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Irs1040ez Publication 15-A - Additional Material Prev Up Next Home More Online Publications
Tax Relief for Victims of April Storms and Floods in Montana
Updated 8/24/2011 to include Blaine, Broadwater, Carter, Chouteau, Fallon, Flathead, Golden Valley, Madison, Park, Phillips, Pondera, Powell, Rosebud, Toole, and Wibaux counties and the Fort Peck Reservation.
COIDMTWY-2011-24, July 28, 2011
DENVER— Victims of severe storms and flooding beginning on April 3, 2011 in parts of Montana may qualify for tax relief from the Internal Revenue Service.
The President has declared Big Horn, Blaine, Broadwater, Carbon, Carter, Cascade, Chouteau, Custer, Fallon, Fergus, Flathead, Garfield, Golden Valley, Hill, Jefferson, Judith Basin, Lewis and Clark, Madison, Musselshell, Park, Petroleum, Phillips, Pondera, Powell, Rosebud, Sweet Grass, Toole, Valley, Wibaux, and Yellowstone Counties and the Blackfeet Indian Reservation, Crow Indian Reservation, Fort Belknap Reservation, and Fort Peck Reservation a federal disaster area. Individuals who reside or have a business in these localities may qualify for tax relief.
As a result, the IRS postponed until June 30, 2011, certain deadlines for taxpayers who live or have a business in the disaster area. This includes the April 18 deadline for filing 2010 individual income tax returns, making income tax payments and making 2010 contributions to an individual retirement account (IRA). It also includes the April 18 and June 15 deadlines for making estimated tax payments.
In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after April 3 and on or before April 18, 2011, as long as the deposits were made by April 18, 2011.
If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.
Covered Disaster Area
The areas listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.
Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.
Grant of Relief
Under section 7508A, the IRS gives affected taxpayers until June 30, 2011 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after April 3 and on or before June 30.
The IRS also gives affected taxpayers until June 30 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (August 20, 2007), that are due to be performed on or after April 3 and on or before June 30.
This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.
The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after April 3 and on or before April 18, provided the taxpayer made these deposits by April 18.
Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.
Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.
Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation, "Montana/Severe Storms and Flooding," at the top of the form so that the IRS can expedite the processing of the refund.
The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.
Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.
Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.
Disaster Assistance and Emergency Relief for Individuals and Businesses
Recent IRS Disaster Relief Announcements
Page Last Reviewed or Updated: 25-Apr-2013
Irs1040ez Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. Irs1040ez Computer used in a home office. Irs1040ez Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). Irs1040ez You can claim the amount of expenses that is more than 2% of your adjusted gross income. Irs1040ez You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Irs1040ez Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. Irs1040ez Generally, you apply the 2% limit after you apply any other deduction limit. Irs1040ez For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. Irs1040ez Deductions subject to the 2% limit are discussed in the following three categories. Irs1040ez Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). Irs1040ez Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). Irs1040ez Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). Irs1040ez Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Irs1040ez You can deduct only 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. Irs1040ez An expense is ordinary if it is common and accepted in your trade, business, or profession. Irs1040ez An expense is necessary if it is appropriate and helpful to your business. Irs1040ez An expense does not have to be required to be considered necessary. Irs1040ez You may be able to deduct the following items as unreimbursed employee expenses. Irs1040ez Business bad debt of an employee. Irs1040ez Business liability insurance premiums. Irs1040ez Damages paid to a former employer for breach of an employment contract. Irs1040ez Depreciation on a computer your employer requires you to use in your work. Irs1040ez Dues to a chamber of commerce if membership helps you do your job. Irs1040ez Dues to professional societies. Irs1040ez Educator expenses. Irs1040ez Home office or part of your home used regularly and exclusively in your work. Irs1040ez Job search expenses in your present occupation. Irs1040ez Laboratory breakage fees. Irs1040ez Legal fees related to your job. Irs1040ez Licenses and regulatory fees. Irs1040ez Malpractice insurance premiums. Irs1040ez Medical examinations required by an employer. Irs1040ez Occupational taxes. Irs1040ez Passport for a business trip. Irs1040ez Repayment of an income aid payment received under an employer's plan. Irs1040ez Research expenses of a college professor. Irs1040ez Rural mail carriers' vehicle expenses. Irs1040ez Subscriptions to professional journals and trade magazines related to your work. Irs1040ez Tools and supplies used in your work. Irs1040ez Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Irs1040ez Union dues and expenses. Irs1040ez Work clothes and uniforms if required and not suitable for everyday use. Irs1040ez Work-related education. Irs1040ez Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. Irs1040ez Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. Irs1040ez A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. Irs1040ez Example. Irs1040ez You make a bona fide loan to the corporation you work for. Irs1040ez It fails to pay you back. Irs1040ez You had to make the loan in order to keep your job. Irs1040ez You have a business bad debt as an employee. Irs1040ez More information. Irs1040ez For more information on business bad debts, see chapter 10 in Publication 535. Irs1040ez For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. Irs1040ez Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Irs1040ez Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. Irs1040ez 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. Irs1040ez For the convenience of your employer. Irs1040ez This means that your use of the computer is for a substantial business reason of your employer. Irs1040ez You must consider all facts in making this determination. Irs1040ez Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. Irs1040ez Required as a condition of your employment. Irs1040ez This means that you cannot properly perform your duties without the computer. Irs1040ez Whether you can properly perform your duties without it depends on all the facts and circumstances. Irs1040ez It is not necessary that your employer explicitly requires you to use your computer. Irs1040ez But neither is it enough that your employer merely states that your use of the item is a condition of your employment. Irs1040ez Example. Irs1040ez You are an engineer with an engineering firm. Irs1040ez You occasionally take work home at night rather than work late at the office. Irs1040ez You own and use a computer that is similar to the one you use at the office to complete your work at home. Irs1040ez Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. Irs1040ez Which depreciation method to use. Irs1040ez The depreciation method you use depends on whether you meet the more-than-50%-use test. Irs1040ez More-than-50%-use test met. Irs1040ez You meet this test if you use the computer more than 50% in your work. Irs1040ez If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). Irs1040ez In addition, you may be able to take the section 179 deduction for the year you place the item in service. Irs1040ez More-than-50%-use test not met. Irs1040ez If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). Irs1040ez You also cannot claim the section 179 deduction. Irs1040ez (But if you use your computer in a home office, see the exception below. Irs1040ez ) Investment use. Irs1040ez Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. Irs1040ez However, you can combine your investment use with your work use in figuring your depreciation deduction. Irs1040ez Exception for computer used in a home office. Irs1040ez The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . Irs1040ez You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. Irs1040ez You also may be able to take a section 179 deduction for the year you place the computer in service. Irs1040ez See Computer used in a home office under How To Report, later. Irs1040ez More information. Irs1040ez For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. Irs1040ez Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. Irs1040ez Reporting your depreciation deduction. Irs1040ez See How To Report, later, for information about reporting a deduction for depreciation. Irs1040ez You must keep records to prove your percentage of business and investment use. Irs1040ez 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. Irs1040ez Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Irs1040ez Lobbying and political activities. Irs1040ez You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Irs1040ez See Lobbying Expenses under Nondeductible Expenses, later. Irs1040ez 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. Irs1040ez If you file Form 1040A, you can deduct these expenses on line 16. Irs1040ez If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Irs1040ez However, neither spouse can deduct more than $250 of his or her qualified expenses. Irs1040ez Eligible educator. Irs1040ez An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. Irs1040ez Qualified expenses. Irs1040ez Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Irs1040ez An ordinary expense is one that is common and accepted in your educational field. Irs1040ez A necessary expense is one that is helpful and appropriate for your profession as an educator. Irs1040ez An expense does not have to be required to be considered necessary. Irs1040ez Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Irs1040ez You must reduce your qualified expenses by the following amounts. Irs1040ez Excludable U. Irs1040ez S. Irs1040ez series EE and I savings bond interest from Form 8815. Irs1040ez Nontaxable qualified state tuition program earnings. Irs1040ez Nontaxable earnings from Coverdell education savings accounts. Irs1040ez Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. Irs1040ez Educator expenses over limit. Irs1040ez If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. Irs1040ez 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. Irs1040ez 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. Irs1040ez The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Irs1040ez Principal place of business. Irs1040ez If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Irs1040ez Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. Irs1040ez You should keep records that will give the information needed to figure the deduction according to these rules. Irs1040ez Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. Irs1040ez More information. Irs1040ez See Publication 587 for more detailed information and a worksheet for figuring the deduction. Irs1040ez 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. Irs1040ez 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. Irs1040ez Employment and outplacement agency fees. Irs1040ez You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Irs1040ez Employer pays you back. Irs1040ez 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. Irs1040ez See Recoveries in Publication 525. Irs1040ez Employer pays the employment agency. Irs1040ez 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. Irs1040ez Résumé. Irs1040ez 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. Irs1040ez Travel and transportation expenses. Irs1040ez 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. Irs1040ez You can deduct the travel expenses if the trip is primarily to look for a new job. Irs1040ez 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. Irs1040ez 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. Irs1040ez You can choose to use the standard mileage rate to figure your car expenses. Irs1040ez The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs1040ez See Publication 463 for more information on travel and car expenses. Irs1040ez Legal Fees You can deduct legal fees related to doing or keeping your job. Irs1040ez 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. Irs1040ez 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. Irs1040ez 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. Irs1040ez 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. Irs1040ez 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. Irs1040ez Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Irs1040ez 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. Irs1040ez However, you cannot deduct the cost of travel as a form of education. Irs1040ez Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. Irs1040ez See chapter 4 of Publication 463 for more information. Irs1040ez 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. Irs1040ez You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Irs1040ez For more information about depreciation, see Publication 946. Irs1040ez Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. Irs1040ez Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. Irs1040ez Travel expenses. Irs1040ez Travel expenses are those incurred while traveling away from home for your employer. Irs1040ez You can deduct travel expenses paid or incurred in connection with a temporary work assignment. Irs1040ez Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. Irs1040ez Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. Irs1040ez ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. Irs1040ez Travel expenses are discussed more fully in chapter 1 of Publication 463. Irs1040ez Temporary work assignment. Irs1040ez If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. Irs1040ez Indefinite work assignment. Irs1040ez If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. Irs1040ez If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. Irs1040ez Federal crime investigation and prosecution. Irs1040ez If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. Irs1040ez This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. Irs1040ez To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Irs1040ez Armed Forces reservists traveling more than 100 miles from home. Irs1040ez If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Irs1040ez The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Irs1040ez The balance, if any, is reported on Schedule A. Irs1040ez You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. Irs1040ez For more information on travel expenses, see Publication 463. Irs1040ez Local transportation expenses. Irs1040ez Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. Irs1040ez They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. Irs1040ez You can choose to use the standard mileage rate to figure your car expenses. Irs1040ez The 2013 rate for business use of a vehicle is 56½ cents per mile. Irs1040ez In general, the costs of commuting between your residence and your place of business are nondeductible. Irs1040ez Work at two places in a day. Irs1040ez If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. Irs1040ez Temporary work location. Irs1040ez You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. Irs1040ez The work location is outside the metropolitan area where you live and normally work. Irs1040ez You have at least one regular work location (other than your home) for the same trade or business. Irs1040ez (If this applies, the distance between your home and the temporary work location does not matter. Irs1040ez ) For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. Irs1040ez It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. Irs1040ez If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. Irs1040ez For more information, see chapter 1 of Publication 463. Irs1040ez Home office. Irs1040ez You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. Irs1040ez (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. Irs1040ez ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. Irs1040ez Meals and entertainment. Irs1040ez Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. Irs1040ez However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. Irs1040ez You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. Irs1040ez You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. Irs1040ez Meals when subject to “hours of service” limits. Irs1040ez You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. Irs1040ez You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. Irs1040ez Gift expenses. Irs1040ez You can generally deduct up to $25 of business gifts you give to any one individual during the year. Irs1040ez The following items do not count toward the $25 limit. Irs1040ez Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. Irs1040ez Signs, racks, and promotional materials to be displayed on the business premises of the recipient. Irs1040ez Local lodging. Irs1040ez If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. Irs1040ez If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. Irs1040ez Additional information. Irs1040ez See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. Irs1040ez Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Irs1040ez You can also deduct assessments for benefit payments to unemployed union members. Irs1040ez However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Irs1040ez Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. Irs1040ez You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Irs1040ez See Lobbying Expenses under Nondeductible Expenses, later. Irs1040ez Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Irs1040ez You must wear them as a condition of your employment. Irs1040ez The clothes are not suitable for everyday wear. Irs1040ez It is not enough that you wear distinctive clothing. Irs1040ez The clothing must be specifically required by your employer. Irs1040ez Nor is it enough that you do not, in fact, wear your work clothes away from work. Irs1040ez The clothing must not be suitable for taking the place of your regular clothing. Irs1040ez 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. Irs1040ez ). Irs1040ez Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Irs1040ez 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. Irs1040ez Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Irs1040ez Protective clothing. Irs1040ez 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. Irs1040ez 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. Irs1040ez Military uniforms. Irs1040ez You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Irs1040ez 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. Irs1040ez In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Irs1040ez 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. Irs1040ez If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. Irs1040ez However, you can deduct the cost of insignia, shoulder boards, and related items. Irs1040ez You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Irs1040ez Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. Irs1040ez It maintains or improves skills required in your present work. Irs1040ez It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. Irs1040ez You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. Irs1040ez If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. Irs1040ez If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. Irs1040ez Travel as education. Irs1040ez You cannot deduct the cost of travel that in itself constitutes a form of education. Irs1040ez For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. Irs1040ez More information. Irs1040ez See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. Irs1040ez Education Expenses During Unemployment If you stop working for a year or less in order to get education in order 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. Irs1040ez Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Irs1040ez Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. Irs1040ez Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Irs1040ez These fees include the cost of tax preparation software programs and tax publications. Irs1040ez They also include any fee you paid for electronic filing of your return. Irs1040ez See Tax preparation fees under How To Report, later. Irs1040ez Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. Irs1040ez On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary 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. Irs1040ez You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. Irs1040ez These other expenses include the following items. Irs1040ez Appraisal fees for a casualty loss or charitable contribution. Irs1040ez Casualty and theft losses from property used in performing services as an employee. Irs1040ez Clerical help and office rent in caring for investments. Irs1040ez Depreciation on home computers used for investments. Irs1040ez Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. Irs1040ez Fees to collect interest and dividends. Irs1040ez Hobby expenses, but generally not more than hobby income. Irs1040ez Indirect miscellaneous deductions from pass-through entities. Irs1040ez Investment fees and expenses. Irs1040ez Legal fees related to producing or collecting taxable income or getting tax advice. Irs1040ez Loss on deposits in an insolvent or bankrupt financial institution. Irs1040ez Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. Irs1040ez Repayments of income. Irs1040ez Repayments of social security benefits. Irs1040ez Safe deposit box rental, except for storing jewelry and other personal effects. Irs1040ez Service charges on dividend reinvestment plans. Irs1040ez Tax advice fees. Irs1040ez Trustee's fees for your IRA, if separately billed and paid. Irs1040ez If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. Irs1040ez Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Irs1040ez 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. Irs1040ez First report the loss in Section B of Form 4684, Casualties and Thefts. Irs1040ez You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Irs1040ez 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. Irs1040ez For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Irs1040ez 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. Irs1040ez 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. Irs1040ez The fees are deductible on the return for the year in which you paid them. Irs1040ez For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. Irs1040ez 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). Irs1040ez You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Irs1040ez But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. Irs1040ez For more information on depreciation, see Publication 946. Irs1040ez 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. Irs1040ez Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Irs1040ez 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. Irs1040ez For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Irs1040ez 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. Irs1040ez But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Irs1040ez You must add the fee to the cost of the property. Irs1040ez You cannot deduct the fee you pay to a broker to sell securities. Irs1040ez You can use the fee only to figure gain or loss from the sale. Irs1040ez See the instructions for Schedule D (Form 1040) for information on how to report the fee. Irs1040ez Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Irs1040ez A hobby is not a business because it is not carried on to make a profit. Irs1040ez See Not-for-Profit Activities in chapter 1 of Publication 535. Irs1040ez Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Irs1040ez Deductions of pass-through entities are passed through to the partners or shareholders. Irs1040ez The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Irs1040ez Example. Irs1040ez You are a member of an investment club that is formed solely to invest in securities. Irs1040ez The club is treated as a partnership. Irs1040ez The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Irs1040ez In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Irs1040ez 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. Irs1040ez Publicly offered mutual funds. Irs1040ez Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Irs1040ez 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. Irs1040ez 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). Irs1040ez This net figure is the amount you report on your return as income. Irs1040ez You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Irs1040ez Information returns. Irs1040ez You should receive information returns from pass-through entities. Irs1040ez Partnerships and S corporations. Irs1040ez 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. Irs1040ez Nonpublicly offered mutual funds. Irs1040ez These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. Irs1040ez You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Irs1040ez 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. Irs1040ez 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. Irs1040ez 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. Irs1040ez 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. Irs1040ez You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). Irs1040ez See Tax Preparation Fees, earlier. Irs1040ez Unlawful discrimination claims. Irs1040ez You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. Irs1040ez S. Irs1040ez Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. Irs1040ez However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. Irs1040ez See Publication 525 for more information. Irs1040ez Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Irs1040ez If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. Irs1040ez If elected, the casualty loss is subject to certain deduction limitations. Irs1040ez The election is made on Form 4684. Irs1040ez Once you make this choice, you cannot change it without IRS approval. Irs1040ez If none of the deposit is federally insured, you can deduct the loss in either of the following ways. Irs1040ez As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). Irs1040ez Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Irs1040ez This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. Irs1040ez As a casualty loss. Irs1040ez Report it on Form 4684 first and then on Schedule A (Form 1040). Irs1040ez See Publication 547 for details. Irs1040ez As a nonbusiness bad debt. Irs1040ez Report it on Schedule D (Form 1040). Irs1040ez If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. Irs1040ez Exception. Irs1040ez You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. Irs1040ez For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. Irs1040ez Actual loss different from estimated loss. Irs1040ez If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. Irs1040ez See Recoveries in Publication 525. Irs1040ez If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. Irs1040ez Choice not made. Irs1040ez If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. Irs1040ez See Nonbusiness Bad Debts in chapter 4 of Publication 550. Irs1040ez Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. Irs1040ez For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Irs1040ez 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. Irs1040ez If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Irs1040ez If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Irs1040ez Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. Irs1040ez The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. Irs1040ez The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. Irs1040ez It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). Irs1040ez If the deduction is more than $3,000, you will have to use a special computation to figure your tax. Irs1040ez See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. Irs1040ez 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. Irs1040ez You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Irs1040ez Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Irs1040ez 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. Irs1040ez Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Irs1040ez Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Irs1040ez They are not subject to the 2% limit. Irs1040ez Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Irs1040ez List of Deductions Amortizable premium on taxable bonds. Irs1040ez Casualty and theft losses from income-producing property. Irs1040ez Federal estate tax on income in respect of a decedent. Irs1040ez Gambling losses up to the amount of gambling winnings. Irs1040ez Impairment-related work expenses of persons with disabilities. Irs1040ez Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Irs1040ez Losses from Ponzi-type investment schemes. Irs1040ez Repayments of more than $3,000 under a claim of right. Irs1040ez Unrecovered investment in an annuity. Irs1040ez 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. Irs1040ez You can elect to amortize the premium on taxable bonds. Irs1040ez The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Irs1040ez Pre-1998 election to amortize bond premium. Irs1040ez Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Irs1040ez Bonds acquired after October 22, 1986, and before 1988. Irs1040ez The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. Irs1040ez Bonds acquired before October 23, 1986. Irs1040ez The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. Irs1040ez Deduction for excess premium. Irs1040ez On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. Irs1040ez If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. Irs1040ez However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. Irs1040ez If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. Irs1040ez Pre-1998 choice to amortize bond premium. Irs1040ez If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. Irs1040ez More information. Irs1040ez For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. Irs1040ez 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). Irs1040ez First report the loss in Section B of Form 4684. Irs1040ez You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Irs1040ez 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. Irs1040ez For more information on casualty and theft losses, see Publication 547. Irs1040ez 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. Irs1040ez 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. Irs1040ez See Publication 559 for information about figuring the amount of this deduction. Irs1040ez 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. Irs1040ez You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Irs1040ez You cannot deduct gambling losses that are more than your winnings. Irs1040ez Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). Irs1040ez You cannot reduce your gambling winnings by your gambling losses and report the difference. Irs1040ez 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. Irs1040ez Therefore, your records should show your winnings separately from your losses. Irs1040ez Diary of winnings and losses. Irs1040ez You must keep an accurate diary or similar record of your losses and winnings. Irs1040ez Your diary should contain at least the following information. Irs1040ez The date and type of your specific wager or wagering activity. Irs1040ez The name and address or location of the gambling establishment. Irs1040ez The names of other persons present with you at the gambling establishment. Irs1040ez The amount(s) you won or lost. Irs1040ez Proof of winnings and losses. Irs1040ez In addition to your diary, you should also have other documentation. Irs1040ez You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. Irs1040ez For specific wagering transactions, you can use the following items to support your winnings and losses. Irs1040ez These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. Irs1040ez They are not all-inclusive. Irs1040ez Your tax liability depends on your particular facts and circumstances. Irs1040ez Keno. Irs1040ez Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. Irs1040ez Slot machines. Irs1040ez A record of the machine number and all winnings by date and time the machine was played. Irs1040ez Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. Irs1040ez ). Irs1040ez The number of the table at which you were playing. Irs1040ez Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. Irs1040ez Bingo. Irs1040ez A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Irs1040ez Supplemental records include any receipts from the casino, parlor, etc. Irs1040ez Racing (horse, harness, dog, etc. Irs1040ez ). Irs1040ez A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Irs1040ez Supplemental records include unredeemed tickets and payment records from the racetrack. Irs1040ez Lotteries. Irs1040ez A record of ticket purchases, dates, winnings, and losses. Irs1040ez Supplemental records include unredeemed tickets, payment slips, and winnings statements. Irs1040ez 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. Irs1040ez Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. Irs1040ez Example. Irs1040ez You are blind. Irs1040ez You must use a reader to do your work. Irs1040ez You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Irs1040ez The reader's services are only for your work. Irs1040ez You can deduct your expenses for the reader as impairment-related work expenses. Irs1040ez Self-employed. Irs1040ez 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. Irs1040ez See Impairment-related work expenses. Irs1040ez , later under How To Report. Irs1040ez 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, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. Irs1040ez S. Irs1040ez trade or business). Irs1040ez It is not subject to the passive activity limitations. Irs1040ez Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. Irs1040ez See Publication 463 for more information. Irs1040ez Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. Irs1040ez If you are an employee, complete Form 2106 or Form 2106-EZ. Irs1040ez See Publication 463 for more information. Irs1040ez Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. Irs1040ez You figure the deductible loss in Section B of Form 4684. Irs1040ez However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. Irs1040ez Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Irs1040ez You do not need to complete Appendix A. Irs1040ez See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. Irs1040ez 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. Irs1040ez See Repayments in Publication 525 for more information. Irs1040ez 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. Irs1040ez 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. Irs1040ez See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. Irs1040ez Nondeductible Expenses You cannot deduct the following expenses. Irs1040ez List of Nondeductible Expenses Adoption expenses. Irs1040ez Broker's commissions. Irs1040ez Burial or funeral expenses, including the cost of a cemetery lot. Irs1040ez Campaign expenses. Irs1040ez Capital expenses. Irs1040ez Check-writing fees. Irs1040ez Club dues. Irs1040ez Commuting expenses. Irs1040ez Fees and licenses, such as car licenses, marriage licenses, and dog tags. Irs1040ez Fines and penalties, such as parking tickets. Irs1040ez Health spa expenses. Irs1040ez Hobby losses—but see Hobby Expenses, earlier. Irs1040ez Home repairs, insurance, and rent. Irs1040ez Home security system. Irs1040ez Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. Irs1040ez Investment-related seminars. Irs1040ez Life insurance premiums paid by the insured. Irs1040ez Lobbying expenses. Irs1040ez Losses from the sale of your home, furniture, personal car, etc. Irs1040ez Lost or misplaced cash or property. Irs1040ez Lunches with co-workers. Irs1040ez Meals while working late. Irs1040ez Medical expenses as business expenses other than medical examinations required by your employer. Irs1040ez Personal disability insurance premiums. Irs1040ez Personal legal expenses. Irs1040ez Personal, living, or family expenses. Irs1040ez Political contributions. Irs1040ez Professional accreditation fees. Irs1040ez Professional reputation, expenses to improve. Irs1040ez Relief fund contributions. Irs1040ez Residential telephone line. Irs1040ez Stockholders' meeting, expenses of attending. Irs1040ez Tax-exempt income, expenses of earning or collecting. Irs1040ez The value of wages never received or lost vacation time. Irs1040ez Travel expenses for another individual. Irs1040ez Voluntary unemployment benefit fund contributions. Irs1040ez Wristwatches. Irs1040ez Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. Irs1040ez For details, see Form 8839, Qualified Adoption Expenses. Irs1040ez Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. Irs1040ez Instead, these fees must be added to the taxpayer's cost of the securities. Irs1040ez Commissions paid on the sale are deductible as business expenses only by dealers. Irs1040ez Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Irs1040ez These include qualification and registration fees for primary elections. Irs1040ez Legal fees. Irs1040ez You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Irs1040ez Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. Irs1040ez If you use such property in your work, you may be able to take a depreciation deduction. Irs1040ez See Publication 946. Irs1040ez If the property is a car used in your work, also see Publication 463. Irs1040ez 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. Irs1040ez Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Irs1040ez This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Irs1040ez 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. Irs1040ez Dues paid to airline, hotel, and luncheon clubs are not deductible. Irs1040ez Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Irs1040ez 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. Irs1040ez Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Irs1040ez This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Irs1040ez Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Irs1040ez 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. Irs1040ez Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Irs1040ez However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Irs1040ez See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. Irs1040ez Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Irs1040ez Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Irs1040ez You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Irs1040ez See Publication 504, Divorced or Separated Individuals, for information on alimony. Irs1040ez Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Irs1040ez 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. Irs1040ez Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Irs1040ez Covered executive branch official. Irs1040ez A covered executive branch official, for the purpose of (4) above, is any of the following officials. Irs1040ez The President. Irs1040ez The Vice President. Irs1040ez Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. Irs1040ez Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. Irs1040ez Dues used for lobbying. Irs1040ez 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. Irs1040ez Exceptions. Irs1040ez You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. Irs1040ez You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). Irs1040ez An Indian tribal government is considered a local council or similar governing body. Irs1040ez You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). Irs1040ez If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Irs1040ez Payments by the other person to you for lobbying activities cannot be deducted. Irs1040ez Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Irs1040ez 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. Irs1040ez See Publication 547. Irs1040ez Example. Irs1040ez A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Irs1040ez The diamond falls from the ring and is never found. Irs1040ez The loss of the diamond is a casualty. Irs1040ez Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Irs1040ez See Publication 463 for information on deductible expenses while traveling away from home. Irs1040ez Meals While Working Late You cannot deduct the cost of meals while working late. Irs1040ez However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. Irs1040ez See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. Irs1040ez Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Irs1040ez Custody of children. Irs1040ez Breach of promise to marry suit. Irs1040ez Civil or criminal charges resulting from a personal relationship. Irs1040ez Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). Irs1040ez For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. Irs1040ez Preparation of a title (or defense or perfection of a title). Irs1040ez Preparation of a will. Irs1040ez Property claims or property settlement in a divorce. Irs1040ez You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Irs1040ez Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Irs1040ez Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Irs1040ez Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Irs1040ez Accounting certificate fees paid for the initial right to practice accounting. Irs1040ez Bar exam fees and incidental expenses in securing initial admission to the bar. Irs1040ez Medical and dental license fees paid to get initial licensing. Irs1040ez Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Irs1040ez 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. Irs1040ez 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. Irs1040ez 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. Irs1040ez You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Irs1040ez Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Irs1040ez You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. Irs1040ez If you have expenses to p