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Turbo Tax Amendment

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Turbo Tax Amendment

Turbo tax amendment 26. Turbo tax amendment   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. Turbo tax amendment Parking fees. Turbo tax amendment Advertising display on car. Turbo tax amendment Car pools. Turbo tax amendment Hauling tools or instruments. Turbo tax amendment Union members' trips from a union hall. Turbo tax amendment Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. Turbo tax amendment Statutory employees. Turbo tax amendment Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. Turbo tax amendment  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Turbo tax amendment Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. Turbo tax amendment Depreciation limits on cars, trucks, and vans. Turbo tax amendment  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). Turbo tax amendment For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Turbo tax amendment For more information, see Depreciation limits in Publication 463. Turbo tax amendment Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. Turbo tax amendment An ordinary expense is one that is common and accepted in your trade or business. Turbo tax amendment A necessary expense is one that is helpful and appropriate for your business. Turbo tax amendment An expense does not have to be required to be considered necessary. Turbo tax amendment This chapter explains the following. Turbo tax amendment What expenses are deductible. Turbo tax amendment How to report your expenses on your return. Turbo tax amendment What records you need to prove your expenses. Turbo tax amendment How to treat any expense reimbursements you may receive. Turbo tax amendment Who does not need to use this chapter. Turbo tax amendment   If you are an employee, you will not need to read this chapter if all of the following are true. Turbo tax amendment You fully accounted to your employer for your work-related expenses. Turbo tax amendment You received full reimbursement for your expenses. Turbo tax amendment Your employer required you to return any excess reimbursement and you did so. Turbo tax amendment There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. Turbo tax amendment If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. Turbo tax amendment See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. Turbo tax amendment    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. Turbo tax amendment Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. Turbo tax amendment This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. Turbo tax amendment It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. Turbo tax amendment Travel expenses defined. Turbo tax amendment   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. Turbo tax amendment   You will find examples of deductible travel expenses in Table 26-1 . Turbo tax amendment Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Turbo tax amendment This rest requirement is not satisfied by merely napping in your car. Turbo tax amendment You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Turbo tax amendment Example 1. Turbo tax amendment You are a railroad conductor. Turbo tax amendment You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Turbo tax amendment During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Turbo tax amendment You are considered to be away from home. Turbo tax amendment Example 2. Turbo tax amendment You are a truck driver. Turbo tax amendment You leave your terminal and return to it later the same day. Turbo tax amendment You get an hour off at your turnaround point to eat. Turbo tax amendment Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Turbo tax amendment Members of the Armed Forces. Turbo tax amendment   If you are a member of the U. Turbo tax amendment S. Turbo tax amendment Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Turbo tax amendment You cannot deduct your expenses for meals and lodging. Turbo tax amendment You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Turbo tax amendment If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Turbo tax amendment    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. Turbo tax amendment Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Turbo tax amendment Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Turbo tax amendment It includes the entire city or general area in which your business or work is located. Turbo tax amendment If you have more than one regular place of business, your tax home is your main place of business. Turbo tax amendment See Main place of business or work , later. Turbo tax amendment If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Turbo tax amendment See No main place of business or work , later. Turbo tax amendment If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Turbo tax amendment As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Turbo tax amendment Main place of business or work. Turbo tax amendment   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. Turbo tax amendment The total time you ordinarily spend in each place. Turbo tax amendment The level of your business activity in each place. Turbo tax amendment Whether your income from each place is significant or insignificant. Turbo tax amendment Example. Turbo tax amendment You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Turbo tax amendment You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Turbo tax amendment Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Turbo tax amendment No main place of business or work. Turbo tax amendment   You may have a tax home even if you do not have a regular or main place of business or work. Turbo tax amendment Your tax home may be the home where you regularly live. Turbo tax amendment Factors used to determine tax home. Turbo tax amendment   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Turbo tax amendment You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Turbo tax amendment You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Turbo tax amendment You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Turbo tax amendment   If you satisfy all three factors, your tax home is the home where you regularly live. Turbo tax amendment If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Turbo tax amendment If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Turbo tax amendment Example. Turbo tax amendment You are single and live in Boston in an apartment you rent. Turbo tax amendment You have worked for your employer in Boston for a number of years. Turbo tax amendment Your employer enrolls you in a 12-month executive training program. Turbo tax amendment You do not expect to return to work in Boston after you complete your training. Turbo tax amendment During your training, you do not do any work in Boston. Turbo tax amendment Instead, you receive classroom and on-the-job training throughout the United States. Turbo tax amendment You keep your apartment in Boston and return to it frequently. Turbo tax amendment You use your apartment to conduct your personal business. Turbo tax amendment You also keep up your community contacts in Boston. Turbo tax amendment When you complete your training, you are transferred to Los Angeles. Turbo tax amendment You do not satisfy factor (1) because you did not work in Boston. Turbo tax amendment You satisfy factor (2) because you had duplicate living expenses. Turbo tax amendment You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Turbo tax amendment Therefore, you have a tax home in Boston. Turbo tax amendment Tax home different from family home. Turbo tax amendment   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Turbo tax amendment You also cannot deduct the cost of meals and lodging while at your tax home. Turbo tax amendment See Example 1 . Turbo tax amendment   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Turbo tax amendment See Example 2 . Turbo tax amendment Example 1. Turbo tax amendment You are a truck driver and you and your family live in Tucson. Turbo tax amendment You are employed by a trucking firm that has its terminal in Phoenix. Turbo tax amendment At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Turbo tax amendment You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Turbo tax amendment This is because Phoenix is your tax home. Turbo tax amendment Example 2. Turbo tax amendment Your family home is in Pittsburgh, where you work 12 weeks a year. Turbo tax amendment The rest of the year you work for the same employer in Baltimore. Turbo tax amendment In Baltimore, you eat in restaurants and sleep in a rooming house. Turbo tax amendment Your salary is the same whether you are in Pittsburgh or Baltimore. Turbo tax amendment Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Turbo tax amendment You cannot deduct any expenses you have for meals and lodging there. Turbo tax amendment However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Turbo tax amendment You can deduct the cost of your round trip between Baltimore and Pittsburgh. Turbo tax amendment You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Turbo tax amendment Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Turbo tax amendment It may not be practical to return to your tax home from this other location at the end of each work day. Turbo tax amendment Temporary assignment vs. Turbo tax amendment indefinite assignment. Turbo tax amendment   If your assignment or job away from your main place of work is temporary, your tax home does not change. Turbo tax amendment You are considered to be away from home for the whole period you are away from your main place of work. Turbo tax amendment You can deduct your travel expenses if they otherwise qualify for deduction. Turbo tax amendment Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Turbo tax amendment   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Turbo tax amendment An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Turbo tax amendment   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Turbo tax amendment You may be able to deduct the cost of relocating to your new tax home as a moving expense. Turbo tax amendment See Publication 521 for more information. Turbo tax amendment Exception for federal crime investigations or prosecutions. Turbo tax amendment   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Turbo tax amendment This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. Turbo tax amendment   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. Turbo tax amendment Determining temporary or indefinite. Turbo tax amendment   You must determine whether your assignment is temporary or indefinite when you start work. Turbo tax amendment If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Turbo tax amendment An assignment or job that is initially temporary may become indefinite due to changed circumstances. Turbo tax amendment A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Turbo tax amendment Going home on days off. Turbo tax amendment   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Turbo tax amendment You cannot deduct the cost of your meals and lodging there. Turbo tax amendment However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Turbo tax amendment You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Turbo tax amendment   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Turbo tax amendment In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Turbo tax amendment Probationary work period. Turbo tax amendment   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Turbo tax amendment You cannot deduct any of your expenses for meals and lodging during the probationary period. Turbo tax amendment What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Turbo tax amendment You can deduct ordinary and necessary expenses you have when you travel away from home on business. Turbo tax amendment The type of expense you can deduct depends on the facts and your circumstances. Turbo tax amendment Table 26-1 summarizes travel expenses you may be able to deduct. Turbo tax amendment You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Turbo tax amendment When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Turbo tax amendment You can use a log, diary, notebook, or any other written record to keep track of your expenses. Turbo tax amendment The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. Turbo tax amendment Separating costs. Turbo tax amendment   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Turbo tax amendment You must have a reasonable basis for making this allocation. Turbo tax amendment For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Turbo tax amendment Travel expenses for another individual. Turbo tax amendment   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Turbo tax amendment Employee. Turbo tax amendment   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Turbo tax amendment Business associate. Turbo tax amendment   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. Turbo tax amendment A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. Turbo tax amendment A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Turbo tax amendment Bona fide business purpose. Turbo tax amendment   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Turbo tax amendment Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Turbo tax amendment Example. Turbo tax amendment Jerry drives to Chicago on business and takes his wife, Linda, with him. Turbo tax amendment Linda is not Jerry's employee. Turbo tax amendment Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Turbo tax amendment The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Turbo tax amendment Her expenses are not deductible. Turbo tax amendment Jerry pays $199 a day for a double room. Turbo tax amendment A single room costs $149 a day. Turbo tax amendment He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Turbo tax amendment If he uses public transportation, he can deduct only his fare. Turbo tax amendment Table 26-1. Turbo tax amendment Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Turbo tax amendment IF you have expenses for. Turbo tax amendment . Turbo tax amendment . Turbo tax amendment THEN you can deduct the cost of. Turbo tax amendment . Turbo tax amendment . Turbo tax amendment transportation travel by airplane, train, bus, or car between your home and your business destination. Turbo tax amendment If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Turbo tax amendment If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. Turbo tax amendment taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Turbo tax amendment baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Turbo tax amendment car operating and maintaining your car when traveling away from home on business. Turbo tax amendment You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. Turbo tax amendment If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Turbo tax amendment lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Turbo tax amendment Meals include amounts spent for food, beverages, taxes, and related tips. Turbo tax amendment See Meals and Incidental Expenses for additional rules and limits. Turbo tax amendment cleaning dry cleaning and laundry. Turbo tax amendment telephone business calls while on your business trip. Turbo tax amendment This includes business communication by fax machine or other communication devices. Turbo tax amendment tips tips you pay for any expenses in this chart. Turbo tax amendment other other similar ordinary and necessary expenses related to your business travel. Turbo tax amendment These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Turbo tax amendment Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. Turbo tax amendment It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Turbo tax amendment The meal is business-related entertainment. Turbo tax amendment Business-related entertainment is discussed under Entertainment Expenses , later. Turbo tax amendment The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. Turbo tax amendment Lavish or extravagant. Turbo tax amendment   You cannot deduct expenses for meals that are lavish or extravagant. Turbo tax amendment An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Turbo tax amendment Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Turbo tax amendment 50% limit on meals. Turbo tax amendment   You can figure your meal expenses using either of the following methods. Turbo tax amendment Actual cost. Turbo tax amendment The standard meal allowance. Turbo tax amendment Both of these methods are explained below. Turbo tax amendment But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Turbo tax amendment   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Turbo tax amendment If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Turbo tax amendment The 50% limit is explained later under Entertainment Expenses . Turbo tax amendment Accountable and nonaccountable plans are discussed later under Reimbursements . Turbo tax amendment Actual cost. Turbo tax amendment   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Turbo tax amendment If you use this method, you must keep records of your actual cost. Turbo tax amendment Standard meal allowance. Turbo tax amendment   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Turbo tax amendment It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Turbo tax amendment The set amount varies depending on where and when you travel. Turbo tax amendment In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Turbo tax amendment If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Turbo tax amendment See Recordkeeping , later. Turbo tax amendment Incidental expenses. Turbo tax amendment   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Turbo tax amendment Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Turbo tax amendment Incidental expenses only method. Turbo tax amendment   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Turbo tax amendment The amount of the deduction is $5 a day. Turbo tax amendment You can use this method only if you did not pay or incur any meal expenses. Turbo tax amendment You cannot use this method on any day that you use the standard meal allowance. Turbo tax amendment    Federal employees should refer to the Federal Travel Regulations at  www. Turbo tax amendment gsa. Turbo tax amendment gov. Turbo tax amendment Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Turbo tax amendment 50% limit may apply. Turbo tax amendment   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Turbo tax amendment If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Turbo tax amendment The 50% limit is explained later under Entertainment Expenses . Turbo tax amendment Accountable and nonaccountable plans are discussed later under Reimbursements . Turbo tax amendment There is no optional standard lodging amount similar to the standard meal allowance. Turbo tax amendment Your allowable lodging expense deduction is your actual cost. Turbo tax amendment Who can use the standard meal allowance. Turbo tax amendment   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Turbo tax amendment   Use of the standard meal allowance for other travel. Turbo tax amendment    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Turbo tax amendment You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Turbo tax amendment You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Turbo tax amendment Amount of standard meal allowance. Turbo tax amendment   The standard meal allowance is the federal M&IE rate. Turbo tax amendment For travel in 2013, the daily rate for most small localities in the United States is $46. Turbo tax amendment   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Turbo tax amendment You can find this information (organized by state) on the Internet at www. Turbo tax amendment gsa. Turbo tax amendment gov. Turbo tax amendment Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. Turbo tax amendment However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. Turbo tax amendment You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. Turbo tax amendment   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Turbo tax amendment If you work in the transportation industry, however, see Special rate for transportation workers , later. Turbo tax amendment Standard meal allowance for areas outside the continental United States. Turbo tax amendment    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Turbo tax amendment The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Turbo tax amendment S. Turbo tax amendment Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Turbo tax amendment The Department of State establishes per diem rates for all other foreign areas. Turbo tax amendment    You can access per diem rates for non-foreign areas outside the continental United States at: www. Turbo tax amendment defensetravel. Turbo tax amendment dod. Turbo tax amendment mil/site/perdiemCalc. Turbo tax amendment cfm. Turbo tax amendment You can access all other foreign per diem rates at www. Turbo tax amendment state. Turbo tax amendment gov/travel/. Turbo tax amendment Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. Turbo tax amendment Special rate for transportation workers. Turbo tax amendment   You can use a special standard meal allowance if you work in the transportation industry. Turbo tax amendment You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Turbo tax amendment If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). Turbo tax amendment   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. Turbo tax amendment If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Turbo tax amendment Travel for days you depart and return. Turbo tax amendment   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Turbo tax amendment You can do so by one of two methods. Turbo tax amendment Method 1: You can claim 3/4 of the standard meal allowance. Turbo tax amendment Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Turbo tax amendment Example. Turbo tax amendment Jen is employed in New Orleans as a convention planner. Turbo tax amendment In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Turbo tax amendment She left her home in New Orleans at 10 a. Turbo tax amendment m. Turbo tax amendment on Wednesday and arrived in Washington, DC, at 5:30 p. Turbo tax amendment m. Turbo tax amendment After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Turbo tax amendment m. Turbo tax amendment Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Turbo tax amendment Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Turbo tax amendment Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Turbo tax amendment For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Turbo tax amendment Travel in the United States The following discussion applies to travel in the United States. Turbo tax amendment For this purpose, the United States includes only the 50 states and the District of Columbia. Turbo tax amendment The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Turbo tax amendment See Part of Trip Outside the United States , later. Turbo tax amendment Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. Turbo tax amendment If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. Turbo tax amendment These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Turbo tax amendment Example. Turbo tax amendment You work in Atlanta and take a business trip to New Orleans in May. Turbo tax amendment On your way home, you stop in Mobile to visit your parents. Turbo tax amendment You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Turbo tax amendment If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. Turbo tax amendment You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. Turbo tax amendment The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Turbo tax amendment Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Turbo tax amendment However, you can deduct any expenses you have while at your destination that are directly related to your business. Turbo tax amendment A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Turbo tax amendment The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Turbo tax amendment Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. Turbo tax amendment For the part of your trip that is inside the United States, use the rules for travel in the United States. Turbo tax amendment Travel outside the United States does not include travel from one point in the United States to another point in the United States. Turbo tax amendment The following discussion can help you determine whether your trip was entirely within the United States. Turbo tax amendment Public transportation. Turbo tax amendment   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Turbo tax amendment Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Turbo tax amendment Example. Turbo tax amendment You fly from New York to Puerto Rico with a scheduled stop in Miami. Turbo tax amendment You return to New York nonstop. Turbo tax amendment The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Turbo tax amendment Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Turbo tax amendment Private car. Turbo tax amendment   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. Turbo tax amendment Example. Turbo tax amendment You travel by car from Denver to Mexico City and return. Turbo tax amendment Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Turbo tax amendment The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Turbo tax amendment Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Turbo tax amendment For this purpose, the United States includes only the 50 states and the District of Columbia. Turbo tax amendment How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Turbo tax amendment See chapter 1 of Publication 463 for information on luxury water travel. Turbo tax amendment Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Turbo tax amendment Travel entirely for business. Turbo tax amendment   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Turbo tax amendment Travel considered entirely for business. Turbo tax amendment   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Turbo tax amendment Exception 1 - No substantial control. Turbo tax amendment   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Turbo tax amendment The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Turbo tax amendment   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. Turbo tax amendment    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . Turbo tax amendment   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Turbo tax amendment    A self-employed person generally has substantial control over arranging business trips. Turbo tax amendment Exception 2 - Outside United States no more than a week. Turbo tax amendment   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Turbo tax amendment One week means 7 consecutive days. Turbo tax amendment In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Turbo tax amendment Exception 3 - Less than 25% of time on personal activities. Turbo tax amendment   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Turbo tax amendment For this purpose, count both the day your trip began and the day it ended. Turbo tax amendment Exception 4 - Vacation not a major consideration. Turbo tax amendment   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Turbo tax amendment Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. Turbo tax amendment You can only deduct the business portion of your cost of getting to and from your destination. Turbo tax amendment You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. Turbo tax amendment These travel allocation rules are discussed in chapter 1 of Publication 463. Turbo tax amendment You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. Turbo tax amendment In those cases, you can deduct the total cost of getting to and from your destination. Turbo tax amendment Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Turbo tax amendment If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Turbo tax amendment Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Turbo tax amendment You cannot deduct the travel expenses for your family. Turbo tax amendment If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Turbo tax amendment Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Turbo tax amendment You can deduct your travel expenses only if your attendance is connected to your own trade or business. Turbo tax amendment Convention agenda. Turbo tax amendment   The convention agenda or program generally shows the purpose of the convention. Turbo tax amendment You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Turbo tax amendment The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Turbo tax amendment Conventions held outside the North American area. Turbo tax amendment    See chapter 1 of Publication 463 for information on conventions held outside the North American area. Turbo tax amendment Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Turbo tax amendment You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. Turbo tax amendment Directly-related test. Turbo tax amendment Associated test. Turbo tax amendment Both of these tests are explained in chapter 2 of Publication 463. Turbo tax amendment The amount you can deduct for entertainment expenses may be limited. Turbo tax amendment Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Turbo tax amendment This limit is discussed next. Turbo tax amendment 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Turbo tax amendment (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. Turbo tax amendment See Individuals subject to “hours of service” limits , later. Turbo tax amendment ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. Turbo tax amendment Figure 26-A summarizes the general rules explained in this section. Turbo tax amendment The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. Turbo tax amendment Included expenses. Turbo tax amendment   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. Turbo tax amendment However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Turbo tax amendment Application of 50% limit. Turbo tax amendment   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later in this section. Turbo tax amendment   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Turbo tax amendment It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. Turbo tax amendment It also applies to the cost of meals included in deductible educational expenses. Turbo tax amendment When to apply the 50% limit. Turbo tax amendment   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Turbo tax amendment You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. Turbo tax amendment Example 1. Turbo tax amendment You spend $200 for a business-related meal. Turbo tax amendment If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Turbo tax amendment Your deduction cannot be more than $45 (. Turbo tax amendment 50 × $90). Turbo tax amendment Example 2. Turbo tax amendment You purchase two tickets to a concert and give them to a client. Turbo tax amendment You purchased the tickets through a ticket agent. Turbo tax amendment You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Turbo tax amendment Your deduction cannot be more than $80 (. Turbo tax amendment 50 × $160). Turbo tax amendment Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Turbo tax amendment Figure 26-A can help you determine if the 50% limit applies to you. Turbo tax amendment Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Turbo tax amendment Employee's reimbursed expenses. Turbo tax amendment   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. Turbo tax amendment Accountable plans are discussed later under Reimbursements . Turbo tax amendment Individuals subject to “hours of service” limits. Turbo tax amendment   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. Turbo tax amendment The percentage is 80%. Turbo tax amendment   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Turbo tax amendment Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Turbo tax amendment Interstate truck operators and bus drivers who are under Department of Transportation regulations. Turbo tax amendment Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Turbo tax amendment Certain merchant mariners who are under Coast Guard regulations. Turbo tax amendment Other exceptions. Turbo tax amendment   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. Turbo tax amendment These are discussed in Publication 463. Turbo tax amendment Figure 26-A. Turbo tax amendment Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Turbo tax amendment See Exceptions to the 50% Limit . Turbo tax amendment Please click here for the text description of the image. Turbo tax amendment Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Turbo tax amendment Entertainment. Turbo tax amendment    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Turbo tax amendment Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. Turbo tax amendment A meal as a form of entertainment. Turbo tax amendment   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. Turbo tax amendment A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Turbo tax amendment To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Turbo tax amendment You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Turbo tax amendment Separating costs. Turbo tax amendment   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. Turbo tax amendment You must have a reasonable basis for making this allocation. Turbo tax amendment For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Turbo tax amendment Taking turns paying for meals or entertainment. Turbo tax amendment   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. Turbo tax amendment Lavish or extravagant expenses. Turbo tax amendment   You cannot deduct expenses for entertainment that are lavish or extravagant. Turbo tax amendment An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Turbo tax amendment Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Turbo tax amendment Trade association meetings. Turbo tax amendment    You can deduct entertainment expenses that are directly related to, and necessary for, attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. Turbo tax amendment These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Turbo tax amendment Entertainment tickets. Turbo tax amendment   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Turbo tax amendment For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. Turbo tax amendment What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Turbo tax amendment Club dues and membership fees. Turbo tax amendment   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Turbo tax amendment This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities. Turbo tax amendment   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Turbo tax amendment You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. Turbo tax amendment Entertainment facilities. Turbo tax amendment   Generally, you cannot deduct any expense for the use of an entertainment facility. Turbo tax amendment This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Turbo tax amendment   An entertainment facility is any property you own, rent, or use for entertainment. Turbo tax amendment Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. Turbo tax amendment Out-of-pocket expenses. Turbo tax amendment   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. Turbo tax amendment These are not expenses for the use of an entertainment facility. Turbo tax amendment However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. Turbo tax amendment Additional information. Turbo tax amendment   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. Turbo tax amendment Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Turbo tax amendment This section explains the limits and rules for deducting the costs of gifts. Turbo tax amendment $25 limit. Turbo tax amendment   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. Turbo tax amendment A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. Turbo tax amendment   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. Turbo tax amendment This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. Turbo tax amendment   If you and your spouse both give gifts, both of you are treated as one taxpayer. Turbo tax amendment It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. Turbo tax amendment If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. Turbo tax amendment Incidental costs. Turbo tax amendment   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. Turbo tax amendment   A cost is incidental only if it does not add substantial value to the gift. Turbo tax amendment For example, the cost of customary gift wrapping is an incidental cost. Turbo tax amendment However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. Turbo tax amendment Exceptions. Turbo tax amendment   The following items are not considered gifts for purposes of the $25 limit. Turbo tax amendment An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. Turbo tax amendment Examples include pens, desk sets, and plastic bags and cases. Turbo tax amendment Signs, display racks, or other promotional material to be used on the business premises of the recipient. Turbo tax amendment Gift or entertainment. Turbo tax amendment   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Turbo tax amendment However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. Turbo tax amendment    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. Turbo tax amendment You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. Turbo tax amendment    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Turbo tax amendment You cannot choose, in this case, to treat the cost of the tickets as a gift expense. Turbo tax amendment Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . Turbo tax amendment These expenses include the cost of transportation by air, rail, bus, taxi, etc. Turbo tax amendment , and the cost of driving and maintaining your car. Turbo tax amendment Transportation expenses include the ordinary and necessary costs of all of the following. Turbo tax amendment Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. Turbo tax amendment (Tax home is defined earlier under Travel Expenses . Turbo tax amendment ) Visiting clients or customers. Turbo tax amendment Going to a business meeting away from your regular workplace. Turbo tax amendment Getting from your home to a temporary workplace when you have one or more regular places of work. Turbo tax amendment These temporary workplaces can be either within the area of your tax home or outside that area. Turbo tax amendment Transportation expenses do not include expenses you have while traveling away from home overnight. Turbo tax amendment Those expenses are travel expenses, discussed earlier. Turbo tax amendment However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Turbo tax amendment See Car Expenses , later. Turbo tax amendment Illustration of transportation expenses. Turbo tax amendment    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. Turbo tax amendment You may want to refer to it when deciding whether you can deduct your transportation expenses. Turbo tax amendment Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Turbo tax amendment However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. Turbo tax amendment Temporary work location. Turbo tax amendment   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. Turbo tax amendment   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. Turbo tax amendment   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. Turbo tax amendment   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. Turbo tax amendment It will not be treated as temporary after the date you determine it will last more than 1 year. Turbo tax amendment   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. Turbo tax amendment You may have deductible travel expenses as discussed earlier in this chapter. Turbo tax amendment No regular place of work. Turbo tax amendment   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. Turbo tax amendment   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Turbo tax amendment   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Turbo tax amendment These are nondeductible commuting expenses. Turbo tax amendment Two places of work. Turbo tax amendment   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. Turbo tax amendment However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. Turbo tax amendment   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Turbo tax amendment You cannot deduct them. Turbo tax amendment Armed Forces reservists. Turbo tax amendment   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. Turbo tax amendment You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. Turbo tax amendment   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. Turbo tax amendment In this case, your transportation generally is a nondeductible commuting expense. Turbo tax amendment However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. Turbo tax amendment   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. Turbo tax amendment   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Turbo tax amendment These expenses are discussed earlier under Travel Expenses . Turbo tax amendment   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. Turbo tax amendment See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. Turbo tax amendment Commuting expenses. Turbo tax amendment   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. Turbo tax amendment These costs are personal commuting expenses. Turbo tax amendment You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Turbo tax amendment You cannot deduct commuting expenses even if you work during the commuting trip. Turbo tax amendment Example. Turbo tax amendment You sometimes use your cell phone to make business calls while commuting to and from work. Turbo tax amendment Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Turbo tax amendment These activities do not change the trip from personal to business. Turbo tax amendment You cannot deduct your commuting expenses. Turbo tax amendment Parking fees. Turbo tax amendment   Fees you pay to park your car at your place of business are nondeductible commuting expenses. Turbo tax amendment You can, however, deduct business-related parking fees when visiting a customer or client. Turbo tax amendment Advertising display on car. Turbo tax amendment   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Turbo tax amendment If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Turbo tax amendment Car pools. Turbo tax amendment   You cannot deduct the cost of using your car in a nonprofit car pool. Turbo tax amendment Do not include payments you receive from the passengers in your income. Turbo tax amendment These payments are considered reimbursements of your expenses. Turbo tax amendment However, if you operate a car pool for a profit, you must include payments from passengers in your income. Turbo tax amendment You can then deduct your car expenses (using the rules in this chapter). Turbo tax amendment Hauling tools or instruments. Turbo tax amendment   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Turbo tax amendment However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). Turbo tax amendment Union members' trips from a union hall. Turbo tax amendment   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. Turbo tax amendment Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Turbo tax amendment Office in the home. Turbo tax amendment   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. Turbo tax amendment (See chapter 28 for information on determining if your home office qualifies as a principal place of business. Turbo tax amendment ) Figure 26-B. Turbo tax amendment When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. Turbo tax amendment (Do not use this chart if your home is your principal place of business. Turbo tax amendment See Office in the home . Turbo tax amendment ) Please click here for the text description of the image. Turbo tax amendment Figure 26-B. Turbo tax amendment Local Transportation Examples of deductible transportation. Turbo tax amendment   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Turbo tax amendment Example 1. Turbo tax amendment You regularly work in an office in the city where you live. Turbo tax amendment Your employer sends you to a 1-week training session at a different office in the same city. Turbo tax amendment You travel directly from your home to the training location and return each day. Turbo tax amendment You can deduct the cost of your daily round-trip transportation between your home and the training location. Turbo tax amendment Example 2. Turbo tax amendment Your principal place of business is in your home. Turbo tax amendment You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Turbo tax amendment Example 3. Turbo tax amendment You have no regular office, and you do not have an office in your home. Turbo tax amendment In this case, the location of your first business contact inside the metropolitan area is considered your office. Turbo tax amendment Transportation expenses between your home and this first contact are nondeductible commuting expenses. Turbo tax amendment Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Turbo tax amendment While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. Turbo tax amendment With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. Turbo tax amendment Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. Turbo tax amendment You generally can use one of the two following methods to figure your deductible expenses. Turbo tax amendment Standard mileage rate. Turbo tax amendment Actual car expenses. Turbo tax amendment If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. Turbo tax amendment See Leasing a car under Actual Car Expenses, later. Turbo tax amendment In this chapter, “car” includes a van, pickup, or panel truck. Turbo tax amendment Rural mail carriers. Turbo tax amendment   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. Turbo tax amendment Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. Turbo tax amendment   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). Turbo tax amendment You must complete Form 2106 and attach it to your Form 1040. Turbo tax amendment   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Turbo tax amendment It is given as an equipment maintenance allowance (EMA) to employees of the U. Turbo tax amendment S. Turbo tax amendment Postal Service. Turbo tax amendment It is at the rate contained in the 1991 collective bargaining agreement. Turbo tax amendment Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Turbo tax amendment See your employer for information on your reimbursement. Turbo tax amendment If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Turbo tax amendment Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. Turbo tax amendment For 2013, the standard mileage rate for business use is 56½ cents per mile. Turbo tax amendment If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. Turbo tax amendment You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. Turbo tax amendment See Reimbursements under How To Report, later. Turbo tax amendment Choosing the standard mileage rate. Turbo tax amendment   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. Turbo tax amendment Then in later years, you can choose to use either the standard mileage rate or actual expenses. Turbo tax amendment   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Turbo tax amendment   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Turbo tax amendment You cannot revoke the choice. Turbo tax amendment However, in a later year, you can switch from the standard mileage rate to the actual expenses method. Turbo tax amendment If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. Turbo tax amendment Example. Turbo tax amendment Larry is an employee who occasionally uses his own car for business purposes. Turbo tax amendment He purchased the car in 2011, but he did not claim any unreimburse
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IRS Media Relations Offices - Contact Numbers

Representatives of national, state and local news media outlets may contact the media relations offices listed below for assistance.

*Please note that these offices are established solely for responding to inquiries from the press (news media).  Questions and account inquiries from the general public and businesses cannot be handled by these offices.

Contactos para Medios en Español  (Spanish Media Contacts)

 

National Media Relations Office
National - International Media Outlets

Telephone
202-317-4000


 

Field Media Relations Office
State - Regional - Local Media Outlets

Telephone

Alabama

615-250-5951

Alaska

206-220-5782

Arizona

602-636-9595

Arkansas

972-308-7252

California - Northern Counties through Marin, Napa, Solano, Sacramento, Amador and Alpine Counties

206-220-5782

California - Central Counties from San Francisco, Contra Costa, San Joaquin and Calaveras Counties through Monterey, San Benito, Madera and Mono Counties

619-615-9500

California - Fresno, Inyo, San Luis Obispo and Santa Barbara Counties

213-576-3157

California - Kern, Kings, Los Angeles, Tulare and Ventura Counties

213-576-3010

California - Imperial, Orange, Riverside, San Bernardino and San Diego Counties

619-615-9500

Colorado

303-603-4646

Connecticut

617-316-2224

Delaware

617-316-2224

District of Columbia - (includes Metro Area) and Baltimore

202-317-4000

Florida

954-423-7640

Georgia

404-338-7886

Hawaii

206-220-5782

Idaho

303-603-4646

Illinois - (includes Chicago Metro Area, Cook, DuPage, Kane, Kendall, Lake, McHenry and Will Counties)

312-292-3530

Illinois - (excludes Chicago Metro Area, Cook, DuPage, Kane, Kendall, Lake, McHenry and Will Counties)

314-612-4516

Indiana

313-234-1800

Iowa

414-231-2828

Kansas

314-612-4516

Kentucky

313-234-1800

Louisiana

281-721-8130

Maine

617-316-2224

Maryland - (excludes Baltimore)

617-316-2224

Massachusetts

617-316-2224

Michigan

313-234-1800

Minnesota

303-603-4646

Mississippi

404-338-7886

Missouri

314-612-4516

Montana

303-603-4646

Nebraska

414-231-2828

Nevada

619-615-9500

New Hampshire

617-316-2224

New Jersey

302-286-1528

New Mexico

602-636-9595

New York

617-316-2224

North Carolina

336-574-6040

North Dakota

303-603-4646

Ohio

614-280-8649

Oklahoma

281-721-8130

Oregon

206-220-5782

Pennsylvania - Eastern (includes Harrisburg, Philadelphia, Reading Scranton and Wilkes-Barre)

302-286-1528

Pennsylvania - Western (includes Erie, Pittsburgh, Johnstown-Altoona and State College)

614-280-8649

Rhode Island

617-316-2224

South Carolina

404-338-7886

South Dakota

303-603-4646

Tennessee

615-250-5951

Texas - Northern (includes Abilene, Amarillo, Dallas, Ft. Worth, Lubbock, Waco and surrounding areas)

972-308-7252

Texas - Southern (includes Austin, Beaumont, College Station, Corpus Christi, El Paso, Houston, Laredo, San Antonio and surrounding areas)

281-721-8130

Texas - Southern (includes Brownsville, Edinburg, Harlingen, McAllen, Weslaco and surrounding areas)

956-365-5177

Utah

602-636-9595

Vermont

617-316-2224

Virginia - (excludes DC Metro Area)

336-574-6040

Virginia - (includes DC Metro Area)

202-317-4000

Washington

206-220-5782

West Virginia

336-574-6040

Wisconsin

414-231-2828

Wyoming

303-603-4646

 

Pacific Territories - American Samoa, Guam and
Northern Mariana Islands
206-220-5782


 

Page Last Reviewed or Updated: 27-Jan-2014

The Turbo Tax Amendment

Turbo tax amendment Publication 575 - Additional Material Table of Contents Worksheet A. Turbo tax amendment Simplified Method 1. Turbo tax amendment Enter the total pension or annuity payments received this year. Turbo tax amendment Also, add this amount to the total for Form 1040, line 16a; Form 1040A, line 12a; or Form 1040NR, line 17a 1. Turbo tax amendment   2. Turbo tax amendment Enter your cost in the plan (contract) at the annuity starting date plus any death benefit exclusion. Turbo tax amendment * See Cost (Investment in the Contract) , earlier 2. Turbo tax amendment   Note: If your annuity starting date was before this year and you completed this worksheet last year, skip line 3 and enter the amount from line 4 of last year's worksheet on line 4 below (even if the amount of your pension or annuity has changed). Turbo tax amendment Otherwise, go to line 3. Turbo tax amendment   3. Turbo tax amendment Enter the appropriate number from Table 1 below. Turbo tax amendment But if your annuity starting date was after 1997 and the payments are for your life and that of your beneficiary, enter the appropriate number from Table 2 below. Turbo tax amendment 3. Turbo tax amendment   4. Turbo tax amendment Divide line 2 by the number on line 3 4. Turbo tax amendment   5. Turbo tax amendment Multiply line 4 by the number of months for which this year's payments were made. Turbo tax amendment If your annuity starting date was before 1987, enter this amount on line 8 below and skip lines 6, 7, 10, and 11. Turbo tax amendment Otherwise, go to line 6 5. Turbo tax amendment   6. Turbo tax amendment Enter any amounts previously recovered tax free in years after 1986. Turbo tax amendment This is the amount shown on line 10 of your worksheet for last year 6. Turbo tax amendment   7. Turbo tax amendment Subtract line 6 from line 2 7. Turbo tax amendment   8. Turbo tax amendment Enter the smaller of line 5 or line 7 8. Turbo tax amendment   9. Turbo tax amendment Taxable amount for year. Turbo tax amendment Subtract line 8 from line 1. Turbo tax amendment Enter the result, but not less than zero. Turbo tax amendment Also, add this amount to the total for Form 1040, line 16b; Form 1040A, line 12b; or Form 1040NR, line 17b. Turbo tax amendment  Note: If your Form 1099-R shows a larger taxable amount, use the amount figured on this line instead. Turbo tax amendment If you are a retired public safety officer, see Insurance Premiums for Retired Public Safety Officers , earlier, before entering an amount on your tax return 9. Turbo tax amendment   10. Turbo tax amendment Was your annuity starting date before 1987? □ Yes. Turbo tax amendment STOP. Turbo tax amendment Do not complete the rest of this worksheet. Turbo tax amendment  □ No. Turbo tax amendment Add lines 6 and 8. Turbo tax amendment This is the amount you have recovered tax free through 2013. Turbo tax amendment You will need this number if you need to fill out this worksheet next year 10. Turbo tax amendment   11. Turbo tax amendment Balance of cost to be recovered. Turbo tax amendment Subtract line 10 from line 2. Turbo tax amendment If zero, you will not have to complete this worksheet next year. Turbo tax amendment The payments you receive next year will generally be fully taxable 11. Turbo tax amendment   * A death benefit exclusion (up to $5,000) applied to certain benefits received by employees who died before August 21, 1996. Turbo tax amendment Table 1 for Line 3 Above   IF the age at  annuity starting date was . Turbo tax amendment . Turbo tax amendment . Turbo tax amendment         AND your annuity starting date was—     BEFORE November 19, 1996,  enter on line 3 . Turbo tax amendment . Turbo tax amendment . Turbo tax amendment AFTER November 18, 1996,  enter on line 3 . Turbo tax amendment . Turbo tax amendment . Turbo tax amendment   55 or under 300 360   56-60 260 310   61-65 240 260   66-70 170 210   71 or over 120 160 Table 2 for Line 3 Above   IF the combined ages at annuity starting date were . Turbo tax amendment . Turbo tax amendment . Turbo tax amendment   THEN enter on line 3 . Turbo tax amendment . Turbo tax amendment . Turbo tax amendment         110 or under   410         111-120   360         121-130   310         131-140   260         141 or over   210       Prev  Up  Next   Home   More Online Publications