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Tax Act Online 2009

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Tax Act Online 2009

Tax act online 2009 Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. Tax act online 2009 Computer used in a home office. Tax act online 2009 Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). Tax act online 2009 You can claim the amount of expenses that is more than 2% of your adjusted gross income. Tax act online 2009 You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Tax act online 2009 Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. Tax act online 2009 Generally, you apply the 2% limit after you apply any other deduction limit. Tax act online 2009 For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. Tax act online 2009 Deductions subject to the 2% limit are discussed in the following three categories. Tax act online 2009 Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). Tax act online 2009 Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). Tax act online 2009 Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). Tax act online 2009 Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Tax act online 2009 You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Tax act online 2009 An expense is ordinary if it is common and accepted in your trade, business, or profession. Tax act online 2009 An expense is necessary if it is appropriate and helpful to your business. Tax act online 2009 An expense does not have to be required to be considered necessary. Tax act online 2009 You may be able to deduct the following items as unreimbursed employee expenses. Tax act online 2009 Business bad debt of an employee. Tax act online 2009 Business liability insurance premiums. Tax act online 2009 Damages paid to a former employer for breach of an employment contract. Tax act online 2009 Depreciation on a computer your employer requires you to use in your work. Tax act online 2009 Dues to a chamber of commerce if membership helps you do your job. Tax act online 2009 Dues to professional societies. Tax act online 2009 Educator expenses. Tax act online 2009 Home office or part of your home used regularly and exclusively in your work. Tax act online 2009 Job search expenses in your present occupation. Tax act online 2009 Laboratory breakage fees. Tax act online 2009 Legal fees related to your job. Tax act online 2009 Licenses and regulatory fees. Tax act online 2009 Malpractice insurance premiums. Tax act online 2009 Medical examinations required by an employer. Tax act online 2009 Occupational taxes. Tax act online 2009 Passport for a business trip. Tax act online 2009 Repayment of an income aid payment received under an employer's plan. Tax act online 2009 Research expenses of a college professor. Tax act online 2009 Rural mail carriers' vehicle expenses. Tax act online 2009 Subscriptions to professional journals and trade magazines related to your work. Tax act online 2009 Tools and supplies used in your work. Tax act online 2009 Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Tax act online 2009 Union dues and expenses. Tax act online 2009 Work clothes and uniforms if required and not suitable for everyday use. Tax act online 2009 Work-related education. Tax act online 2009 Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. Tax act online 2009 Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. Tax act online 2009 A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. Tax act online 2009 Example. Tax act online 2009 You make a bona fide loan to the corporation you work for. Tax act online 2009 It fails to pay you back. Tax act online 2009 You had to make the loan in order to keep your job. Tax act online 2009 You have a business bad debt as an employee. Tax act online 2009 More information. Tax act online 2009   For more information on business bad debts, see chapter 10 in Publication 535. Tax act online 2009 For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. Tax act online 2009 Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Tax act online 2009 Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. Tax act online 2009 Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Tax act online 2009 For the convenience of your employer. Tax act online 2009   This means that your use of the computer is for a substantial business reason of your employer. Tax act online 2009 You must consider all facts in making this determination. Tax act online 2009 Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. Tax act online 2009 Required as a condition of your employment. Tax act online 2009   This means that you cannot properly perform your duties without the computer. Tax act online 2009 Whether you can properly perform your duties without it depends on all the facts and circumstances. Tax act online 2009 It is not necessary that your employer explicitly requires you to use your computer. Tax act online 2009 But neither is it enough that your employer merely states that your use of the item is a condition of your employment. Tax act online 2009 Example. Tax act online 2009 You are an engineer with an engineering firm. Tax act online 2009 You occasionally take work home at night rather than work late at the office. Tax act online 2009 You own and use a computer that is similar to the one you use at the office to complete your work at home. Tax act online 2009 Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. Tax act online 2009 Which depreciation method to use. Tax act online 2009   The depreciation method you use depends on whether you meet the more-than-50%-use test. Tax act online 2009 More-than-50%-use test met. Tax act online 2009   You meet this test if you use the computer more than 50% in your work. Tax act online 2009 If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). Tax act online 2009 In addition, you may be able to take the section 179 deduction for the year you place the item in service. Tax act online 2009 More-than-50%-use test not met. Tax act online 2009   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). Tax act online 2009 You also cannot claim the section 179 deduction. Tax act online 2009 (But if you use your computer in a home office, see the exception below. Tax act online 2009 ) Investment use. Tax act online 2009   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. Tax act online 2009 However, you can combine your investment use with your work use in figuring your depreciation deduction. Tax act online 2009 Exception for computer used in a home office. Tax act online 2009   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . Tax act online 2009 You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. Tax act online 2009 You also may be able to take a section 179 deduction for the year you place the computer in service. Tax act online 2009 See Computer used in a home office under How To Report, later. Tax act online 2009 More information. Tax act online 2009   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. Tax act online 2009 Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. Tax act online 2009 Reporting your depreciation deduction. Tax act online 2009    See How To Report, later, for information about reporting a deduction for depreciation. Tax act online 2009 You must keep records to prove your percentage of business and investment use. Tax act online 2009 Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Tax act online 2009 Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Tax act online 2009 Lobbying and political activities. Tax act online 2009    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Tax act online 2009 See Lobbying Expenses under Nondeductible Expenses, later. Tax act online 2009 Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Tax act online 2009 If you file Form 1040A, you can deduct these expenses on line 16. Tax act online 2009 If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Tax act online 2009 However, neither spouse can deduct more than $250 of his or her qualified expenses. Tax act online 2009 Eligible educator. Tax act online 2009   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. Tax act online 2009 Qualified expenses. Tax act online 2009   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Tax act online 2009 An ordinary expense is one that is common and accepted in your educational field. Tax act online 2009 A necessary expense is one that is helpful and appropriate for your profession as an educator. Tax act online 2009 An expense does not have to be required to be considered necessary. Tax act online 2009   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Tax act online 2009 You must reduce your qualified expenses by the following amounts. Tax act online 2009 Excludable U. Tax act online 2009 S. Tax act online 2009 series EE and I savings bond interest from Form 8815. Tax act online 2009 Nontaxable qualified state tuition program earnings. Tax act online 2009 Nontaxable earnings from Coverdell education savings accounts. Tax act online 2009 Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. Tax act online 2009 Educator expenses over limit. Tax act online 2009   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. Tax act online 2009 Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Tax act online 2009 You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Tax act online 2009 The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Tax act online 2009 Principal place of business. Tax act online 2009   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Tax act online 2009   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. Tax act online 2009 You should keep records that will give the information needed to figure the deduction according to these rules. Tax act online 2009 Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. Tax act online 2009 More information. Tax act online 2009   See Publication 587 for more detailed information and a worksheet for figuring the deduction. Tax act online 2009 Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Tax act online 2009 You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Tax act online 2009 Employment and outplacement agency fees. Tax act online 2009    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Tax act online 2009 Employer pays you back. Tax act online 2009   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Tax act online 2009 See Recoveries in Publication 525. Tax act online 2009 Employer pays the employment agency. Tax act online 2009   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Tax act online 2009 Résumé. Tax act online 2009   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Tax act online 2009 Travel and transportation expenses. Tax act online 2009   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Tax act online 2009 You can deduct the travel expenses if the trip is primarily to look for a new job. Tax act online 2009 The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Tax act online 2009   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Tax act online 2009    You can choose to use the standard mileage rate to figure your car expenses. Tax act online 2009 The 2013 rate for business use of a vehicle is 56½ cents per mile. Tax act online 2009 See Publication 463 for more information on travel and car expenses. Tax act online 2009 Legal Fees You can deduct legal fees related to doing or keeping your job. Tax act online 2009 Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Tax act online 2009 Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Tax act online 2009 If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Tax act online 2009 Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Tax act online 2009 If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Tax act online 2009 Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Tax act online 2009 You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Tax act online 2009 However, you cannot deduct the cost of travel as a form of education. Tax act online 2009 Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. Tax act online 2009 See chapter 4 of Publication 463 for more information. Tax act online 2009 Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Tax act online 2009 You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Tax act online 2009 For more information about depreciation, see Publication 946. Tax act online 2009 Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. Tax act online 2009 Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. Tax act online 2009 Travel expenses. Tax act online 2009   Travel expenses are those incurred while traveling away from home for your employer. Tax act online 2009 You can deduct travel expenses paid or incurred in connection with a temporary work assignment. Tax act online 2009 Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. Tax act online 2009   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. Tax act online 2009 ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. Tax act online 2009   Travel expenses are discussed more fully in chapter 1 of Publication 463. Tax act online 2009 Temporary work assignment. Tax act online 2009    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. Tax act online 2009 Indefinite work assignment. Tax act online 2009   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. Tax act online 2009 If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. Tax act online 2009 Federal crime investigation and prosecution. Tax act online 2009   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. Tax act online 2009 This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. Tax act online 2009   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Tax act online 2009 Armed Forces reservists traveling more than 100 miles from home. Tax act online 2009   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 some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Tax act online 2009 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. Tax act online 2009 The balance, if any, is reported on Schedule A. Tax act online 2009   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, 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. Tax act online 2009   For more information on travel expenses, see Publication 463. Tax act online 2009 Local transportation expenses. Tax act online 2009   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. Tax act online 2009 They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. Tax act online 2009   You can choose to use the standard mileage rate to figure your car expenses. Tax act online 2009 The 2013 rate for business use of a vehicle is 56½ cents per mile. Tax act online 2009    In general, the costs of commuting between your residence and your place of business are nondeductible. Tax act online 2009 Work at two places in a day. Tax act online 2009   If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. Tax act online 2009 Temporary work location. Tax act online 2009   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. Tax act online 2009 The work location is outside the metropolitan area where you live and normally work. Tax act online 2009 You have at least one regular work location (other than your home) for the same trade or business. Tax act online 2009 (If this applies, the distance between your home and the temporary work location does not matter. Tax act online 2009 )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. Tax act online 2009 It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. Tax act online 2009 If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. Tax act online 2009 For more information, see chapter 1 of Publication 463. Tax act online 2009 Home office. Tax act online 2009   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. Tax act online 2009 (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. Tax act online 2009 ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. Tax act online 2009 Meals and entertainment. Tax act online 2009   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. Tax act online 2009 However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. Tax act online 2009   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. Tax act online 2009 You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. Tax act online 2009 Meals when subject to “hours of service” limits. Tax act online 2009   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. Tax act online 2009 You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. Tax act online 2009 Gift expenses. Tax act online 2009   You can generally deduct up to $25 of business gifts you give to any one individual during the year. Tax act online 2009 The following items do not count toward the $25 limit. Tax act online 2009 Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. Tax act online 2009 Signs, racks, and promotional materials to be displayed on the business premises of the recipient. Tax act online 2009 Local lodging. Tax act online 2009   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. Tax act online 2009   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. Tax act online 2009 Additional information. Tax act online 2009    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. Tax act online 2009 Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Tax act online 2009 You can also deduct assessments for benefit payments to unemployed union members. Tax act online 2009 However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Tax act online 2009 Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. Tax act online 2009 You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Tax act online 2009 See Lobbying Expenses under Nondeductible Expenses, later. Tax act online 2009 Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Tax act online 2009 You must wear them as a condition of your employment. Tax act online 2009 The clothes are not suitable for everyday wear. Tax act online 2009 It is not enough that you wear distinctive clothing. Tax act online 2009 The clothing must be specifically required by your employer. Tax act online 2009 Nor is it enough that you do not, in fact, wear your work clothes away from work. Tax act online 2009 The clothing must not be suitable for taking the place of your regular clothing. Tax act online 2009 Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Tax act online 2009 ). Tax act online 2009 Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Tax act online 2009 However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Tax act online 2009 Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Tax act online 2009 Protective clothing. Tax act online 2009   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Tax act online 2009   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Tax act online 2009 Military uniforms. Tax act online 2009   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Tax act online 2009 However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Tax act online 2009 In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Tax act online 2009   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Tax act online 2009   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. Tax act online 2009 However, you can deduct the cost of insignia, shoulder boards, and related items. Tax act online 2009    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Tax act online 2009 Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. Tax act online 2009 It maintains or improves skills required in your present work. Tax act online 2009 It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. Tax act online 2009 You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. Tax act online 2009 If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. Tax act online 2009 If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. Tax act online 2009 Travel as education. Tax act online 2009   You cannot deduct the cost of travel that in itself constitutes a form of education. Tax act online 2009 For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. Tax act online 2009 More information. Tax act online 2009    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. Tax act online 2009 Education Expenses During Unemployment If you stop working for a year or less in order to get education in order to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Tax act online 2009 Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Tax act online 2009 Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. Tax act online 2009 Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Tax act online 2009 These fees include the cost of tax preparation software programs and tax publications. Tax act online 2009 They also include any fee you paid for electronic filing of your return. Tax act online 2009 See Tax preparation fees under How To Report, later. Tax act online 2009 Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. Tax act online 2009 On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Tax act online 2009 You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. Tax act online 2009 These other expenses include the following items. Tax act online 2009 Appraisal fees for a casualty loss or charitable contribution. Tax act online 2009 Casualty and theft losses from property used in performing services as an employee. Tax act online 2009 Clerical help and office rent in caring for investments. Tax act online 2009 Depreciation on home computers used for investments. Tax act online 2009 Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. Tax act online 2009 Fees to collect interest and dividends. Tax act online 2009 Hobby expenses, but generally not more than hobby income. Tax act online 2009 Indirect miscellaneous deductions from pass-through entities. Tax act online 2009 Investment fees and expenses. Tax act online 2009 Legal fees related to producing or collecting taxable income or getting tax advice. Tax act online 2009 Loss on deposits in an insolvent or bankrupt financial institution. Tax act online 2009 Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. Tax act online 2009 Repayments of income. Tax act online 2009 Repayments of social security benefits. Tax act online 2009 Safe deposit box rental, except for storing jewelry and other personal effects. Tax act online 2009 Service charges on dividend reinvestment plans. Tax act online 2009 Tax advice fees. Tax act online 2009 Trustee's fees for your IRA, if separately billed and paid. Tax act online 2009 If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. Tax act online 2009 Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Tax act online 2009 Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Tax act online 2009 First report the loss in Section B of Form 4684, Casualties and Thefts. Tax act online 2009 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Tax act online 2009 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Tax act online 2009 For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Tax act online 2009 Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Tax act online 2009 Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Tax act online 2009 The fees are deductible on the return for the year in which you paid them. Tax act online 2009 For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. Tax act online 2009 Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Tax act online 2009 You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Tax act online 2009 But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. Tax act online 2009 For more information on depreciation, see Publication 946. Tax act online 2009 Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Tax act online 2009 Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Tax act online 2009 The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Tax act online 2009 For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Tax act online 2009 Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Tax act online 2009 But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Tax act online 2009 You must add the fee to the cost of the property. Tax act online 2009 You cannot deduct the fee you pay to a broker to sell securities. Tax act online 2009 You can use the fee only to figure gain or loss from the sale. Tax act online 2009 See the instructions for Schedule D (Form 1040) for information on how to report the fee. Tax act online 2009 Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Tax act online 2009 A hobby is not a business because it is not carried on to make a profit. Tax act online 2009 See Not-for-Profit Activities in chapter 1 of Publication 535. Tax act online 2009 Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Tax act online 2009 Deductions of pass-through entities are passed through to the partners or shareholders. Tax act online 2009 The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Tax act online 2009 Example. Tax act online 2009 You are a member of an investment club that is formed solely to invest in securities. Tax act online 2009 The club is treated as a partnership. Tax act online 2009 The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Tax act online 2009 In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Tax act online 2009 However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Tax act online 2009 Publicly offered mutual funds. Tax act online 2009   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Tax act online 2009 A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Tax act online 2009   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Tax act online 2009 This net figure is the amount you report on your return as income. Tax act online 2009 You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Tax act online 2009 Information returns. Tax act online 2009   You should receive information returns from pass-through entities. Tax act online 2009 Partnerships and S corporations. Tax act online 2009   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. Tax act online 2009 Nonpublicly offered mutual funds. Tax act online 2009   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. Tax act online 2009 You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Tax act online 2009 Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Tax act online 2009 Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Tax act online 2009 You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Tax act online 2009 You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. Tax act online 2009 You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). Tax act online 2009 See Tax Preparation Fees, earlier. Tax act online 2009 Unlawful discrimination claims. Tax act online 2009   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. Tax act online 2009 S. Tax act online 2009 Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. Tax act online 2009 However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. Tax act online 2009 See Publication 525 for more information. Tax act online 2009 Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Tax act online 2009 If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. Tax act online 2009 If elected, the casualty loss is subject to certain deduction limitations. Tax act online 2009 The election is made on Form 4684. Tax act online 2009 Once you make this choice, you cannot change it without IRS approval. Tax act online 2009 If none of the deposit is federally insured, you can deduct the loss in either of the following ways. Tax act online 2009 As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). Tax act online 2009 Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Tax act online 2009 This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. Tax act online 2009 As a casualty loss. Tax act online 2009 Report it on Form 4684 first and then on Schedule A (Form 1040). Tax act online 2009 See Publication 547 for details. Tax act online 2009 As a nonbusiness bad debt. Tax act online 2009 Report it on Schedule D (Form 1040). Tax act online 2009 If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. Tax act online 2009 Exception. Tax act online 2009   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. Tax act online 2009 For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. Tax act online 2009 Actual loss different from estimated loss. Tax act online 2009   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. Tax act online 2009 See Recoveries in Publication 525. Tax act online 2009 If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. Tax act online 2009 Choice not made. Tax act online 2009   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. Tax act online 2009 See Nonbusiness Bad Debts in chapter 4 of Publication 550. Tax act online 2009 Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. Tax act online 2009 For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Tax act online 2009 Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Tax act online 2009 If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Tax act online 2009 If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Tax act online 2009 Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. Tax act online 2009 The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. Tax act online 2009 The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. Tax act online 2009 It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). Tax act online 2009 If the deduction is more than $3,000, you will have to use a special computation to figure your tax. Tax act online 2009 See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. Tax act online 2009 Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Tax act online 2009 You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Tax act online 2009 Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Tax act online 2009 These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Tax act online 2009 Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Tax act online 2009 Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Tax act online 2009 They are not subject to the 2% limit. Tax act online 2009 Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Tax act online 2009 List of Deductions Amortizable premium on taxable bonds. Tax act online 2009 Casualty and theft losses from income-producing property. Tax act online 2009 Federal estate tax on income in respect of a decedent. Tax act online 2009 Gambling losses up to the amount of gambling winnings. Tax act online 2009 Impairment-related work expenses of persons with disabilities. Tax act online 2009 Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Tax act online 2009 Losses from Ponzi-type investment schemes. Tax act online 2009 Repayments of more than $3,000 under a claim of right. Tax act online 2009 Unrecovered investment in an annuity. Tax act online 2009 Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Tax act online 2009 You can elect to amortize the premium on taxable bonds. Tax act online 2009 The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Tax act online 2009 Pre-1998 election to amortize bond premium. Tax act online 2009   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Tax act online 2009 Bonds acquired after October 22, 1986, and before 1988. Tax act online 2009   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. Tax act online 2009 Bonds acquired before October 23, 1986. Tax act online 2009   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. Tax act online 2009 Deduction for excess premium. Tax act online 2009   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. Tax act online 2009 If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. Tax act online 2009 However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. Tax act online 2009 If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. Tax act online 2009    Pre-1998 choice to amortize bond premium. Tax act online 2009 If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. Tax act online 2009 More information. Tax act online 2009    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. Tax act online 2009 Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Tax act online 2009 First report the loss in Section B of Form 4684. Tax act online 2009 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Tax act online 2009 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Tax act online 2009 For more information on casualty and theft losses, see Publication 547. Tax act online 2009 Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Tax act online 2009 Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Tax act online 2009 See Publication 559 for information about figuring the amount of this deduction. Tax act online 2009 Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Tax act online 2009 You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Tax act online 2009 You cannot deduct gambling losses that are more than your winnings. Tax act online 2009 Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). Tax act online 2009 You cannot reduce your gambling winnings by your gambling losses and report the difference. Tax act online 2009 You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Tax act online 2009 Therefore, your records should show your winnings separately from your losses. Tax act online 2009 Diary of winnings and losses. Tax act online 2009 You must keep an accurate diary or similar record of your losses and winnings. Tax act online 2009 Your diary should contain at least the following information. Tax act online 2009 The date and type of your specific wager or wagering activity. Tax act online 2009 The name and address or location of the gambling establishment. Tax act online 2009 The names of other persons present with you at the gambling establishment. Tax act online 2009 The amount(s) you won or lost. Tax act online 2009 Proof of winnings and losses. Tax act online 2009   In addition to your diary, you should also have other documentation. Tax act online 2009 You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. Tax act online 2009   For specific wagering transactions, you can use the following items to support your winnings and losses. Tax act online 2009    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. Tax act online 2009 They are not all-inclusive. Tax act online 2009 Your tax liability depends on your particular facts and circumstances. Tax act online 2009 Keno. Tax act online 2009   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. Tax act online 2009 Slot machines. Tax act online 2009   A record of the machine number and all winnings by date and time the machine was played. Tax act online 2009 Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. Tax act online 2009 ). Tax act online 2009   The number of the table at which you were playing. Tax act online 2009 Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. Tax act online 2009 Bingo. Tax act online 2009   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Tax act online 2009 Supplemental records include any receipts from the casino, parlor, etc. Tax act online 2009 Racing (horse, harness, dog, etc. Tax act online 2009 ). Tax act online 2009   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Tax act online 2009 Supplemental records include unredeemed tickets and payment records from the racetrack. Tax act online 2009 Lotteries. Tax act online 2009   A record of ticket purchases, dates, winnings, and losses. Tax act online 2009 Supplemental records include unredeemed tickets, payment slips, and winnings statements. Tax act online 2009 Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Tax act online 2009 Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. Tax act online 2009 Example. Tax act online 2009 You are blind. Tax act online 2009 You must use a reader to do your work. Tax act online 2009 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. Tax act online 2009 The reader's services are only for your work. Tax act online 2009 You can deduct your expenses for the reader as impairment-related work expenses. Tax act online 2009 Self-employed. Tax act online 2009   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Tax act online 2009 See Impairment-related work expenses. Tax act online 2009 , later under How To Report. Tax act online 2009 Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. Tax act online 2009 S. Tax act online 2009 trade or business). Tax act online 2009 It is not subject to the passive activity limitations. Tax act online 2009 Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. Tax act online 2009 See Publication 463 for more information. Tax act online 2009 Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. Tax act online 2009 If you are an employee, complete Form 2106 or Form 2106-EZ. Tax act online 2009 See Publication 463 for more information. Tax act online 2009 Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. Tax act online 2009 You figure the deductible loss in Section B of Form 4684. Tax act online 2009 However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. Tax act online 2009 Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Tax act online 2009 You do not need to complete Appendix A. Tax act online 2009 See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. Tax act online 2009 Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. Tax act online 2009 See Repayments in Publication 525 for more information. Tax act online 2009 Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Tax act online 2009 If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Tax act online 2009 See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. Tax act online 2009 Nondeductible Expenses You cannot deduct the following expenses. Tax act online 2009 List of Nondeductible Expenses Adoption expenses. Tax act online 2009 Broker's commissions. Tax act online 2009 Burial or funeral expenses, including the cost of a cemetery lot. Tax act online 2009 Campaign expenses. Tax act online 2009 Capital expenses. Tax act online 2009 Check-writing fees. Tax act online 2009 Club dues. Tax act online 2009 Commuting expenses. Tax act online 2009 Fees and licenses, such as car licenses, marriage licenses, and dog tags. Tax act online 2009 Fines and penalties, such as parking tickets. Tax act online 2009 Health spa expenses. Tax act online 2009 Hobby losses—but see Hobby Expenses, earlier. Tax act online 2009 Home repairs, insurance, and rent. Tax act online 2009 Home security system. Tax act online 2009 Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. Tax act online 2009 Investment-related seminars. Tax act online 2009 Life insurance premiums paid by the insured. Tax act online 2009 Lobbying expenses. Tax act online 2009 Losses from the sale of your home, furniture, personal car, etc. Tax act online 2009 Lost or misplaced cash or property. Tax act online 2009 Lunches with co-workers. Tax act online 2009 Meals while working late. Tax act online 2009 Medical expenses as business expenses other than medical examinations required by your employer. Tax act online 2009 Personal disability insurance premiums. Tax act online 2009 Personal legal expenses. Tax act online 2009 Personal, living, or family expenses. Tax act online 2009 Political contributions. Tax act online 2009 Professional accreditation fees. Tax act online 2009 Professional reputation, expenses to improve. Tax act online 2009 Relief fund contributions. Tax act online 2009 Residential telephone line. Tax act online 2009 Stockholders' meeting, expenses of attending. Tax act online 2009 Tax-exempt income, expenses of earning or collecting. Tax act online 2009 The value of wages never received or lost vacation time. Tax act online 2009 Travel expenses for another individual. Tax act online 2009 Voluntary unemployment benefit fund contributions. Tax act online 2009 Wristwatches. Tax act online 2009 Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. Tax act online 2009 For details, see Form 8839, Qualified Adoption Expenses. Tax act online 2009 Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. Tax act online 2009 Instead, these fees must be added to the taxpayer's cost of the securities. Tax act online 2009 Commissions paid on the sale are deductible as business expenses only by dealers. Tax act online 2009 Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Tax act online 2009 These include qualification and registration fees for primary elections. Tax act online 2009 Legal fees. Tax act online 2009   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Tax act online 2009 Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. Tax act online 2009 If you use such property in your work, you may be able to take a depreciation deduction. Tax act online 2009 See Publication 946. Tax act online 2009 If the property is a car used in your work, also see Publication 463. Tax act online 2009 Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Tax act online 2009 Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Tax act online 2009 This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Tax act online 2009 You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Tax act online 2009 Dues paid to airline, hotel, and luncheon clubs are not deductible. Tax act online 2009 Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Tax act online 2009 If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. Tax act online 2009 Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Tax act online 2009 This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Tax act online 2009 Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Tax act online 2009 Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Tax act online 2009 Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Tax act online 2009 However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Tax act online 2009 See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. Tax act online 2009 Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Tax act online 2009 Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Tax act online 2009 You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Tax act online 2009 See Publication 504, Divorced or Separated Individuals, for information on alimony. Tax act online 2009 Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Tax act online 2009 These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Tax act online 2009 Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Tax act online 2009 Covered executive branch official. Tax act online 2009   A covered executive branch official, for the purpose of (4) above, is any of the following officials. Tax act online 2009 The President. Tax act online 2009 The Vice President. Tax act online 2009 Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. Tax act online 2009 Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. Tax act online 2009 Dues used for lobbying. Tax act online 2009   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Tax act online 2009 Exceptions. Tax act online 2009   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. Tax act online 2009 You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). Tax act online 2009 An Indian tribal government is considered a local council or similar governing body. Tax act online 2009 You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). Tax act online 2009 If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Tax act online 2009 Payments by the other person to you for lobbying activities cannot be deducted. Tax act online 2009 Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Tax act online 2009 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Tax act online 2009 See Publication 547. Tax act online 2009 Example. Tax act online 2009 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Tax act online 2009 The diamond falls from the ring and is never found. Tax act online 2009 The loss of the diamond is a casualty. Tax act online 2009 Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Tax act online 2009 See Publication 463 for information on deductible expenses while traveling away from home. Tax act online 2009 Meals While Working Late You cannot deduct the cost of meals while working late. Tax act online 2009 However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. Tax act online 2009 See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. Tax act online 2009 Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Tax act online 2009 Custody of children. Tax act online 2009 Breach of promise to marry suit. Tax act online 2009 Civil or criminal charges resulting from a personal relationship. Tax act online 2009 Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). Tax act online 2009 For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. Tax act online 2009 Preparation of a title (or defense or perfection of a title). Tax act online 2009 Preparation of a will. Tax act online 2009 Property claims or property settlement in a divorce. Tax act online 2009 You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Tax act online 2009 Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Tax act online 2009 Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Tax act online 2009 Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Tax act online 2009 Accounting certificate fees paid for the initial right to practice accounting. Tax act online 2009 Bar exam fees and incidental expenses in securing initial admission to the bar. Tax act online 2009 Medical and dental license fees paid to get initial licensing. Tax act online 2009 Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Tax act online 2009 Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Tax act online 2009 Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Tax act online 2009 Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Tax act online 2009 You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Tax act online 2009 Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Tax act online 2009 You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. Tax act online 2009 If you have expenses to p
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The Tax Act Online 2009

Tax act online 2009 Publication 225 - Introductory Material Table of Contents IntroductionOrdering forms and publications. Tax act online 2009 Tax questions. Tax act online 2009 Future Developments What's New for 2013 What's New for 2014 Reminders Introduction You are in the business of farming if you cultivate, operate, or manage a farm for profit, either as owner or tenant. Tax act online 2009 A farm includes livestock, dairy, poultry, fish, fruit, and truck farms. Tax act online 2009 It also includes plantations, ranches, ranges, and orchards. Tax act online 2009 This publication explains how the federal tax laws apply to farming. Tax act online 2009 Use this publication as a guide to figure your taxes and complete your farm tax return. Tax act online 2009 If you need more information on a subject, get the specific IRS tax publication covering that subject. Tax act online 2009 We refer to many of these free publications throughout this publication. Tax act online 2009 See chapter 16 for information on ordering these publications. Tax act online 2009 The explanations and examples in this publication reflect the Internal Revenue Service's interpretation of tax laws enacted by Congress, Treasury regulations, and court decisions. Tax act online 2009 However, the information given does not cover every situation and is not intended to replace the law or change its meaning. Tax act online 2009 This publication covers subjects on which a court may have made a decision more favorable to taxpayers than the interpretation of the Service. Tax act online 2009 Until these differing interpretations are resolved by higher court decisions, or in some other way, this publication will continue to present the interpretation of the Service. Tax act online 2009 The IRS Mission. Tax act online 2009   Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. Tax act online 2009 Comments and suggestions. Tax act online 2009   We welcome your comments about this publication and your suggestions for future editions. Tax act online 2009   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Tax act online 2009 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax act online 2009 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax act online 2009   You can email us at taxforms@irs. Tax act online 2009 gov. Tax act online 2009 Please put “Publications Comment” on the subject line. Tax act online 2009 You can also send us comments from www. Tax act online 2009 irs. Tax act online 2009 gov/formspubs/, select “Comment on Tax Forms and Publications” under “More Information. Tax act online 2009 ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Tax act online 2009 Ordering forms and publications. Tax act online 2009   Visit www. Tax act online 2009 irs. Tax act online 2009 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Tax act online 2009 Internal Revenue Service 1201 N. Tax act online 2009 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Tax act online 2009   If you have a tax question, check the information available on IRS. Tax act online 2009 gov or call 1-800-829-1040. Tax act online 2009 We cannot answer tax questions sent to either of the above addresses. Tax act online 2009 Comments on IRS enforcement actions. Tax act online 2009   The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments from small business about federal agency enforcement actions. Tax act online 2009 The Ombudsman will annually evaluate the enforcement activities of each agency and rate its responsiveness to small business. Tax act online 2009 If you wish to comment on the enforcement actions of the IRS, you can: Call 1-888-734-3247, Fax your comments to 202-481-5719, Write to Office of the National Ombudsman U. Tax act online 2009 S. Tax act online 2009 Small Business Administration 409 3rd Street, S. Tax act online 2009 W. Tax act online 2009  Washington, DC 20416 Send an email to ombudsman@sba. Tax act online 2009 gov, or Download the appraisal form at  www. Tax act online 2009 sba. Tax act online 2009 gov/ombudsman. Tax act online 2009 Treasury Inspector General for Tax Administration. Tax act online 2009   If you want to confidentially report misconduct, waste, fraud, or abuse by an IRS employee, you can call 1-800-366-4484 (1-800-877-8339 for TTY/TDD users). Tax act online 2009 You can remain anonymous. Tax act online 2009 Farm tax classes. Tax act online 2009   Many state Cooperative Extension Services conduct farm tax workshops in conjunction with the IRS. Tax act online 2009 Contact your county extension office for more information. Tax act online 2009 Rural tax education website. Tax act online 2009   The Rural Tax Education website is a source for information concerning agriculturally related income and deductions and self-employment tax. Tax act online 2009 The website is available for farmers and ranchers, other agricultural producers, Extension educators, and any one interested in learning about the tax side of the agricultural community. Tax act online 2009 Members of the National Farm Income Tax Extension Committee are contributors for the website and the website is hosted by Utah State University Cooperative Extension. Tax act online 2009 You can visit the website at www. Tax act online 2009 ruraltax. Tax act online 2009 org. Tax act online 2009 Future Developments The IRS has created a page on IRS. Tax act online 2009 gov for information about Publication 225, at  www. Tax act online 2009 irs. Tax act online 2009 gov/pub225. Tax act online 2009 Information about recent developments affecting Publication 225 will be posted on that page. Tax act online 2009 What's New for 2013 The following items highlight a number of administrative and tax law changes for 2013. Tax act online 2009 They are discussed in more detail throughout the publication. Tax act online 2009 Standard mileage rate. Tax act online 2009  For 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. Tax act online 2009 5 cents. Tax act online 2009 See chapter 4. Tax act online 2009 Simplified method for business use of home deduction. Tax act online 2009  The IRS now provides a simplified method to determine your expenses for business use of your home. Tax act online 2009 For more information, see Schedule C (Form 1040), Part II, and its instructions. Tax act online 2009 See chapter 4. Tax act online 2009 Increased section 179 expense deduction dollar limits. Tax act online 2009  The maximum amount you can elect to deduct for most section 179 property you placed in service in 2013 is $500,000. Tax act online 2009 This limit is reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Tax act online 2009 See chapter 7. Tax act online 2009 Extension of special depreciation allowance for certain qualified property acquired after December 31, 2007. Tax act online 2009  You may be able to take a 50% special depreciation allowance for certain qualified property acquired after December 31, 2007, and placed in service before January 1, 2014. Tax act online 2009 See chapter 7. Tax act online 2009 Expiration of the 3-year recovery period for certain race horses. Tax act online 2009 . Tax act online 2009  The 3-year recovery period for race horses two years old or younger will expire for such horses placed in service after December 31, 2013. Tax act online 2009 See chapter 7. Tax act online 2009 Tax rates. Tax act online 2009  For tax years beginning in 2013, the social security part of the self-employment tax increases from 10. Tax act online 2009 4% to 12. Tax act online 2009 4%. Tax act online 2009 As a result, the self-employment tax is increased from 13. Tax act online 2009 3% to 15. Tax act online 2009 3%. Tax act online 2009 See chapter 12. Tax act online 2009 Maximum net earnings. Tax act online 2009  The maximum net self-employment earnings subject to the social security part (12. Tax act online 2009 4%) of the self-employment tax increased to $113,700 for 2013. Tax act online 2009 There is no maximum limit on earnings subject to the Medicare part (2. Tax act online 2009 9%). Tax act online 2009 See chapter 12. Tax act online 2009 Net investment income tax. Tax act online 2009  For tax years beginning in 2013, individuals, estates, and trusts may be subject to the net investment income tax (NIIT). Tax act online 2009 If you are a trader in financial instruments and commodities and required to file Schedule C (Form 1040), your investment income (for purposes of the NIIT) may be reduced by your interest and other investment expenses to the extent those expenses are not used to reduce your self-employment income. Tax act online 2009 For information about NIIT and the special rule for traders in financial instruments and commodities, see the Instructions for Form 8960. Tax act online 2009 Social Security and Medicare Tax for 2013. Tax act online 2009  The employee tax rate for social security is 6. Tax act online 2009 2%. Tax act online 2009 The employer tax rate for social security remains unchanged at 6. Tax act online 2009 2%. Tax act online 2009 The social security wage base limit is $113,700. Tax act online 2009 The Medicare tax rate is 1. Tax act online 2009 45% each for the employee and employer, unchanged from 2012. Tax act online 2009 There is no wage base limit for Medicare tax. Tax act online 2009 See chapter 13. Tax act online 2009 Additional Medicare Tax. Tax act online 2009  For tax years beginning in 2013, a 0. Tax act online 2009 9% Additional Medicare Tax applies to your Medicare wages, Railroad Tax Act (RRTA) compensation, and self-employment income above a threshold amount. Tax act online 2009 Use Form 8959, Additional Medicare Tax, to figure this tax. Tax act online 2009 For more information, see the Instructions for Form 8959 and the Instructions for Schedule SE (Form 1040). Tax act online 2009 In addition to withholding Medicare tax at 1. Tax act online 2009 45%, you must withhold a 0. Tax act online 2009 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Tax act online 2009 You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Tax act online 2009 Additional Medicare Tax is only imposed on the employee. Tax act online 2009 There is no employer share of Additional Medicare Tax. Tax act online 2009 All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Tax act online 2009 For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer's Tax Guide. Tax act online 2009 For more information on Additional Medicare Tax, visit IRS. Tax act online 2009 gov and enter “Additional Medicare Tax” in the search box. Tax act online 2009 See chapter 13. Tax act online 2009 Leave-Based donation programs to aid victims of Hurricane Sandy. Tax act online 2009  Under these programs, employees may donate their vacation, sick, or personal leave in exchange for employer cash payments made before January 1, 2014, to qualified tax-exempt organizations providing relief for the victims of Hurricane Sandy. Tax act online 2009 The donated leave will not be included in the income or wages of the employee. Tax act online 2009 The employer may deduct the cash payments as business expenses or charitable contributions. Tax act online 2009 See chapter 13. Tax act online 2009 Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans extended. Tax act online 2009  The work opportunity tax credit is now available for eligible unemployed veterans who begin work before January 1, 2014. Tax act online 2009 Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Tax act online 2009 For more information, visit IRS. Tax act online 2009 gov and enter “work opportunity credit” in the search box. Tax act online 2009 See chapter 13. Tax act online 2009 Estimated tax. Tax act online 2009  For tax years beginning in 2013, the Net Investment Income Tax (NIIT) may need to be included when calculating your estimated tax. Tax act online 2009 Also, when figuring your estimated tax, you may need to include the 0. Tax act online 2009 9% Additional Medicare Tax applicable to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income above the threshold amount based on your filing status. Tax act online 2009 For more information, see Publication 505. Tax act online 2009 What's New for 2014 Maximum net earnings. Tax act online 2009  The maximum net self-employment earnings subject to the social security part of the self-employment tax for 2014 will be discussed in the 2013 Publication 334. Tax act online 2009 See chapter 12. Tax act online 2009 Social security and Medicare tax for 2014. Tax act online 2009  The employee and employer tax rates for social security and the maximum amount of wages subject to social security tax for 2014 will be discussed in Publication 51 (Circular A), Agricultural Employer's Tax Guide (For use in 2014). Tax act online 2009 The Medicare tax rate for 2014 will also be discussed in Publication 51 (Circular A) (For use in 2014). Tax act online 2009 There is no limit on the amount of wages subject to Medicare tax. Tax act online 2009 See chapter 13. Tax act online 2009 Reminders The following reminders and other items may help you file your tax return. Tax act online 2009   IRS e-file (Electronic Filing) You can file your tax returns electronically using an IRS e-file option. Tax act online 2009 The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. Tax act online 2009 You can use one of the following IRS e-file options. Tax act online 2009 Use an authorized IRS e-file provider. Tax act online 2009 Use a personal computer. Tax act online 2009 Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site. Tax act online 2009 For details on these fast filing methods, see your income tax package. Tax act online 2009 Principal agricultural activity codes. Tax act online 2009  You must enter on line B of Schedule F (Form 1040) a code that identifies your principal agricultural activity. Tax act online 2009 It is important to use the correct code because this information will identify market segments of the public for IRS Taxpayer Education programs. Tax act online 2009 The U. Tax act online 2009 S. Tax act online 2009 Census Bureau also uses this information for its economic census. Tax act online 2009 See the list of Principal Agricultural Activity Codes on page 2 of Schedule F (Form 1040). Tax act online 2009 Publication on employer identification numbers (EIN). Tax act online 2009  Publication 1635, Understanding Your Employer Identification Number, provides general information on employer identification numbers. Tax act online 2009 Topics include how to apply for an EIN and how to complete Form SS-4. Tax act online 2009 Change of address. Tax act online 2009  If you change your home address, you should use Form 8822, Change of Addres, to notify the IRS. Tax act online 2009 If you change your business address, you should use Form 8822-B, Change of Address or Responsible Party — Business, to notify the IRS. Tax act online 2009 Be sure to include your suite, room, or other unit number. Tax act online 2009 Reportable transactions. Tax act online 2009  You must file Form 8886, Reportable Transaction Disclosure Statement, to report certain transactions. Tax act online 2009 You may have to pay a penalty if you are required to file Form 8886 but do not do so. Tax act online 2009 Reportable transactions include (1) transactions the same as or substantially similar to tax avoidance transactions identified by the IRS, (2) transactions offered to you under conditions of confidentiality and for which you paid an advisor a minimum fee, (3) transactions for which you have or a related party has a right to a full or partial refund of fees if all or part of the intended tax consequences from the transaction are not sustained, (4) transactions that result in losses of at least $2 million in any single year or $4 million in any combination of years, and (5) transactions with asset holding periods of 45 days or less and that result in a tax credit of more than $250,000. Tax act online 2009 For more information, see the Instructions for Form 8886. Tax act online 2009 Form W-4 for 2014. Tax act online 2009  You should make new Forms W-4 available to your employees and encourage them to check their income tax withholding for 2014. Tax act online 2009 Those employees who owed a large amount of tax or received a large refund for 2013 may need to submit a new Form W-4. Tax act online 2009 See Publication 919, How Do I Adjust My Tax Withholding. Tax act online 2009 Form 1099-MISC. Tax act online 2009  Generally, file Form 1099-MISC if you pay at least $600 in rents, services, and other miscellaneous payments in your farming business to an individual (for example, an accountant, an attorney, or a veterinarian) who is not your employee. Tax act online 2009 Limited Liability Company (LLC). Tax act online 2009  For purposes of this publication, a limited liability company (LLC) is a business entity organized in the United States under state law. Tax act online 2009 Unlike a partnership, all of the members of an LLC have limited personal liability for its debts. Tax act online 2009 An LLC may be classified for federal income tax purposes as a partnership, corporation, or an entity disregarded as separate from its owner by applying the rules in Regulations section 301. Tax act online 2009 7701-3. Tax act online 2009 See Publication 3402 for more details. Tax act online 2009 Photographs of missing children. Tax act online 2009  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Tax act online 2009 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax act online 2009 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Tax act online 2009 Prev  Up  Next   Home   More Online Publications