. Printable 1040ez form 2011 Your trip lasts only 3 days. Printable 1040ez form 2011 Under your employer's accountable plan, you must return the $160 ($80 × 2 days) advance for the 2 days you did not travel. Printable 1040ez form 2011 For the 3 days you did travel you do not have to return the $27 difference between the allowance you received and the federal rate for Phoenix (($80 − $71) × 3 days). Printable 1040ez form 2011 However, the $27 will be reported on your Form W-2 as wages. Printable 1040ez form 2011 Nonaccountable Plans A nonaccountable plan is a reimbursement or expense allowance arrangement that does not meet one or more of the three rules listed earlier under Accountable Plans. Printable 1040ez form 2011 In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan: Excess reimbursements you fail to return to your employer, and Reimbursement of nondeductible expenses related to your employer's business. Printable 1040ez form 2011 See Reimbursement of nondeductible expenses , earlier, under Accountable Plans. Printable 1040ez form 2011 An arrangement that repays you for business expenses by reducing the amount reported as your wages, salary, or other pay will be treated as a nonaccountable plan. Printable 1040ez form 2011 This is because you are entitled to receive the full amount of your pay whether or not you have any business expenses. Printable 1040ez form 2011 If you are not sure if the reimbursement or expense allowance arrangement is an accountable or nonaccountable plan, ask your employer. Printable 1040ez form 2011 Reporting your expenses under a nonaccountable plan. Printable 1040ez form 2011   Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay. Printable 1040ez form 2011 Your employer will report the total in box 1 of your Form W-2. Printable 1040ez form 2011    You must complete Form 2106 or 2106-EZ and itemize your deductions to deduct your expenses for travel, transportation, meals, or entertainment. Printable 1040ez form 2011 Your meal and entertainment expenses will be subject to the 50% limit discussed in chapter 2. Printable 1040ez form 2011 Also, your total expenses will be subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Printable 1040ez form 2011 Example 1. Printable 1040ez form 2011 Kim's employer gives her $1,000 a month ($12,000 total for the year) for her business expenses. Printable 1040ez form 2011 Kim does not have to provide any proof of her expenses to her employer, and Kim can keep any funds that she does not spend. Printable 1040ez form 2011 Kim is being reimbursed under a nonaccountable plan. Printable 1040ez form 2011 Her employer will include the $12,000 on Kim's Form W-2 as if it were wages. Printable 1040ez form 2011 If Kim wants to deduct her business expenses, she must complete Form 2106 or 2106-EZ and itemize her deductions. Printable 1040ez form 2011 Example 2. Printable 1040ez form 2011 Kevin is paid $2,000 a month by his employer. Printable 1040ez form 2011 On days that he travels away from home on business, his employer designates $50 a day of his salary as paid to reimburse his travel expenses. Printable 1040ez form 2011 Because his employer would pay Kevin his monthly salary whether or not he was traveling away from home, the arrangement is a nonaccountable plan. Printable 1040ez form 2011 No part of the $50 a day designated by his employer is treated as paid under an accountable plan. Printable 1040ez form 2011 Rules for Independent Contractors and Clients This section provides rules for independent contractors who incur expenses on behalf of a client or customer. Printable 1040ez form 2011 The rules cover the reporting and substantiation of certain expenses discussed in this publication, and they affect both independent contractors and their clients or customers. Printable 1040ez form 2011 You are considered an independent contractor if you are self-employed and you perform services for a customer or client. Printable 1040ez form 2011 Accounting to Your Client If you received a reimbursement or an allowance for travel, entertainment, or gift expenses that you incurred on behalf of a client, you should provide an adequate accounting of these expenses to your client. Printable 1040ez form 2011 If you do not account to your client for these expenses, you must include any reimbursements or allowances in income. Printable 1040ez form 2011 You must keep adequate records of these expenses whether or not you account to your client for these expenses. Printable 1040ez form 2011 If you do not separately account for and seek reimbursement for meals and entertainment in connection with providing services for a client, you are subject to the 50% limit on those expenses. Printable 1040ez form 2011 See 50% Limit in chapter 2. Printable 1040ez form 2011 Adequate accounting. Printable 1040ez form 2011   As a self-employed person, you adequately account by reporting your actual expenses. Printable 1040ez form 2011 You should follow the recordkeeping rules in chapter 5 . Printable 1040ez form 2011 How to report. Printable 1040ez form 2011   For information on how to report expenses on your tax return, see Self-employed at the beginning of this chapter. Printable 1040ez form 2011 Required Records for Clients or Customers If you are a client or customer, you generally do not have to keep records to prove the reimbursements or allowances you give, in the course of your business, to an independent contractor for travel or gift expenses incurred on your behalf. Printable 1040ez form 2011 However, you must keep records if: You reimburse the contractor for entertainment expenses incurred on your behalf, and The contractor adequately accounts to you for these expenses. Printable 1040ez form 2011 Contractor adequately accounts. Printable 1040ez form 2011   If the contractor adequately accounts to you for entertainment expenses, you (the client or customer) must keep records documenting each element of the expense, as explained in chapter 5 . Printable 1040ez form 2011 Use your records as proof for a deduction on your tax return. Printable 1040ez form 2011 If entertainment expenses are accounted for separately, you are subject to the 50% limit on entertainment. Printable 1040ez form 2011 If the contractor adequately accounts to you for reimbursed amounts, you do not have to report the amounts on an information return. Printable 1040ez form 2011 Contractor does not adequately account. Printable 1040ez form 2011    If the contractor does not adequately account to you for allowances or reimbursements of entertainment expenses, you do not have to keep records of these items. Printable 1040ez form 2011 You are not subject to the 50% limit on entertainment in this case. Printable 1040ez form 2011 You can deduct the reimbursements or allowances as payment for services if they are ordinary and necessary business expenses. Printable 1040ez form 2011 However, you must file Form 1099-MISC to report amounts paid to the independent contractor if the total of the reimbursements and any other fees is $600 or more during the calendar year. Printable 1040ez form 2011 How To Use Per Diem Rate Tables This section contains information about the per diem rate substantiation methods available and the choice of rates you must make for the last 3 months of the year. Printable 1040ez form 2011 The Two Substantiation Methods High-low method. Printable 1040ez form 2011   IRS notices list the localities that are treated under the high-low substantiation method as high-cost localities for all or part of the year. Printable 1040ez form 2011 Notice 2012–63, available at www. Printable 1040ez form 2011 irs. Printable 1040ez form 2011 gov/irb/2012–42_IRB/ar12. Printable 1040ez form 2011 html, lists the localities that are eligible for $242 ($65 meals and incidental expenses (M&IE)) per diem, effective October 1, 2012. Printable 1040ez form 2011 For travel on or after October 1, 2012, all other localities within CONUS are eligible for $163 ($52 M&IE) per diem under the high-low method. Printable 1040ez form 2011   Notice 2013–65, available at www. Printable 1040ez form 2011 irs. Printable 1040ez form 2011 gov/pub/irs-drop/n-13–65. Printable 1040ez form 2011 pdf, lists the localities that are eligible for $251 ($65 M&IE) per diem, effective October 1, 2013. Printable 1040ez form 2011 For travel on or after October 1, 2013, the per diem for all other localities increased to $170 ($52 M&IE). Printable 1040ez form 2011 Regular federal per diem rate method. Printable 1040ez form 2011   Regular federal per diem rates are published by the General Services Administration (GSA). Printable 1040ez form 2011 Both tables include the separate rate for meals and incidental expenses (M&IE) for each locality. Printable 1040ez form 2011 The rates listed for FY2013 at www. Printable 1040ez form 2011 gsa. Printable 1040ez form 2011 gov/perdiem are effective October 1, 2012 and those listed for FY2014 are effective October 1, 2013. Printable 1040ez form 2011 The standard rate for all locations within CONUS not specifically listed for FY2013 is $123 ($77 for lodging and $46 for M&IE). Printable 1040ez form 2011 For FY2014, this rate increased to $129 ($83 for lodging and $46 for M&IE). Printable 1040ez form 2011 Transition Rules The transition period covers the last 3 months of the calendar year, from the time that new rates are effective (generally October 1) through December 31. Printable 1040ez form 2011 During this period, you generally may change to the new rates or finish out the year with the rates you had been using. Printable 1040ez form 2011 High-low method. Printable 1040ez form 2011   If you use the high-low substantiation method, when new rates become effective (generally October 1) you can either continue with the rates you used for the first part of the year or change to the new rates. Printable 1040ez form 2011 However, you must continue using the high-low method for the rest of the calendar year (through December 31). Printable 1040ez form 2011 If you are an employer, you must use the same rates for all employees reimbursed under the high-low method during that calendar year. Printable 1040ez form 2011   The new rates and localities for the high-low method are included each year in a notice that is generally published in mid-to-late-September. Printable 1040ez form 2011 You can find the notice in the weekly Internal Revenue Bulletin (IRB) on the Internet at www. Printable 1040ez form 2011 irs. Printable 1040ez form 2011 gov/irb. Printable 1040ez form 2011 Federal per diem rate method. Printable 1040ez form 2011   New CONUS per diem rates become effective on October 1 of each year and remain in effect through September 30 of the following year. Printable 1040ez form 2011 Employees being reimbursed under the per diem rate method during the first 9 months of a year (January 1–September 30) must continue under the same method through the end of that calendar year (December 31). Printable 1040ez form 2011 However, for travel by these employees from October 1 through December 31, you can choose to continue using the same per diem rates or use the new rates. Printable 1040ez form 2011   The new federal CONUS per diem rates are published each year, generally early in September, on the Internet. Printable 1040ez form 2011 Go to www. Printable 1040ez form 2011 gsa. Printable 1040ez form 2011 gov/perdiem. Printable 1040ez form 2011 Per diem rates for localities listed for FY2014 may change at any time. Printable 1040ez form 2011 To be sure you have the most current rate, check www. Printable 1040ez form 2011 gsa. Printable 1040ez form 2011 gov/perdiem. Printable 1040ez form 2011 Completing Forms 2106 and 2106-EZ This section briefly describes how employees complete Forms 2106 and 2106-EZ. Printable 1040ez form 2011 Table 6-1 explains what the employer reports on Form W-2 and what the employee reports on Form 2106. Printable 1040ez form 2011 The instructions for the forms have more information on completing them. Printable 1040ez form 2011 If you are self-employed, do not file Form 2106 or 2106-EZ. Printable 1040ez form 2011 Report your expenses on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040). Printable 1040ez form 2011 See the instructions for the form that you must file. Printable 1040ez form 2011 Form 2106-EZ. Printable 1040ez form 2011   You may be able to use the shorter Form 2106-EZ to claim your employee business expenses. Printable 1040ez form 2011 You can use this form if you meet all the following conditions. Printable 1040ez form 2011 You are an employee deducting ordinary and necessary expenses attributable to your job. Printable 1040ez form 2011 You were not reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 are not considered reimbursements). Printable 1040ez form 2011 If you are claiming car expenses, you are using the standard mileage rate. Printable 1040ez form 2011 Car expenses. Printable 1040ez form 2011   If you used a car to perform your job as an employee, you may be able to deduct certain car expenses. Printable 1040ez form 2011 These are generally figured on Form 2106, Part II, and then claimed on Form 2106, Part I, line 1, Column A. Printable 1040ez form 2011 Car expenses using the standard mileage rate can also be figured on Form 2106-EZ by completing Part II and Part I, line 1. Printable 1040ez form 2011 Information on use of cars. Printable 1040ez form 2011   If you claim any deduction for the business use of a car, you must answer certain questions and provide information about the use of the car. Printable 1040ez form 2011 The information relates to the following items. Printable 1040ez form 2011 Date placed in service. Printable 1040ez form 2011 Mileage (total, business, commuting, and other personal mileage). Printable 1040ez form 2011 Percentage of business use. Printable 1040ez form 2011 After-work use. Printable 1040ez form 2011 Use of other vehicles. Printable 1040ez form 2011 Whether you have evidence to support the deduction. Printable 1040ez form 2011 Whether or not the evidence is written. Printable 1040ez form 2011 Employees must complete Form 2106, Part II, Section A, or Form 2106-EZ, Part II, to provide this information. Printable 1040ez form 2011 Standard mileage rate. Printable 1040ez form 2011   If you claim a deduction based on the standard mileage rate instead of your actual expenses, you must complete Form 2106, Part II, Section B. Printable 1040ez form 2011 The amount on line 22 (Section B) is carried to Form 2106, Part I, line 1. Printable 1040ez form 2011 In addition, on Part 1, line 2, you can deduct parking fees and tolls that apply to the business use of the car. Printable 1040ez form 2011 If you file Form 2106-EZ, complete Part I, line 1, for the standard mileage rate and line 2 for parking fees and tolls. Printable 1040ez form 2011 See Standard Mileage Rate in chapter 4 for information on using this rate. Printable 1040ez form 2011 Actual expenses. Printable 1040ez form 2011   If you claim a deduction based on actual car expenses, you cannot use Form 2106-EZ. Printable 1040ez form 2011 You must complete Form 2106, Part II, Section C. Printable 1040ez form 2011 In addition, unless you lease your car, you must complete Section D to show your depreciation deduction and any section 179 deduction you claim. Printable 1040ez form 2011   If you are still using a car that is fully depreciated, continue to complete Section C. Printable 1040ez form 2011 Since you have no depreciation deduction, enter zero on line 28. Printable 1040ez form 2011 In this case, do not complete Section D. Printable 1040ez form 2011 Car rentals. Printable 1040ez form 2011   If you claim car rental expenses on Form 2106, line 24a, you may have to reduce that expense by an inclusion amount as described in chapter 4. Printable 1040ez form 2011 If so, you can show your car expenses and any inclusion amount as follows. Printable 1040ez form 2011 Compute the inclusion amount without taking into account your business use percentage for the tax year. Printable 1040ez form 2011 Report the inclusion amount from (1) on Form 2106, Part II, line 24b. Printable 1040ez form 2011 Report on line 24c the net amount of car rental expenses (total car rental expenses minus the inclusion amount computed in (1)). Printable 1040ez form 2011 The net amount of car rental expenses will be adjusted on Form 2106, Part II, line 27, to reflect the percentage of business use for the tax year. Printable 1040ez form 2011 Transportation expenses. Printable 1040ez form 2011   Show your transportation expenses that did not involve overnight travel on Form 2106, line 2, Column A, or on Form 2106-EZ, Part I, line 2. Printable 1040ez form 2011 Also include on this line business expenses you have for parking fees and tolls. Printable 1040ez form 2011 Do not include expenses of operating your car or expenses of commuting between your home and work. Printable 1040ez form 2011 Employee business expenses other than meals and entertainment. Printable 1040ez form 2011   Show your other employee business expenses on Form 2106, lines 3 and 4, Column A, or Form 2106-EZ, lines 3 and 4. Printable 1040ez form 2011 Do not include expenses for meals and entertainment on those lines. Printable 1040ez form 2011 Line 4 is for expenses such as gifts, educational expenses (tuition and books), office-in-the-home expenses, and trade and professional publications. Printable 1040ez form 2011    If line 4 expenses are the only ones you are claiming, you received no reimbursements (or the reimbursements were all included in box 1 of your Form W-2), and the Special Rules discussed later do not apply to you, do not complete Form 2106 or 2106-EZ. Printable 1040ez form 2011 Claim these amounts directly on Schedule A (Form 1040), line 21. Printable 1040ez form 2011 List the type and amount of each expense on the dotted lines and include the total on line 21. Printable 1040ez form 2011 Meal and entertainment expenses. Printable 1040ez form 2011   Show the full amount of your expenses for business-related meals and entertainment on Form 2106, line 5, Column B. Printable 1040ez form 2011 Include meals while away from your tax home overnight and other business meals and entertainment. Printable 1040ez form 2011 Enter 50% of the line 8, Column B, meal and entertainment expenses on line 9, Column B. Printable 1040ez form 2011   If you file Form 2106-EZ, enter the full amount of your meals and entertainment on the line to the left of line 5 and multiply the total by 50%. Printable 1040ez form 2011 Enter the result on line 5. Printable 1040ez form 2011 Hours of service limits. Printable 1040ez form 2011   If you are subject to the Department of Transportation's “hours of service” limits (as explained earlier under Individuals subject to “hours of service” limits in chapter 2), use 80% instead of 50% for meals while away from your tax home. Printable 1040ez form 2011 Reimbursements. Printable 1040ez form 2011   Enter on Form 2106, line 7 (you cannot use Form 2106-EZ) the amounts your employer (or third party) reimbursed you that were not reported to you in box 1 of your Form W-2. Printable 1040ez form 2011 This includes any amount reported under code L in box 12 of Form W-2. Printable 1040ez form 2011 Allocating your reimbursement. Printable 1040ez form 2011   If you were reimbursed under an accountable plan and want to deduct excess expenses that were not reimbursed, you may have to allocate your reimbursement. Printable 1040ez form 2011 This is necessary when your employer pays your reimbursement in the following manner: Pays you a single amount that covers meals and/or entertainment, as well as other business expenses, and Does not clearly identify how much is for deductible meals and/or entertainment. Printable 1040ez form 2011 You must allocate that single payment so that you know how much to enter on Form 2106, line 7, Column A and Column B. Printable 1040ez form 2011 Example. Printable 1040ez form 2011 Rob's employer paid him an expense allowance of $12,000 this year under an accountable plan. Printable 1040ez form 2011 The $12,000 payment consisted of $5,000 for airfare and $7,000 for meals, entertainment, and car expenses. Printable 1040ez form 2011 The employer did not clearly show how much of the $7,000 was for the cost of deductible meals and entertainment. Printable 1040ez form 2011 Rob actually spent $14,000 during the year ($5,500 for airfare, $4,500 for meals and entertainment, and $4,000 for car expenses). Printable 1040ez form 2011 Since the airfare allowance was clearly identified, Rob knows that $5,000 of the payment goes in Column A, line 7, of Form 2106. Printable 1040ez form 2011 To allocate the remaining $7,000, Rob uses the worksheet from the Instructions for Form 2106. Printable 1040ez form 2011 His completed worksheet follows. Printable 1040ez form 2011 Reimbursement Allocation Worksheet (Keep for your records)   1. Printable 1040ez form 2011 Enter the total amount of reimbursements your employer gave you that were not reported to you in box 1 of Form W-2 $7,000   2. Printable 1040ez form 2011 Enter the total amount of your expenses for the periods covered by this reimbursement 8,500   3. Printable 1040ez form 2011 Of the amount on line 2, enter your total expense for meals and entertainment 4,500   4. Printable 1040ez form 2011 Divide line 3 by line 2. Printable 1040ez form 2011 Enter the result as a decimal (rounded to at least three places) . Printable 1040ez form 2011 529   5. Printable 1040ez form 2011 Multiply line 1 by line 4. Printable 1040ez form 2011 Enter the result here and in Column B, line 7 3,703   6. Printable 1040ez form 2011 Subtract line 5 from line 1. Printable 1040ez form 2011 Enter the result here and in Column A, line 7 $3,297 On line 7 of Form 2106, Rob enters $8,297 ($5,000 airfare and $3,297 of the $7,000) in Column A and $3,703 (of the $7,000) in Column B. Printable 1040ez form 2011 After you complete the form. Printable 1040ez form 2011   After you have completed your Form 2106 or 2106-EZ, follow the directions on that form to deduct your expenses on the appropriate line of your tax return. Printable 1040ez form 2011 For most taxpayers, this is line 21 of Schedule A (Form 1040). Printable 1040ez form 2011 However, if you are a government official paid on a fee basis, a performing artist, an Armed Forces reservist, or a disabled employee with impairment-related work expenses, see Special Rules , later. Printable 1040ez form 2011 Limits on employee business expenses. Printable 1040ez form 2011   Your employee business expenses may be subject to either of the limits described next. Printable 1040ez form 2011 They are figured in the following order on the specified form. Printable 1040ez form 2011 1. Printable 1040ez form 2011 Limit on meals and entertainment. Printable 1040ez form 2011   Certain meal and entertainment expenses are subject to a 50% limit. Printable 1040ez form 2011 If you are an employee, you figure this limit on line 9 of Form 2106 or line 5 of Form 2106-EZ. Printable 1040ez form 2011 (See 50% Limit in chapter 2. Printable 1040ez form 2011 ) 2. Printable 1040ez form 2011 Limit on miscellaneous itemized deductions. Printable 1040ez form 2011   If you are an employee, deduct your employee business expenses (as figured on Form 2106 or 2106-EZ) on line 21 of Schedule A (Form 1040). Printable 1040ez form 2011 Most miscellaneous itemized deductions, including employee business expenses, are subject to a 2%-of-adjusted-gross-income limit. Printable 1040ez form 2011 This limit is figured on line 26 of Schedule A (Form 1040). Printable 1040ez form 2011 3. Printable 1040ez form 2011 Limit on total itemized deductions. Printable 1040ez form 2011   If your adjusted gross income (line 38 of Form 1040) is more than $300,000 ($150,000 if you are married filing separately), the total of certain itemized deductions, including employee business expenses, may be limited. Printable 1040ez form 2011 See your form instructions for information on how to figure this limit. Printable 1040ez form 2011 Special Rules This section discusses special rules that apply only to Armed Forces reservists, government officials who are paid on a fee basis, performing artists, and disabled employees with impairment-related work expenses. Printable 1040ez form 2011 Armed Forces Reservists Traveling More Than 100 Miles From Home If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Printable 1040ez form 2011 The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Printable 1040ez form 2011 See Per Diem and Car Allowances , earlier, for more information. Printable 1040ez form 2011 Any expenses in excess of these amounts can be claimed only as a miscellaneous itemized deduction subject to the 2% limit. Printable 1040ez form 2011 Member of a reserve component. Printable 1040ez form 2011   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States; or the Reserve Corps of the Public Health Service. Printable 1040ez form 2011 How to report. Printable 1040ez form 2011   If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106 or Form 2106-EZ. Printable 1040ez form 2011 Then include your expenses for reserve travel over 100 miles from home, up to the federal rate, from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. Printable 1040ez form 2011 Subtract this amount from the total on Form 2106, line 10, or Form 2106-EZ, line 6, and deduct the balance as an itemized deduction on Schedule A (Form 1040), line 21. Printable 1040ez form 2011   You cannot deduct expenses of travel that does not take you more than 100 miles from home as an adjustment to gross income. Printable 1040ez form 2011 Instead, you must complete Form 2106 or 2106-EZ and deduct those expenses as an itemized deduction on Schedule A (Form 1040), line 21. Printable 1040ez form 2011 Officials Paid on a Fee Basis Certain fee-basis officials can claim their employee business expenses whether or not they itemize their other deductions on Schedule A (Form 1040). Printable 1040ez form 2011 Fee-basis officials are persons who are employed by a state or local government and who are paid in whole or in part on a fee basis. Printable 1040ez form 2011 They can deduct their business expenses in performing services in that job as an adjustment to gross income rather than as a miscellaneous itemized deduction. Printable 1040ez form 2011 If you are a fee-basis official, include your employee business expenses from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. Printable 1040ez form 2011 Expenses of Certain Performing Artists If you are a performing artist, you may qualify to deduct your employee business expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Printable 1040ez form 2011 To qualify, you must meet all of the following requirements. Printable 1040ez form 2011 During the tax year, you perform services in the performing arts as an employee for at least two employers. Printable 1040ez form 2011 You receive at least $200 each from any two of these employers. Printable 1040ez form 2011 Your related performing-arts business expenses are more than 10% of your gross income from the performance of those services. Printable 1040ez form 2011 Your adjusted gross income is not more than $16,000 before deducting these business expenses. Printable 1040ez form 2011 Special rules for married persons. Printable 1040ez form 2011   If you are married, you must file a joint return unless you lived apart from your spouse at all times during the tax year. Printable 1040ez form 2011 If you file a joint return, you must figure requirements (1), (2), and (3) separately for both you and your spouse. Printable 1040ez form 2011 However, requirement (4) applies to your and your spouse's combined adjusted gross income. Printable 1040ez form 2011 Where to report. Printable 1040ez form 2011   If you meet all of the above requirements, you should first complete Form 2106 or 2106-EZ. Printable 1040ez form 2011 Then you include your performing-arts-related expenses from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. Printable 1040ez form 2011   If you do not meet all of the above requirements, you do not qualify to deduct your expenses as an adjustment to gross income. Printable 1040ez form 2011 Instead, you must complete Form 2106 or 2106-EZ and deduct your employee business expenses as an itemized deduction on Schedule A (Form 1040), line 21. Printable 1040ez form 2011 Impairment-Related Work Expenses of Disabled Employees If you are an employee with a physical or mental disability, your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to most other employee business expenses. Printable 1040ez form 2011 After you complete Form 2106 or 2106-EZ, enter your impairment-related work expenses from Form 2106, line 10, or Form 2106-EZ, line 6, on Schedule A (Form 1040), line 28, and identify the type and amount of this expense on the dotted line next to line 28. Printable 1040ez form 2011 Enter your employee business expenses that are unrelated to your disability from Form 2106, line 10, or Form 2106-EZ, line 6, on Schedule A (Form 1040), line 21. Printable 1040ez form 2011 Impairment-related work expenses are your allowable expenses for attendant care at your workplace and other expenses in connection with your workplace that are necessary for you to be able to work. Printable 1040ez form 2011 You are disabled if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. Printable 1040ez form 2011 You can deduct impairment-related expenses as business expenses if they are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. Printable 1040ez form 2011 Example 1. Printable 1040ez form 2011 You are blind. Printable 1040ez form 2011 You must use a reader to do your work. Printable 1040ez form 2011 You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Printable 1040ez form 2011 The reader's services are only for your work. Printable 1040ez form 2011 You can deduct your expenses for the reader as business expenses. Printable 1040ez form 2011 Example 2. Printable 1040ez form 2011 You are deaf. Printable 1040ez form 2011 You must use a sign language interpreter during meetings while you are at work. Printable 1040ez form 2011 The interpreter's services are used only for your work. Printable 1040ez form 2011 You can deduct your expenses for the interpreter as business expenses. Printable 1040ez form 2011 Prev  Up  Next   Home   More Online Publications