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Amend My 2011 Tax Return

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Amend My 2011 Tax Return

Amend my 2011 tax return 3. Amend my 2011 tax return   SIMPLE Plans Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: SIMPLE IRA PlanWho Can Set Up a SIMPLE IRA Plan? Who Can Participate in a SIMPLE IRA Plan? How To Set Up a SIMPLE IRA Plan Notification Requirement Contribution Limits When To Deduct Contributions Where To Deduct Contributions Tax Treatment of Contributions Distributions (Withdrawals) More Information on SIMPLE IRA Plans SIMPLE 401(k) Plan Topics - This chapter discusses: SIMPLE IRA plan SIMPLE 401(k) plan Useful Items - You may want to see: Publications 590 Individual Retirement Arrangements (IRAs) 3998 Choosing A Retirement Solution for Your Small Business 4284 SIMPLE IRA Plan Checklist 4334 SIMPLE IRA Plans for Small Businesses Forms (and Instructions) W-2 Wage and Tax Statement 5304-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–Not for Use With a Designated Financial Institution 5305-SIMPLE Savings Incentive Match Plan for Employees of Small Employers (SIMPLE)–for Use With a Designated Financial Institution 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs A savings incentive match plan for employees (SIMPLE plan) is a written arrangement that provides you and your employees with a simplified way to make contributions to provide retirement income. Amend my 2011 tax return Under a SIMPLE plan, employees can choose to make salary reduction contributions to the plan rather than receiving these amounts as part of their regular pay. Amend my 2011 tax return In addition, you will contribute matching or nonelective contributions. Amend my 2011 tax return SIMPLE plans can only be maintained on a calendar-year basis. Amend my 2011 tax return A SIMPLE plan can be set up in either of the following ways. Amend my 2011 tax return Using SIMPLE IRAs (SIMPLE IRA plan). Amend my 2011 tax return As part of a 401(k) plan (SIMPLE 401(k) plan). Amend my 2011 tax return Many financial institutions will help you set up a SIMPLE plan. Amend my 2011 tax return SIMPLE IRA Plan A SIMPLE IRA plan is a retirement plan that uses SIMPLE IRAs for each eligible employee. Amend my 2011 tax return Under a SIMPLE IRA plan, a SIMPLE IRA must be set up for each eligible employee. Amend my 2011 tax return For the definition of an eligible employee, see Who Can Participate in a SIMPLE IRA Plan , later. Amend my 2011 tax return Who Can Set Up a SIMPLE IRA Plan? You can set up a SIMPLE IRA plan if you meet both the following requirements. Amend my 2011 tax return You meet the employee limit. Amend my 2011 tax return You do not maintain another qualified plan unless the other plan is for collective bargaining employees. Amend my 2011 tax return Employee limit. Amend my 2011 tax return   You can set up a SIMPLE IRA plan only if you had 100 or fewer employees who received $5,000 or more in compensation from you for the preceding year. Amend my 2011 tax return Under this rule, you must take into account all employees employed at any time during the calendar year regardless of whether they are eligible to participate. Amend my 2011 tax return Employees include self-employed individuals who received earned income and leased employees (defined in chapter 1). Amend my 2011 tax return   Once you set up a SIMPLE IRA plan, you must continue to meet the 100-employee limit each year you maintain the plan. Amend my 2011 tax return Grace period for employers who cease to meet the 100-employee limit. Amend my 2011 tax return   If you maintain the SIMPLE IRA plan for at least 1 year and you cease to meet the 100-employee limit in a later year, you will be treated as meeting it for the 2 calendar years immediately following the calendar year for which you last met it. Amend my 2011 tax return   A different rule applies if you do not meet the 100-employee limit because of an acquisition, disposition, or similar transaction. Amend my 2011 tax return Under this rule, the SIMPLE IRA plan will be treated as meeting the 100-employee limit for the year of the transaction and the 2 following years if both the following conditions are satisfied. Amend my 2011 tax return Coverage under the plan has not significantly changed during the grace period. Amend my 2011 tax return The SIMPLE IRA plan would have continued to qualify after the transaction if you had remained a separate employer. Amend my 2011 tax return    The grace period for acquisitions, dispositions, and similar transactions also applies if, because of these types of transactions, you do not meet the rules explained under Other qualified plan or Who Can Participate in a SIMPLE IRA Plan, below. Amend my 2011 tax return Other qualified plan. Amend my 2011 tax return   The SIMPLE IRA plan generally must be the only retirement plan to which you make contributions, or to which benefits accrue, for service in any year beginning with the year the SIMPLE IRA plan becomes effective. Amend my 2011 tax return Exception. Amend my 2011 tax return   If you maintain a qualified plan for collective bargaining employees, you are permitted to maintain a SIMPLE IRA plan for other employees. Amend my 2011 tax return Who Can Participate in a SIMPLE IRA Plan? Eligible employee. Amend my 2011 tax return   Any employee who received at least $5,000 in compensation during any 2 years preceding the current calendar year and is reasonably expected to receive at least $5,000 during the current calendar year is eligible to participate. Amend my 2011 tax return The term “employee” includes a self-employed individual who received earned income. Amend my 2011 tax return   You can use less restrictive eligibility requirements (but not more restrictive ones) by eliminating or reducing the prior year compensation requirements, the current year compensation requirements, or both. Amend my 2011 tax return For example, you can allow participation for employees who received at least $3,000 in compensation during any preceding calendar year. Amend my 2011 tax return However, you cannot impose any other conditions for participating in a SIMPLE IRA plan. Amend my 2011 tax return Excludable employees. Amend my 2011 tax return   The following employees do not need to be covered under a SIMPLE IRA plan. Amend my 2011 tax return Employees who are covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you. Amend my 2011 tax return Nonresident alien employees who have received no U. Amend my 2011 tax return S. Amend my 2011 tax return source wages, salaries, or other personal services compensation from you. Amend my 2011 tax return Compensation. Amend my 2011 tax return   Compensation for employees is the total wages, tips, and other compensation from the employer subject to federal income tax withholding and the amounts paid for domestic service in a private home, local college club, or local chapter of a college fraternity or sorority. Amend my 2011 tax return Compensation also includes the employee's salary reduction contributions made under this plan and, if applicable, elective deferrals under a section 401(k) plan, a SARSEP, or a section 403(b) annuity contract and compensation deferred under a section 457 plan required to be reported by the employer on Form W-2. Amend my 2011 tax return If you are self-employed, compensation is your net earnings from self-employment (line 4 of Short Schedule SE or line 6 of Long Schedule SE (Form 1040)) before subtracting any contributions made to the SIMPLE IRA plan for yourself. Amend my 2011 tax return How To Set Up a SIMPLE IRA Plan You can use Form 5304-SIMPLE or Form 5305-SIMPLE to set up a SIMPLE IRA plan. Amend my 2011 tax return Each form is a model savings incentive match plan for employees (SIMPLE) plan document. Amend my 2011 tax return Which form you use depends on whether you select a financial institution or your employees select the institution that will receive the contributions. Amend my 2011 tax return Use Form 5304-SIMPLE if you allow each plan participant to select the financial institution for receiving his or her SIMPLE IRA plan contributions. Amend my 2011 tax return Use Form 5305-SIMPLE if you require that all contributions under the SIMPLE IRA plan be deposited initially at a designated financial institution. Amend my 2011 tax return The SIMPLE IRA plan is adopted when you have completed all appropriate boxes and blanks on the form and you (and the designated financial institution, if any) have signed it. Amend my 2011 tax return Keep the original form. Amend my 2011 tax return Do not file it with the IRS. Amend my 2011 tax return Other uses of the forms. Amend my 2011 tax return   If you set up a SIMPLE IRA plan using Form 5304-SIMPLE or Form 5305-SIMPLE, you can use the form to satisfy other requirements, including the following. Amend my 2011 tax return Meeting employer notification requirements for the SIMPLE IRA plan. Amend my 2011 tax return Form 5304-SIMPLE and Form 5305-SIMPLE contain a Model Notification to Eligible Employees that provides the necessary information to the employee. Amend my 2011 tax return Maintaining the SIMPLE IRA plan records and proving you set up a SIMPLE IRA plan for employees. Amend my 2011 tax return Deadline for setting up a SIMPLE IRA plan. Amend my 2011 tax return   You can set up a SIMPLE IRA plan effective on any date from January 1 through October 1 of a year, provided you did not previously maintain a SIMPLE IRA plan. Amend my 2011 tax return This requirement does not apply if you are a new employer that comes into existence after October 1 of the year the SIMPLE IRA plan is set up and you set up a SIMPLE IRA plan as soon as administratively feasible after your business comes into existence. Amend my 2011 tax return If you previously maintained a SIMPLE IRA plan, you can set up a SIMPLE IRA plan effective only on January 1 of a year. Amend my 2011 tax return A SIMPLE IRA plan cannot have an effective date that is before the date you actually adopt the plan. Amend my 2011 tax return Setting up a SIMPLE IRA. Amend my 2011 tax return   SIMPLE IRAs are the individual retirement accounts or annuities into which the contributions are deposited. Amend my 2011 tax return A SIMPLE IRA must be set up for each eligible employee. Amend my 2011 tax return Forms 5305-S, SIMPLE Individual Retirement Trust Account, and 5305-SA, SIMPLE Individual Retirement Custodial Account, are model trust and custodial account documents the participant and the trustee (or custodian) can use for this purpose. Amend my 2011 tax return   A SIMPLE IRA cannot be a Roth IRA. Amend my 2011 tax return Contributions to a SIMPLE IRA will not affect the amount an individual can contribute to a Roth or traditional IRA. Amend my 2011 tax return Deadline for setting up a SIMPLE IRA. Amend my 2011 tax return   A SIMPLE IRA must be set up for an employee before the first date by which a contribution is required to be deposited into the employee's IRA. Amend my 2011 tax return See Time limits for contributing funds , later, under Contribution Limits. Amend my 2011 tax return Credit for startup costs. Amend my 2011 tax return   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE IRA plan that first became effective in 2013. Amend my 2011 tax return For more information, see Credit for startup costs under Reminders, earlier. Amend my 2011 tax return Notification Requirement If you adopt a SIMPLE IRA plan, you must notify each employee of the following information before the beginning of the election period. Amend my 2011 tax return The employee's opportunity to make or change a salary reduction choice under a SIMPLE IRA plan. Amend my 2011 tax return Your decision to make either matching contributions or nonelective contributions (discussed later). Amend my 2011 tax return A summary description provided by the financial institution. Amend my 2011 tax return Written notice that his or her balance can be transferred without cost or penalty if they use a designated financial institution. Amend my 2011 tax return Election period. Amend my 2011 tax return   The election period is generally the 60-day period immediately preceding January 1 of a calendar year (November 2 to December 31 of the preceding calendar year). Amend my 2011 tax return However, the dates of this period are modified if you set up a SIMPLE IRA plan in mid-year (for example, on July 1) or if the 60-day period falls before the first day an employee becomes eligible to participate in the SIMPLE IRA plan. Amend my 2011 tax return   A SIMPLE IRA plan can provide longer periods for permitting employees to enter into salary reduction agreements or to modify prior agreements. Amend my 2011 tax return For example, a SIMPLE IRA plan can provide a 90-day election period instead of the 60-day period. Amend my 2011 tax return Similarly, in addition to the 60-day period, a SIMPLE IRA plan can provide quarterly election periods during the 30 days before each calendar quarter, other than the first quarter of each year. Amend my 2011 tax return Contribution Limits Contributions are made up of salary reduction contributions and employer contributions. Amend my 2011 tax return You, as the employer, must make either matching contributions or nonelective contributions, defined later. Amend my 2011 tax return No other contributions can be made to the SIMPLE IRA plan. Amend my 2011 tax return These contributions, which you can deduct, must be made timely. Amend my 2011 tax return See Time limits for contributing funds , later. Amend my 2011 tax return Salary reduction contributions. Amend my 2011 tax return   The amount the employee chooses to have you contribute to a SIMPLE IRA on his or her behalf cannot be more than $12,000 for 2013 and 2014. Amend my 2011 tax return These contributions must be expressed as a percentage of the employee's compensation unless you permit the employee to express them as a specific dollar amount. Amend my 2011 tax return You cannot place restrictions on the contribution amount (such as limiting the contribution percentage), except to comply with the $12,000 limit. Amend my 2011 tax return   If you or an employee participates in any other qualified plan during the year and you or your employee have salary reduction contributions (elective deferrals) under those plans, the salary reduction contributions under a SIMPLE IRA plan also count toward the overall annual limit ($17,500 for 2013 and 2014) on exclusion of salary reduction contributions and other elective deferrals. Amend my 2011 tax return Catch-up contributions. Amend my 2011 tax return   A SIMPLE IRA plan can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. Amend my 2011 tax return The catch-up contribution limit for 2013 and 2014 for SIMPLE IRA plans is $2,500. Amend my 2011 tax return Salary reduction contributions are not treated as catch-up contributions for 2013 or 2014 until they exceed $12,000. Amend my 2011 tax return However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. Amend my 2011 tax return The catch-up contribution limit. Amend my 2011 tax return The excess of the participant's compensation over the salary reduction contributions that are not catch-up contributions. Amend my 2011 tax return Employer matching contributions. Amend my 2011 tax return   You are generally required to match each employee's salary reduction contributions on a dollar-for-dollar basis up to 3% of the employee's compensation. Amend my 2011 tax return This requirement does not apply if you make nonelective contributions as discussed later. Amend my 2011 tax return Example. Amend my 2011 tax return In 2013, your employee, John Rose, earned $25,000 and chose to defer 5% of his salary. Amend my 2011 tax return Your net earnings from self-employment are $40,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. Amend my 2011 tax return You make 3% matching contributions. Amend my 2011 tax return The total contribution you make for John is $2,000, figured as follows. Amend my 2011 tax return Salary reduction contributions ($25,000 × . Amend my 2011 tax return 05) $1,250 Employer matching contribution ($25,000 × . Amend my 2011 tax return 03) 750 Total contributions $2,000     The total contribution you make for yourself is $5,200, figured as follows. Amend my 2011 tax return Salary reduction contributions ($40,000 × . Amend my 2011 tax return 10) $4,000 Employer matching contribution ($40,000 × . Amend my 2011 tax return 03) 1,200 Total contributions $5,200 Lower percentage. Amend my 2011 tax return   If you choose a matching contribution less than 3%, the percentage must be at least 1%. Amend my 2011 tax return You must notify the employees of the lower match within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. Amend my 2011 tax return You cannot choose a percentage less than 3% for more than 2 years during the 5-year period that ends with (and includes) the year for which the choice is effective. Amend my 2011 tax return Nonelective contributions. Amend my 2011 tax return   Instead of matching contributions, you can choose to make nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 (or some lower amount you select) of compensation from you for the year. Amend my 2011 tax return If you make this choice, you must make nonelective contributions whether or not the employee chooses to make salary reduction contributions. Amend my 2011 tax return Only $255,000 of the employee's compensation can be taken into account to figure the contribution limit in 2013 ($260,000 in 2014). Amend my 2011 tax return   If you choose this 2% contribution formula, you must notify the employees within a reasonable period of time before the 60-day election period (discussed earlier) for the calendar year. Amend my 2011 tax return Example 1. Amend my 2011 tax return In 2013, your employee, Jane Wood, earned $36,000 and chose to have you contribute 10% of her salary. Amend my 2011 tax return Your net earnings from self-employment are $50,000, and you choose to contribute 10% of your earnings to your SIMPLE IRA. Amend my 2011 tax return You make a 2% nonelective contribution. Amend my 2011 tax return Both of you are under age 50. Amend my 2011 tax return The total contribution you make for Jane is $4,320, figured as follows. Amend my 2011 tax return Salary reduction contributions ($36,000 × . Amend my 2011 tax return 10) $3,600 2% nonelective contributions ($36,000 × . Amend my 2011 tax return 02) 720 Total contributions $4,320     The total contribution you make for yourself is $6,000, figured as follows. Amend my 2011 tax return Salary reduction contributions ($50,000 × . Amend my 2011 tax return 10) $5,000 2% nonelective contributions ($50,000 × . Amend my 2011 tax return 02) 1,000 Total contributions $6,000 Example 2. Amend my 2011 tax return Using the same facts as in Example 1, above, the maximum contribution you make for Jane or for yourself if you each earned $75,000 is $13,500, figured as follows. Amend my 2011 tax return Salary reduction contributions (maximum amount allowed) $12,000 2% nonelective contributions ($75,000 × . Amend my 2011 tax return 02) 1,500 Total contributions $13,500 Time limits for contributing funds. Amend my 2011 tax return   You must make the salary reduction contributions to the SIMPLE IRA within 30 days after the end of the month in which the amounts would otherwise have been payable to the employee in cash. Amend my 2011 tax return You must make matching contributions or nonelective contributions by the due date (including extensions) for filing your federal income tax return for the year. Amend my 2011 tax return Certain plans subject to Department of Labor rules may have an earlier due date for salary reduction contributions. Amend my 2011 tax return When To Deduct Contributions You can deduct SIMPLE IRA contributions in the tax year within which the calendar year for which contributions were made ends. Amend my 2011 tax return You can deduct contributions for a particular tax year if they are made for that tax year and are made by the due date (including extensions) of your federal income tax return for that year. Amend my 2011 tax return Example 1. Amend my 2011 tax return Your tax year is the fiscal year ending June 30. Amend my 2011 tax return Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2013 before July 1, 2013) are deductible in the tax year ending June 30, 2014. Amend my 2011 tax return Example 2. Amend my 2011 tax return You are a sole proprietor whose tax year is the calendar year. Amend my 2011 tax return Contributions under a SIMPLE IRA plan for the calendar year 2013 (including contributions made in 2014 by April 15, 2014) are deductible in the 2013 tax year. Amend my 2011 tax return Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. Amend my 2011 tax return For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040); partnerships deduct them on Form 1065; and corporations deduct them on Form 1120 or Form 1120S. Amend my 2011 tax return Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. Amend my 2011 tax return (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065) you receive from the partnership. Amend my 2011 tax return ) Tax Treatment of Contributions You can deduct your contributions and your employees can exclude these contributions from their gross income. Amend my 2011 tax return SIMPLE IRA plan contributions are not subject to federal income tax withholding. Amend my 2011 tax return However, salary reduction contributions are subject to social security, Medicare, and federal unemployment (FUTA) taxes. Amend my 2011 tax return Matching and nonelective contributions are not subject to these taxes. Amend my 2011 tax return Reporting on Form W-2. Amend my 2011 tax return   Do not include SIMPLE IRA plan contributions in the “Wages, tips, other compensation” box of Form W-2. Amend my 2011 tax return You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. Amend my 2011 tax return You must also include them in box 12. Amend my 2011 tax return Mark the “Retirement plan” checkbox in box 13. Amend my 2011 tax return For more information, see the Form W-2 instructions. Amend my 2011 tax return Distributions (Withdrawals) Distributions from a SIMPLE IRA are subject to IRA rules and generally are includible in income for the year received. Amend my 2011 tax return Tax-free rollovers can be made from one SIMPLE IRA into another SIMPLE IRA. Amend my 2011 tax return However, a rollover from a SIMPLE IRA to a non-SIMPLE IRA can be made tax free only after a 2-year participation in the SIMPLE IRA plan. Amend my 2011 tax return Generally, you or your employee must begin to receive distributions from a SIMPLE IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 70½. Amend my 2011 tax return Early withdrawals generally are subject to a 10% additional tax. Amend my 2011 tax return However, the additional tax is increased to 25% if funds are withdrawn within 2 years of beginning participation. Amend my 2011 tax return More information. Amend my 2011 tax return   See Publication 590 for information about IRA rules, including those on the tax treatment of distributions, rollovers, required distributions, and income tax withholding. Amend my 2011 tax return More Information on SIMPLE IRA Plans If you need help to set up or maintain a SIMPLE IRA plan, go to the IRS website and search SIMPLE IRA Plan. Amend my 2011 tax return SIMPLE 401(k) Plan You can adopt a SIMPLE plan as part of a 401(k) plan if you meet the 100-employee limit as discussed earlier under SIMPLE IRA Plan. Amend my 2011 tax return A SIMPLE 401(k) plan is a qualified retirement plan and generally must satisfy the rules discussed under Qualification Rules in chapter 4, including the required distribution rules. Amend my 2011 tax return However, a SIMPLE 401(k) plan is not subject to the nondiscrimination and top-heavy rules discussed in chapter 4 if the plan meets the conditions listed below. Amend my 2011 tax return Under the plan, an employee can choose to have you make salary reduction contributions for the year to a trust in an amount expressed as a percentage of the employee's compensation, but not more than $12,000 for 2013 and 2014. Amend my 2011 tax return If permitted under the plan, an employee who is age 50 or over can also make a catch-up contribution of up to $2,500 for 2013 and 2014. Amend my 2011 tax return See Catch-up contributions , earlier under Contribution Limits. Amend my 2011 tax return You must make either: Matching contributions up to 3% of compensation for the year, or Nonelective contributions of 2% of compensation on behalf of each eligible employee who has at least $5,000 of compensation from you for the year. Amend my 2011 tax return No other contributions can be made to the trust. Amend my 2011 tax return No contributions are made, and no benefits accrue, for services during the year under any other qualified retirement plan sponsored by you on behalf of any employee eligible to participate in the SIMPLE 401(k) plan. Amend my 2011 tax return The employee's rights to any contributions are nonforfeitable. Amend my 2011 tax return No more than $255,000 of the employee's compensation can be taken into account in figuring matching contributions and nonelective contributions in 2013 ($260,000 in 2014). Amend my 2011 tax return Compensation is defined earlier in this chapter. Amend my 2011 tax return Employee notification. Amend my 2011 tax return   The notification requirement that applies to SIMPLE IRA plans also applies to SIMPLE 401(k) plans. Amend my 2011 tax return See Notification Requirement in this chapter. Amend my 2011 tax return Credit for startup costs. Amend my 2011 tax return   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SIMPLE 401(k) plan that first became effective in 2013. Amend my 2011 tax return For more information, see Credit for startup costs under Reminders, earlier. Amend my 2011 tax return Note on Forms. Amend my 2011 tax return   Please note that Forms 5304-SIMPLE and 5305-SIMPLE can not be used to establish a SIMPLE 401(k) plan. Amend my 2011 tax return To set up a SIMPLE 401(k) plan, see Adopting a Written Plan in chapter 4. Amend my 2011 tax return Prev  Up  Next   Home   More Online Publications
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The Amend My 2011 Tax Return

Amend my 2011 tax return 26. Amend my 2011 tax return   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. Amend my 2011 tax return Parking fees. Amend my 2011 tax return Advertising display on car. Amend my 2011 tax return Car pools. Amend my 2011 tax return Hauling tools or instruments. Amend my 2011 tax return Union members' trips from a union hall. Amend my 2011 tax return Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. Amend my 2011 tax return Statutory employees. Amend my 2011 tax return Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. Amend my 2011 tax return  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Amend my 2011 tax return Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. Amend my 2011 tax return Depreciation limits on cars, trucks, and vans. Amend my 2011 tax return  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). Amend my 2011 tax return For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). Amend my 2011 tax return For more information, see Depreciation limits in Publication 463. Amend my 2011 tax return Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. Amend my 2011 tax return An ordinary expense is one that is common and accepted in your trade or business. Amend my 2011 tax return A necessary expense is one that is helpful and appropriate for your business. Amend my 2011 tax return An expense does not have to be required to be considered necessary. Amend my 2011 tax return This chapter explains the following. Amend my 2011 tax return What expenses are deductible. Amend my 2011 tax return How to report your expenses on your return. Amend my 2011 tax return What records you need to prove your expenses. Amend my 2011 tax return How to treat any expense reimbursements you may receive. Amend my 2011 tax return Who does not need to use this chapter. Amend my 2011 tax return   If you are an employee, you will not need to read this chapter if all of the following are true. Amend my 2011 tax return You fully accounted to your employer for your work-related expenses. Amend my 2011 tax return You received full reimbursement for your expenses. Amend my 2011 tax return Your employer required you to return any excess reimbursement and you did so. Amend my 2011 tax return There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. Amend my 2011 tax return If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. Amend my 2011 tax return See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. Amend my 2011 tax return    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. Amend my 2011 tax return 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. Amend my 2011 tax return This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. Amend my 2011 tax return It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. Amend my 2011 tax return Travel expenses defined. Amend my 2011 tax return   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. Amend my 2011 tax return   You will find examples of deductible travel expenses in Table 26-1 . Amend my 2011 tax return 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. Amend my 2011 tax return This rest requirement is not satisfied by merely napping in your car. Amend my 2011 tax return 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. Amend my 2011 tax return Example 1. Amend my 2011 tax return You are a railroad conductor. Amend my 2011 tax return You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Amend my 2011 tax return 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. Amend my 2011 tax return You are considered to be away from home. Amend my 2011 tax return Example 2. Amend my 2011 tax return You are a truck driver. Amend my 2011 tax return You leave your terminal and return to it later the same day. Amend my 2011 tax return You get an hour off at your turnaround point to eat. Amend my 2011 tax return 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. Amend my 2011 tax return Members of the Armed Forces. Amend my 2011 tax return   If you are a member of the U. Amend my 2011 tax return S. Amend my 2011 tax return Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Amend my 2011 tax return You cannot deduct your expenses for meals and lodging. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return    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. Amend my 2011 tax return Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Amend my 2011 tax return Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Amend my 2011 tax return It includes the entire city or general area in which your business or work is located. Amend my 2011 tax return If you have more than one regular place of business, your tax home is your main place of business. Amend my 2011 tax return See Main place of business or work , later. Amend my 2011 tax return 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. Amend my 2011 tax return See No main place of business or work , later. Amend my 2011 tax return 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. Amend my 2011 tax return As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Amend my 2011 tax return Main place of business or work. Amend my 2011 tax return   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. Amend my 2011 tax return The total time you ordinarily spend in each place. Amend my 2011 tax return The level of your business activity in each place. Amend my 2011 tax return Whether your income from each place is significant or insignificant. Amend my 2011 tax return Example. Amend my 2011 tax return You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Amend my 2011 tax return You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Amend my 2011 tax return Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Amend my 2011 tax return No main place of business or work. Amend my 2011 tax return   You may have a tax home even if you do not have a regular or main place of business or work. Amend my 2011 tax return Your tax home may be the home where you regularly live. Amend my 2011 tax return Factors used to determine tax home. Amend my 2011 tax return   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. Amend my 2011 tax return 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. Amend my 2011 tax return You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Amend my 2011 tax return 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. Amend my 2011 tax return   If you satisfy all three factors, your tax home is the home where you regularly live. Amend my 2011 tax return If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Amend my 2011 tax return If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Amend my 2011 tax return Example. Amend my 2011 tax return You are single and live in Boston in an apartment you rent. Amend my 2011 tax return You have worked for your employer in Boston for a number of years. Amend my 2011 tax return Your employer enrolls you in a 12-month executive training program. Amend my 2011 tax return You do not expect to return to work in Boston after you complete your training. Amend my 2011 tax return During your training, you do not do any work in Boston. Amend my 2011 tax return Instead, you receive classroom and on-the-job training throughout the United States. Amend my 2011 tax return You keep your apartment in Boston and return to it frequently. Amend my 2011 tax return You use your apartment to conduct your personal business. Amend my 2011 tax return You also keep up your community contacts in Boston. Amend my 2011 tax return When you complete your training, you are transferred to Los Angeles. Amend my 2011 tax return You do not satisfy factor (1) because you did not work in Boston. Amend my 2011 tax return You satisfy factor (2) because you had duplicate living expenses. Amend my 2011 tax return 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. Amend my 2011 tax return Therefore, you have a tax home in Boston. Amend my 2011 tax return Tax home different from family home. Amend my 2011 tax return   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. Amend my 2011 tax return You also cannot deduct the cost of meals and lodging while at your tax home. Amend my 2011 tax return See Example 1 . Amend my 2011 tax return   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Amend my 2011 tax return See Example 2 . Amend my 2011 tax return Example 1. Amend my 2011 tax return You are a truck driver and you and your family live in Tucson. Amend my 2011 tax return You are employed by a trucking firm that has its terminal in Phoenix. Amend my 2011 tax return At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Amend my 2011 tax return You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Amend my 2011 tax return This is because Phoenix is your tax home. Amend my 2011 tax return Example 2. Amend my 2011 tax return Your family home is in Pittsburgh, where you work 12 weeks a year. Amend my 2011 tax return The rest of the year you work for the same employer in Baltimore. Amend my 2011 tax return In Baltimore, you eat in restaurants and sleep in a rooming house. Amend my 2011 tax return Your salary is the same whether you are in Pittsburgh or Baltimore. Amend my 2011 tax return Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Amend my 2011 tax return You cannot deduct any expenses you have for meals and lodging there. Amend my 2011 tax return However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Amend my 2011 tax return You can deduct the cost of your round trip between Baltimore and Pittsburgh. Amend my 2011 tax return You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Amend my 2011 tax return Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Amend my 2011 tax return It may not be practical to return to your tax home from this other location at the end of each work day. Amend my 2011 tax return Temporary assignment vs. Amend my 2011 tax return indefinite assignment. Amend my 2011 tax return   If your assignment or job away from your main place of work is temporary, your tax home does not change. Amend my 2011 tax return You are considered to be away from home for the whole period you are away from your main place of work. Amend my 2011 tax return You can deduct your travel expenses if they otherwise qualify for deduction. Amend my 2011 tax return 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. Amend my 2011 tax return   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. Amend my 2011 tax return 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. Amend my 2011 tax return   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. Amend my 2011 tax return You may be able to deduct the cost of relocating to your new tax home as a moving expense. Amend my 2011 tax return See Publication 521 for more information. Amend my 2011 tax return Exception for federal crime investigations or prosecutions. Amend my 2011 tax return   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Amend my 2011 tax return 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. Amend my 2011 tax return   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. Amend my 2011 tax return Determining temporary or indefinite. Amend my 2011 tax return   You must determine whether your assignment is temporary or indefinite when you start work. Amend my 2011 tax return 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. Amend my 2011 tax return An assignment or job that is initially temporary may become indefinite due to changed circumstances. Amend my 2011 tax return 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. Amend my 2011 tax return Going home on days off. Amend my 2011 tax return   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. Amend my 2011 tax return You cannot deduct the cost of your meals and lodging there. Amend my 2011 tax return However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Amend my 2011 tax return You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Amend my 2011 tax return   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Amend my 2011 tax return 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. Amend my 2011 tax return Probationary work period. Amend my 2011 tax return   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. Amend my 2011 tax return You cannot deduct any of your expenses for meals and lodging during the probationary period. Amend my 2011 tax return 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. Amend my 2011 tax return You can deduct ordinary and necessary expenses you have when you travel away from home on business. Amend my 2011 tax return The type of expense you can deduct depends on the facts and your circumstances. Amend my 2011 tax return Table 26-1 summarizes travel expenses you may be able to deduct. Amend my 2011 tax return You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Amend my 2011 tax return 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. Amend my 2011 tax return You can use a log, diary, notebook, or any other written record to keep track of your expenses. Amend my 2011 tax return The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. Amend my 2011 tax return Separating costs. Amend my 2011 tax return   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. Amend my 2011 tax return You must have a reasonable basis for making this allocation. Amend my 2011 tax return For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Amend my 2011 tax return Travel expenses for another individual. Amend my 2011 tax return   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. Amend my 2011 tax return Employee. Amend my 2011 tax return   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. Amend my 2011 tax return Business associate. Amend my 2011 tax return   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. Amend my 2011 tax return A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. Amend my 2011 tax return A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Amend my 2011 tax return Bona fide business purpose. Amend my 2011 tax return   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Amend my 2011 tax return Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Amend my 2011 tax return Example. Amend my 2011 tax return Jerry drives to Chicago on business and takes his wife, Linda, with him. Amend my 2011 tax return Linda is not Jerry's employee. Amend my 2011 tax return Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Amend my 2011 tax return The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Amend my 2011 tax return Her expenses are not deductible. Amend my 2011 tax return Jerry pays $199 a day for a double room. Amend my 2011 tax return A single room costs $149 a day. Amend my 2011 tax return He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Amend my 2011 tax return If he uses public transportation, he can deduct only his fare. Amend my 2011 tax return Table 26-1. Amend my 2011 tax return Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. Amend my 2011 tax return IF you have expenses for. Amend my 2011 tax return . Amend my 2011 tax return . Amend my 2011 tax return THEN you can deduct the cost of. Amend my 2011 tax return . Amend my 2011 tax return . Amend my 2011 tax return transportation travel by airplane, train, bus, or car between your home and your business destination. Amend my 2011 tax return 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. Amend my 2011 tax return If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. Amend my 2011 tax return 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. Amend my 2011 tax return baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Amend my 2011 tax return car operating and maintaining your car when traveling away from home on business. Amend my 2011 tax return You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. Amend my 2011 tax return If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Amend my 2011 tax return 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. Amend my 2011 tax return Meals include amounts spent for food, beverages, taxes, and related tips. Amend my 2011 tax return See Meals and Incidental Expenses for additional rules and limits. Amend my 2011 tax return cleaning dry cleaning and laundry. Amend my 2011 tax return telephone business calls while on your business trip. Amend my 2011 tax return This includes business communication by fax machine or other communication devices. Amend my 2011 tax return tips tips you pay for any expenses in this chart. Amend my 2011 tax return other other similar ordinary and necessary expenses related to your business travel. Amend my 2011 tax return 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. Amend my 2011 tax return Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. Amend my 2011 tax return It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Amend my 2011 tax return The meal is business-related entertainment. Amend my 2011 tax return Business-related entertainment is discussed under Entertainment Expenses , later. Amend my 2011 tax return The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. Amend my 2011 tax return Lavish or extravagant. Amend my 2011 tax return   You cannot deduct expenses for meals that are lavish or extravagant. Amend my 2011 tax return An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Amend my 2011 tax return 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. Amend my 2011 tax return 50% limit on meals. Amend my 2011 tax return   You can figure your meal expenses using either of the following methods. Amend my 2011 tax return Actual cost. Amend my 2011 tax return The standard meal allowance. Amend my 2011 tax return Both of these methods are explained below. Amend my 2011 tax return But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Amend my 2011 tax return   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. Amend my 2011 tax return If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Amend my 2011 tax return The 50% limit is explained later under Entertainment Expenses . Amend my 2011 tax return Accountable and nonaccountable plans are discussed later under Reimbursements . Amend my 2011 tax return Actual cost. Amend my 2011 tax return   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. Amend my 2011 tax return If you use this method, you must keep records of your actual cost. Amend my 2011 tax return Standard meal allowance. Amend my 2011 tax return   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Amend my 2011 tax return 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. Amend my 2011 tax return The set amount varies depending on where and when you travel. Amend my 2011 tax return In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Amend my 2011 tax return If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Amend my 2011 tax return See Recordkeeping , later. Amend my 2011 tax return Incidental expenses. Amend my 2011 tax return   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Amend my 2011 tax return 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. Amend my 2011 tax return Incidental expenses only method. Amend my 2011 tax return   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Amend my 2011 tax return The amount of the deduction is $5 a day. Amend my 2011 tax return You can use this method only if you did not pay or incur any meal expenses. Amend my 2011 tax return You cannot use this method on any day that you use the standard meal allowance. Amend my 2011 tax return    Federal employees should refer to the Federal Travel Regulations at  www. Amend my 2011 tax return gsa. Amend my 2011 tax return gov. Amend my 2011 tax return Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Amend my 2011 tax return 50% limit may apply. Amend my 2011 tax return   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. Amend my 2011 tax return 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. Amend my 2011 tax return The 50% limit is explained later under Entertainment Expenses . Amend my 2011 tax return Accountable and nonaccountable plans are discussed later under Reimbursements . Amend my 2011 tax return There is no optional standard lodging amount similar to the standard meal allowance. Amend my 2011 tax return Your allowable lodging expense deduction is your actual cost. Amend my 2011 tax return Who can use the standard meal allowance. Amend my 2011 tax return   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. Amend my 2011 tax return   Use of the standard meal allowance for other travel. Amend my 2011 tax return    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Amend my 2011 tax return You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Amend my 2011 tax return You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Amend my 2011 tax return Amount of standard meal allowance. Amend my 2011 tax return   The standard meal allowance is the federal M&IE rate. Amend my 2011 tax return For travel in 2013, the daily rate for most small localities in the United States is $46. Amend my 2011 tax return   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Amend my 2011 tax return You can find this information (organized by state) on the Internet at www. Amend my 2011 tax return gsa. Amend my 2011 tax return gov. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return   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. Amend my 2011 tax return If you work in the transportation industry, however, see Special rate for transportation workers , later. Amend my 2011 tax return Standard meal allowance for areas outside the continental United States. Amend my 2011 tax return    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Amend my 2011 tax return The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Amend my 2011 tax return S. Amend my 2011 tax return Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Amend my 2011 tax return The Department of State establishes per diem rates for all other foreign areas. Amend my 2011 tax return    You can access per diem rates for non-foreign areas outside the continental United States at: www. Amend my 2011 tax return defensetravel. Amend my 2011 tax return dod. Amend my 2011 tax return mil/site/perdiemCalc. Amend my 2011 tax return cfm. Amend my 2011 tax return You can access all other foreign per diem rates at www. Amend my 2011 tax return state. Amend my 2011 tax return gov/travel/. Amend my 2011 tax return Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. Amend my 2011 tax return Special rate for transportation workers. Amend my 2011 tax return   You can use a special standard meal allowance if you work in the transportation industry. Amend my 2011 tax return 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. Amend my 2011 tax return If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). Amend my 2011 tax return   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. Amend my 2011 tax return 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. Amend my 2011 tax return Travel for days you depart and return. Amend my 2011 tax return   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). Amend my 2011 tax return You can do so by one of two methods. Amend my 2011 tax return Method 1: You can claim 3/4 of the standard meal allowance. Amend my 2011 tax return Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Amend my 2011 tax return Example. Amend my 2011 tax return Jen is employed in New Orleans as a convention planner. Amend my 2011 tax return In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Amend my 2011 tax return She left her home in New Orleans at 10 a. Amend my 2011 tax return m. Amend my 2011 tax return on Wednesday and arrived in Washington, DC, at 5:30 p. Amend my 2011 tax return m. Amend my 2011 tax return After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Amend my 2011 tax return m. Amend my 2011 tax return Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Amend my 2011 tax return 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. Amend my 2011 tax return Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Amend my 2011 tax return 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. Amend my 2011 tax return Travel in the United States The following discussion applies to travel in the United States. Amend my 2011 tax return For this purpose, the United States includes only the 50 states and the District of Columbia. Amend my 2011 tax return 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. Amend my 2011 tax return See Part of Trip Outside the United States , later. Amend my 2011 tax return Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. Amend my 2011 tax return 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. Amend my 2011 tax return These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Amend my 2011 tax return Example. Amend my 2011 tax return You work in Atlanta and take a business trip to New Orleans in May. Amend my 2011 tax return On your way home, you stop in Mobile to visit your parents. Amend my 2011 tax return You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Amend my 2011 tax return If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. Amend my 2011 tax return You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. Amend my 2011 tax return The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Amend my 2011 tax return 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. Amend my 2011 tax return However, you can deduct any expenses you have while at your destination that are directly related to your business. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return For the part of your trip that is inside the United States, use the rules for travel in the United States. Amend my 2011 tax return Travel outside the United States does not include travel from one point in the United States to another point in the United States. Amend my 2011 tax return The following discussion can help you determine whether your trip was entirely within the United States. Amend my 2011 tax return Public transportation. Amend my 2011 tax return   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. Amend my 2011 tax return 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 . Amend my 2011 tax return Example. Amend my 2011 tax return You fly from New York to Puerto Rico with a scheduled stop in Miami. Amend my 2011 tax return You return to New York nonstop. Amend my 2011 tax return 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. Amend my 2011 tax return Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Amend my 2011 tax return Private car. Amend my 2011 tax return   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. Amend my 2011 tax return Example. Amend my 2011 tax return You travel by car from Denver to Mexico City and return. Amend my 2011 tax return 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. Amend my 2011 tax return The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Amend my 2011 tax return 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. Amend my 2011 tax return For this purpose, the United States includes only the 50 states and the District of Columbia. Amend my 2011 tax return 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. Amend my 2011 tax return See chapter 1 of Publication 463 for information on luxury water travel. Amend my 2011 tax return 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. Amend my 2011 tax return Travel entirely for business. Amend my 2011 tax return   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Amend my 2011 tax return Travel considered entirely for business. Amend my 2011 tax return   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. Amend my 2011 tax return Exception 1 - No substantial control. Amend my 2011 tax return   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Amend my 2011 tax return The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Amend my 2011 tax return   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. Amend my 2011 tax return    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . Amend my 2011 tax return   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. Amend my 2011 tax return    A self-employed person generally has substantial control over arranging business trips. Amend my 2011 tax return Exception 2 - Outside United States no more than a week. Amend my 2011 tax return   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Amend my 2011 tax return One week means 7 consecutive days. Amend my 2011 tax return 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. Amend my 2011 tax return Exception 3 - Less than 25% of time on personal activities. Amend my 2011 tax return   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. Amend my 2011 tax return For this purpose, count both the day your trip began and the day it ended. Amend my 2011 tax return Exception 4 - Vacation not a major consideration. Amend my 2011 tax return   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. Amend my 2011 tax return 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. Amend my 2011 tax return You can only deduct the business portion of your cost of getting to and from your destination. Amend my 2011 tax return You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. Amend my 2011 tax return These travel allocation rules are discussed in chapter 1 of Publication 463. Amend my 2011 tax return 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. Amend my 2011 tax return In those cases, you can deduct the total cost of getting to and from your destination. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Amend my 2011 tax return You cannot deduct the travel expenses for your family. Amend my 2011 tax return If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Amend my 2011 tax return Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Amend my 2011 tax return You can deduct your travel expenses only if your attendance is connected to your own trade or business. Amend my 2011 tax return Convention agenda. Amend my 2011 tax return   The convention agenda or program generally shows the purpose of the convention. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return Conventions held outside the North American area. Amend my 2011 tax return    See chapter 1 of Publication 463 for information on conventions held outside the North American area. Amend my 2011 tax return Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. Amend my 2011 tax return 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. Amend my 2011 tax return Directly-related test. Amend my 2011 tax return Associated test. Amend my 2011 tax return Both of these tests are explained in chapter 2 of Publication 463. Amend my 2011 tax return The amount you can deduct for entertainment expenses may be limited. Amend my 2011 tax return Generally, you can deduct only 50% of your unreimbursed entertainment expenses. Amend my 2011 tax return This limit is discussed next. Amend my 2011 tax return 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. Amend my 2011 tax return (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. Amend my 2011 tax return See Individuals subject to “hours of service” limits , later. Amend my 2011 tax return ) 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. Amend my 2011 tax return Figure 26-A summarizes the general rules explained in this section. Amend my 2011 tax return 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. Amend my 2011 tax return Included expenses. Amend my 2011 tax return   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. Amend my 2011 tax return However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. Amend my 2011 tax return Application of 50% limit. Amend my 2011 tax return   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. Amend my 2011 tax return   The 50% limit also applies to certain meal and entertainment expenses that are not business related. Amend my 2011 tax return It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. Amend my 2011 tax return It also applies to the cost of meals included in deductible educational expenses. Amend my 2011 tax return When to apply the 50% limit. Amend my 2011 tax return   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. Amend my 2011 tax return You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. Amend my 2011 tax return Example 1. Amend my 2011 tax return You spend $200 for a business-related meal. Amend my 2011 tax return If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. Amend my 2011 tax return Your deduction cannot be more than $45 (. Amend my 2011 tax return 50 × $90). Amend my 2011 tax return Example 2. Amend my 2011 tax return You purchase two tickets to a concert and give them to a client. Amend my 2011 tax return You purchased the tickets through a ticket agent. Amend my 2011 tax return You paid $200 for the two tickets, which had a face value of $80 each ($160 total). Amend my 2011 tax return Your deduction cannot be more than $80 (. Amend my 2011 tax return 50 × $160). Amend my 2011 tax return Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. Amend my 2011 tax return Figure 26-A can help you determine if the 50% limit applies to you. Amend my 2011 tax return Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. Amend my 2011 tax return Employee's reimbursed expenses. Amend my 2011 tax return   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. Amend my 2011 tax return Accountable plans are discussed later under Reimbursements . Amend my 2011 tax return Individuals subject to “hours of service” limits. Amend my 2011 tax return   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. Amend my 2011 tax return The percentage is 80%. Amend my 2011 tax return   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. Amend my 2011 tax return Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. Amend my 2011 tax return Interstate truck operators and bus drivers who are under Department of Transportation regulations. Amend my 2011 tax return Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. Amend my 2011 tax return Certain merchant mariners who are under Coast Guard regulations. Amend my 2011 tax return Other exceptions. Amend my 2011 tax return   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. Amend my 2011 tax return These are discussed in Publication 463. Amend my 2011 tax return Figure 26-A. Amend my 2011 tax return Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. Amend my 2011 tax return See Exceptions to the 50% Limit . Amend my 2011 tax return Please click here for the text description of the image. Amend my 2011 tax return Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. Amend my 2011 tax return Entertainment. Amend my 2011 tax return    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. Amend my 2011 tax return 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. Amend my 2011 tax return A meal as a form of entertainment. Amend my 2011 tax return   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. Amend my 2011 tax return A meal expense includes the cost of food, beverages, taxes, and tips for the meal. Amend my 2011 tax return To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. Amend my 2011 tax return You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. Amend my 2011 tax return Separating costs. Amend my 2011 tax return   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. Amend my 2011 tax return You must have a reasonable basis for making this allocation. Amend my 2011 tax return For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. Amend my 2011 tax return Taking turns paying for meals or entertainment. Amend my 2011 tax return   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. Amend my 2011 tax return Lavish or extravagant expenses. Amend my 2011 tax return   You cannot deduct expenses for entertainment that are lavish or extravagant. Amend my 2011 tax return An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. Amend my 2011 tax return 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. Amend my 2011 tax return Trade association meetings. Amend my 2011 tax return    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. Amend my 2011 tax return These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. Amend my 2011 tax return Entertainment tickets. Amend my 2011 tax return   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. Amend my 2011 tax return 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. Amend my 2011 tax return What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. Amend my 2011 tax return Club dues and membership fees. Amend my 2011 tax return   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. Amend my 2011 tax return 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. Amend my 2011 tax return   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. Amend my 2011 tax return 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. Amend my 2011 tax return Entertainment facilities. Amend my 2011 tax return   Generally, you cannot deduct any expense for the use of an entertainment facility. Amend my 2011 tax return This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. Amend my 2011 tax return   An entertainment facility is any property you own, rent, or use for entertainment. Amend my 2011 tax return 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. Amend my 2011 tax return Out-of-pocket expenses. Amend my 2011 tax return   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. Amend my 2011 tax return These are not expenses for the use of an entertainment facility. Amend my 2011 tax return However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. Amend my 2011 tax return Additional information. Amend my 2011 tax return   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. Amend my 2011 tax return Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. Amend my 2011 tax return This section explains the limits and rules for deducting the costs of gifts. Amend my 2011 tax return $25 limit. Amend my 2011 tax return   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. Amend my 2011 tax return 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. Amend my 2011 tax return   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. Amend my 2011 tax return 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. Amend my 2011 tax return   If you and your spouse both give gifts, both of you are treated as one taxpayer. Amend my 2011 tax return It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. Amend my 2011 tax return If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. Amend my 2011 tax return Incidental costs. Amend my 2011 tax return   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. Amend my 2011 tax return   A cost is incidental only if it does not add substantial value to the gift. Amend my 2011 tax return For example, the cost of customary gift wrapping is an incidental cost. Amend my 2011 tax return 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. Amend my 2011 tax return Exceptions. Amend my 2011 tax return   The following items are not considered gifts for purposes of the $25 limit. Amend my 2011 tax return 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. Amend my 2011 tax return Examples include pens, desk sets, and plastic bags and cases. Amend my 2011 tax return Signs, display racks, or other promotional material to be used on the business premises of the recipient. Amend my 2011 tax return Gift or entertainment. Amend my 2011 tax return   Any item that might be considered either a gift or entertainment generally will be considered entertainment. Amend my 2011 tax return 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. Amend my 2011 tax return    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. Amend my 2011 tax return You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. Amend my 2011 tax return    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. Amend my 2011 tax return You cannot choose, in this case, to treat the cost of the tickets as a gift expense. Amend my 2011 tax return 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 . Amend my 2011 tax return These expenses include the cost of transportation by air, rail, bus, taxi, etc. Amend my 2011 tax return , and the cost of driving and maintaining your car. Amend my 2011 tax return Transportation expenses include the ordinary and necessary costs of all of the following. Amend my 2011 tax return 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. Amend my 2011 tax return (Tax home is defined earlier under Travel Expenses . Amend my 2011 tax return ) Visiting clients or customers. Amend my 2011 tax return Going to a business meeting away from your regular workplace. Amend my 2011 tax return Getting from your home to a temporary workplace when you have one or more regular places of work. Amend my 2011 tax return These temporary workplaces can be either within the area of your tax home or outside that area. Amend my 2011 tax return Transportation expenses do not include expenses you have while traveling away from home overnight. Amend my 2011 tax return Those expenses are travel expenses, discussed earlier. Amend my 2011 tax return However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Amend my 2011 tax return See Car Expenses , later. Amend my 2011 tax return Illustration of transportation expenses. Amend my 2011 tax return    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. Amend my 2011 tax return You may want to refer to it when deciding whether you can deduct your transportation expenses. Amend my 2011 tax return Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. Amend my 2011 tax return 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. Amend my 2011 tax return Temporary work location. Amend my 2011 tax return   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. Amend my 2011 tax return   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. Amend my 2011 tax return   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. Amend my 2011 tax return   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. Amend my 2011 tax return It will not be treated as temporary after the date you determine it will last more than 1 year. Amend my 2011 tax return   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. Amend my 2011 tax return You may have deductible travel expenses as discussed earlier in this chapter. Amend my 2011 tax return No regular place of work. Amend my 2011 tax return   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. Amend my 2011 tax return   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. Amend my 2011 tax return   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. Amend my 2011 tax return These are nondeductible commuting expenses. Amend my 2011 tax return Two places of work. Amend my 2011 tax return   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. Amend my 2011 tax return 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. Amend my 2011 tax return   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. Amend my 2011 tax return You cannot deduct them. Amend my 2011 tax return Armed Forces reservists. Amend my 2011 tax return   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. Amend my 2011 tax return You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. Amend my 2011 tax return   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. Amend my 2011 tax return In this case, your transportation generally is a nondeductible commuting expense. Amend my 2011 tax return 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. Amend my 2011 tax return   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. Amend my 2011 tax return   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. Amend my 2011 tax return These expenses are discussed earlier under Travel Expenses . Amend my 2011 tax return   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. Amend my 2011 tax return See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. Amend my 2011 tax return Commuting expenses. Amend my 2011 tax return   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. Amend my 2011 tax return These costs are personal commuting expenses. Amend my 2011 tax return You cannot deduct commuting expenses no matter how far your home is from your regular place of work. Amend my 2011 tax return You cannot deduct commuting expenses even if you work during the commuting trip. Amend my 2011 tax return Example. Amend my 2011 tax return You sometimes use your cell phone to make business calls while commuting to and from work. Amend my 2011 tax return Sometimes business associates ride with you to and from work, and you have a business discussion in the car. Amend my 2011 tax return These activities do not change the trip from personal to business. Amend my 2011 tax return You cannot deduct your commuting expenses. Amend my 2011 tax return Parking fees. Amend my 2011 tax return   Fees you pay to park your car at your place of business are nondeductible commuting expenses. Amend my 2011 tax return You can, however, deduct business-related parking fees when visiting a customer or client. Amend my 2011 tax return Advertising display on car. Amend my 2011 tax return   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. Amend my 2011 tax return If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. Amend my 2011 tax return Car pools. Amend my 2011 tax return   You cannot deduct the cost of using your car in a nonprofit car pool. Amend my 2011 tax return Do not include payments you receive from the passengers in your income. Amend my 2011 tax return These payments are considered reimbursements of your expenses. Amend my 2011 tax return However, if you operate a car pool for a profit, you must include payments from passengers in your income. Amend my 2011 tax return You can then deduct your car expenses (using the rules in this chapter). Amend my 2011 tax return Hauling tools or instruments. Amend my 2011 tax return   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. Amend my 2011 tax return 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). Amend my 2011 tax return Union members' trips from a union hall. Amend my 2011 tax return   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. Amend my 2011 tax return Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. Amend my 2011 tax return Office in the home. Amend my 2011 tax return   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. Amend my 2011 tax return (See chapter 28 for information on determining if your home office qualifies as a principal place of business. Amend my 2011 tax return ) Figure 26-B. Amend my 2011 tax return When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. Amend my 2011 tax return (Do not use this chart if your home is your principal place of business. Amend my 2011 tax return See Office in the home . Amend my 2011 tax return ) Please click here for the text description of the image. Amend my 2011 tax return Figure 26-B. Amend my 2011 tax return Local Transportation Examples of deductible transportation. Amend my 2011 tax return   The following examples show when you can deduct transportation expenses based on the location of your work and your home. Amend my 2011 tax return Example 1. Amend my 2011 tax return You regularly work in an office in the city where you live. Amend my 2011 tax return Your employer sends you to a 1-week training session at a different office in the same city. Amend my 2011 tax return You travel directly from your home to the training location and return each day. Amend my 2011 tax return You can deduct the cost of your daily round-trip transportation between your home and the training location. Amend my 2011 tax return Example 2. Amend my 2011 tax return Your principal place of business is in your home. Amend my 2011 tax return You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. Amend my 2011 tax return Example 3. Amend my 2011 tax return You have no regular office, and you do not have an office in your home. Amend my 2011 tax return In this case, the location of your first business contact inside the metropolitan area is considered your office. Amend my 2011 tax return Transportation expenses between your home and this first contact are nondeductible commuting expenses. Amend my 2011 tax return Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. Amend my 2011 tax return You generally can use one of the two following methods to figure your deductible expenses. Amend my 2011 tax return Standard mileage rate. Amend my 2011 tax return Actual car expenses. Amend my 2011 tax return 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. Amend my 2011 tax return See Leasing a car under Actual Car Expenses, later. Amend my 2011 tax return In this chapter, “car” includes a van, pickup, or panel truck. Amend my 2011 tax return Rural mail carriers. Amend my 2011 tax return   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. Amend my 2011 tax return Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. Amend my 2011 tax return   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). Amend my 2011 tax return You must complete Form 2106 and attach it to your Form 1040. Amend my 2011 tax return   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. Amend my 2011 tax return It is given as an equipment maintenance allowance (EMA) to employees of the U. Amend my 2011 tax return S. Amend my 2011 tax return Postal Service. Amend my 2011 tax return It is at the rate contained in the 1991 collective bargaining agreement. Amend my 2011 tax return Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. Amend my 2011 tax return See your employer for information on your reimbursement. Amend my 2011 tax return If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. Amend my 2011 tax return 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. Amend my 2011 tax return For 2013, the standard mileage rate for business use is 56½ cents per mile. Amend my 2011 tax return 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. Amend my 2011 tax return 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. Amend my 2011 tax return See Reimbursements under How To Report, later. Amend my 2011 tax return Choosing the standard mileage rate. Amend my 2011 tax return   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. Amend my 2011 tax return Then in later years, you can choose to use either the standard mileage rate or actual expenses. Amend my 2011 tax return   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. Amend my 2011 tax return   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. Amend my 2011 tax return You cannot revoke the choice. Amend my 2011 tax return However, in a later year, you can switch from the standard mileage rate to the actual expenses method. Amend my 2011 tax return 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. Amend my 2011 tax return Example. Amend my 2011 tax return Larry is an employee who occasionally uses his own car for business purposes. Amend my 2011 tax return He purchased the car in 2011, but he did not claim any unreimburse