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Can I Efile My 2012 Taxes Now

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Can I Efile My 2012 Taxes Now

Can i efile my 2012 taxes now 6. Can i efile my 2012 taxes now   Estimated Tax Table of Contents Who Must Make Estimated Tax Payments Estimated tax is a method used to pay tax on income that is not subject to withholding. Can i efile my 2012 taxes now This income includes self-employment income, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. Can i efile my 2012 taxes now Income tax generally is withheld from pensions and annuity payments you receive. Can i efile my 2012 taxes now However, if the tax withheld from your pension (or other) income is not enough, you may have to pay estimated tax. Can i efile my 2012 taxes now If you do not pay enough tax through withholding, by making estimated tax payments, or both, you may be charged a penalty. Can i efile my 2012 taxes now Who Must Make Estimated Tax Payments If you had a tax liability for 2013, you may have to pay estimated tax for 2014. Can i efile my 2012 taxes now In most cases, you must pay estimated tax for 2014 if both of the following apply. Can i efile my 2012 taxes now You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. Can i efile my 2012 taxes now You expect your withholding and refundable credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. Can i efile my 2012 taxes now The 2013 tax return must cover all 12 months. Can i efile my 2012 taxes now If all of your income will be subject to income tax withholding, you probably do not need to make estimated tax payments. Can i efile my 2012 taxes now For more information on estimated tax, see Publication 505. Can i efile my 2012 taxes now Prev  Up  Next   Home   More Online Publications
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Highlights from the IRS Report

FS-2013-7, June 2013 

The report released by Principal Deputy Commissioner Danny Werfel reflects a number of important findings, aggressive actions and next steps to help the IRS make improvements. Highlights of the three major areas covered in “Charting a Path Forward at the IRS: Initial Assessment and Plan of Action” include:

Accountability. This covers the steps being taken to ensure accountability for the mismanagement described in last month’s Treasury Inspector General for Tax Administration (TIGTA) report:

  • The report found significant management and judgment failures occurred, as outlined in the TIGTA report. These contributed to the inappropriate treatment of taxpayers applying for tax- exempt status. 

  • The IRS is identifying the individuals within the IRS who are responsible for the mismanagement identified in the TIGTA report, evaluating their role and determining the appropriate consequences for each individual.

  • We have installed new leadership at all five levels of the senior executive managerial chain that had responsibility over the activities identified in the TIGTA report.

  • The IRS is digging deeper into the facts to determine if there are instances of wrongdoing or inappropriate conduct beyond the mismanagement identified in the original TIGTA report.  By extending our review beyond the scope of the original audit, we are ensuring a more comprehensive understanding of the facts and circumstances that led to these events.

  • In addition, the IRS has empaneled an Accountability Review Board to provide recommendations within 60 days (and later as needed) on any additional personnel actions that should be taken.

Fixing the Problems with the Review of Applications for Tax-Exempt Status. This part covers several process improvements underway to ensure that taxpayers are treated appropriately and effectively in the review of applications for tax-exempt status:   

  • Suspended the use of any “be-on-the-lookout,” or BOLO, lists in the application process for tax-exempt status.

  • Started development of new guidance materials to allow IRS staff to operate without BOLO lists and under the reformed, more efficient process.

  • Initiated an end-to-end overhaul of the business processes by which applications for tax-exempt status are fulfilled.

  • Added technical and programmatic experts from across the IRS to assist the Exempt Organizations staff with the review of applications for tax- exempt status.

  • Created a new voluntary process to help certain taxpayers who have been in our priority application backlog for more than 120 days to gain fast-track approval to operate as a 501(c)(4) tax-exempt entity. This self-certification process allows them a streamlined path to tax-exempt status if they agree they will operate within limits and thresholds of political and social welfare activities. These groups have the option of obtaining an approval if they self-certify that less than 40 percent of their expenditures and volunteer time will go toward political campaign intervention activities and that at least 60 percent of their expenditures and volunteer time will go toward social welfare activities. 

  • Created a new “Advocacy Application Review Committee” to provide expertise from other parts of the IRS to review screening and determination decisions inside the Exempt Organizations area.

  • Started the process to create a new check-and-balance mechanism, where IRS criteria and screening procedures will be reviewed on a systemic basis and report any material risks of inappropriate criteria immediately to the IRS Commissioner, the IRS Oversight Board, and the relevant tax committees of Congress.

  • Worked with the Department of the Treasury regarding the need for greater clarity for certain terms relevant for 501(c)(4) tax-exempt organizations, with a commitment for inclusion in the next Treasury Priority Guidance Plan.

  • Continued to make substantial progress on all TIGTA recommendations from their May report on Exempt Organizations.

Review of IRS Operations and Risks. The report identifies a series of actions to ensure taxpayers that selection criteria across the IRS are appropriate and that taxpayers are aware of how they can seek assistance if they have concerns about the IRS. The report further outlines steps underway to ensure that critical program or operational risks within the IRS are identified early, raised to the right decision-makers and shared timely with key stakeholders:

  • Although there is no current evidence that selection criteria in other IRS business unit is inappropriate, the nature of the problems identified in the tax-exempt application process warrants a review of certain process controls within the IRS.  The IRS will initiate a comprehensive, agency-wide review of compliance selection criteria.  Results will be shared with the Department of the Treasury, the IRS Oversight Board, and the Chairpersons of the House Ways and Means Committee and the Senate Finance Committee.

  • The IRS has been very successful in mission execution across its very broad portfolio for many years, collecting 92 percent of government receipts of about $2.5 trillion in FY 2012.  At the same time, the Service is challenged by many of the same concerns affecting other large organizations, both public and private sector, including budgetary concerns, human capital concerns, and overall programmatic execution concerns. The report outlines initial areas where challenges exist and actions are needed to position the IRS to successfully fulfill its mission.

  • The report calls for establishing an Enterprise Risk Management Program to provide a common framework for capturing, reporting and addressing risk areas across the IRS.  This will improve timeliness in bringing information to the attention of the Commissioner and other IRS leaders as well as stakeholders to help prevent future instances of inappropriate treatment or mismanagement.

  • Initiate additional internal and external education and outreach about the role of the National Taxpayer Advocate, an independent voice inside the IRS, in assisting taxpayers in resolving problems with the IRS. 

  • Establish routine reporting on IRS operational risks with Congress and the IRS Oversight Board.

 

Page Last Reviewed or Updated: 19-Dec-2013

The Can I Efile My 2012 Taxes Now

Can i efile my 2012 taxes now 8. Can i efile my 2012 taxes now   Business Expenses Table of Contents Introduction Useful Items - You may want to see: Bad DebtsAccrual method. Can i efile my 2012 taxes now Cash method. Can i efile my 2012 taxes now Car and Truck ExpensesOffice in the home. Can i efile my 2012 taxes now Methods for Deducting Car and Truck Expenses Reimbursing Your Employees for Expenses Depreciation Employees' PayFringe benefits. Can i efile my 2012 taxes now InsuranceHow to figure the deduction. Can i efile my 2012 taxes now Interest Legal and Professional FeesTax preparation fees. Can i efile my 2012 taxes now Pension Plans Rent Expense Taxes Travel, Meals, and EntertainmentTransportation. Can i efile my 2012 taxes now Taxi, commuter bus, and limousine. Can i efile my 2012 taxes now Baggage and shipping. Can i efile my 2012 taxes now Car or truck. Can i efile my 2012 taxes now Meals and lodging. Can i efile my 2012 taxes now Cleaning. Can i efile my 2012 taxes now Telephone. Can i efile my 2012 taxes now Tips. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now Business Use of Your HomeExceptions to exclusive use. Can i efile my 2012 taxes now Other Expenses You Can Deduct Expenses You Cannot Deduct Introduction You can deduct the costs of operating your business. Can i efile my 2012 taxes now These costs are known as business expenses. Can i efile my 2012 taxes now These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. Can i efile my 2012 taxes now To be deductible, a business expense must be both ordinary and necessary. Can i efile my 2012 taxes now An ordinary expense is one that is common and accepted in your field of business. Can i efile my 2012 taxes now A necessary expense is one that is helpful and appropriate for your business. Can i efile my 2012 taxes now An expense does not have to be indispensable to be considered necessary. Can i efile my 2012 taxes now For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses. Can i efile my 2012 taxes now If you have an expense that is partly for business and partly personal, separate the personal part from the business part. Can i efile my 2012 taxes now The personal part is not deductible. Can i efile my 2012 taxes now Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 946 How To Depreciate Property See chapter 12 for information about getting publications and forms. Can i efile my 2012 taxes now Bad Debts If someone owes you money you cannot collect, you have a bad debt. Can i efile my 2012 taxes now There are two kinds of bad debts, business bad debts and nonbusiness bad debts. Can i efile my 2012 taxes now A business bad debt is generally one that comes from operating your trade or business. Can i efile my 2012 taxes now You may be able to deduct business bad debts as an expense on your business tax return. Can i efile my 2012 taxes now Business bad debt. Can i efile my 2012 taxes now   A business bad debt is a loss from the worthlessness of a debt that was either of the following. Can i efile my 2012 taxes now Created or acquired in your business. Can i efile my 2012 taxes now Closely related to your business when it became partly or totally worthless. Can i efile my 2012 taxes now A debt is closely related to your business if your primary motive for incurring the debt is a business reason. Can i efile my 2012 taxes now   Business bad debts are mainly the result of credit sales to customers. Can i efile my 2012 taxes now They can also be the result of loans to suppliers, clients, employees, or distributors. Can i efile my 2012 taxes now Goods and services customers have not paid for are shown in your books as either accounts receivable or notes receivable. Can i efile my 2012 taxes now If you are unable to collect any part of these accounts or notes receivable, the uncollectible part is a business bad debt. Can i efile my 2012 taxes now    You can take a bad debt deduction for these accounts and notes receivable only if the amount you were owed was included in your gross income either for the year the deduction is claimed or for a prior year. Can i efile my 2012 taxes now Accrual method. Can i efile my 2012 taxes now   If you use an accrual method of accounting, you normally report income as you earn it. Can i efile my 2012 taxes now You can take a bad debt deduction for an uncollectible receivable if you have included the uncollectible amount in income. Can i efile my 2012 taxes now Cash method. Can i efile my 2012 taxes now   If you use the cash method of accounting, you normally report income when you receive payment. Can i efile my 2012 taxes now You cannot take a bad debt deduction for amounts owed to you that you have not received and cannot collect if you never included those amounts in income. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now   For more information about business bad debts, see chapter 10 in Publication 535. Can i efile my 2012 taxes now Nonbusiness bad debts. Can i efile my 2012 taxes now   All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040). Can i efile my 2012 taxes now For more information on nonbusiness bad debts, see Publication 550, Investment Income and Expenses. Can i efile my 2012 taxes now Car and Truck Expenses If you use your car or truck in your business, you may be able to deduct the costs of operating and maintaining your vehicle. Can i efile my 2012 taxes now You also may be able to deduct other costs of local transportation and traveling away from home overnight on business. Can i efile my 2012 taxes now You may qualify for a tax credit for qualified plug-in electric vehicles, qualified plug-in electric drive motor vehicles, and alternative motor vehicles you place in service during the year. Can i efile my 2012 taxes now See Form 8936 and Form 8910 for more information. Can i efile my 2012 taxes now Local transportation expenses. Can i efile my 2012 taxes now   Local transportation expenses include the ordinary and necessary costs of all the following. Can i efile my 2012 taxes now Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Can i efile my 2012 taxes now Tax home is defined later. Can i efile my 2012 taxes now Visiting clients or customers. Can i efile my 2012 taxes now Going to a business meeting away from your regular workplace. Can i efile my 2012 taxes now Getting from your home to a temporary workplace when you have one or more regular places of work. Can i efile my 2012 taxes now These temporary workplaces can be either within the area of your tax home or outside that area. Can i efile my 2012 taxes now Local business transportation does not include expenses you have while traveling away from home overnight. Can i efile my 2012 taxes now Those expenses are deductible as travel expenses and are discussed later under Travel, Meals, and Entertainment. Can i efile my 2012 taxes now However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Can i efile my 2012 taxes now   Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Can i efile my 2012 taxes now It includes the entire city or general area in which your business or work is located. Can i efile my 2012 taxes now Example. Can i efile my 2012 taxes now You operate a printing business out of rented office space. Can i efile my 2012 taxes now You use your van to deliver completed jobs to your customers. Can i efile my 2012 taxes now You can deduct the cost of round-trip transportation between your customers and your print shop. Can i efile my 2012 taxes now    You cannot deduct the costs of driving your car or truck between your home and your main or regular workplace. Can i efile my 2012 taxes now These costs are personal commuting expenses. Can i efile my 2012 taxes now Office in the home. Can i efile my 2012 taxes now   Your workplace can be your home if you have an office in your home that qualifies as your principal place of business. Can i efile my 2012 taxes now For more information, see Business Use of Your Home, later. Can i efile my 2012 taxes now Example. Can i efile my 2012 taxes now You are a graphics designer. Can i efile my 2012 taxes now You operate your business out of your home. Can i efile my 2012 taxes now Your home qualifies as your principal place of business. Can i efile my 2012 taxes now You occasionally have to drive to your clients to deliver your completed work. Can i efile my 2012 taxes now You can deduct the cost of the round-trip transportation between your home and your clients. Can i efile my 2012 taxes now Methods for Deducting Car and Truck Expenses For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses. Can i efile my 2012 taxes now Standard mileage rate. Can i efile my 2012 taxes now Actual expenses. Can i efile my 2012 taxes now Standard mileage rate. Can i efile my 2012 taxes now   You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Can i efile my 2012 taxes now For 2013, the standard mileage rate is 56. Can i efile my 2012 taxes now 5 cents per mile. Can i efile my 2012 taxes now    If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls. Can i efile my 2012 taxes now Choosing the standard mileage rate. Can i efile my 2012 taxes now   If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. Can i efile my 2012 taxes now In later years, you can choose to use either the standard mileage rate or actual expenses. Can i efile my 2012 taxes now   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Can i efile my 2012 taxes now Standard mileage rate not allowed. Can i efile my 2012 taxes now   You cannot use the standard mileage rate if you: Operate five or more cars at the same time, Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS, Claimed a section 179 deduction on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Can i efile my 2012 taxes now Parking fees and tolls. Can i efile my 2012 taxes now   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Can i efile my 2012 taxes now (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Can i efile my 2012 taxes now ) Actual expenses. Can i efile my 2012 taxes now   If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. Can i efile my 2012 taxes now    If you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. Can i efile my 2012 taxes now   Actual car expenses include the costs of the following items. Can i efile my 2012 taxes now Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Can i efile my 2012 taxes now You can divide your expenses based on the miles driven for each purpose. Can i efile my 2012 taxes now Example. Can i efile my 2012 taxes now You are the sole proprietor of a flower shop. Can i efile my 2012 taxes now You drove your van 20,000 miles during the year. Can i efile my 2012 taxes now 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use (including commuting miles). Can i efile my 2012 taxes now You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now   For more information about the rules for claiming car and truck expenses, see Publication 463. Can i efile my 2012 taxes now Reimbursing Your Employees for Expenses You generally can deduct the amount you reimburse your employees for car and truck expenses. Can i efile my 2012 taxes now The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Can i efile my 2012 taxes now For details, see chapter 11 in Publication 535. Can i efile my 2012 taxes now That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Can i efile my 2012 taxes now Depreciation If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Can i efile my 2012 taxes now You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. Can i efile my 2012 taxes now This method of deducting the cost of business property is called depreciation. Can i efile my 2012 taxes now The discussion here is brief. Can i efile my 2012 taxes now You will find more information about depreciation in Publication 946. Can i efile my 2012 taxes now What property can be depreciated?   You can depreciate property if it meets all the following requirements. Can i efile my 2012 taxes now It must be property you own. Can i efile my 2012 taxes now It must be used in business or held to produce income. Can i efile my 2012 taxes now You never can depreciate inventory (explained in chapter 2) because it is not held for use in your business. Can i efile my 2012 taxes now It must have a useful life that extends substantially beyond the year it is placed in service. Can i efile my 2012 taxes now It must have a determinable useful life, which means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Can i efile my 2012 taxes now You never can depreciate the cost of land because land does not wear out, become obsolete, or get used up. Can i efile my 2012 taxes now It must not be excepted property. Can i efile my 2012 taxes now This includes property placed in service and disposed of in the same year. Can i efile my 2012 taxes now Repairs. Can i efile my 2012 taxes now    You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. Can i efile my 2012 taxes now You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ. Can i efile my 2012 taxes now Depreciation method. Can i efile my 2012 taxes now   The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). Can i efile my 2012 taxes now MACRS is discussed in detail in Publication 946. Can i efile my 2012 taxes now Section 179 deduction. Can i efile my 2012 taxes now   You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Can i efile my 2012 taxes now This deduction is known as the “section 179 deduction. Can i efile my 2012 taxes now ” The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). Can i efile my 2012 taxes now See IRC 179(e). Can i efile my 2012 taxes now   This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Can i efile my 2012 taxes now The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). Can i efile my 2012 taxes now Special rules apply to trucks and vans. Can i efile my 2012 taxes now For more information, see Publication 946. Can i efile my 2012 taxes now It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction. Can i efile my 2012 taxes now    Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. Can i efile my 2012 taxes now For more information, see the Instructions for Form 4562 or Publication 946. Can i efile my 2012 taxes now Listed property. Can i efile my 2012 taxes now   You must follow special rules and recordkeeping requirements when depreciating listed property. Can i efile my 2012 taxes now Listed property is any of the following. Can i efile my 2012 taxes now Most passenger automobiles. Can i efile my 2012 taxes now Most other property used for transportation. Can i efile my 2012 taxes now Any property of a type generally used for entertainment, recreation, or amusement. Can i efile my 2012 taxes now Certain computers and related peripheral equipment. Can i efile my 2012 taxes now   For more information about listed property, see Publication 946. Can i efile my 2012 taxes now Form 4562. Can i efile my 2012 taxes now   Use Form 4562, Depreciation and Amortization, if you are claiming any of the following. Can i efile my 2012 taxes now Depreciation on property placed in service during the current tax year. Can i efile my 2012 taxes now A section 179 deduction. Can i efile my 2012 taxes now Depreciation on any listed property (regardless of when it was placed in service). Can i efile my 2012 taxes now    If you have to use Form 4562, you must file Schedule C. Can i efile my 2012 taxes now You cannot use Schedule C-EZ. Can i efile my 2012 taxes now   Employees' Pay You can generally deduct on Schedule C the pay you give your employees for the services they perform for your business. Can i efile my 2012 taxes now The pay may be in cash, property, or services. Can i efile my 2012 taxes now To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it in the tax year. Can i efile my 2012 taxes now In addition, the pay must meet both the following tests. Can i efile my 2012 taxes now The pay must be reasonable. Can i efile my 2012 taxes now The pay must be for services performed. Can i efile my 2012 taxes now Chapter 2 in Publication 535 explains and defines these requirements. Can i efile my 2012 taxes now You cannot deduct your own salary or any personal withdrawals you make from your business. Can i efile my 2012 taxes now As a sole proprietor, you are not an employee of the business. Can i efile my 2012 taxes now If you had employees during the year, you must use Schedule C. Can i efile my 2012 taxes now You cannot use Schedule C-EZ. Can i efile my 2012 taxes now Kinds of pay. Can i efile my 2012 taxes now   Some of the ways you may provide pay to your employees are listed below. Can i efile my 2012 taxes now For an explanation of each of these items, see chapter 2 in Publication 535. Can i efile my 2012 taxes now Awards. Can i efile my 2012 taxes now Bonuses. Can i efile my 2012 taxes now Education expenses. Can i efile my 2012 taxes now Fringe benefits (discussed later). Can i efile my 2012 taxes now Loans or advances you do not expect the employee to repay if they are for personal services actually performed. Can i efile my 2012 taxes now Property you transfer to an employee as payment for services. Can i efile my 2012 taxes now Reimbursements for employee business expenses. Can i efile my 2012 taxes now Sick pay. Can i efile my 2012 taxes now Vacation pay. Can i efile my 2012 taxes now Fringe benefits. Can i efile my 2012 taxes now   A fringe benefit is a form of pay for the performance of services. Can i efile my 2012 taxes now The following are examples of fringe benefits. Can i efile my 2012 taxes now Benefits under qualified employee benefit programs. Can i efile my 2012 taxes now Meals and lodging. Can i efile my 2012 taxes now The use of a car. Can i efile my 2012 taxes now Flights on airplanes. Can i efile my 2012 taxes now Discounts on property or services. Can i efile my 2012 taxes now Memberships in country clubs or other social clubs. Can i efile my 2012 taxes now Tickets to entertainment or sporting events. Can i efile my 2012 taxes now   Employee benefit programs include the following. Can i efile my 2012 taxes now Accident and health plans. Can i efile my 2012 taxes now Adoption assistance. Can i efile my 2012 taxes now Cafeteria plans. Can i efile my 2012 taxes now Dependent care assistance. Can i efile my 2012 taxes now Educational assistance. Can i efile my 2012 taxes now Group-term life insurance coverage. Can i efile my 2012 taxes now Welfare benefit funds. Can i efile my 2012 taxes now   You can generally deduct the cost of fringe benefits you provide on your Schedule C in whatever category the cost falls. Can i efile my 2012 taxes now For example, if you allow an employee to use a car or other property you lease, deduct the cost of the lease as a rent or lease expense. Can i efile my 2012 taxes now If you own the property, include your deduction for its cost or other basis as a section 179 deduction or a depreciation deduction. Can i efile my 2012 taxes now    You may be able to exclude all or part of the fringe benefits you provide from your employees' wages. Can i efile my 2012 taxes now For more information about fringe benefits and the exclusion of benefits, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Can i efile my 2012 taxes now Insurance You can generally deduct premiums you pay for the following kinds of insurance related to your business. Can i efile my 2012 taxes now Fire, theft, flood, or similar insurance. Can i efile my 2012 taxes now Credit insurance that covers losses from business bad debts. Can i efile my 2012 taxes now Group hospitalization and medical insurance for employees, including long-term care insurance. Can i efile my 2012 taxes now Liability insurance. Can i efile my 2012 taxes now Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Can i efile my 2012 taxes now Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Can i efile my 2012 taxes now Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Can i efile my 2012 taxes now Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Can i efile my 2012 taxes now Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Can i efile my 2012 taxes now If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Can i efile my 2012 taxes now If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Can i efile my 2012 taxes now Life insurance covering your employees if you are not directly or indirectly the beneficiary under the contract. Can i efile my 2012 taxes now Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Can i efile my 2012 taxes now Nondeductible premiums. Can i efile my 2012 taxes now   You cannot deduct premiums on the following kinds of insurance. Can i efile my 2012 taxes now Self-insurance reserve funds. Can i efile my 2012 taxes now You cannot deduct amounts credited to a reserve set up for self-insurance. Can i efile my 2012 taxes now This applies even if you cannot get business insurance coverage for certain business risks. Can i efile my 2012 taxes now However, your actual losses may be deductible. Can i efile my 2012 taxes now For more information, see Publication 547, Casualties, Disasters, and Thefts. Can i efile my 2012 taxes now Loss of earnings. Can i efile my 2012 taxes now You cannot deduct premiums for a policy that pays for your lost earnings due to sickness or disability. Can i efile my 2012 taxes now However, see item (8) in the previous list. Can i efile my 2012 taxes now Certain life insurance and annuities. Can i efile my 2012 taxes now For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Can i efile my 2012 taxes now You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Can i efile my 2012 taxes now A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Can i efile my 2012 taxes now For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Can i efile my 2012 taxes now The disallowance applies without regard to whom the policy covers. Can i efile my 2012 taxes now Insurance to secure a loan. Can i efile my 2012 taxes now If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Can i efile my 2012 taxes now Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Can i efile my 2012 taxes now In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Can i efile my 2012 taxes now Self-employed health insurance deduction. Can i efile my 2012 taxes now   You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you and your family. Can i efile my 2012 taxes now How to figure the deduction. Can i efile my 2012 taxes now   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Can i efile my 2012 taxes now However, if any of the following apply, you must use the worksheet in chapter 6 of Publication 535. Can i efile my 2012 taxes now You have more than one source of income subject to self-employment tax. Can i efile my 2012 taxes now You file Form 2555 or Form 2555-EZ (relating to foreign earned income). Can i efile my 2012 taxes now You are using amounts paid for qualified long-term care insurance to figure the deduction. Can i efile my 2012 taxes now Prepayment. Can i efile my 2012 taxes now   You cannot deduct expenses in advance, even if you pay them in advance. Can i efile my 2012 taxes now This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Can i efile my 2012 taxes now Example. Can i efile my 2012 taxes now In 2013, you signed a 3-year insurance contract. Can i efile my 2012 taxes now Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Can i efile my 2012 taxes now You can deduct in 2014 and 2015 the premium allocable to those years. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now   For more information about deducting insurance, see chapter 6 in Publication 535. Can i efile my 2012 taxes now Interest You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your business. Can i efile my 2012 taxes now Interest relates to your business if you use the proceeds of the loan for a business expense. Can i efile my 2012 taxes now It does not matter what type of property secures the loan. Can i efile my 2012 taxes now You can deduct interest on a debt only if you meet all of the following requirements. Can i efile my 2012 taxes now You are legally liable for that debt. Can i efile my 2012 taxes now Both you and the lender intend that the debt be repaid. Can i efile my 2012 taxes now You and the lender have a true debtor-creditor relationship. Can i efile my 2012 taxes now You cannot deduct on Schedule C or C-EZ the interest you paid on personal loans. Can i efile my 2012 taxes now If a loan is part business and part personal, you must divide the interest between the personal part and the business part. Can i efile my 2012 taxes now Example. Can i efile my 2012 taxes now In 2013, you paid $600 interest on a car loan. Can i efile my 2012 taxes now During 2013, you used the car 60% for business and 40% for personal purposes. Can i efile my 2012 taxes now You are claiming actual expenses on the car. Can i efile my 2012 taxes now You can only deduct $360 (60% × $600) for 2013 on Schedule C or C-EZ. Can i efile my 2012 taxes now The remaining interest of $240 is a nondeductible personal expense. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now   For more information about deducting interest, see chapter 4 in Publication 535. Can i efile my 2012 taxes now That chapter explains the following items. Can i efile my 2012 taxes now Interest you can deduct. Can i efile my 2012 taxes now Interest you cannot deduct. Can i efile my 2012 taxes now How to allocate interest between personal and business use. Can i efile my 2012 taxes now When to deduct interest. Can i efile my 2012 taxes now The rules for a below-market interest rate loan. Can i efile my 2012 taxes now (This is generally a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Can i efile my 2012 taxes now ) Legal and Professional Fees Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on Schedule C or C-EZ. Can i efile my 2012 taxes now However, you usually cannot deduct legal fees you pay to acquire business assets. Can i efile my 2012 taxes now Add them to the basis of the property. Can i efile my 2012 taxes now If the fees include payments for work of a personal nature (such as making a will), you can take a business deduction only for the part of the fee related to your business. Can i efile my 2012 taxes now The personal part of legal fees for producing or collecting taxable income, doing or keeping your job, or for tax advice may be deductible on Schedule A (Form 1040) if you itemize deductions. Can i efile my 2012 taxes now For more information, see Publication 529, Miscellaneous Deductions. Can i efile my 2012 taxes now Tax preparation fees. Can i efile my 2012 taxes now   You can deduct on Schedule C or C-EZ the cost of preparing that part of your tax return relating to your business as a sole proprietor or statutory employee. Can i efile my 2012 taxes now You can deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Can i efile my 2012 taxes now   You can also deduct on Schedule C or C-EZ the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor or statutory employee. Can i efile my 2012 taxes now Pension Plans You can set up and maintain the following small business retirement plans for yourself and your employees. Can i efile my 2012 taxes now SEP (Simplified Employee Pension) plans. Can i efile my 2012 taxes now SIMPLE (Savings Incentive Match Plan for Employees) plans. Can i efile my 2012 taxes now Qualified plans (including Keogh or H. Can i efile my 2012 taxes now R. Can i efile my 2012 taxes now 10 plans). Can i efile my 2012 taxes now SEP, SIMPLE, and qualified plans offer you and your employees a tax favored way to save for retirement. Can i efile my 2012 taxes now You can deduct contributions you make to the plan for your employees on line 19 of Schedule C. Can i efile my 2012 taxes now If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 28 of Form 1040. Can i efile my 2012 taxes now You can also deduct trustees' fees if contributions to the plan do not cover them. Can i efile my 2012 taxes now Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Can i efile my 2012 taxes now You may also be able to claim a tax credit of 50% of the first $1,000 of qualified startup costs if you begin a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. Can i efile my 2012 taxes now Under certain plans, employees can have you contribute limited amounts of their before-tax pay to a plan. Can i efile my 2012 taxes now These amounts (and earnings on them) are generally tax free until your employees receive distributions from the plan. Can i efile my 2012 taxes now For more information on retirement plans for small business, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Can i efile my 2012 taxes now Publication 590, Individual Retirement Arrangements (IRAs), discusses other tax favored ways to save for retirement. Can i efile my 2012 taxes now Rent Expense Rent is any amount you pay for the use of property you do not own. Can i efile my 2012 taxes now In general, you can deduct rent as a business expense only if the rent is for property you use in your business. Can i efile my 2012 taxes now If you have or will receive equity in or title to the property, you cannot deduct the rent. Can i efile my 2012 taxes now Unreasonable rent. Can i efile my 2012 taxes now   You cannot take a rental deduction for unreasonable rents. Can i efile my 2012 taxes now Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Can i efile my 2012 taxes now Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Can i efile my 2012 taxes now Rent is not unreasonable just because it is figured as a percentage of gross receipts. Can i efile my 2012 taxes now   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. Can i efile my 2012 taxes now For a list of the other related persons, see section 267 of the Internal Revenue Code. Can i efile my 2012 taxes now Rent on your home. Can i efile my 2012 taxes now   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Can i efile my 2012 taxes now You must meet the requirements for business use of your home. Can i efile my 2012 taxes now For more information, see Business Use of Your Home , later. Can i efile my 2012 taxes now Rent paid in advance. Can i efile my 2012 taxes now   Generally, rent paid in your business is deductible in the year paid or accrued. Can i efile my 2012 taxes now If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Can i efile my 2012 taxes now You can deduct the rest of your payment only over the period to which it applies. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now   For more information about rent, see chapter 3 in Publication 535. Can i efile my 2012 taxes now Taxes You can deduct on Schedule C or C-EZ various federal, state, local, and foreign taxes directly attributable to your business. Can i efile my 2012 taxes now Income taxes. Can i efile my 2012 taxes now   You can deduct on Schedule C or C-EZ a state tax on gross income (as distinguished from net income) directly attributable to your business. Can i efile my 2012 taxes now You can deduct other state and local income taxes on Schedule A (Form 1040) if you itemize your deductions. Can i efile my 2012 taxes now Do not deduct federal income tax. Can i efile my 2012 taxes now Employment taxes. Can i efile my 2012 taxes now   You can deduct the social security, Medicare, and federal unemployment (FUTA) taxes you paid out of your own funds as an employer. Can i efile my 2012 taxes now Employment taxes are discussed briefly in chapter 1. Can i efile my 2012 taxes now You can also deduct payments you made as an employer to a state unemployment compensation fund or to a state disability benefit fund. Can i efile my 2012 taxes now Deduct these payments as taxes. Can i efile my 2012 taxes now Self-employment tax. Can i efile my 2012 taxes now   You can deduct one-half of your self-employment tax on line 27 of Form 1040. Can i efile my 2012 taxes now Self-employment tax is discussed in chapters 1 and 10. Can i efile my 2012 taxes now Personal property tax. Can i efile my 2012 taxes now   You can deduct on Schedule C or C-EZ any tax imposed by a state or local government on personal property used in your business. Can i efile my 2012 taxes now   You can also deduct registration fees for the right to use property within a state or local area. Can i efile my 2012 taxes now Example. Can i efile my 2012 taxes now May and Julius Winter drove their car 7,000 business miles out of a total of 10,000 miles. Can i efile my 2012 taxes now They had to pay $25 for their annual state license tags and $20 for their city registration sticker. Can i efile my 2012 taxes now They also paid $235 in city personal property tax on the car, for a total of $280. Can i efile my 2012 taxes now They are claiming their actual car expenses. Can i efile my 2012 taxes now Because they used the car 70% for business, they can deduct 70% of the $280, or $196, as a business expense. Can i efile my 2012 taxes now Real estate taxes. Can i efile my 2012 taxes now   You can deduct on Schedule C or C-EZ the real estate taxes you pay on your business property. Can i efile my 2012 taxes now Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Can i efile my 2012 taxes now The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Can i efile my 2012 taxes now   For more information about real estate taxes, see chapter 5 in Publication 535. Can i efile my 2012 taxes now That chapter explains special rules for deducting the following items. Can i efile my 2012 taxes now Taxes for local benefits, such as those for sidewalks, streets, water mains, and sewer lines. Can i efile my 2012 taxes now Real estate taxes when you buy or sell property during the year. Can i efile my 2012 taxes now Real estate taxes if you use an accrual method of accounting and choose to accrue real estate tax related to a definite period ratably over that period. Can i efile my 2012 taxes now Sales tax. Can i efile my 2012 taxes now   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Can i efile my 2012 taxes now If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Can i efile my 2012 taxes now If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Can i efile my 2012 taxes now If the property is depreciable, add the sales tax to the basis for depreciation. Can i efile my 2012 taxes now For information on the basis of property, see Publication 551, Basis of Assets. Can i efile my 2012 taxes now    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Can i efile my 2012 taxes now Do not include these taxes in gross receipts or sales. Can i efile my 2012 taxes now Excise taxes. Can i efile my 2012 taxes now   You can deduct on Schedule C or C-EZ all excise taxes that are ordinary and necessary expenses of carrying on your business. Can i efile my 2012 taxes now Excise taxes are discussed briefly in chapter 1. Can i efile my 2012 taxes now Fuel taxes. Can i efile my 2012 taxes now   Taxes on gasoline, diesel fuel, and other motor fuels you use in your business are usually included as part of the cost of the fuel. Can i efile my 2012 taxes now Do not deduct these taxes as a separate item. Can i efile my 2012 taxes now   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Can i efile my 2012 taxes now For more information, see Publication 510, Excise Taxes. Can i efile my 2012 taxes now Travel, Meals, and Entertainment This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ. Can i efile my 2012 taxes now Table 8-1. Can i efile my 2012 taxes now When Are Entertainment Expenses Deductible? (Note. Can i efile my 2012 taxes now The following is a summary of the rules for deducting entertainment expenses. Can i efile my 2012 taxes now For more details about these rules, see Publication 463. Can i efile my 2012 taxes now ) General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Can i efile my 2012 taxes now Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Can i efile my 2012 taxes now An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Can i efile my 2012 taxes now A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business. Can i efile my 2012 taxes now Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Can i efile my 2012 taxes now   Associated test Entertainment is associated with your trade or business, and Entertainment directly precedes or follows a substantial business discussion. Can i efile my 2012 taxes now Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Can i efile my 2012 taxes now You cannot deduct expenses that are lavish or extravagant under the circumstances. Can i efile my 2012 taxes now You generally can deduct only 50% of your unreimbursed entertainment expenses. Can i efile my 2012 taxes now Travel expenses. Can i efile my 2012 taxes now   These are the ordinary and necessary expenses of traveling away from home for your business. Can i efile my 2012 taxes now You are traveling away from home if both the following conditions are met. Can i efile my 2012 taxes now 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. Can i efile my 2012 taxes now You need to get sleep or rest to meet the demands of your work while away from home. Can i efile my 2012 taxes now Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Can i efile my 2012 taxes now It includes the entire city or general area in which your business is located. Can i efile my 2012 taxes now See Publication 463 for more information. Can i efile my 2012 taxes now   The following is a brief discussion of the expenses you can deduct. Can i efile my 2012 taxes now Transportation. Can i efile my 2012 taxes now   You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination. Can i efile my 2012 taxes now Taxi, commuter bus, and limousine. Can i efile my 2012 taxes now   You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home. Can i efile my 2012 taxes now Baggage and shipping. Can i efile my 2012 taxes now   You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations. Can i efile my 2012 taxes now Car or truck. Can i efile my 2012 taxes now   You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. Can i efile my 2012 taxes now You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. Can i efile my 2012 taxes now If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Can i efile my 2012 taxes now Meals and lodging. Can i efile my 2012 taxes now   You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Can i efile my 2012 taxes now In most cases, you can deduct only 50% of your meal expenses. Can i efile my 2012 taxes now Cleaning. Can i efile my 2012 taxes now   You can deduct the costs of dry cleaning and laundry while on your business trip. Can i efile my 2012 taxes now Telephone. Can i efile my 2012 taxes now   You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices. Can i efile my 2012 taxes now Tips. Can i efile my 2012 taxes now   You can deduct the tips you pay for any expense in this list. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now   For more information about travel expenses, see Publication 463. Can i efile my 2012 taxes now Entertainment expenses. Can i efile my 2012 taxes now   You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. Can i efile my 2012 taxes now In most cases, you can deduct only 50% of these expenses. Can i efile my 2012 taxes now   The following are examples of entertainment expenses. Can i efile my 2012 taxes now Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events. Can i efile my 2012 taxes now Providing meals, a hotel suite, or a car to business customers or their families. Can i efile my 2012 taxes now To be deductible, the expenses must meet the rules listed in Table 8-1. Can i efile my 2012 taxes now For details about these rules, see Publication 463. Can i efile my 2012 taxes now Reimbursing your employees for expenses. Can i efile my 2012 taxes now   You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. Can i efile my 2012 taxes now The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Can i efile my 2012 taxes now For details, see chapter 11 in Publication 535. Can i efile my 2012 taxes now That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Can i efile my 2012 taxes now Business Use of Your Home To deduct expenses related to the part of your home used for business, you must meet specific requirements. Can i efile my 2012 taxes now Even then, your deduction may be limited. Can i efile my 2012 taxes now To qualify to claim expenses for business use of your home, you must meet the following tests. Can i efile my 2012 taxes now Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use , later), Regular, For your business, and The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your business, or A separate structure (not attached to your home) you use in connection with your business. Can i efile my 2012 taxes now Exclusive use. Can i efile my 2012 taxes now   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Can i efile my 2012 taxes now The area used for business can be a room or other separately identifiable space. Can i efile my 2012 taxes now The space does not need to be marked off by a permanent partition. Can i efile my 2012 taxes now   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Can i efile my 2012 taxes now Example. Can i efile my 2012 taxes now You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Can i efile my 2012 taxes now Your family also uses the den for recreation. Can i efile my 2012 taxes now The den is not used exclusively in your profession, so you cannot claim a business deduction for its use. Can i efile my 2012 taxes now Exceptions to exclusive use. Can i efile my 2012 taxes now   You do not have to meet the exclusive use test if you use part of your home in either of the following ways. Can i efile my 2012 taxes now For the storage of inventory or product samples. Can i efile my 2012 taxes now As a daycare facility. Can i efile my 2012 taxes now For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Can i efile my 2012 taxes now Regular use. Can i efile my 2012 taxes now   To qualify under the regular use test, you must use a specific area of your home for business on a continuing basis. Can i efile my 2012 taxes now You do not meet the test if your business use of the area is only occasional or incidental, even if you do not use that area for any other purpose. Can i efile my 2012 taxes now Principal place of business. Can i efile my 2012 taxes now   You can have more than one business location, including your home, for a single trade or business. Can i efile my 2012 taxes now To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that business. Can i efile my 2012 taxes now To determine your principal place of business, you must consider all the facts and circumstances. Can i efile my 2012 taxes now   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Can i efile my 2012 taxes now You use it exclusively and regularly for administrative or management activities of your business. Can i efile my 2012 taxes now You have no other fixed location where you conduct substantial administrative or management activities of your business. Can i efile my 2012 taxes now   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Can i efile my 2012 taxes now The relative importance of the activities performed at each location. Can i efile my 2012 taxes now If the relative importance factor does not determine your principal place of business, you can also consider the time spent at each location. Can i efile my 2012 taxes now   If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Can i efile my 2012 taxes now However, for other ways to qualify to deduct home office expenses, see Publication 587. Can i efile my 2012 taxes now Deduction limit. Can i efile my 2012 taxes now   If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. Can i efile my 2012 taxes now If your gross income from the business use is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. Can i efile my 2012 taxes now   Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation (with depreciation taken last), allocable to the business is limited to the gross income from the business use of your home minus the sum of the following. Can i efile my 2012 taxes now The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). Can i efile my 2012 taxes now The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. Can i efile my 2012 taxes now Do not include in (2) above your deduction for one-half of your self-employment tax. Can i efile my 2012 taxes now   Use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Can i efile my 2012 taxes now New simplified method. Can i efile my 2012 taxes now    The IRS now provides a simplified method to determine your expenses for business use of your home. Can i efile my 2012 taxes now The simplified method is an alternative to calculating and substantiating actual expenses. Can i efile my 2012 taxes now In most cases, you will figure your deduction by multiplying $5 by the area of your home used for a qualified business use. Can i efile my 2012 taxes now The area you use to figure your deduction is limited to 300 square feet. Can i efile my 2012 taxes now For more information, see the Instructions for Schedule C. Can i efile my 2012 taxes now More information. Can i efile my 2012 taxes now   For more information on deducting expenses for the business use of your home, see Publication 587. Can i efile my 2012 taxes now Other Expenses You Can Deduct You may also be able to deduct the following expenses. Can i efile my 2012 taxes now See Publication 535 to find out whether you can deduct them. Can i efile my 2012 taxes now Advertising. Can i efile my 2012 taxes now Bank fees. Can i efile my 2012 taxes now Donations to business organizations. Can i efile my 2012 taxes now Education expenses. Can i efile my 2012 taxes now Energy efficient commercial buildings deduction expenses. Can i efile my 2012 taxes now Impairment-related expenses. Can i efile my 2012 taxes now Interview expense allowances. Can i efile my 2012 taxes now Licenses and regulatory fees. Can i efile my 2012 taxes now Moving machinery. Can i efile my 2012 taxes now Outplacement services. Can i efile my 2012 taxes now Penalties and fines you pay for late performance or nonperformance of a contract. Can i efile my 2012 taxes now Repairs that keep your property in a normal efficient operating condition. Can i efile my 2012 taxes now Repayments of income. Can i efile my 2012 taxes now Subscriptions to trade or professional publications. Can i efile my 2012 taxes now Supplies and materials. Can i efile my 2012 taxes now Utilities. Can i efile my 2012 taxes now Expenses You Cannot Deduct You usually cannot deduct the following as business expenses. Can i efile my 2012 taxes now For more information, see Publication 535. Can i efile my 2012 taxes now Bribes and kickbacks. Can i efile my 2012 taxes now Charitable contributions. Can i efile my 2012 taxes now Demolition expenses or losses. Can i efile my 2012 taxes now Dues to business, social, athletic, luncheon, sporting, airline, and hotel clubs. Can i efile my 2012 taxes now Lobbying expenses. Can i efile my 2012 taxes now Penalties and fines you pay to a governmental agency or instrumentality because you broke the law. Can i efile my 2012 taxes now Personal, living, and family expenses. Can i efile my 2012 taxes now Political contributions. Can i efile my 2012 taxes now Repairs that add to the value of your property or significantly increase its life. Can i efile my 2012 taxes now Prev  Up  Next   Home   More Online Publications