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Tax Deductions For College Students

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Tax Deductions For College Students

Tax deductions for college students 11. Tax deductions for college students   Other Expenses Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Reimbursement of Travel, Meals, and EntertainmentReimbursements Miscellaneous ExpensesMeaning of generally enforced. Tax deductions for college students Kickbacks. Tax deductions for college students Form 1099-MISC. Tax deductions for college students Exception. Tax deductions for college students Tax preparation fees. Tax deductions for college students Covered executive branch official. Tax deductions for college students Exceptions to denial of deduction. Tax deductions for college students Indirect political contributions. Tax deductions for college students Type of deduction. Tax deductions for college students Repayment—$3,000 or less. Tax deductions for college students Repayment—over $3,000. Tax deductions for college students Method 1. Tax deductions for college students Method 2. Tax deductions for college students Repayment does not apply. Tax deductions for college students Year of deduction (or credit). Tax deductions for college students Telephone. Tax deductions for college students What's New Standard mileage rate. Tax deductions for college students  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for business use is 56. Tax deductions for college students 5 cents per mile. Tax deductions for college students For more information, see Car and truck expenses under Miscellaneous Expenses. Tax deductions for college students Introduction This chapter covers business expenses that may not have been explained to you, as a business owner, in previous chapters of this publication. Tax deductions for college students Topics - This chapter discusses: Travel, meals, and entertainment Bribes and kickbacks Charitable contributions Education expenses Lobbying expenses Penalties and fines Repayments (claim of right) Other miscellaneous expenses Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 463 Travel, Entertainment, Gift, and Car Expenses 526 Charitable Contributions 529 Miscellaneous Deductions 544 Sales and Other Dispositions of Assets 970 Tax Benefits for Education 1542 Per Diem Rates See chapter 12 for information about getting publications and forms. Tax deductions for college students Reimbursement of Travel, Meals, and Entertainment The following discussion explains how to handle any reimbursements or allowances you may provide to your employees under a reimbursement or allowance arrangement for travel, meals, and entertainment expenses. Tax deductions for college students If you are self-employed and report your income and expenses on Schedule C or C-EZ (Form 1040), see Publication 463. Tax deductions for college students To be deductible for tax purposes, expenses incurred for travel, meals, and entertainment must be ordinary and necessary expenses incurred while carrying on your trade or business. Tax deductions for college students Generally, you also must show that entertainment expenses (including meals) are directly related to, or associated with, the conduct of your trade or business. Tax deductions for college students For more information on travel, meals, and entertainment, including deductibility, see Publication 463. Tax deductions for college students Reimbursements A “reimbursement or allowance arrangement” provides for payment of advances, reimbursements, and allowances for travel, meals, and entertainment expenses incurred by your employees during the ordinary course of business. Tax deductions for college students If the expenses are substantiated, you can deduct the allowable amount on your tax return. Tax deductions for college students Because of differences between accounting methods and tax law, the amount you can deduct for tax purposes may not be the same as the amount you deduct on your business books and records. Tax deductions for college students For example, you can deduct 100% of the cost of meals on your business books and records. Tax deductions for college students However, only 50% of these costs are allowed by law as a tax deduction. Tax deductions for college students How you deduct a business expense under a reimbursement or allowance arrangement depends on whether you have: An accountable plan, or A nonaccountable plan. Tax deductions for college students If you reimburse these expenses under an accountable plan, deduct them as travel, meals, or entertainment expenses. Tax deductions for college students If you reimburse these expenses under a nonaccountable plan, report the reimbursements as wages on Form W-2, Wage and Tax Statement, and deduct them as wages on the appropriate line of your tax return. Tax deductions for college students If you make a single payment to your employees and it includes both wages and an expense reimbursement, you must specify the amount of the reimbursement and report it accordingly. Tax deductions for college students See Table 11-1 , Reporting Reimbursements. Tax deductions for college students Accountable Plans An accountable plan requires your employees to meet all of the following requirements. Tax deductions for college students Each employee must: Have paid or incurred deductible expenses while performing services as your employee, Adequately account to you for these expenses within a reasonable period of time, and Return any excess reimbursement or allowance within a reasonable period of time. Tax deductions for college students An arrangement under which you advance money to employees is treated as meeting (3) above only if the following requirements are also met. Tax deductions for college students The advance is reasonably calculated not to exceed the amount of anticipated expenses. Tax deductions for college students You make the advance within a reasonable period of time of your employee paying or incurring the expense. Tax deductions for college students If any expenses reimbursed under this arrangement are not substantiated, or an excess reimbursement is not returned within a reasonable period of time by an employee, you cannot treat these expenses as reimbursed under an accountable plan. Tax deductions for college students Instead, treat the reimbursed expenses as paid under a nonaccountable plan, discussed later. Tax deductions for college students Adequate accounting. Tax deductions for college students   Your employees must adequately account to you for their travel, meals, and entertainment expenses. Tax deductions for college students They must give you documentary evidence of their travel, mileage, and other employee business expenses. Tax deductions for college students This evidence should include items such as receipts, along with either a statement of expenses, an account book, a day-planner, or similar record in which the employee entered each expense at or near the time the expense was incurred. Tax deductions for college students Excess reimbursement or allowance. Tax deductions for college students   An excess reimbursement or allowance is any amount you pay to an employee that is more than the business-related expenses for which the employee adequately accounted. Tax deductions for college students The employee must return any excess reimbursement or other expense allowance to you within a reasonable period of time. Tax deductions for college students Reasonable period of time. Tax deductions for college students   A reasonable period of time depends on the facts and circumstances. Tax deductions for college students Generally, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Tax deductions for college students You give an advance within 30 days of the time the employee pays or incurs the expense. Tax deductions for college students Your employees adequately account for their expenses within 60 days after the expenses were paid or incurred. Tax deductions for college students Your employees return any excess reimbursement within 120 days after the expenses were paid or incurred. Tax deductions for college students You give a periodic statement (at least quarterly) to your employees that asks them to either return or adequately account for outstanding advances and they comply within 120 days of the date of the statement. Tax deductions for college students How to deduct. Tax deductions for college students   You can claim a deduction for travel, meals, and entertainment expenses if you reimburse your employees for these expenses under an accountable plan. Tax deductions for college students Generally, the amount you can deduct for meals and entertainment is subject to a 50% limit, discussed later. Tax deductions for college students If you are a sole proprietor, or are filing as a single member limited liability company, deduct the travel reimbursement on line 24a and the deductible part of the meals and entertainment reimbursement on line 24b, Schedule C (Form 1040) or line 2, Schedule C-EZ (Form 1040). Tax deductions for college students   If you are filing an income tax return for a corporation, include the reimbursement on the Other deductions line of Form 1120, U. Tax deductions for college students S. Tax deductions for college students Corporation Income Tax Return. Tax deductions for college students If you are filing any other business income tax return, such as a partnership or S corporation return, deduct the reimbursement on the appropriate line of the return as provided in the instructions for that return. Tax deductions for college students Table 11-1. Tax deductions for college students Reporting Reimbursements IF the type of reimbursement (or other expense allowance) arrangement is under THEN the employer reports on Form W-2 An accountable plan with: Actual expense reimbursement:  Adequate accounting made and excess returned No amount. Tax deductions for college students Actual expense reimbursement:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. Tax deductions for college students Per diem or mileage allowance up to the federal rate:  Adequate accounting made and excess returned No amount. Tax deductions for college students Per diem or mileage allowance up to the federal rate:  Adequate accounting and return of excess both required but excess not returned The excess amount as wages in box 1. Tax deductions for college students The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Tax deductions for college students Per diem or mileage allowance exceeds the federal rate:  Adequate accounting made up to the federal rate only and excess not returned The excess amount as wages in box 1. Tax deductions for college students The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Tax deductions for college students A nonaccountable plan with: Either adequate accounting or return of excess, or both, not required by plan The entire amount as wages in box 1. Tax deductions for college students No reimbursement plan The entire amount as wages in box 1. Tax deductions for college students Per Diem and Car Allowances You can reimburse your employees under an accountable plan based on travel days, miles, or some other fixed allowance. Tax deductions for college students In these cases, your employee is considered to have accounted to you for the amount of the expense that does not exceed the rates established by the federal government. Tax deductions for college students Your employee must actually substantiate to you the other elements of the expense, such as time, place, and business purpose. Tax deductions for college students Federal rate. Tax deductions for college students   The federal rate can be figured using any one of the following methods. Tax deductions for college students For car expenses: The standard mileage rate. Tax deductions for college students A fixed and variable rate (FAVR). Tax deductions for college students For per diem amounts: The regular federal per diem rate. Tax deductions for college students The standard meal allowance. Tax deductions for college students The high-low rate. Tax deductions for college students Car allowance. Tax deductions for college students   Your employee is considered to have accounted to you for car expenses that do not exceed the standard mileage rate. Tax deductions for college students Beginning in 2013, the standard business mileage rate is 56. Tax deductions for college students 5 cents per mile. Tax deductions for college students   You can choose to reimburse your employees using a fixed and variable rate (FAVR) allowance. Tax deductions for college students This is an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your employees' variable operating costs (such as gas, oil, etc. Tax deductions for college students ) plus a flat amount to cover your employees' fixed costs (such as depreciation, insurance, etc. Tax deductions for college students ). Tax deductions for college students For information on using a FAVR allowance, see Revenue Procedure 2010-51, available at www. Tax deductions for college students irs. Tax deductions for college students gov/irb/2010-51_IRB/ar14. Tax deductions for college students html and Notice 2012-72, available at www. Tax deductions for college students irs. Tax deductions for college students gov/irb/2012-50_IRB/ar10. Tax deductions for college students html. Tax deductions for college students Per diem allowance. Tax deductions for college students   If your employee actually substantiates to you the other elements (discussed earlier) of the expenses reimbursed using the per diem allowance, how you report and deduct the allowance depends on whether the allowance is for lodging and meal expenses or for meal expenses only and whether the allowance is more than the federal rate. Tax deductions for college students Regular federal per diem rate. Tax deductions for college students   The regular federal per diem rate is the highest amount the federal government will pay to its employees while away from home on travel. Tax deductions for college students It has two components: Lodging expense, and Meal and incidental expense (M&IE). Tax deductions for college students The rates are different for different locations. Tax deductions for college students Publication 1542 lists the rates in the continental United States. Tax deductions for college students Standard meal allowance. Tax deductions for college students   The federal rate for meal and incidental expenses (M&IE) is the standard meal allowance. Tax deductions for college students You can pay only an M&IE allowance to employees who travel away from home if: You pay the employee for actual expenses for lodging based on receipts submitted to you, You provide for the lodging, You pay for the actual expense of the lodging directly to the provider, You do not have a reasonable belief that lodging expenses were incurred by the employee, or The allowance is computed on a basis similar to that used in computing the employee's wages (that is, number of hours worked or miles traveled). Tax deductions for college students Internet access. Tax deductions for college students    Per diem rates are available on the Internet. Tax deductions for college students You can access per diem rates at www. Tax deductions for college students gsa. Tax deductions for college students gov/perdiemrates. Tax deductions for college students High-low method. Tax deductions for college students   This is a simplified method of computing the federal per diem rate for travel within the continental United States. Tax deductions for college students It eliminates the need to keep a current list of the per diem rate for each city. Tax deductions for college students   Under the high-low method, the per diem amount for travel during January through September of 2013 is $242 ($65 for M&IE) for certain high-cost locations. Tax deductions for college students All other areas have a per diem amount of $163 ($52 for M&IE). Tax deductions for college students The high-cost locations eligible for the higher per diem amount under the high-low method are listed in Publication 1542. Tax deductions for college students   Effective October 1, 2013, the per diem rate for high-cost locations increased to $251 ($65 for M&IE). Tax deductions for college students The rate for all other locations increased to $170 ($52 for M&IE). Tax deductions for college students For October, November, and December 2013, you can either continue to use the rates described in the preceding paragraph or change to the new rates. Tax deductions for college students However, you must use the same rate for all employees reimbursed under the high-low method. Tax deductions for college students   For more information about the high-low method, see Notice 2013-65, available at www. Tax deductions for college students irs. Tax deductions for college students gov/irb/2013-44_IRB/ar13. Tax deductions for college students html. Tax deductions for college students See Publication 1542 (available on the Internet at IRS. Tax deductions for college students gov) for the current per diem rates for all locations. Tax deductions for college students Reporting per diem and car allowances. Tax deductions for college students   The following discussion explains how to report per diem and car allowances. Tax deductions for college students The manner in which you report them depends on how the allowance compares to the federal rate. Tax deductions for college students See Table 11-1. Tax deductions for college students Allowance less than or equal to the federal rate. Tax deductions for college students   If your allowance for the employee is less than or equal to the appropriate federal rate, that allowance is not included as part of the employee's pay in box 1 of the employee's Form W-2. Tax deductions for college students Deduct the allowance as travel expenses (including meals that may be subject to the 50% limit, discussed later). Tax deductions for college students See How to deduct under Accountable Plans, earlier. Tax deductions for college students Allowance more than the federal rate. Tax deductions for college students   If your employee's allowance is more than the appropriate federal rate, you must report the allowance as two separate items. Tax deductions for college students   Include the allowance amount up to the federal rate in box 12 (code L) of the employee's Form W-2. Tax deductions for college students Deduct it as travel expenses (as explained above). Tax deductions for college students This part of the allowance is treated as reimbursed under an accountable plan. Tax deductions for college students   Include the amount that is more than the federal rate in box 1 (and in boxes 3 and 5 if they apply) of the employee's Form W-2. Tax deductions for college students Deduct it as wages subject to income tax withholding, social security, Medicare, and federal unemployment taxes. Tax deductions for college students This part of the allowance is treated as reimbursed under a nonaccountable plan as explained later under Nonaccountable Plans. Tax deductions for college students Meals and Entertainment Under an accountable plan, you can generally deduct only 50% of any otherwise deductible business-related meal and entertainment expenses you reimburse your employees. Tax deductions for college students The deduction limit applies even if you reimburse them for 100% of the expenses. Tax deductions for college students Application of the 50% limit. Tax deductions for college students   The 50% deduction limit applies to reimbursements you make to your employees for expenses they incur for meals while traveling away from home on business and for entertaining business customers at your place of business, a restaurant, or another location. Tax deductions for college students It applies to expenses incurred at a business convention or reception, business meeting, or business luncheon at a club. Tax deductions for college students The deduction limit may also apply to meals you furnish on your premises to your employees. Tax deductions for college students Related expenses. Tax deductions for college students   Taxes and tips relating to a meal or entertainment activity you reimburse to your employee under an accountable plan are included in the amount subject to the 50% limit. Tax deductions for college students Reimbursements you make for expenses, such as cover charges for admission to a nightclub, rent paid for a room to hold a dinner or cocktail party, or the amount you pay for parking at a sports arena, are all subject to the 50% limit. Tax deductions for college students However, the cost of transportation to and from an otherwise allowable business meal or a business-related entertainment activity is not subject to the 50% limit. Tax deductions for college students Amount subject to 50% limit. Tax deductions for college students   If you provide your employees with a per diem allowance only for meal and incidental expenses, the amount treated as an expense for food and beverages is the lesser of the following. Tax deductions for college students The per diem allowance. Tax deductions for college students The federal rate for M&IE. Tax deductions for college students   If you provide your employees with a per diem allowance that covers lodging, meals, and incidental expenses, you must treat an amount equal to the federal M&IE rate for the area of travel as an expense for food and beverages. Tax deductions for college students If the per diem allowance you provide is less than the federal per diem rate for the area of travel, you can treat 40% of the per diem allowance as the amount for food and beverages. Tax deductions for college students Meal expenses when subject to “hours of service” limits. Tax deductions for college students   You can deduct 80% of the cost of reimbursed meals your employees consume while away from their tax home on business during, or incident to, any period subject to the Department of Transportation's “hours of service” limits. Tax deductions for college students   See Publication 463 for a detailed discussion of individuals subject to the Department of Transportation's “hours of service” limits. Tax deductions for college students De minimis (minimal) fringe benefit. Tax deductions for college students   The 50% limit does not apply to an expense for food or beverage that is excluded from the gross income of an employee because it is a de minimis fringe benefit. Tax deductions for college students See Publication 15-B for additional information on de minimis fringe benefits. Tax deductions for college students Company cafeteria or executive dining room. Tax deductions for college students   The cost of food and beverages you provide primarily to your employees on your business premises is deductible. Tax deductions for college students This includes the cost of maintaining the facilities for providing the food and beverages. Tax deductions for college students These expenses are subject to the 50% limit unless they qualify as a de minimis fringe benefit, as just discussed, or unless they are compensation to your employees (explained later). Tax deductions for college students Employee activities. Tax deductions for college students   The expense of providing recreational, social, or similar activities (including the use of a facility) for your employees is deductible and is not subject to the 50% limit. Tax deductions for college students The benefit must be primarily for your employees who are not highly compensated. Tax deductions for college students   For this purpose, a highly compensated employee is an employee who meets either of the following requirements. Tax deductions for college students Owned a 10% or more interest in the business during the year or the preceding year. Tax deductions for college students An employee is treated as owning any interest owned by his or her brother, sister, spouse, ancestors, and lineal descendants. Tax deductions for college students Received more than $115,000 in pay for the preceding year. Tax deductions for college students You can choose to include only employees who were also in the top 20% of employees when ranked by pay for the preceding year. Tax deductions for college students   For example, the expenses for food, beverages, and entertainment for a company-wide picnic are not subject to the 50% limit. Tax deductions for college students Meals or entertainment treated as compensation. Tax deductions for college students   The 50% limit does not apply to either of the following. Tax deductions for college students Expenses for meals or entertainment that you treat as: Compensation to an employee who was the recipient of the meals or entertainment, and Wages subject to withholding of federal income tax. Tax deductions for college students Expenses for meals or entertainment if: A recipient of the meals or entertainment who is not your employee has to include the expenses in gross income as compensation for services or as a prize or award, and You include that amount on a Form 1099 issued to the recipient, if a Form 1099 is required. Tax deductions for college students Sales of meals or entertainment. Tax deductions for college students   You can deduct the cost of meals or entertainment (including the use of facilities) you sell to the public. Tax deductions for college students For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is a business expense that is fully deductible. Tax deductions for college students The 50% limit does not apply to this expense. Tax deductions for college students Providing meals or entertainment to general public to promote goodwill. Tax deductions for college students   You can deduct the cost of providing meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. Tax deductions for college students The 50% limit does not apply to this expense. Tax deductions for college students Director, stockholder, or employee meetings. Tax deductions for college students   You can deduct entertainment expenses directly related to business meetings of your employees, partners, stockholders, agents, or directors. Tax deductions for college students You can provide some minor social activities, but the main purpose of the meeting must be your company's business. Tax deductions for college students These expenses are subject to the 50% limit. Tax deductions for college students Trade association meetings. Tax deductions for college students   You can deduct expenses directly related to and necessary for attending business meetings or conventions of certain tax-exempt organizations. Tax deductions for college students These organizations include business leagues, chambers of commerce, real estate boards, and trade and professional associations. Tax deductions for college students Nonaccountable Plans A nonaccountable plan is an arrangement that does not meet the requirements for an accountable plan. Tax deductions for college students All amounts paid, or treated as paid, under a nonaccountable plan are reported as wages on Form W-2. Tax deductions for college students The payments are subject to income tax withholding, social security, Medicare, and federal unemployment taxes. Tax deductions for college students You can deduct the reimbursement as compensation or wages only to the extent it meets the deductibility tests for employees' pay in chapter 2. Tax deductions for college students Deduct the allowable amount as compensation or wages on the appropriate line of your income tax return, as provided in its instructions. Tax deductions for college students Miscellaneous Expenses In addition to travel, meal, and entertainment expenses, there are other expenses you can deduct. Tax deductions for college students Advertising expenses. Tax deductions for college students   You generally can deduct reasonable advertising expenses that are directly related to your business activities. Tax deductions for college students Generally, you cannot deduct amounts paid to influence legislation (i. Tax deductions for college students e. Tax deductions for college students , lobbying). Tax deductions for college students See Lobbying expenses , later. Tax deductions for college students   You can usually deduct as a business expense the cost of institutional or goodwill advertising to keep your name before the public if it relates to business you reasonably expect to gain in the future. Tax deductions for college students For example, the cost of advertising that encourages people to contribute to the Red Cross, to buy U. Tax deductions for college students S. Tax deductions for college students Savings Bonds, or to participate in similar causes is usually deductible. Tax deductions for college students Anticipated liabilities. Tax deductions for college students   Anticipated liabilities or reserves for anticipated liabilities are not deductible. Tax deductions for college students For example, assume you sold 1-year TV service contracts this year totaling $50,000. Tax deductions for college students From experience, you know you will have expenses of about $15,000 in the coming year for these contracts. Tax deductions for college students You cannot deduct any of the $15,000 this year by charging expenses to a reserve or liability account. Tax deductions for college students You can deduct your expenses only when you actually pay or accrue them, depending on your accounting method. Tax deductions for college students Bribes and kickbacks. Tax deductions for college students   Engaging in the payment of bribes or kickbacks is a serious criminal matter. Tax deductions for college students Such activity could result in criminal prosecution. Tax deductions for college students Any payments that appear to have been made, either directly or indirectly, to an official or employee of any government or an agency or instrumentality of any government are not deductible for tax purposes and are in violation of the law. Tax deductions for college students   Payments paid directly or indirectly to a person in violation of any federal or state law (but only if that state law is generally enforced, defined below) that provides for a criminal penalty or for the loss of a license or privilege to engage in a trade or business are also not allowed as a deduction for tax purposes. Tax deductions for college students Meaning of “generally enforced. Tax deductions for college students ”   A state law is considered generally enforced unless it is never enforced or enforced only for infamous persons or persons whose violations are extraordinarily flagrant. Tax deductions for college students For example, a state law is generally enforced unless proper reporting of a violation of the law results in enforcement only under unusual circumstances. Tax deductions for college students Kickbacks. Tax deductions for college students   A kickback is a payment for referring a client, patient, or customer. Tax deductions for college students The common kickback situation occurs when money or property is given to someone as payment for influencing a third party to purchase from, use the services of, or otherwise deal with the person who pays the kickback. Tax deductions for college students In many cases, the person whose business is being sought or enjoyed by the person who pays the kickback is not aware of the payment. Tax deductions for college students   For example, the Yard Corporation is in the business of repairing ships. Tax deductions for college students It returns 10% of the repair bills as kickbacks to the captains and chief officers of the vessels it repairs. Tax deductions for college students Although this practice is considered an ordinary and necessary expense of getting business, it is clearly a violation of a state law that is generally enforced. Tax deductions for college students These expenditures are not deductible for tax purposes, whether or not the owners of the shipyard are subsequently prosecuted. Tax deductions for college students Form 1099-MISC. Tax deductions for college students   It does not matter whether any kickbacks paid during the tax year are deductible on your income tax return in regards to information reporting. Tax deductions for college students See Form 1099-MISC for more information. Tax deductions for college students Car and truck expenses. Tax deductions for college students   The costs of operating a car, truck, or other vehicle in your business are deductible. Tax deductions for college students For more information on how to figure your deduction, see Publication 463. Tax deductions for college students Charitable contributions. Tax deductions for college students   Cash payments to an organization, charitable or otherwise, may be deductible as business expenses if the payments are not charitable contributions or gifts and are directly related to your business. Tax deductions for college students If the payments are charitable contributions or gifts, you cannot deduct them as business expenses. Tax deductions for college students However, corporations (other than S corporations) can deduct charitable contributions on their income tax returns, subject to limitations. Tax deductions for college students See the Instructions for Form 1120 for more information. Tax deductions for college students Sole proprietors, partners in a partnership, or shareholders in an S corporation may be able to deduct charitable contributions made by their business on Schedule A (Form 1040). Tax deductions for college students Example. Tax deductions for college students You paid $15 to a local church for a half-page ad in a program for a concert it is sponsoring. Tax deductions for college students The purpose of the ad was to encourage readers to buy your products. Tax deductions for college students Your payment is not a charitable contribution. Tax deductions for college students You can deduct it as an advertising expense. Tax deductions for college students Example. Tax deductions for college students You made a $100,000 donation to a committee organized by the local Chamber of Commerce to bring a convention to your city, intended to increase business activity, including yours. Tax deductions for college students Your payment is not a charitable contribution. Tax deductions for college students You can deduct it as a business expense. Tax deductions for college students See Publication 526 for a discussion of donated inventory, including capital gain property. Tax deductions for college students Club dues and membership fees. Tax deductions for college students   Generally, you cannot deduct amounts paid or incurred for membership in any club organized for business, pleasure, recreation, or any other social purpose. Tax deductions for college students This includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Tax deductions for college students Exception. Tax deductions for college students   The following organizations are not treated as clubs organized for business, pleasure, recreation, or other social purpose unless one of the main purposes is to conduct entertainment activities for members or their guests or to provide members or their guests with access to entertainment facilities. Tax deductions for college students Boards of trade. Tax deductions for college students Business leagues. Tax deductions for college students Chambers of commerce. Tax deductions for college students Civic or public service organizations. Tax deductions for college students Professional organizations such as bar associations and medical associations. Tax deductions for college students Real estate boards. Tax deductions for college students Trade associations. Tax deductions for college students Credit card convenience fees. Tax deductions for college students   Credit card companies charge a fee to businesses who accept their cards. Tax deductions for college students This fee when paid or incurred by the business can be deducted as a business expense. Tax deductions for college students Damages recovered. Tax deductions for college students   Special rules apply to compensation you receive for damages sustained as a result of patent infringement, breach of contract or fiduciary duty, or antitrust violations. Tax deductions for college students You must include this compensation in your income. Tax deductions for college students However, you may be able to take a special deduction. Tax deductions for college students The deduction applies only to amounts recovered for actual economic injury, not any additional amount. Tax deductions for college students The deduction is the smaller of the following. Tax deductions for college students The amount you received or accrued for damages in the tax year reduced by the amount you paid or incurred in the year to recover that amount. Tax deductions for college students Your losses from the injury you have not deducted. Tax deductions for college students Demolition expenses or losses. Tax deductions for college students   Amounts paid or incurred to demolish a structure are not deductible. Tax deductions for college students These amounts are added to the basis of the land where the demolished structure was located. Tax deductions for college students Any loss for the remaining undepreciated basis of a demolished structure would not be recognized until the property is disposed of. Tax deductions for college students Education expenses. Tax deductions for college students   Ordinary and necessary expenses paid for the cost of the education and training of your employees are deductible. Tax deductions for college students See Education Expenses in chapter 2. Tax deductions for college students   You can also deduct the cost of your own education (including certain related travel) related to your trade or business. Tax deductions for college students You must be able to show the education maintains or improves skills required in your trade or business, or that it is required by law or regulations, for keeping your license to practice, status, or job. Tax deductions for college students For example, an attorney can deduct the cost of attending Continuing Legal Education (CLE) classes that are required by the state bar association to maintain his or her license to practice law. Tax deductions for college students   Education expenses you incur to meet the minimum requirements of your present trade or business, or those that qualify you for a new trade or business, are not deductible. Tax deductions for college students This is true even if the education maintains or improves skills presently required in your business. Tax deductions for college students For more information on education expenses, see Publication 970. Tax deductions for college students Franchise, trademark, trade name. Tax deductions for college students   If you buy a franchise, trademark, or trade name, you can deduct the amount you pay or incur as a business expense only if your payments are part of a series of payments that are: Contingent on productivity, use, or disposition of the item, Payable at least annually for the entire term of the transfer agreement, and Substantially equal in amount (or payable under a fixed formula). Tax deductions for college students   When determining the term of the transfer agreement, include all renewal options and any other period for which you and the transferrer reasonably expect the agreement to be renewed. Tax deductions for college students   A franchise includes an agreement that gives one of the parties to the agreement the right to distribute, sell, or provide goods, services, or facilities within a specified area. Tax deductions for college students Impairment-related expenses. Tax deductions for college students   If you are disabled, you can deduct expenses necessary for you to be able to work (impairment-related expenses) as a business expense, rather than as a medical expense. Tax deductions for college students   You are disabled if you have either of the following. Tax deductions for college students A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed. Tax deductions for college students A physical or mental impairment that substantially limits one or more of your major life activities. Tax deductions for college students   The expense qualifies as a business expense if all the following apply. Tax deductions for college students Your work clearly requires the expense for you to satisfactorily perform that work. Tax deductions for college students The goods or services purchased are clearly not needed or used, other than incidentally, in your personal activities. Tax deductions for college students Their treatment is not specifically provided for under other tax law provisions. Tax deductions for college students Example. Tax deductions for college students You are blind. Tax deductions for college students You must use a reader to do your work, both at and away from your place of work. Tax deductions for college students The reader's services are only for your work. Tax deductions for college students You can deduct your expenses for the reader as a business expense. Tax deductions for college students Internet-related expenses. Tax deductions for college students   Generally, you can deduct internet-related expenses including domain registrations fees and webmaster consulting costs. Tax deductions for college students If you are starting a business you may have to amortize these expenses as start-up costs. Tax deductions for college students For more information about amortizing start-up and organizational costs, see chapter 8. Tax deductions for college students Interview expense allowances. Tax deductions for college students   Reimbursements you make to job candidates for transportation or other expenses related to interviews for possible employment are not wages. Tax deductions for college students You can deduct the reimbursements as a business expense. Tax deductions for college students However, expenses for food, beverages, and entertainment are subject to the 50% limit discussed earlier under Meals and Entertainment. Tax deductions for college students Legal and professional fees. Tax deductions for college students   Fees charged by accountants and attorneys that are ordinary and necessary expenses directly related to operating your business are deductible as business expenses. Tax deductions for college students However, usually legal fees you pay to acquire business assets are not deductible. Tax deductions for college students These costs are added to the basis of the property. Tax deductions for college students   Fees that include payments for work of a personal nature (such as drafting a will, or damages arising from a personal injury) are not allowed as a business deduction on Schedule C or C-EZ. Tax deductions for college students If the invoice includes both business and personal charges, compute the business portion as follows: multiply the total amount of the bill by a fraction, the numerator of which is the amount attributable to business matters, the denominator of which is the total amount paid. Tax deductions for college students The result is the portion of the invoice attributable to business expenses. Tax deductions for college students The portion attributable to personal matters is the difference between the total amount and the business portion (computed above). Tax deductions for college students   Legal fees relating to personal tax advice may be deductible on Schedule A (Form 1040), if you itemize deductions. Tax deductions for college students However, the deduction is subject to the 2% limitation on miscellaneous itemized deductions. Tax deductions for college students See Publication 529, Miscellaneous Deductions. Tax deductions for college students Tax preparation fees. Tax deductions for college students   The cost of hiring a tax professional, such as a C. Tax deductions for college students P. Tax deductions for college students A. Tax deductions for college students , to prepare that part of your tax return relating to your business as a sole proprietor is deductible on Schedule C or Schedule C-EZ. Tax deductions for college students Any remaining cost may be deductible on Schedule A (Form 1040) if you itemize deductions. Tax deductions for college students   You can also claim a business deduction for amounts paid or incurred in resolving asserted tax deficiencies for your business operated as a sole proprietor. Tax deductions for college students Licenses and regulatory fees. Tax deductions for college students   Licenses and regulatory fees for your trade or business paid annually to state or local governments generally are deductible. Tax deductions for college students Some licenses and fees may have to be amortized. Tax deductions for college students See chapter 8 for more information. Tax deductions for college students Lobbying expenses. Tax deductions for college students   Generally, lobbying expenses are not deductible. Tax deductions for college students Lobbying expenses include amounts paid or incurred for any of the following activities. Tax deductions for college students Influencing legislation. Tax deductions for college students Participating in or intervening in any political campaign for, or against, any candidate for public office. Tax deductions for college students Attempting to influence the general public, or segments of the public, about elections, legislative matters, or referendums. Tax deductions for college students Communicating directly with covered executive branch officials (defined later) in any attempt to influence the official actions or positions of those officials. Tax deductions for college students Researching, preparing, planning, or coordinating any of the preceding activities. Tax deductions for college students   Your expenses for influencing legislation and communicating directly with a covered executive branch official include a portion of your labor costs and general and administrative costs of your business. Tax deductions for college students For information on making this allocation, see section 1. Tax deductions for college students 162-28 of the regulations. Tax deductions for college students   You cannot claim a charitable or business expense deduction for amounts paid to an organization if both of the following apply. Tax deductions for college students The organization conducts lobbying activities on matters of direct financial interest to your business. Tax deductions for college students A principal purpose of your contribution is to avoid the rules discussed earlier that prohibit a business deduction for lobbying expenses. Tax deductions for college students   If a tax-exempt organization, other than a section 501(c)(3) organization, provides you with a notice on the part of dues that is allocable to nondeductible lobbying and political expenses, you cannot deduct that part of the dues. Tax deductions for college students Covered executive branch official. Tax deductions for college students   For purposes of this discussion, a covered executive branch official is any of the following. Tax deductions for college students The President. Tax deductions for college students The Vice President. Tax deductions for college students 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 deductions for college students Any individual who: Is serving in a position in Level I of the Executive Schedule under section 5312 of title 5, United States Code, Has been designated by the President as having Cabinet-level status, or Is an immediate deputy of an individual listed in item (a) or (b). Tax deductions for college students Exceptions to denial of deduction. Tax deductions for college students   The general denial of the deduction does not apply to the following. Tax deductions for college students Expenses of appearing before, or communicating with, any committee or member of any local council or similar governing body concerning its legislation (local legislation) if the legislation is of direct interest to you or to you and an organization of which you are a member. Tax deductions for college students An Indian tribal government is treated as a local council or similar governing body. Tax deductions for college students Any in-house expenses for influencing legislation and communicating directly with a covered executive branch official if those expenses for the tax year do not exceed $2,000 (excluding overhead expenses). Tax deductions for college students Expenses incurred by taxpayers engaged in the trade or business of lobbying (professional lobbyists) on behalf of another person (but does apply to payments by the other person to the lobbyist for lobbying activities). Tax deductions for college students Moving machinery. Tax deductions for college students   Generally, the cost of moving machinery from one city to another is a deductible expense. Tax deductions for college students So is the cost of moving machinery from one plant to another, or from one part of your plant to another. Tax deductions for college students You can deduct the cost of installing the machinery in the new location. Tax deductions for college students However, you must capitalize the costs of installing or moving newly purchased machinery. Tax deductions for college students Outplacement services. Tax deductions for college students   The costs of outplacement services you provide to your employees to help them find new employment, such as career counseling, résumé assistance, skills assessment, etc. Tax deductions for college students are deductible. Tax deductions for college students   The costs of outplacement services may cover more than one deduction category. Tax deductions for college students For example, deduct as a utilities expense the cost of telephone calls made under this service and deduct as rental expense the cost of renting machinery and equipment for this service. Tax deductions for college students   For information on whether the value of outplacement services is includable in your employees' income, see Publication 15-B. Tax deductions for college students Penalties and fines. Tax deductions for college students   Penalties paid for late performance or nonperformance of a contract are generally deductible. Tax deductions for college students For instance, you own and operate a construction company. Tax deductions for college students Under a contract, you are to finish construction of a building by a certain date. Tax deductions for college students Due to construction delays, the building is not completed and ready for occupancy on the date stipulated in the contract. Tax deductions for college students You are now required to pay an additional amount for each day that completion is delayed beyond the completion date stipulated in the contract. Tax deductions for college students These additional costs are deductible business expenses. Tax deductions for college students   On the other hand, penalties or fines paid to any government agency or instrumentality because of a violation of any law are not deductible. Tax deductions for college students These fines or penalties include the following amounts. Tax deductions for college students Paid because of a conviction for a crime or after a plea of guilty or no contest in a criminal proceeding. Tax deductions for college students Paid as a penalty imposed by federal, state, or local law in a civil action, including certain additions to tax and additional amounts and assessable penalties imposed by the Internal Revenue Code. Tax deductions for college students Paid in settlement of actual or possible liability for a fine or penalty, whether civil or criminal. Tax deductions for college students Forfeited as collateral posted for a proceeding that could result in a fine or penalty. Tax deductions for college students   Examples of nondeductible penalties and fines include the following. Tax deductions for college students Fines for violating city housing codes. Tax deductions for college students Fines paid by truckers for violating state maximum highway weight laws. Tax deductions for college students Fines for violating air quality laws. Tax deductions for college students Civil penalties for violating federal laws regarding mining safety standards and discharges into navigable waters. Tax deductions for college students   A fine or penalty does not include any of the following. Tax deductions for college students Legal fees and related expenses to defend yourself in a prosecution or civil action for a violation of the law imposing the fine or civil penalty. Tax deductions for college students Court costs or stenographic and printing charges. Tax deductions for college students Compensatory damages paid to a government. Tax deductions for college students Political contributions. Tax deductions for college students   Contributions or gifts paid to political parties or candidates are not deductible. Tax deductions for college students In addition, expenses paid or incurred to take part in any political campaign of a candidate for public office are not deductible. Tax deductions for college students Indirect political contributions. Tax deductions for college students   You cannot deduct indirect political contributions and costs of taking part in political activities as business expenses. Tax deductions for college students Examples of nondeductible expenses include the following. Tax deductions for college students Advertising in a convention program of a political party, or in any other publication if any of the proceeds from the publication are for, or intended for, the use of a political party or candidate. Tax deductions for college students Admission to a dinner or program (including, but not limited to, galas, dances, film presentations, parties, and sporting events) if any of the proceeds from the function are for, or intended for, the use of a political party or candidate. Tax deductions for college students Admission to an inaugural ball, gala, parade, concert, or similar event if identified with a political party or candidate. Tax deductions for college students Repairs. Tax deductions for college students   The cost of repairing or improving property used in your trade or business is either a deductible or capital expense. Tax deductions for college students Routine maintenance that keeps your property in a normal efficient operating condition, but that does not materially increase the value or substantially prolong the useful life of the property, is deductible in the year that it is incurred. Tax deductions for college students Otherwise, the cost must be capitalized and depreciated. Tax deductions for college students See Form 4562 and its instructions for how to compute and claim the depreciation deduction. Tax deductions for college students   The cost of repairs includes the costs of labor, supplies, and certain other items. Tax deductions for college students The value of your own labor is not deductible. Tax deductions for college students Examples of repairs include: Reconditioning floors (but not replacement), Repainting the interior and exterior walls of a building, Cleaning and repairing roofs and gutters, and Fixing plumbing leaks (but not replacement of fixtures). Tax deductions for college students Repayments. Tax deductions for college students   If you had to repay an amount you included in your income in an earlier year, you may be able to deduct the amount repaid for the year in which you repaid it. Tax deductions for college students Or, if the amount you repaid is more than $3,000, you may be able to take a credit against your tax for the year in which you repaid it. Tax deductions for college students Type of deduction. Tax deductions for college students   The type of deduction you are allowed in the year of repayment depends on the type of income you included in the earlier year. Tax deductions for college students For instance, if you repay an amount you previously reported as a capital gain, deduct the repayment as a capital loss on Form 8949. Tax deductions for college students If you reported it as self-employment income, deduct it as a business deduction on Schedule C or Schedule C-EZ (Form 1040) or Schedule F (Form 1040). Tax deductions for college students   If you reported the amount as wages, unemployment compensation, or other nonbusiness ordinary income, enter it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is subject to the 2% limitation. Tax deductions for college students However, if the repayment is over $3,000 and Method 1 (discussed later) applies, deduct it on Schedule A (Form 1040) as a miscellaneous itemized deduction that is not subject to the 2% limitation. Tax deductions for college students Repayment—$3,000 or less. Tax deductions for college students   If the amount you repaid was $3,000 or less, deduct it from your income in the year you repaid it. Tax deductions for college students Repayment—over $3,000. Tax deductions for college students   If the amount you repaid was more than $3,000, you can deduct the repayment, as described earlier. Tax deductions for college students However, you can instead choose to take a tax credit for the year of repayment if you included the income under a “claim of right. Tax deductions for college students ” This means that at the time you included the income, it appeared that you had an unrestricted right to it. Tax deductions for college students If you qualify for this choice, figure your tax under both methods and use the method that results in less tax. Tax deductions for college students Method 1. Tax deductions for college students   Figure your tax for 2013 claiming a deduction for the repaid amount. Tax deductions for college students Method 2. Tax deductions for college students   Figure your tax for 2013 claiming a credit for the repaid amount. Tax deductions for college students Follow these steps. Tax deductions for college students Figure your tax for 2013 without deducting the repaid amount. Tax deductions for college students Refigure your tax from the earlier year without including in income the amount you repaid in 2013. Tax deductions for college students Subtract the tax in (2) from the tax shown on your return for the earlier year. Tax deductions for college students This is the amount of your credit. Tax deductions for college students Subtract the answer in (3) from the tax for 2013 figured without the deduction (step 1). Tax deductions for college students   If Method 1 results in less tax, deduct the amount repaid as discussed earlier under Type of deduction. Tax deductions for college students   If Method 2 results in less tax, claim the credit on line 71 of Form 1040, and write “I. Tax deductions for college students R. Tax deductions for college students C. Tax deductions for college students 1341” next to line 71. Tax deductions for college students Example. Tax deductions for college students For 2012, you filed a return and reported your income on the cash method. Tax deductions for college students In 2013, you repaid $5,000 included in your 2012 gross income under a claim of right. Tax deductions for college students Your filing status in 2013 and 2012 is single. Tax deductions for college students Your income and tax for both years are as follows:   2012  With Income 2012  Without Income Taxable Income $15,000 $10,000 Tax $ 1,819 $ 1,069   2013  Without Deduction 2013  With Deduction Taxable Income $49,950 $44,950 Tax $8,423 $7,173 Your tax under Method 1 is $7,173. Tax deductions for college students Your tax under Method 2 is $7,673, figured as follows: Tax previously determined for 2012 $ 1,819 Less: Tax as refigured − 1,069 Decrease in 2012 tax $ 750 Regular tax liability for 2013 $8,423 Less: Decrease in 2012 tax − 750 Refigured tax for 2013 $ 7,673 Because you pay less tax under Method 1, you should take a deduction for the repayment in 2013. Tax deductions for college students Repayment does not apply. Tax deductions for college students   This discussion does not apply to the following. Tax deductions for college students Deductions for bad debts. Tax deductions for college students Deductions from sales to customers, such as returns and allowances, and similar items. Tax deductions for college students Deductions for legal and other expenses of contesting the repayment. Tax deductions for college students Year of deduction (or credit). Tax deductions for college students   If you use the cash method of accounting, you can take the deduction (or credit, if applicable) for the tax year in which you actually make the repayment. Tax deductions for college students If you use any other accounting method, you can deduct the repayment or claim a credit for it only for the tax year in which it is a proper deduction under your accounting method. Tax deductions for college students For example, if you use the accrual method, you are entitled to the deduction or credit in the tax year in which the obligation for the repayment accrues. Tax deductions for college students Subscriptions. Tax deductions for college students   Subscriptions to professional, technical, and trade journals that deal with your business field are deductible. Tax deductions for college students Supplies and materials. Tax deductions for college students   Unless you have deducted the cost in any earlier year, you generally can deduct the cost of materials and supplies actually consumed and used during the tax year. Tax deductions for college students   If you keep incidental materials and supplies on hand, you can deduct the cost of the incidental materials and supplies you bought during the tax year if all the following requirements are met. Tax deductions for college students You do not keep a record of when they are used. Tax deductions for college students You do not take an inventory of the amount on hand at the beginning and end of the tax year. Tax deductions for college students This method does not distort your income. Tax deductions for college students   You can also deduct the cost of books, professional instruments, equipment, etc. Tax deductions for college students , if you normally use them within a year. Tax deductions for college students However, if the usefulness of these items extends substantially beyond the year they are placed in service, you generally must recover their costs through depreciation. Tax deductions for college students For more information regarding depreciation see Publication 946, How To Depreciate Property. Tax deductions for college students Utilities. Tax deductions for college students   Business expenses for heat, lights, power, telephone service, and water and sewerage are deductible. Tax deductions for college students However, any part due to personal use is not deductible. Tax deductions for college students Telephone. Tax deductions for college students   You cannot deduct the cost of basic local telephone service (including any taxes) for the first telephone line you have in your home, even if you have an office in your home. Tax deductions for college students However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. Tax deductions for college students Prev  Up  Next   Home   More Online Publications
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Tax Exempt Bonds Forms and Publications

Forms used by the tax-exempt bond community and useful publications relating to tax-exempt bonds.

The freely available Adobe Acrobat Reader software is required to view, print, and search the items below.

Forms

Name

Title

Version

Separate Instructions

Form 8038

Information Return for Tax-Exempt Private Activity Bond Issues

04-2011

Yes

Form 8038-G Information Return for Government Purpose Tax-Exempt Bond Issues

09-2011

Yes

Form 8038-GC Consolidated Information Return for Small Tax-Exempt Government Bond Issues

01-2012

No

Form 8038-B Information Return for Build America Bonds and Recovery Zone Economic Development Bonds

01-2010

Yes

Form 8038-TC Information Return for Tax Credit Bonds and Specified Tax Credit Bonds

11-2012

Yes

Form 8038-CP Credit for Qualified Bonds Allowed to Issuer

01-2012

Yes

Form 8038-T

Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate

04-2011

Yes

Form 8038-R Request for Recovery of Overpayment Under Arbitrage Rebate Provisions

04-2011

No

Form 8328 Carryforward Election of Unused Private Activity Bond Volume Cap

09-2011

No

Form 8703 Annual Certification of a Residential Rental Project

09-2013

No

Form 990, Schedule K Supplemental Information on Tax-Exempt Bonds

2013

Yes

Form 14429 Tax Exempt Bonds Voluntary Closing Agreement Program Request 03-2013 No

 

Publications

Name

Title

Version

Publication 1-TEB Understanding the Tax Exempt Bonds Examination Process 07-2011
Publication 3755 Tax Exempt Bonds-Filing Requirements 05-2001
Publication 4077 Tax-Exempt Bonds for 501(c)(3) Charitable Organizations / Compliance Guide

09-2005

Publication 4078 Tax-Exempt Private Activity Bonds / Compliance Guide 

09-2005

Publication 4079

Tax-Exempt Governmental Bonds / Compliance Guide

09-2005

Publication 5005 Your Responsibilities as a Conduit Issuer of Tax-Exempt Bonds

04-2012

Publication 5091 Voluntary Compliance for Tax-Exempt and Tax-Credit Bonds 06-2013
Page Last Reviewed or Updated: 26-Mar-2014

The Tax Deductions For College Students

Tax deductions for college students 29. Tax deductions for college students   Límite sobre Deducciones Detalladas Table of Contents Introduction Useful Items - You may want to see: ¿Está Usted Sujeto al Límite? ¿Qué Deducciones Detalladas Están Limitadas? ¿Qué Deducciones Detalladas no Están Limitadas? ¿Cómo se Calcula el Límite?Ejemplo Introduction Este capítulo trata del límite general sobre las deducciones detalladas en el Anexo A (Formulario 1040). Tax deductions for college students Los temas abarcan: Quién está sujeto al límite. Tax deductions for college students Qué deducciones detalladas están limitadas. Tax deductions for college students Cómo calcular el límite. Tax deductions for college students Useful Items - You may want to see: Formulario (e Instrucciones) Anexo A (Formulario 1040) Itemized Deductions (Deducciones detalladas), en inglés. Tax deductions for college students ¿Está Usted Sujeto al Límite? Si tiene ingresos brutos ajustados (AGI, por sus siglas en inglés) de más de $300,000, si es casado que presenta la declaración conjunta o viudo calificado, $275,000, si es cabeza de familia, $250,000, si es soltero o $150,000, si es casado que presenta la declaración por separado, está sujeto al límite sobre determinadas deducciones detalladas. Tax deductions for college students El ingreso bruto ajustado (AGI) es la cantidad de la línea 38 (Formulario 1040). Tax deductions for college students ¿Qué Deducciones Detalladas Están Limitadas? Las siguientes deducciones del Anexo A (Formulario 1040) están sujetas al límite general sobre las deducciones detalladas: Impuestos pagados —línea 9. Tax deductions for college students Intereses pagados —líneas 10,11,12 y 13. Tax deductions for college students Donaciones a organizaciones caritativas —línea 19. Tax deductions for college students Gastos laborales y determinadas deducciones misceláneas —línea 27. Tax deductions for college students Otras deducciones misceláneas —línea 28, excluyendo pérdidas por apuestas y juegos de azar y por hecho fortuito o robo. Tax deductions for college students ¿Qué Deducciones Detalladas no Están Limitadas? Las siguientes deducciones del Anexo A (Formulario 1040) no están sujetas al límite general sobre las deducciones detalladas. Tax deductions for college students Sin embargo, igualmente están sujetas a otros límites aplicables. Tax deductions for college students Gastos médicos y dentales —línea 4. Tax deductions for college students Gastos de intereses de inversión —línea 14. Tax deductions for college students Pérdidas por hecho fortuito y robo de bienes de uso personal —línea 20. Tax deductions for college students Pérdidas por hecho fortuito y robo de bienes que generan ingresos —línea 28. Tax deductions for college students Pérdidas por apuestas y juegos de azar —línea 28. Tax deductions for college students ¿Cómo se Calcula el Límite? Si las deducciones detalladas están sujetas al límite, el total de todas sus deducciones detalladas es reducido por la cantidad menor de uno de: el 80% de las deducciones detalladas afectadas por el límite. Tax deductions for college students Vea ¿Qué Deducciones Detalladas Están Limitadas? , anteriormente o el 3% de la cantidad por la cual los ingresos brutos ajustados sobrepasen $300,000, si es casado que presenta la declaración conjunta o viudo calificado, $275,000, si es cabeza de familia, $250,000, si es soltero o $150,000, si es casado que presenta la declaración por separado. Tax deductions for college students Antes de calcular el límite general sobre las deducciones detalladas, primero tiene que llenar las líneas 1 a 28 del Anexo A (Formulario 1040), incluyendo todo formulario afín (tal como el Formulario 2106, el Formulario 4684, etc. Tax deductions for college students ) El límite general sobre las deducciones detalladas se calcula después de haberse aplicado cualquier otro límite sobre la asignación de alguna deducción detallada. Tax deductions for college students Estos límites adicionales abarcan los límites sobre donaciones caritativas (capítulo 24), el límite sobre determinados gastos de comida y entretenimiento (capítulo 26) y el límite del 2% de los ingresos brutos ajustados sobre determinadas deducciones misceláneas (capítulo 28). Tax deductions for college students Hoja de trabajo de deducciones detalladas. Tax deductions for college students   Después de completar hasta la línea 28, inclusive, del Anexo A (Formulario 1040), puede utilizar la Itemized Deductions Worksheet (Hoja de trabajo de las deducciones detalladas), en las Instrucciones del Anexo A (Formulario 1040) para calcular el límite. Tax deductions for college students Anote el resultado en la línea 29 del Anexo A (Formulario 1040). Tax deductions for college students Guarde la hoja de trabajo con su documentación. Tax deductions for college students Debe comparar la cantidad de la deducción estándar con la cantidad de las deducciones detalladas después de aplicar el límite. Tax deductions for college students Utilice la cantidad mayor cuando complete la línea 40 (Formulario 1040). Tax deductions for college students Vea el capítulo 20 para información sobre cómo calcular la deducción estándar. Tax deductions for college students Ejemplo Para el año tributario 2013, Guillermo y Teresa Valdez presentan la declaración conjunta en el Formulario 1040. Tax deductions for college students Tienen ingresos brutos ajustados de $325,500 en la línea 38. Tax deductions for college students Las deducciones detalladas de su Anexo A son las siguientes: Impuestos pagados —línea 9   $ 17,900 Intereses pagados —líneas 10,11,12 y 13   45,000 Gasto de intereses de inversión  —línea 14   41,000 Donaciones a organizaciones caritativas —línea 19   21,000 Gastos laborales —línea 27   17,240 Total   $142,140       La deducción por gastos de intereses de inversión de los Valdez ($41,000 de la línea 14 del Anexo A (Formulario 1040) no está sujeta al límite general de las deducciones detalladas. Tax deductions for college students Los Valdez utilizan la Itemized Deductions Worksheet (Hoja de trabajo de las deducciones detalladas), en las Instrucciones del Anexo A (Formulario 1040) para calcular el límite general. Tax deductions for college students Del total de las deducciones detalladas de $142,140, los Valdez pueden deducir sólo $141,375 ($142,140 - $765). Tax deductions for college students Anotan $141,375 en la línea 29 del Anexo A (Formulario 1040). Tax deductions for college students Prev  Up  Next   Home   More Online Publications