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Free Online Tax Filing

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Free Online Tax Filing

Free online tax filing Publication 3402 - Introductory Material Table of Contents Reminder IntroductionOrdering forms and publications. Free online tax filing Tax questions. Free online tax filing Useful Items - You may want to see: Reminder Photographs of missing children. Free online tax filing  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Free online tax filing Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Free online tax filing You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Free online tax filing Introduction This publication provides federal income, employment, and excise tax information for limited liability companies. Free online tax filing This publication does not address state law governing the formation, operation, or termination of limited liability companies. Free online tax filing This publication does not address any state taxes. Free online tax filing Comments and suggestions. Free online tax filing   We welcome your comments about this publication and your suggestions for future editions. Free online tax filing   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Free online tax filing NW, IR–6526 Washington, DC 20224   We respond to many letters by telephone. Free online tax filing Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Free online tax filing   You can email us at *taxforms@irs. Free online tax filing gov. Free online tax filing (The asterisk must be included in the address. Free online tax filing ) Please put “Publications Comment” on the subject line. Free online tax filing Although we cannot respond individually to each email, we do appreciate your feedback and will consider your comments as we revise our tax products. Free online tax filing Ordering forms and publications. Free online tax filing   Visit www. Free online tax filing irs. Free online tax filing gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Free online tax filing Internal Revenue Service1201 N. Free online tax filing Mitsubishi MotorwayBloomington, IL 61705-6613 Tax questions. Free online tax filing   If you have a tax question, check the information available on www. Free online tax filing irs. Free online tax filing gov or call 1-800-829-1040. Free online tax filing We cannot answer tax questions sent to either of the above addresses. Free online tax filing Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 505 Tax Withholding and Estimated Tax 535 Business Expenses 541 Partnerships 542 Corporations 544 Sales and Other Dispositions of Assets 583 Starting a Business and Keeping Records 925 Passive Activity and At-Risk Rules Form (and Instructions) 1065 U. Free online tax filing S. Free online tax filing Return of Partnership Income 1120 U. Free online tax filing S. Free online tax filing Corporation Income Tax Return 1120S U. Free online tax filing S. Free online tax filing Income Tax Return for an S Corporation 2553 Election by a Small Business Corporation 8832 Entity Classification Election See How To Get More Information near the end of this publication for information about getting publications and forms. Free online tax filing Prev  Up  Next   Home   More Online Publications
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Understanding Your CP53B Notice

We tried to direct deposit your refund, but the financial institution couldn’t process it. We are researching your account, but it will take 8 to 10 weeks to complete our review and verify this refund.


What you need to do

  • You don’t need to do anything at this time.

You may want to

  • Call us at the toll-free number on the notice if you don’t receive your refund check or a follow-up letter within 10 weeks
  • Monitor your financial accounts

If you notice any suspicious or unusual activity, you should:

  • Notify your financial institutions
  • Contact the fraud department of one of the three major credit bureaus
  • Report any fraudulent activity to your local police or sheriff's department
  • File a complaint with the Federal Trade Commission
  • Submit a Form 14039, Identity Theft Affidavit

Answers to Common Questions

Q. What should I do if I didn’t file a return?

A. Submit a Form 14039, Identity Theft Affidavit, to the IRS address in the Form 14039 instructions.

Q. Can I direct part of my refund into my tax professional’s checking or savings account to pay my tax preparation fee?

A. No. You can direct your refund to any of your checking or savings accounts. You can’t direct your refund to someone else’s account (except for your spouse’s account when you have a joint refund).

Q. Why will it take up to 10 weeks to receive my refund?

A. We must research your account to determine if you are entitled to the refund. We try to balance customer service and tax compliance when we review tax returns.  Refund timeframes are also affected by:

  • Bankruptcy
  • An open audit
  • A balance due on a related account (such as a different tax year)

Q. Will calling the IRS give me additional information or speed my refund?

A. No, calling us won’t speed up your refund. You don’t need to call us unless we send you a letter that asks you to contact us. Our telephone assistors won’t be able to provide any additional information.


Tips for next year

If you request a direct deposit refund, be sure the account you specify is in your name (or your spouse’s if you have a joint refund).

If you changed your name as a result of a recent marriage or divorce, be sure the name on your tax return matches the name registered with the Social Security Administration.

Never direct your refund to an account that belongs to a relative, friend, or tax return preparer.

 

Page Last Reviewed or Updated: 21-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Free Online Tax Filing

Free online tax filing 27. Free online tax filing   Tax Benefits for Work-Related Education Table of Contents What's New Introduction Useful Items - You may want to see: Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. Free online tax filing Transportation Expenses Travel Expenses No Double Benefit Allowed Reimbursements Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping What's New Standard mileage rate. Free online tax filing  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013, through December 31, 2013, is 56½ cents per mile. Free online tax filing For more information, see Transportation Expenses under What Expenses Can Be Deducted. Free online tax filing Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Free online tax filing To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040) if you are an employee, File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education . Free online tax filing If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Free online tax filing Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. Free online tax filing See chapter 28. Free online tax filing If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Free online tax filing Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits (see chapter 35). Free online tax filing You may qualify for these other benefits even if you do not meet the requirements listed earlier. Free online tax filing Also, keep in mind that your work-related education expenses may qualify you to claim more than one tax benefit. Free online tax filing Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Free online tax filing When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that give you the lowest tax liability. Free online tax filing Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 970 Tax Benefits for Education Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Schedule A (Form 1040) Itemized Deductions Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Free online tax filing This is education that meets at least one of the following two tests. Free online tax filing The education is required by your employer or the law to keep your present salary, status, or job. Free online tax filing The required education must serve a bona fide business purpose of your employer. Free online tax filing The education maintains or improves skills needed in your present work. Free online tax filing However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Free online tax filing You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Free online tax filing Use Figure 27-A, later, as a quick check to see if your education qualifies. Free online tax filing Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. Free online tax filing This additional education is qualifying work-related education if all three of the following requirements are met. Free online tax filing It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. Free online tax filing When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. Free online tax filing See Education To Maintain or Improve Skills , later. Free online tax filing Example. Free online tax filing You are a teacher who has satisfied the minimum requirements for teaching. Free online tax filing Your employer requires you to take an additional college course each year to keep your teaching job. Free online tax filing If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. Free online tax filing Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. Free online tax filing This could include refresher courses, courses on current developments, and academic or vocational courses. Free online tax filing Example. Free online tax filing You repair televisions, radios, and stereo systems for XYZ Store. Free online tax filing To keep up with the latest changes, you take special courses in radio and stereo service. Free online tax filing These courses maintain and improve skills required in your work. Free online tax filing Maintaining skills vs. Free online tax filing qualifying for new job. Free online tax filing   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. Free online tax filing Education during temporary absence. Free online tax filing   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Free online tax filing Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Free online tax filing Example. Free online tax filing You quit your biology research job to become a full-time biology graduate student for one year. Free online tax filing If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. Free online tax filing Education during indefinite absence. Free online tax filing   If you stop work for more than a year, your absence from your job is considered indefinite. Free online tax filing Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. Free online tax filing Therefore, it is not qualifying work-related education. Free online tax filing Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. Free online tax filing The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Free online tax filing Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. Free online tax filing This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. Free online tax filing You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Free online tax filing Example 1. Free online tax filing You are a full-time engineering student. Free online tax filing Although you have not received your degree or certification, you work part-time as an engineer for a firm that will employ you as a full-time engineer after you finish college. Free online tax filing Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. Free online tax filing The education is not qualifying work-related education. Free online tax filing Example 2. Free online tax filing You are an accountant and you have met the minimum educational requirements of your employer. Free online tax filing Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Free online tax filing These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. Free online tax filing Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Free online tax filing The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Free online tax filing If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Free online tax filing The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. Free online tax filing You generally will be considered a faculty member when one or more of the following occurs. Free online tax filing You have tenure. Free online tax filing Your years of service count toward obtaining tenure. Free online tax filing You have a vote in faculty decisions. Free online tax filing Your school makes contributions for you to a retirement plan other than social security or a similar program. Free online tax filing Example 1. Free online tax filing The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Free online tax filing In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Free online tax filing If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. Free online tax filing However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Free online tax filing Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. Free online tax filing If you have all the required education except the fifth year, you have met the minimum educational requirements. Free online tax filing The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. Free online tax filing Figure 27-A Does Your Work-Related Education Qualify? Please click here for the text description of the image. Free online tax filing Figure 27-A. Free online tax filing Does Your Work-Related Education Qualify?" Example 2. Free online tax filing Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Free online tax filing The additional four education courses can be qualifying work-related education. Free online tax filing Although you do not have all the required courses, you have already met the minimum educational requirements. Free online tax filing Example 3. Free online tax filing Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Free online tax filing The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Free online tax filing They are needed to meet the minimum educational requirements for employment as a teacher. Free online tax filing Example 4. Free online tax filing You have a bachelor's degree and you work as a temporary instructor at a university. Free online tax filing At the same time, you take graduate courses toward an advanced degree. Free online tax filing The rules of the university state that you can become a faculty member only if you get a graduate degree. Free online tax filing Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Free online tax filing You have not met the minimum educational requirements to qualify you as a faculty member. Free online tax filing The graduate courses are not qualifying work-related education. Free online tax filing Certification in a new state. Free online tax filing   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. Free online tax filing This is true even if you must get additional education to be certified in another state. Free online tax filing Any additional education you need is qualifying work-related education. Free online tax filing You have already met the minimum requirements for teaching. Free online tax filing Teaching in another state is not a new trade or business. Free online tax filing Example. Free online tax filing You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Free online tax filing You move to State B and are promptly hired as a teacher. Free online tax filing You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Free online tax filing These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. Free online tax filing Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. Free online tax filing This is true even if you do not plan to enter that trade or business. Free online tax filing If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Free online tax filing Example 1. Free online tax filing You are an accountant. Free online tax filing Your employer requires you to get a law degree at your own expense. Free online tax filing You register at a law school for the regular curriculum that leads to a law degree. Free online tax filing Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. Free online tax filing Example 2. Free online tax filing You are a general practitioner of medicine. Free online tax filing You take a 2-week course to review developments in several specialized fields of medicine. Free online tax filing The course does not qualify you for a new profession. Free online tax filing It is qualifying work-related education because it maintains or improves skills required in your present profession. Free online tax filing Example 3. Free online tax filing While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Free online tax filing The program will lead to qualifying you to practice psychoanalysis. Free online tax filing The psychoanalytic training does not qualify you for a new profession. Free online tax filing It is qualifying work-related education because it maintains or improves skills required in your present profession. Free online tax filing Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. Free online tax filing They are part of a program of study that can qualify you for a new profession. Free online tax filing Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Free online tax filing A change in duties in any of the following ways is not considered a change to a new business. Free online tax filing Elementary school teacher to secondary school teacher. Free online tax filing Teacher of one subject, such as biology, to teacher of another subject, such as art. Free online tax filing Classroom teacher to guidance counselor. Free online tax filing Classroom teacher to school administrator. Free online tax filing What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education , you can generally deduct your education expenses as business expenses. Free online tax filing If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Free online tax filing You cannot deduct expenses related to tax-exempt and excluded income. Free online tax filing Deductible expenses. Free online tax filing   The following education expenses can be deducted. Free online tax filing Tuition, books, supplies, lab fees, and similar items. Free online tax filing Certain transportation and travel costs. Free online tax filing Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Free online tax filing Nondeductible expenses. Free online tax filing   You cannot deduct personal or capital expenses. Free online tax filing For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Free online tax filing This amount is a personal expense. Free online tax filing Unclaimed reimbursement. Free online tax filing   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. Free online tax filing Example. Free online tax filing Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Free online tax filing You do not file a voucher, and you do not get reimbursed. Free online tax filing Because you did not file a voucher, you cannot deduct the expenses on your tax return. Free online tax filing Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Free online tax filing If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. Free online tax filing Temporary basis. Free online tax filing   You go to school on a temporary basis if either of the following situations applies to you. Free online tax filing Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Free online tax filing Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Free online tax filing Your attendance is temporary up to the date you determine it will last more than 1 year. Free online tax filing Note. Free online tax filing If you are in either situation (1) or (2), your attendance is not temporary if facts and circumstances indicate otherwise. Free online tax filing Attendance not on a temporary basis. Free online tax filing   You do not go to school on a temporary basis if either of the following situations apply to you. Free online tax filing Your attendance at school is realistically expected to last more than 1 year. Free online tax filing It does not matter how long you actually attend. Free online tax filing Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Free online tax filing Your attendance is not temporary after the date you determine it will last more than 1 year. Free online tax filing Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. Free online tax filing This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Free online tax filing Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Free online tax filing Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Free online tax filing Example 1. Free online tax filing You regularly work in a nearby town, and go directly from work to home. Free online tax filing You also attend school every work night for 3 months to take a course that improves your job skills. Free online tax filing Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Free online tax filing This is true regardless of the distance traveled. Free online tax filing Example 2. Free online tax filing Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Free online tax filing You can deduct your transportation expenses from your regular work site to school and then home. Free online tax filing Example 3. Free online tax filing Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Free online tax filing Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Free online tax filing Example 4. Free online tax filing Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Free online tax filing Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Free online tax filing If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Free online tax filing If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. Free online tax filing Using your car. Free online tax filing   If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. Free online tax filing The standard mileage rate for miles driven from January 1, 2013, through December 31, 2013 is 56½ cents per mile. Free online tax filing Whichever method you use, you can also deduct parking fees and tolls. Free online tax filing See chapter 26 for information on deducting your actual expenses of using a car. Free online tax filing Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. Free online tax filing Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Free online tax filing For more information, see chapter 26. Free online tax filing You cannot deduct expenses for personal activities, such as sightseeing, visiting, or entertaining. Free online tax filing Mainly personal travel. Free online tax filing   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Free online tax filing You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Free online tax filing   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Free online tax filing An important factor is the comparison of time spent on personal activities with time spent on educational activities. Free online tax filing If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. Free online tax filing Example 1. Free online tax filing John works in Newark, New Jersey. Free online tax filing He traveled to Chicago to take a deductible 1-week course at the request of his employer. Free online tax filing His main reason for going to Chicago was to take the course. Free online tax filing While there, he took a sight-seeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Free online tax filing Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Free online tax filing He cannot deduct his transportation expenses of going to Pleasantville. Free online tax filing He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Free online tax filing Example 2. Free online tax filing Sue works in Boston. Free online tax filing She went to a university in Michigan to take a course for work. Free online tax filing The course is qualifying work-related education. Free online tax filing She took one course, which is one-fourth of a full course load of study. Free online tax filing She spent the rest of the time on personal activities. Free online tax filing Her reasons for taking the course in Michigan were all personal. Free online tax filing Sue's trip is mainly personal because three-fourths of her time is considered personal time. Free online tax filing She cannot deduct the cost of her round-trip train ticket to Michigan. Free online tax filing She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Free online tax filing Example 3. Free online tax filing Dave works in Nashville and recently traveled to California to take a 2-week seminar. Free online tax filing The seminar is qualifying work-related education. Free online tax filing While there, he spent an extra 8 weeks on personal activities. Free online tax filing The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Free online tax filing Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Free online tax filing He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Free online tax filing Cruises and conventions. Free online tax filing   Certain cruises and conventions offer seminars or courses as part of their itinerary. Free online tax filing Even if the seminars or courses are work-related, your deduction for travel may be limited. Free online tax filing This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Free online tax filing   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. Free online tax filing 50% limit on meals. Free online tax filing   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Free online tax filing You cannot have been reimbursed for the meals. Free online tax filing   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Free online tax filing Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. Free online tax filing Example. Free online tax filing You are a French language teacher. Free online tax filing While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Free online tax filing You chose your itinerary and most of your activities to improve your French language skills. Free online tax filing You cannot deduct your travel expenses as education expenses. Free online tax filing This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. Free online tax filing No Double Benefit Allowed You cannot do either of the following. Free online tax filing Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, the tuition and fees deduction (see chapter 35). Free online tax filing Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Free online tax filing See Adjustments to Qualifying Work-Related Education Expenses , next. Free online tax filing Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. Free online tax filing You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Free online tax filing For more information, see chapter 12 of Publication 970. Free online tax filing Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see chapter 1 of Publication 970), The tax-free part of Pell grants (see chapter 1 of Publication 970), The tax-free part of employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received for education assistance. Free online tax filing Amounts that do not reduce qualifying work-related education expenses. Free online tax filing   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Free online tax filing   Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. Free online tax filing Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Free online tax filing There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Free online tax filing You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Free online tax filing For information on how to treat reimbursements under both accountable and nonaccountable plans, see Reimbursements in chapter 26. Free online tax filing Deducting Business Expenses Self-employed persons and employees report business expenses differently. Free online tax filing The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Free online tax filing Self-Employed Persons If you are self-employed, report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C, C-EZ, or F). Free online tax filing If your educational expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. Free online tax filing See the instructions for the form you file for information on how to complete it. Free online tax filing Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. Free online tax filing If either (1) or (2) applies, you can deduct the total qualifying cost. Free online tax filing If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Free online tax filing In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21. Free online tax filing (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Free online tax filing ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Free online tax filing See chapter 28. Free online tax filing Form 2106 or 2106-EZ. Free online tax filing   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or Form 2106-EZ. Free online tax filing Form not required. Free online tax filing   Do not complete either Form 2106 or Form 2106-EZ if: If amounts included in box 1 of your Form W-2, are not considered reimbursements, and You are not claiming travel, transportation, meal, or entertainment expenses. Free online tax filing   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21. Free online tax filing (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Free online tax filing ) Using Form 2106-EZ. Free online tax filing   This form is shorter and easier to use than Form 2106. Free online tax filing Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. Free online tax filing   If you do not meet both of these requirements, use Form 2106. Free online tax filing Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. Free online tax filing Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24. Free online tax filing You do not have to itemize your deductions on Schedule A (Form 1040), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Free online tax filing You must complete Form 2106 or 2106-EZ to figure your deduction, even if you meet the requirements described earlier under Form not required . Free online tax filing For more information on qualified performing artists, see chapter 6 of Publication 463. Free online tax filing Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28. Free online tax filing They are not subject to the 2%-of-adjusted-gross-income limit. Free online tax filing To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Free online tax filing For more information on impairment-related work expenses, see chapter 6 of Publication 463. Free online tax filing Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Free online tax filing Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Free online tax filing For specific information about keeping records of business expenses, see Recordkeeping in chapter 26. Free online tax filing Prev  Up  Next   Home   More Online Publications