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How To Do An Amendment Tax Return

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How To Do An Amendment Tax Return

How to do an amendment tax return 14. How to do an amendment tax return   Excise Taxes Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Fuels Used in FarmingBuyer of fuel, including undyed diesel fuel or undyed kerosene. How to do an amendment tax return Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). How to do an amendment tax return Custom application of fertilizer and pesticide. How to do an amendment tax return Fuel not used for farming. How to do an amendment tax return Dyed Diesel Fuel and Dyed Kerosene Fuels Used in Off-Highway Business Use Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines How To Claim a Credit or RefundCredit only. How to do an amendment tax return Claiming a Credit Claiming a Refund Including the Credit or Refund in Income Introduction You may be eligible to claim a credit on your income tax return for the federal excise tax on certain fuels. How to do an amendment tax return You may also be eligible to claim a quarterly refund of the fuel taxes during the year, instead of waiting to claim a credit on your income tax return. How to do an amendment tax return Whether you can claim a credit or refund depends on whether the fuel was taxed and the purpose (nontaxable use) for which you used the fuel. How to do an amendment tax return The nontaxable uses of fuel for which a farmer may claim a credit or refund are generally the following. How to do an amendment tax return Use on a farm for farming purposes. How to do an amendment tax return Off-highway business use. How to do an amendment tax return Uses other than as a fuel in a propulsion engine, such as home use. How to do an amendment tax return Table 14-1 presents an overview of credits and refunds that may be claimed for fuels used for the nontaxable uses listed above. How to do an amendment tax return See Publication 510, Excise Taxes, for more information. How to do an amendment tax return Topics - This chapter discusses: Fuels used in farming Dyed diesel fuel and dyed kerosene Fuels used in off-highway business use Fuels used for household purposes How to claim a credit or refund Including the credit or refund in income Useful Items - You may want to see: Publication 510 Excise Taxes Form (and Instructions) 720 Quarterly Federal Excise Tax Return 4136 Credit for Federal Tax Paid on Fuels 8849 Claim for Refund of Excise Taxes See chapter 16 for information about getting publications and forms. How to do an amendment tax return Fuels Used in Farming Owners, operators, and tenants of farms and certain other persons may be eligible to claim a credit or refund of excise taxes on fuel used in the trade or business of farming, when used on a farm in the United States for farming purposes. How to do an amendment tax return See Table 14-1 for a list of available fuel tax credits and refunds. How to do an amendment tax return Fuel is used on a farm for farming purposes only if used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. How to do an amendment tax return Farm. How to do an amendment tax return   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms, orchards, plantations, ranches, nurseries, ranges, and feed yards for finishing cattle. How to do an amendment tax return It also includes structures such as greenhouses used primarily for raising agricultural or horticultural commodities. How to do an amendment tax return A fish farm is an area where fish are grown or raised and not merely caught or harvested. How to do an amendment tax return Table 14-1. How to do an amendment tax return Fuel Tax Credits and Refunds at a Glance Use this table to see if you can take a credit or refund for a nontaxable use of the fuel listed. How to do an amendment tax return Fuel Used On a Farm for Farming Purposes Off-Highway Business Use Household Use or Use Other Than as a Fuel1 Gasoline Credit only Credit or refund None Aviation gasoline Credit only None None Undyed diesel fuel and undyed kerosene Credit or refund Credit or refund2 Credit or refund2 Kerosene for use in aviation Credit or refund None None Dyed diesel fuel and dyed kerosene None None None Other Fuels (including alternative fuels)3 Credit or refund Credit or refund None 1For a use other than as fuel in a propulsion engine. How to do an amendment tax return 2Applies to undyed kerosene not sold from a blocked pump or, under certain circumstances, for blending with undyed diesel fuel to be used for heating purposes. How to do an amendment tax return See Reg. How to do an amendment tax return 48. How to do an amendment tax return 6427-10 (b)(1) for the definition of a blocked pump. How to do an amendment tax return 3Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under Internal Revenue Code section 4081. How to do an amendment tax return It includes the alternative fuels: liquefied petroleum gas (LPG),“P” Series fuels, compressed natural gas (CNG), liquefied hydrogen, any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, liquid fuel derived from biomass, liquid natural gas (LNG), liquefied gas derived from biomass, and compressed gas derived from biomass. How to do an amendment tax return Farming purposes. How to do an amendment tax return   As the owner, tenant, or operator and the ultimate purchaser of fuel that you purchased, you use the fuel on a farm for farming purposes if you use it in any of the following ways. How to do an amendment tax return To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. How to do an amendment tax return To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. How to do an amendment tax return To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. How to do an amendment tax return To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. How to do an amendment tax return For this use to qualify, you must have produced more than half the commodity so treated during the tax year. How to do an amendment tax return The more-than-one-half test applies separately to each commodity. How to do an amendment tax return Commodity means a single raw product. How to do an amendment tax return For example, apples and peaches are two separate commodities. How to do an amendment tax return To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if these activities are incidental to your farming operations. How to do an amendment tax return Your tree operations are incidental only if they are minor in nature when compared to the total farming operations. How to do an amendment tax return   If any other person, such as a neighbor or custom operator (independent contractor), performs a service for you on your farm for any of the purposes included in list items (1) or (2), above, you are considered to be the ultimate purchaser who used the fuel on a farm for farming purposes. How to do an amendment tax return Therefore, you can still claim the credit or refund for the fuel so used. How to do an amendment tax return However, see Custom application of fertilizer and pesticide, later. How to do an amendment tax return If the other person performs any other services for you on your farm for purposes not included in list items (1) or (2) above, no one can claim the credit or refund for fuel used on your farm for those other services. How to do an amendment tax return Buyer of fuel, including undyed diesel fuel or undyed kerosene. How to do an amendment tax return   If doubt exists whether the owner, tenant, or operator of the farm bought the fuel, determine who actually bore the cost of the fuel. How to do an amendment tax return For example, if the owner of a farm and his or her tenant equally share the cost of gasoline used on the farm, each can claim a credit for the tax on half the fuel used. How to do an amendment tax return Undyed diesel fuel, undyed kerosene, and Other Fuels (including alternative fuel). How to do an amendment tax return   Usually, the farmer is the only person who can make a claim for credit or refund for the tax on undyed diesel fuel, undyed kerosene, or other fuels (including alternative fuel) used for farming purposes. How to do an amendment tax return However, see Custom application of fertilizer and pesticide, next. How to do an amendment tax return Also see Dyed Diesel Fuel and Dyed Kerosene, later. How to do an amendment tax return Example. How to do an amendment tax return Farm owner Haleigh Blue hired custom operator Tyler Steele to cultivate the soil on her farm. How to do an amendment tax return Tyler used 200 gallons of undyed diesel fuel that he purchased to perform the work on Haleigh's farm. How to do an amendment tax return In addition, Haleigh hired contractor Lee Brown to pack and store her apple crop. How to do an amendment tax return Lee bought 25 gallons of undyed diesel fuel to use in packing the apples. How to do an amendment tax return Haleigh can claim the credit for the 200 gallons of undyed diesel fuel used by Tyler on her farm because it qualifies as fuel used on the farm for farming purposes. How to do an amendment tax return No one can claim a credit for the 25 gallons used by Lee because that fuel was not used for a farming purpose included in list items (1) or (2), above. How to do an amendment tax return In the above example, both Tyler Steele and Lee Brown could have purchased dyed (untaxed) diesel fuel for their tasks. How to do an amendment tax return Custom application of fertilizer and pesticide. How to do an amendment tax return   Fuel used on a farm for farming purposes includes fuel used in the application (including aerial application) of fertilizer, pesticides, or other substances. How to do an amendment tax return Generally, the applicator is treated as having used the fuel on a farm for farming purposes. How to do an amendment tax return For applicators using highway vehicles, only the fuel used on the farm is exempt. How to do an amendment tax return Fuel used traveling on the highway to and from the farm is taxable. How to do an amendment tax return Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as used for a farming purpose. How to do an amendment tax return For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. How to do an amendment tax return For kerosene used in aviation, the ultimate purchaser may make the claim or waive the right to make the claim to the registered ultimate vendor. How to do an amendment tax return A sample waiver is included as Model Waiver L in the appendix of Publication 510. How to do an amendment tax return A registered ultimate vendor is the person who sells undyed diesel fuel, undyed kerosene, or kerosene for use in aviation to the user (ultimate purchaser) of the fuel for use on a farm for farming purposes. How to do an amendment tax return To claim a credit or refund of tax, the ultimate vendor must be registered with the Internal Revenue Service at the time the claim is made. How to do an amendment tax return However, registered ultimate vendors cannot make claims for undyed diesel fuel and undyed kerosene sold for use on a farm for farming purposes. How to do an amendment tax return Fuel not used for farming. How to do an amendment tax return   You do not use fuel on a farm for farming purposes when you use it in any of the following ways. How to do an amendment tax return Off the farm, such as on the highway or in noncommercial aviation, even if the fuel is used in transporting livestock, feed, crops, or equipment. How to do an amendment tax return For personal use, such as lawn mowing. How to do an amendment tax return In processing, packaging, freezing, or canning operations. How to do an amendment tax return In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. How to do an amendment tax return All-terrain vehicles (ATVs). How to do an amendment tax return   Fuel used in ATVs on a farm for farming purposes, discussed earlier, is eligible for a credit or refund of excise taxes on the fuel. How to do an amendment tax return Fuel used in ATVs for nonfarming purposes is not eligible for a credit or refund of the taxes. How to do an amendment tax return If ATVs are used both for farming and nonfarming purposes, only that portion of the fuel used for farming purposes is eligible for the credit or refund. How to do an amendment tax return Dyed Diesel Fuel and Dyed Kerosene If you purchase dyed diesel fuel or dyed kerosene for a nontaxable use, you must use it only on a farm for farming purposes or for other nontaxable purposes. How to do an amendment tax return For example, you should not use dyed diesel fuel in a truck that is used both on the farm for farming purposes and on the highway, even though the highway use is in connection with farm business. How to do an amendment tax return Excise tax applies to the fuel used by the truck on the highways. How to do an amendment tax return In this situation, undyed (taxed) fuel should be purchased for the truck. How to do an amendment tax return You should keep fuel records of the use of the truck on the farm for farming purposes, and for other uses. How to do an amendment tax return You may be eligible for a credit or refund for the excise tax on fuel used on the farm for farming purposes. How to do an amendment tax return Penalty. How to do an amendment tax return   A penalty is imposed on any person who knowingly uses, sells, or alters dyed diesel fuel or dyed kerosene for any purpose other than a nontaxable use. How to do an amendment tax return The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. How to do an amendment tax return After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. How to do an amendment tax return For more information on this penalty, see Publication 510. How to do an amendment tax return Fuels Used in Off-Highway Business Use You may be eligible to claim a credit or refund for the excise tax on fuel used in an off-highway business use. How to do an amendment tax return Off-highway business use. How to do an amendment tax return   This is any use of fuel in a trade or business or in an income-producing activity. How to do an amendment tax return The use must not be in a highway vehicle registered or required to be registered for use on public highways. How to do an amendment tax return Off-highway business use generally does not include any use in a recreational motorboat. How to do an amendment tax return Examples. How to do an amendment tax return   Off-highway business use includes the use of fuels in a trade or business in any of the following ways. How to do an amendment tax return In stationary machines such as generators, compressors, power saws, and similar equipment; For cleaning ; and In forklift trucks, bulldozers, and earthmovers. How to do an amendment tax return   Off-highway nonbusiness (taxable) use of fuel includes: use in minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. How to do an amendment tax return For more information, see Publication 510. How to do an amendment tax return Fuels Used for Household Purposes or Other Than as a Fuel for Propulsion Engines You may be eligible to claim a credit or refund for the excise tax on undyed diesel fuel or kerosene used for home heating, lighting, and cooking. How to do an amendment tax return This also applies to diesel fuel and kerosene used in a home generator to produce electricity for home use. How to do an amendment tax return Home use of a fuel does not include use in a propulsion engine and it is not considered an off-highway business use. How to do an amendment tax return How To Claim a Credit or Refund You may be able to claim a credit or refund of the excise tax on fuels you use for nontaxable uses. How to do an amendment tax return The basic rules for claiming credits and refunds are listed in Table 14-2 . How to do an amendment tax return Table 14-2. How to do an amendment tax return Claiming a Credit or Refund of Excise Taxes This table gives the basic rules for claiming a credit or refund of excise taxes on fuels used for a nontaxable use. How to do an amendment tax return   Credit Refund Which form to use Form 4136, Credit for Federal Tax Paid on Fuels Form 8849, Claim for Refund of Excise Taxes, and Schedule 1 (Form 8849), Nontaxable Use of Fuels Type of form Annual Quarterly When to file With your income tax return By the last day of the quarter following the last quarter included in the claim Amount of tax Any amount $750 or more1 1You may carry over an amount less than $750 to the next quarter. How to do an amendment tax return Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. How to do an amendment tax return You do not have to use any special form, but the records should establish the following information. How to do an amendment tax return The total number of gallons bought and used during the period covered by your claim. How to do an amendment tax return The dates of the purchases. How to do an amendment tax return The names and addresses of suppliers and amounts bought from each during the period covered by your claim. How to do an amendment tax return The nontaxable use for which you used the fuel. How to do an amendment tax return The number of gallons used for each nontaxable use. How to do an amendment tax return It is important that your records separately show the number of gallons used for each nontaxable use that qualifies as a claim. How to do an amendment tax return For more information about recordkeeping, see Publication 583, Starting a Business and Keeping Records. How to do an amendment tax return Credit or refund. How to do an amendment tax return   A credit is an amount that reduces the tax on your income tax return when you file it at the end of the year. How to do an amendment tax return If you meet certain requirements, you may claim a refund during the year instead of waiting until you file your income tax return. How to do an amendment tax return Credit only. How to do an amendment tax return   You can claim the following taxes only as a credit on your income tax return. How to do an amendment tax return Tax on gasoline and aviation gasoline you used on a farm for farming purposes. How to do an amendment tax return Tax on fuels (including undyed diesel fuel or undyed kerosene) you used for nontaxable uses if the total for the tax year is less than $750. How to do an amendment tax return Tax on fuel you did not include in any claim for refund previously filed for any quarter of the tax year. How to do an amendment tax return Claiming a Credit You make a claim for a fuel tax credit on Form 4136 and attach it to your income tax return. How to do an amendment tax return Do not claim a credit for any excise tax for which you have filed a refund claim. How to do an amendment tax return How to claim a credit. How to do an amendment tax return   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, trust, or farmers' cooperative association. How to do an amendment tax return Individuals. How to do an amendment tax return   You claim the credit on the “Credit for federal tax on fuels” line of your Form 1040. How to do an amendment tax return If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. How to do an amendment tax return Partnership. How to do an amendment tax return   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. How to do an amendment tax return , showing each partner's share of the number of gallons of each fuel sold or used for a nontaxable use, the type of use, and the applicable credit per gallon. How to do an amendment tax return Each partner claims the credit on his or her income tax return for the partner's share of the fuel used by the partnership. How to do an amendment tax return An electing large partnership can claim the credit on the “Other payments” line of Form 1065-B, U. How to do an amendment tax return S. How to do an amendment tax return Return of Income for Electing Large Partnerships. How to do an amendment tax return Other entities. How to do an amendment tax return   Corporations, S corporations, farmers' cooperative associations, and trusts make the claim on the appropriate line of their income tax return. How to do an amendment tax return When to claim a credit. How to do an amendment tax return   You can claim a fuel tax credit on your income tax return for the year you used the fuel. How to do an amendment tax return You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. How to do an amendment tax return A claim for credit or refund of an overpayment must generally be filed within the later of: Three years from the date the original return was filed, or Two years from the date the tax was paid. How to do an amendment tax return Claiming a Refund Generally, you may claim a refund of excise taxes on Form 8849. How to do an amendment tax return Complete and attach to Form 8849 the appropriate Form 8849 schedule(s). How to do an amendment tax return The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. How to do an amendment tax return If you file Form 720, you can use its Schedule C for your refund claims for the quarter. How to do an amendment tax return See the Instructions for Form 720. How to do an amendment tax return Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Form 720 or Form 4136. How to do an amendment tax return You may file a claim for refund for any quarter of your tax year for which you can claim $750 or more. How to do an amendment tax return This amount is the excise tax on all fuels used for a nontaxable use during that quarter or any prior quarter (for which no other claim has been filed) during the tax year. How to do an amendment tax return If you cannot claim at least $750 at the end of a quarter, you carry the amount over to the next quarter of your tax year to determine if you can claim at least $750 for that quarter. How to do an amendment tax return If you cannot claim at least $750 at the end of the fourth quarter of your tax year, you must claim a credit on your income tax return using Form 4136. How to do an amendment tax return Only one claim can be filed for a quarter. How to do an amendment tax return You cannot claim a refund for excise tax on gasoline and aviation gasoline used on a farm for farming purposes. How to do an amendment tax return You must claim a credit on your income tax return for the tax. How to do an amendment tax return How to file a quarterly claim. How to do an amendment tax return   File the claim for refund by filling out Schedule 1 (Form 8849) and attaching it to Form 8849. How to do an amendment tax return Send it to the address shown in the instructions. How to do an amendment tax return If you file Form 720, you can use its Schedule C for your refund claims. How to do an amendment tax return See the Instructions for Form 720. How to do an amendment tax return When to file a quarterly claim. How to do an amendment tax return   You must file a quarterly claim by the last day of the first quarter following the last quarter included in the claim. How to do an amendment tax return If you do not file a timely refund claim for the fourth quarter of your tax year, you will have to claim a credit for that amount on your income tax return, as discussed earlier. How to do an amendment tax return    In most situations, the amount claimed as a credit or refund will be less than the amount deducted as fuel tax expense because the Leaking Underground Storage Tank (LUST) tax of $0. How to do an amendment tax return 001 per gallon is generally not subject to credit or refund. How to do an amendment tax return Including the Credit or Refund in Income Include any credit or refund of excise taxes on fuels in your gross income if you claimed the total cost of the fuel (including the excise taxes) as an expense deduction that reduced your income tax liability. How to do an amendment tax return Which year you include a credit or refund in gross income depends on whether you use the cash or an accrual method of accounting. How to do an amendment tax return Cash method. How to do an amendment tax return   If you use the cash method and file a claim for refund, include the refund amount in gross income for the tax year in which you receive the refund. How to do an amendment tax return If you claim a credit on your income tax return, include the credit amount in gross income for the tax year in which you file Form 4136. How to do an amendment tax return If you file an amended return and claim a credit, include the credit amount in gross income for the tax year in which you receive the credit. How to do an amendment tax return Example. How to do an amendment tax return Sharon Brown, a farmer who uses the cash method, filed her 2012 Form 1040 on March 3, 2013. How to do an amendment tax return On her Schedule F, she deducted the total cost of gasoline (including $110 of excise taxes) used on the farm for farming purposes. How to do an amendment tax return Then, on Form 4136, she claimed the $110 as a credit. How to do an amendment tax return Sharon reports the $110 as other income on line 8b of her 2013 Schedule F. How to do an amendment tax return Accrual method. How to do an amendment tax return   If you use an accrual method, include the amount of credit or refund in gross income for the tax year in which you used the fuels. How to do an amendment tax return It does not matter whether you filed for a quarterly refund or claimed the entire amount as a credit. How to do an amendment tax return Example. How to do an amendment tax return Patty Green, a farmer who uses the accrual method, files her 2012 Form 1040 on April 15, 2013. How to do an amendment tax return On Schedule F, she deducts the total cost of gasoline (including $155 of excise taxes) she used on the farm for farming purposes during 2012. How to do an amendment tax return On Form 4136, Patty claims the $155 as a credit. How to do an amendment tax return She reports the $155 as other income on line 8b of her 2012 Schedule F. How to do an amendment tax return Prev  Up  Next   Home   More Online Publications
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The How To Do An Amendment Tax Return

How to do an amendment tax return 28. How to do an amendment tax return   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. How to do an amendment tax return  The 2013 rate for business use of a vehicle is 56½ cents per mile. How to do an amendment tax return Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). How to do an amendment tax return You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. How to do an amendment tax return This chapter covers the following topics. How to do an amendment tax return Deductions subject to the 2% limit. How to do an amendment tax return Deductions not subject to the 2% limit. How to do an amendment tax return Expenses you cannot deduct. How to do an amendment tax return You must keep records to verify your deductions. How to do an amendment tax return You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. How to do an amendment tax return For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. How to do an amendment tax return Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). How to do an amendment tax return You can claim the amount of expenses that is more than 2% of your adjusted gross income. How to do an amendment tax return You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. How to do an amendment tax return Your adjusted gross income is the amount on Form 1040, line 38. How to do an amendment tax return Generally, you apply the 2% limit after you apply any other deduction limit. How to do an amendment tax return For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. How to do an amendment tax return Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). How to do an amendment tax return Unreimbursed employee expenses (line 21). How to do an amendment tax return Tax preparation fees (line 22). How to do an amendment tax return Other expenses (line 23). How to do an amendment tax return Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. How to do an amendment tax return An expense is ordinary if it is common and accepted in your trade, business, or profession. How to do an amendment tax return An expense is necessary if it is appropriate and helpful to your business. How to do an amendment tax return An expense does not have to be required to be considered necessary. How to do an amendment tax return Examples of unreimbursed employee expenses are listed next. How to do an amendment tax return The list is followed by discussions of additional unreimbursed employee expenses. How to do an amendment tax return Business bad debt of an employee. How to do an amendment tax return Education that is work related. How to do an amendment tax return (See chapter 27. How to do an amendment tax return ) Legal fees related to your job. How to do an amendment tax return Licenses and regulatory fees. How to do an amendment tax return Malpractice insurance premiums. How to do an amendment tax return Medical examinations required by an employer. How to do an amendment tax return Occupational taxes. How to do an amendment tax return Passport for a business trip. How to do an amendment tax return Subscriptions to professional journals and trade magazines related to your work. How to do an amendment tax return Travel, transportation, entertainment, and gifts related to your work. How to do an amendment tax return (See chapter 26. How to do an amendment tax return ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. How to do an amendment tax return Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. How to do an amendment tax return Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. How to do an amendment tax return For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. How to do an amendment tax return Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. How to do an amendment tax return Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. How to do an amendment tax return Lobbying and political activities. How to do an amendment tax return   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. How to do an amendment tax return See Dues used for lobbying under Nondeductible Expenses, later. How to do an amendment tax return Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. How to do an amendment tax return If you file Form 1040A, you can deduct these expenses on line 16. How to do an amendment tax return If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. How to do an amendment tax return However, neither spouse can deduct more than $250 of his or her qualified expenses. How to do an amendment tax return Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. How to do an amendment tax return You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. How to do an amendment tax return The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. How to do an amendment tax return See Publication 587 for more detailed information and a worksheet. How to do an amendment tax return Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. How to do an amendment tax return You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. How to do an amendment tax return Employment and outplacement agency fees. How to do an amendment tax return   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. How to do an amendment tax return Employer pays you back. How to do an amendment tax return   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. How to do an amendment tax return (See Recoveries in chapter 12. How to do an amendment tax return ) Employer pays the employment agency. How to do an amendment tax return   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. How to do an amendment tax return Résumé. How to do an amendment tax return   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. How to do an amendment tax return Travel and transportation expenses. How to do an amendment tax return   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. How to do an amendment tax return You can deduct the travel expenses if the trip is primarily to look for a new job. How to do an amendment tax return The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. How to do an amendment tax return   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. How to do an amendment tax return   You can choose to use the standard mileage rate to figure your car expenses. How to do an amendment tax return The 2013 rate for business use of a vehicle is 56½ cents per mile. How to do an amendment tax return See chapter 26 for more information. How to do an amendment tax return Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. How to do an amendment tax return Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. How to do an amendment tax return If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. How to do an amendment tax return Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. How to do an amendment tax return If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. How to do an amendment tax return Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. How to do an amendment tax return You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. How to do an amendment tax return However, you cannot deduct the cost of travel as a form of education. How to do an amendment tax return Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. How to do an amendment tax return You can depreciate the cost of tools that have a useful life substantially beyond the tax year. How to do an amendment tax return For more information about depreciation, see Publication 946. How to do an amendment tax return Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. How to do an amendment tax return You can also deduct assessments for benefit payments to unemployed union members. How to do an amendment tax return However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. How to do an amendment tax return Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. How to do an amendment tax return You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. How to do an amendment tax return See Lobbying Expenses under Nondeductible Expenses, later. How to do an amendment tax return Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. How to do an amendment tax return You must wear them as a condition of your employment. How to do an amendment tax return The clothes are not suitable for everyday wear. How to do an amendment tax return It is not enough that you wear distinctive clothing. How to do an amendment tax return The clothing must be specifically required by your employer. How to do an amendment tax return Nor is it enough that you do not, in fact, wear your work clothes away from work. How to do an amendment tax return The clothing must not be suitable for taking the place of your regular clothing. How to do an amendment tax return Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. How to do an amendment tax return ). How to do an amendment tax return Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. How to do an amendment tax return However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. How to do an amendment tax return Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. How to do an amendment tax return Protective clothing. How to do an amendment tax return   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. How to do an amendment tax return   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. How to do an amendment tax return Military uniforms. How to do an amendment tax return   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. How to do an amendment tax return However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. How to do an amendment tax return In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. How to do an amendment tax return   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. How to do an amendment tax return   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. How to do an amendment tax return Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. How to do an amendment tax return Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. How to do an amendment tax return These fees include the cost of tax preparation software programs and tax publications. How to do an amendment tax return They also include any fee you paid for electronic filing of your return. How to do an amendment tax return Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. How to do an amendment tax return On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. How to do an amendment tax return You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. How to do an amendment tax return Some of these other expenses are explained in the following discussions. How to do an amendment tax return If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. How to do an amendment tax return Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. How to do an amendment tax return Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. How to do an amendment tax return First report the loss in Section B of Form 4684, Casualties and Thefts. How to do an amendment tax return You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. How to do an amendment tax return To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. How to do an amendment tax return For other casualty and theft losses, see chapter 25. How to do an amendment tax return Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. How to do an amendment tax return Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. How to do an amendment tax return The fees are deductible in the year paid. How to do an amendment tax return Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). How to do an amendment tax return You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. How to do an amendment tax return But if you work as an employee and also use the computer in that work, see Publication 946. How to do an amendment tax return Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. How to do an amendment tax return Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. How to do an amendment tax return The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. How to do an amendment tax return For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. How to do an amendment tax return Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. How to do an amendment tax return But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. How to do an amendment tax return You must add the fee to the cost of the property. How to do an amendment tax return You cannot deduct the fee you pay to a broker to sell securities. How to do an amendment tax return You can use the fee only to figure gain or loss from the sale. How to do an amendment tax return See the Instructions for Form 8949 for information on how to report the fee. How to do an amendment tax return Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. How to do an amendment tax return A hobby is not a business because it is not carried on to make a profit. How to do an amendment tax return See Activity not for profit in chapter 12 under Other Income. How to do an amendment tax return Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. How to do an amendment tax return Deductions of pass-through entities are passed through to the partners or shareholders. How to do an amendment tax return The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. How to do an amendment tax return Example. How to do an amendment tax return You are a member of an investment club that is formed solely to invest in securities. How to do an amendment tax return The club is treated as a partnership. How to do an amendment tax return The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. How to do an amendment tax return In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. How to do an amendment tax return However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. How to do an amendment tax return Publicly offered mutual funds. How to do an amendment tax return   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. How to do an amendment tax return A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. How to do an amendment tax return   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). How to do an amendment tax return This net figure is the amount you report on your return as income. How to do an amendment tax return You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. How to do an amendment tax return Information returns. How to do an amendment tax return   You should receive information returns from pass-through entities. How to do an amendment tax return Partnerships and S corporations. How to do an amendment tax return   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. How to do an amendment tax return Nonpublicly offered mutual funds. How to do an amendment tax return   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. How to do an amendment tax return You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. How to do an amendment tax return Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. How to do an amendment tax return Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. How to do an amendment tax return You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. How to do an amendment tax return You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. How to do an amendment tax return You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). How to do an amendment tax return See Tax Preparation Fees , earlier. How to do an amendment tax return Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. How to do an amendment tax return Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. How to do an amendment tax return If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. How to do an amendment tax return If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. How to do an amendment tax return Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. How to do an amendment tax return Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. How to do an amendment tax return You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. How to do an amendment tax return Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. How to do an amendment tax return These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. How to do an amendment tax return Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. How to do an amendment tax return For more information about IRAs, see chapter 17. How to do an amendment tax return Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. How to do an amendment tax return They are not subject to the 2% limit. How to do an amendment tax return Report these items on Schedule A (Form 1040), line 28. How to do an amendment tax return List of Deductions Each of the following items is discussed in detail after the list (except where indicated). How to do an amendment tax return Amortizable premium on taxable bonds. How to do an amendment tax return Casualty and theft losses from income- producing property. How to do an amendment tax return Federal estate tax on income in respect of a decedent. How to do an amendment tax return Gambling losses up to the amount of gambling winnings. How to do an amendment tax return Impairment-related work expenses of persons with disabilities. How to do an amendment tax return Loss from other activities from Schedule K-1 (Form 1065-B), box 2. How to do an amendment tax return Losses from Ponzi-type investment schemes. How to do an amendment tax return See Losses from Ponzi-type investment schemes under Theft in chapter 25. How to do an amendment tax return Repayments of more than $3,000 under a claim of right. How to do an amendment tax return Unrecovered investment in an annuity. How to do an amendment tax return Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. How to do an amendment tax return You can elect to amortize the premium on taxable bonds. How to do an amendment tax return The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. How to do an amendment tax return Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. How to do an amendment tax return For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. How to do an amendment tax return Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). How to do an amendment tax return First, report the loss in Form 4684, Section B. How to do an amendment tax return You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. How to do an amendment tax return To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. How to do an amendment tax return For more information on casualty and theft losses, see chapter 25. How to do an amendment tax return Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. How to do an amendment tax return Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. How to do an amendment tax return See Publication 559 for more information. How to do an amendment tax return Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. How to do an amendment tax return You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. How to do an amendment tax return You cannot deduct gambling losses that are more than your winnings. How to do an amendment tax return You cannot reduce your gambling winnings by your gambling losses and report the difference. How to do an amendment tax return You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. How to do an amendment tax return Therefore, your records should show your winnings separately from your losses. How to do an amendment tax return Diary of winnings and losses. How to do an amendment tax return You must keep an accurate diary or similar record of your losses and winnings. How to do an amendment tax return Your diary should contain at least the following information. How to do an amendment tax return The date and type of your specific wager or wagering activity. How to do an amendment tax return The name and address or location of the gambling establishment. How to do an amendment tax return The names of other persons present with you at the gambling establishment. How to do an amendment tax return The amount(s) you won or lost. How to do an amendment tax return See Publication 529 for more information. How to do an amendment tax return Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. How to do an amendment tax return Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. How to do an amendment tax return Self-employed. How to do an amendment tax return   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. How to do an amendment tax return Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. How to do an amendment tax return It is not subject to the passive activity limitations. How to do an amendment tax return Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. How to do an amendment tax return See Repayments in chapter 12 for more information. How to do an amendment tax return Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. How to do an amendment tax return If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. How to do an amendment tax return See chapter 10 for more information about the tax treatment of pensions and annuities. How to do an amendment tax return Nondeductible Expenses Examples of nondeductible expenses are listed next. How to do an amendment tax return The list is followed by discussions of additional nondeductible expenses. How to do an amendment tax return List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. How to do an amendment tax return Burial or funeral expenses, including the cost of a cemetery lot. How to do an amendment tax return Capital expenses. How to do an amendment tax return Fees and licenses, such as car licenses, marriage licenses, and dog tags. How to do an amendment tax return Hobby losses, but see Hobby Expenses , earlier. How to do an amendment tax return Home repairs, insurance, and rent. How to do an amendment tax return Illegal bribes and kickbacks. How to do an amendment tax return See Bribes and kickbacks in chapter 11 of Publication 535. How to do an amendment tax return Losses from the sale of your home, furniture, personal car, etc. How to do an amendment tax return Personal disability insurance premiums. How to do an amendment tax return Personal, living, or family expenses. How to do an amendment tax return The value of wages never received or lost vacation time. How to do an amendment tax return Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. How to do an amendment tax return See chapter 37. How to do an amendment tax return Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. How to do an amendment tax return These include qualification and registration fees for primary elections. How to do an amendment tax return Legal fees. How to do an amendment tax return   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. How to do an amendment tax return Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. How to do an amendment tax return Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. How to do an amendment tax return This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. How to do an amendment tax return You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. How to do an amendment tax return Dues paid to airline, hotel, and luncheon clubs are not deductible. How to do an amendment tax return Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). How to do an amendment tax return If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. How to do an amendment tax return Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. How to do an amendment tax return This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). How to do an amendment tax return Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. How to do an amendment tax return Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. How to do an amendment tax return Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. How to do an amendment tax return However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. How to do an amendment tax return See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. How to do an amendment tax return Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. How to do an amendment tax return Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. How to do an amendment tax return You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. How to do an amendment tax return See chapter 18 for information on alimony. How to do an amendment tax return Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. How to do an amendment tax return These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. How to do an amendment tax return Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. How to do an amendment tax return Dues used for lobbying. How to do an amendment tax return   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. How to do an amendment tax return See Lobbying Expenses in Publication 529 for information on exceptions. How to do an amendment tax return Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. How to do an amendment tax return However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. How to do an amendment tax return See chapter 25. How to do an amendment tax return Example. How to do an amendment tax return A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. How to do an amendment tax return The diamond falls from the ring and is never found. How to do an amendment tax return The loss of the diamond is a casualty. How to do an amendment tax return Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. How to do an amendment tax return See chapter 26 for information on deductible expenses while traveling away from home. How to do an amendment tax return Meals While Working Late You cannot deduct the cost of meals while working late. How to do an amendment tax return However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. How to do an amendment tax return See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. How to do an amendment tax return Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. How to do an amendment tax return Custody of children. How to do an amendment tax return Breach of promise to marry suit. How to do an amendment tax return Civil or criminal charges resulting from a personal relationship. How to do an amendment tax return Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. How to do an amendment tax return Preparation of a title (or defense or perfection of a title). How to do an amendment tax return Preparation of a will. How to do an amendment tax return Property claims or property settlement in a divorce. How to do an amendment tax return You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. How to do an amendment tax return Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. How to do an amendment tax return Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. How to do an amendment tax return Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. How to do an amendment tax return Accounting certificate fees paid for the initial right to practice accounting. How to do an amendment tax return Bar exam fees and incidental expenses in securing initial admission to the bar. How to do an amendment tax return Medical and dental license fees paid to get initial licensing. How to do an amendment tax return Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. How to do an amendment tax return Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. How to do an amendment tax return Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. How to do an amendment tax return Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. How to do an amendment tax return You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. How to do an amendment tax return Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. How to do an amendment tax return You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. How to do an amendment tax return If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. How to do an amendment tax return Example. How to do an amendment tax return During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. How to do an amendment tax return In earning this income, you had total expenses of $500 during the year. How to do an amendment tax return You cannot identify the amount of each expense item that is for each income item. How to do an amendment tax return Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. How to do an amendment tax return You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). How to do an amendment tax return Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. How to do an amendment tax return See chapter 26 for more information on deductible travel expenses. How to do an amendment tax return Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. How to do an amendment tax return However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. How to do an amendment tax return Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. How to do an amendment tax return Prev  Up  Next   Home   More Online Publications