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Past Year Tax

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Past Year Tax

Past year tax Publication 501 - Main Content Table of Contents Who Must FileSelf-employed persons. Past year tax Filing Requirements for Most Taxpayers Dependents Other Situations Who Should File Filing StatusMarital Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) With Dependent Child ExemptionsForm 1040EZ filers. Past year tax Form 1040A filers. Past year tax Form 1040 filers. Past year tax More information. Past year tax Personal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Past year tax Taxpayer identification numbers for aliens. Past year tax Taxpayer identification numbers for adoptees. Past year tax Standard DeductionStandard Deduction Amount Standard Deduction for Dependents Who Should Itemize How To Get Tax HelpLow Income Taxpayer Clinics Who Must File If you are a U. Past year tax S. Past year tax citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent. Past year tax For details, see Table 1 and Table 2. Past year tax You also must file if one of the situations described in Table 3 applies. Past year tax The filing requirements apply even if you owe no tax. Past year tax Table 1. Past year tax 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Past year tax . Past year tax . Past year tax AND at the end of 2013 you were. Past year tax . Past year tax . Past year tax * THEN file a return if your gross income was at least. Past year tax . Past year tax . Past year tax ** single under 65  $10,000 65 or older $11,500 head of household under 65 $12,850 65 or older $14,350 married, filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married, filing separately any age  $3,900 qualifying widow(er) with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. Past year tax ** Gross income means all income you receive in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Past year tax Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). Past year tax If (a) or (b) applies, see the Form 1040 instructions to figure the taxable part of social security benefits you must include in gross income. Past year tax Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Past year tax Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Past year tax But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. Past year tax *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. Past year tax You may have to pay a penalty if you are required to file a return but fail to do so. Past year tax If you willfully fail to file a return, you may be subject to criminal prosecution. Past year tax For information on what form to use — Form 1040EZ, Form 1040A, or Form 1040 — see the instructions for your tax return. Past year tax Gross income. Past year tax    Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. Past year tax If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. Past year tax For a list of community property states, see Community property states under Married Filing Separately, later. Past year tax Self-employed persons. Past year tax    If you are self-employed in a business that provides services (where products are not a factor), your gross income from that business is the gross receipts. Past year tax If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. Past year tax In either case, you must add any income from investments and from incidental or outside operations or sources. Past year tax    You must file Form 1040 if you owe any self-employment tax. Past year tax Filing status. Past year tax    Your filing status generally depends on whether you are single or married. Past year tax Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. Past year tax Filing status is discussed in detail later in this publication. Past year tax Age. Past year tax    Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. Past year tax For 2013, you are 65 or older if you were born before January 2, 1949. Past year tax Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. Past year tax Dependents should see Table 2 instead. Past year tax Deceased Persons You must file an income tax return for a decedent (a person who died) if both of the following are true. Past year tax You are the surviving spouse, executor, administrator, or legal representative. Past year tax The decedent met the filing requirements described in this publication at the time of his or her death. Past year tax For more information, see Final Income Tax Return for Decedent — Form 1040 in Publication 559. Past year tax Table 2. Past year tax 2013 Filing Requirements for Dependents See Exemptions for Dependents to find out if you are a dependent. Past year tax If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. Past year tax  In this table, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Past year tax It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Past year tax Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Past year tax Gross income is the total of your unearned and earned income. Past year tax If your gross income was $3,900 or more, you usually cannot be claimed as a dependent unless you are a qualifying child. Past year tax For details, see Exemptions for Dependents. Past year tax Single dependents—Were you either age 65 or older or blind? □ No. Past year tax You must file a return if any of the following apply. Past year tax Your unearned income was more than $1,000. Past year tax Your earned income was more than $6,100. Past year tax Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750) plus $350. Past year tax     □ Yes. Past year tax You must file a return if any of the following apply. Past year tax Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Past year tax Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Past year tax Your gross income was more than the larger of—  $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). Past year tax     Married dependents—Were you either age 65 or older or blind? □ No. Past year tax You must file a return if any of the following apply. Past year tax Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Past year tax Your unearned income was more than $1,000. Past year tax Your earned income was more than $6,100. Past year tax Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750 plus $350. Past year tax     □ Yes. Past year tax You must file a return if any of the following apply. Past year tax Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Past year tax Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Past year tax Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Past year tax Your gross income was more than the larger of— $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). Past year tax     U. Past year tax S. Past year tax Citizens or Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you earned or received abroad, including any income you can exclude under the foreign earned income exclusion. Past year tax For more information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Past year tax S. Past year tax Citizens and Resident Aliens Abroad. Past year tax Residents of Puerto Rico If you are a U. Past year tax S. Past year tax citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Past year tax S. Past year tax income tax return for any year in which you meet the income requirements. Past year tax This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Past year tax If you are a bona fide resident of Puerto Rico for the whole year, your U. Past year tax S. Past year tax gross income does not include income from sources within Puerto Rico. Past year tax It does, however, include any income you received for your services as an employee of the United States or any U. Past year tax S. Past year tax agency. Past year tax If you receive income from Puerto Rican sources that is not subject to U. Past year tax S. Past year tax tax, you must reduce your standard deduction, which reduces the amount of income you can have before you must file a U. Past year tax S. Past year tax income tax return. Past year tax For more information, see Publication 570, Tax Guide for Individuals With Income From U. Past year tax S. Past year tax Possessions. Past year tax Individuals With Income From U. Past year tax S. Past year tax Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Past year tax S. Past year tax Virgin Islands, special rules may apply when determining whether you must file a U. Past year tax S. Past year tax federal income tax return. Past year tax In addition, you may have to file a return with the individual possession government. Past year tax See Publication 570 for more information. Past year tax Dependents A person who is a dependent may still have to file a return. Past year tax It depends on his or her earned income, unearned income, and gross income. Past year tax For details, see Table 2. Past year tax A dependent must also file if one of the situations described in Table 3 applies. Past year tax Responsibility of parent. Past year tax    If a dependent child must file an income tax return but cannot file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. Past year tax If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. Past year tax ” Earned income. Past year tax    Earned income includes salaries, wages, professional fees, and other amounts received as pay for work you actually perform. Past year tax Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a scholarship that you must include in your gross income. Past year tax See chapter 1 of Publication 970, Tax Benefits for Education, for more information on taxable and nontaxable scholarships. Past year tax Child's earnings. Past year tax    Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Past year tax This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Past year tax But if the child does not pay the tax due on this income, the parent is liable for the tax. Past year tax Unearned income. Past year tax    Unearned income includes income such as interest, dividends, and capital gains. Past year tax Trust distributions of interest, dividends, capital gains, and survivor annuities are also considered unearned income. Past year tax Election to report child's unearned income on parent's return. Past year tax    You may be able to include your child's interest and dividend income on your tax return. Past year tax If you do this, your child will not have to file a return. Past year tax To make this election, all of the following conditions must be met. Past year tax Your child was under age 19 (or under age 24 if a student) at the end of 2013. Past year tax (A child born on January 1, 1995, is considered to be age 19 at the end of 2013; you cannot make the election for this child unless the child was a student. Past year tax Similarly, a child born on January 1, 1990, is considered to be age 24 at the end of 2013; you cannot make the election for this child. Past year tax ) Your child had gross income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Past year tax The interest and dividend income was less than $10,000. Past year tax Your child is required to file a return for 2013 unless you make this election. Past year tax Your child does not file a joint return for 2013. Past year tax No estimated tax payment was made for 2013 and no 2012 overpayment was applied to 2013 under your child's name and social security number. Past year tax No federal income tax was withheld from your child's income under the backup withholding rules. Past year tax You are the parent whose return must be used when making the election to report your child's unearned income. Past year tax   For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Publication 929. Past year tax Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. Past year tax See Table 3 for those other situations when you must file. Past year tax Table 3. Past year tax Other Situations When You Must File a 2013 Return If any of the four conditions listed below applied to you for 2013, you must file a return. Past year tax 1. Past year tax You owe any special taxes, including any of the following. Past year tax   a. Past year tax Alternative minimum tax. Past year tax (See Form 6251. Past year tax )   b. Past year tax Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Past year tax (See Publication 590, Individual Retirement Arrangements (IRAs), and Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. Past year tax ) But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Past year tax   c. Past year tax Social security or Medicare tax on tips you did not report to your employer (see Publication 531, Reporting Tip Income) or on wages you received from an employer who did not withhold these taxes (see Form 8919). Past year tax   d. Past year tax Write-in taxes, including uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings accounts. Past year tax (See Publication 531, Publication 969, and the Form 1040 instructions for line 60. Past year tax )   e. Past year tax Household employment taxes. Past year tax But if you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself. Past year tax   f. Past year tax Recapture taxes. Past year tax (See the Form 1040 instructions for lines 44, 59b, and 60. Past year tax ) 2. Past year tax You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account distributions. Past year tax 3. Past year tax You had net earnings from self-employment of at least $400. Past year tax (See Schedule SE (Form 1040) and its instructions. Past year tax ) 4. Past year tax You had wages of $108. Past year tax 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Past year tax (See Schedule SE (Form 1040) and its instructions. Past year tax ) Who Should File Even if you do not have to file, you should file a tax return if you can get money back. Past year tax For example, you should file if one of the following applies. Past year tax You had income tax withheld from your pay. Past year tax You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. Past year tax You qualify for the earned income credit. Past year tax See Publication 596, Earned Income Credit (EIC), for more information. Past year tax You qualify for the additional child tax credit. Past year tax See the instructions for the tax form you file (Form 1040 or 1040A) for more information. Past year tax You qualify for the refundable American opportunity education credit. Past year tax See Form 8863, Education Credits. Past year tax You qualify for the health coverage tax credit. Past year tax For information about this credit, see Form 8885, Health Coverage Tax Credit. Past year tax You qualify for the credit for federal tax on fuels. Past year tax See Form 4136, Credit for Federal Tax Paid on Fuels. Past year tax Form 1099-B received. Past year tax    Even if you are not required to file a return, you should consider filing if all of the following apply. Past year tax You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement). Past year tax The amount in box 2a of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you. Past year tax Box 3 of Form 1099-B (or substitute statement) is blank. Past year tax In this case, filing a return may keep you from getting a notice from the IRS. Past year tax Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. Past year tax You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. Past year tax There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. Past year tax If more than one filing status applies to you, choose the one that will give you the lowest tax. Past year tax Marital Status In general, your filing status depends on whether you are considered unmarried or married. Past year tax Unmarried persons. Past year tax    You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. Past year tax   State law governs whether you are married or legally separated under a divorce or separate maintenance decree. Past year tax Divorced persons. Past year tax    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. Past year tax Divorce and remarriage. Past year tax    If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. Past year tax Annulled marriages. Past year tax    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. Past year tax You must file amended returns (Form 1040X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. Past year tax Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. Past year tax If you filed your original tax return early (for example, March 1), your return is considered filed on the due date (generally April 15). Past year tax However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. Past year tax Head of household or qualifying widow(er) with dependent child. Past year tax    If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. Past year tax See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. Past year tax Married persons. Past year tax    If you are considered married, you and your spouse can file a joint return or separate returns. Past year tax Considered married. Past year tax    You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. Past year tax You are married and living together. Past year tax You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. Past year tax You are married and living apart but not legally separated under a decree of divorce or separate maintenance. Past year tax You are separated under an interlocutory (not final) decree of divorce. Past year tax Same-sex marriage. Past year tax    For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Past year tax The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Past year tax However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. Past year tax   The word “state” as used here includes the District of Columbia, Puerto Rico, and U. Past year tax S. Past year tax territories and possessions. Past year tax It means any domestic jurisdiction that has the legal authority to sanction marriages. Past year tax The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. Past year tax   If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. Past year tax However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status, as explained later. Past year tax   For more details, see Answers to Frequently Asked Questions For Individuals of the Same Sex Who Are Married Under State Law on IRS. Past year tax gov. Past year tax Spouse died during the year. Past year tax    If your spouse died during the year, you are considered married for the whole year for filing status purposes. Past year tax   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. Past year tax For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . Past year tax   If you remarried before the end of the tax year, you can file a joint return with your new spouse. Past year tax Your deceased spouse's filing status is married filing separately for that year. Past year tax Married persons living apart. Past year tax    If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. Past year tax If you qualify to file as head of household instead of as married filing separately, your standard deduction will be higher. Past year tax Also, your tax may be lower, and you may be able to claim the earned income credit. Past year tax See Head of Household , later. Past year tax Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Past year tax To determine your marital status, see Marital Status , earlier. Past year tax Widow(er). Past year tax    Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. Past year tax You may, however, be able to use another filing status that will give you a lower tax. Past year tax See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. Past year tax How to file. Past year tax    You can file Form 1040. Past year tax If you have taxable income of less than $100,000, you may be able to file Form 1040A. Past year tax If, in addition, you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Past year tax If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. Past year tax Use the Single column of the Tax Table, or Section A of the Tax Computation Worksheet, to figure your tax. Past year tax Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. Past year tax On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. Past year tax You can file a joint return even if one of you had no income or deductions. Past year tax If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Past year tax Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. Past year tax If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). Past year tax You can choose the method that gives the two of you the lower combined tax. Past year tax How to file. Past year tax    If you file as married filing jointly, you can use Form 1040. Past year tax If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. Past year tax If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. Past year tax If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. Past year tax Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax. Past year tax Spouse died. Past year tax    If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. Past year tax See Spouse died during the year , under Married persons, earlier. Past year tax   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. Past year tax Divorced persons. Past year tax    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. Past year tax Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. Past year tax Accounting period. Past year tax    Both of you must use the same accounting period, but you can use different accounting methods. Past year tax Joint responsibility. Past year tax    Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. Past year tax This means that if one spouse does not pay the tax due, the other may have to. Past year tax Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. Past year tax One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. Past year tax   You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. Past year tax Divorced taxpayer. Past year tax    You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. Past year tax This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. Past year tax Relief from joint responsibility. Past year tax    In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. Past year tax You can ask for relief no matter how small the liability. Past year tax   There are three types of relief available. Past year tax Innocent spouse relief. Past year tax Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date the election for this relief is filed). Past year tax Equitable relief. Past year tax    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. Past year tax Publication 971, Innocent Spouse Relief, explains the kinds of relief and who may qualify for them. Past year tax Signing a joint return. Past year tax    For a return to be considered a joint return, both spouses generally must sign the return. Past year tax Spouse died before signing. Past year tax    If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. Past year tax If neither you nor anyone else has been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. Past year tax Spouse away from home. Past year tax    If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so it can be filed on time. Past year tax Injury or disease prevents signing. Past year tax    If your spouse cannot sign because of injury or disease and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). Past year tax ” Be sure to also sign in the space provided for your signature. Past year tax Attach a dated statement, signed by you, to the return. Past year tax The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. Past year tax Signing as guardian of spouse. Past year tax    If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. Past year tax Spouse in combat zone. Past year tax    You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. Past year tax Attach a signed statement to your return explaining that your spouse is serving in a combat zone. Past year tax For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. Past year tax Other reasons spouse cannot sign. Past year tax    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). Past year tax Attach the power of attorney (or a copy of it) to your tax return. Past year tax You can use Form 2848. Past year tax Nonresident alien or dual-status alien. Past year tax    Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. Past year tax However, if one spouse was a nonresident alien or dual-status alien who was married to a U. Past year tax S. Past year tax citizen or resident alien at the end of the year, the spouses can choose to file a joint return. Past year tax If you do file a joint return, you and your spouse are both treated as U. Past year tax S. Past year tax residents for the entire tax year. Past year tax See chapter 1 of Publication 519. Past year tax Married Filing Separately You can choose married filing separately as your filing status if you are married. Past year tax This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Past year tax If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. Past year tax You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). Past year tax This can apply to you even if you are not divorced or legally separated. Past year tax If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. Past year tax The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. Past year tax See Head of Household , later, for more information. Past year tax You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. Past year tax However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). Past year tax This way you can make sure you are using the filing status that results in the lowest combined tax. Past year tax When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. Past year tax How to file. Past year tax    If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. Past year tax You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. Past year tax   You can file Form 1040. Past year tax If your taxable income is less than $100,000, you may be able to file Form 1040A. Past year tax Select this filing status by checking the box on line 3 of either form. Past year tax Enter your spouse's full name and SSN or ITIN in the spaces provided. Past year tax If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. Past year tax Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. Past year tax Special Rules If you choose married filing separately as your filing status, the following special rules apply. Past year tax Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. Past year tax Your tax rate generally is higher than on a joint return. Past year tax Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. Past year tax You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). Past year tax If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. Past year tax See Joint Return Test in Publication 503, Child and Dependent Care Expenses, for more information. Past year tax You cannot take the earned income credit. Past year tax You cannot take the exclusion or credit for adoption expenses in most cases. Past year tax You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. Past year tax You cannot exclude any interest income from qualified U. Past year tax S. Past year tax savings bonds you used for higher education expenses. Past year tax If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. Past year tax The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. Past year tax Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). Past year tax If your spouse itemizes deductions, you cannot claim the standard deduction. Past year tax If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. Past year tax Adjusted gross income (AGI) limits. Past year tax    If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. Past year tax Individual retirement arrangements (IRAs). Past year tax    You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. Past year tax Your deduction is reduced or eliminated if your income is more than a certain amount. Past year tax This amount is much lower for married individuals who file separately and lived together at any time during the year. Past year tax For more information, see How Much Can You Deduct? in chapter 1 of Publication 590. Past year tax Rental activity losses. Past year tax    If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income up to $25,000. Past year tax This is called a special allowance. Past year tax However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. Past year tax Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. Past year tax See Rental Activities in Publication 925, Passive Activity and At-Risk Rules. Past year tax Community property states. Past year tax    If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. Past year tax See Publication 555, Community Property. Past year tax Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. Past year tax You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. Past year tax This does not include any extensions. Past year tax A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. Past year tax Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. Past year tax Exception. Past year tax    A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. Past year tax The personal representative has 1 year from the due date (including extensions) of the return to make the change. Past year tax See Publication 559 for more information on filing income tax returns for a decedent. Past year tax Head of Household You may be able to file as head of household if you meet all the following requirements. Past year tax You are unmarried or considered unmarried on the last day of the year. Past year tax See Marital Status , earlier, and Considered Unmarried , later. Past year tax You paid more than half the cost of keeping up a home for the year. Past year tax A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). Past year tax However, if the qualifying person is your dependent parent, he or she does not have to live with you. Past year tax See Special rule for parent , later, under Qualifying Person. Past year tax If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. Past year tax You will also receive a higher standard deduction than if you file as single or married filing separately. Past year tax How to file. Past year tax    If you file as head of household, you can use Form 1040. Past year tax If you have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Past year tax Indicate your choice of this filing status by checking the box on line 4 of either form. Past year tax Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. Past year tax Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. Past year tax You are considered unmarried on the last day of the tax year if you meet all the following tests. Past year tax You file a separate return (defined earlier under Joint Return After Separate Returns ). Past year tax You paid more than half the cost of keeping up your home for the tax year. Past year tax Your spouse did not live in your home during the last 6 months of the tax year. Past year tax Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. Past year tax See Temporary absences , later. Past year tax Your home was the main home of your child, stepchild, or foster child for more than half the year. Past year tax (See Home of qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. Past year tax ) You must be able to claim an exemption for the child. Past year tax However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. Past year tax The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents . Past year tax If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. Past year tax See Publication 555 for more information. Past year tax Nonresident alien spouse. Past year tax    You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. Past year tax However, your spouse is not a qualifying person for head of household purposes. Past year tax You must have another qualifying person and meet the other tests to be eligible to file as a head of household. Past year tax Choice to treat spouse as resident. Past year tax    You are considered married if you choose to treat your spouse as a resident alien. Past year tax See chapter 1 of Publication 519. Past year tax Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. Past year tax You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 1. Past year tax Worksheet 1. Past year tax Cost of Keeping Up a Home         Amount You  Paid Total  Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $       Minus total amount you paid   ()       Amount others paid   $       If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. Past year tax Costs you include. Past year tax    Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. Past year tax   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. Past year tax However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. Past year tax Costs you do not include. Past year tax    Do not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation. Past year tax Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. Past year tax Qualifying Person See Table 4 to see who is a qualifying person. Past year tax Any person not described in Table 4 is not a qualifying person. Past year tax Example 1—child. Past year tax Your unmarried son lived with you all year and was 18 years old at the end of the year. Past year tax He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. Past year tax As a result, he is your qualifying child (see Qualifying Child , later) and, because he is single, your qualifying person for head of household purposes. Past year tax Example 2—child who is not qualifying person. Past year tax The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. Past year tax Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. Past year tax Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. Past year tax As a result, he is not your qualifying person for head of household purposes. Past year tax Example 3—girlfriend. Past year tax Your girlfriend lived with you all year. Past year tax Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you . Past year tax See Table 4. Past year tax Example 4—girlfriend's child. Past year tax The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. Past year tax He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test , later). Past year tax As a result, he is not your qualifying person for head of household purposes. Past year tax Home of qualifying person. Past year tax    Generally, the qualifying person must live with you for more than half of the year. Past year tax Special rule for parent. Past year tax    If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. Past year tax However, you must be able to claim an exemption for your father or mother. Past year tax Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. Past year tax   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. Past year tax Death or birth. Past year tax    You may be eligible to file as head of household even if the qualifying person who qualifies you for this filing status is born or dies during the year. Past year tax To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. Past year tax Your qualifying child or qualifying relative who lived with you for more than half the part of the year he or she was alive. Past year tax Your parent for whom you paid, for the entire part of the year he or she was alive, more than half the cost of keeping up the home he or she lived in. Past year tax Example. Past year tax You are unmarried. Past year tax Your mother, for whom you can claim an exemption, lived in an apartment by herself. Past year tax She died on September 2. Past year tax The cost of the upkeep of her apartment for the year until her death was $6,000. Past year tax You paid $4,000 and your brother paid $2,000. Past year tax Your brother made no other payments towards your mother's support. Past year tax Your mother had no income. Past year tax Because you paid more than half of the cost of keeping up your mother's apartment from January 1 until her death, and you can claim an exemption for her, you can file as a head of household. Past year tax Temporary absences. Past year tax    You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. Past year tax It must be reasonable to assume the absent person will return to the home after the temporary absence. Past year tax You must continue to keep up the home during the absence. Past year tax Kidnapped child. Past year tax    You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. Past year tax You can claim head of household filing status if all the following statements are true. Past year tax The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Past year tax In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Past year tax You would have qualified for head of household filing status if the child had not been kidnapped. Past year tax   This treatment applies for all years until the earliest of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. Past year tax Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. Past year tax The year of death is the last year for which you can file jointly with your deceased spouse. Past year tax See Married Filing Jointly , earlier. Past year tax You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. Past year tax For example, if your spouse died in 2012 and you have not remarried, you may be able to use this filing status for 2013 and 2014. Past year tax The rules for using this filing status are explained in detail here. Past year tax This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). Past year tax It does not entitle you to file a joint return. Past year tax How to file. Past year tax    If you file as a qualifying widow(er) with dependent child, you can use Form 1040. Past year tax If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. Past year tax Check the box on line 5 of either form. Past year tax Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. Past year tax Table 4. Past year tax Who Is a Qualifying Person Qualifying You To File as Head of Household?1 See the text of this publication for the other requirements you must meet to claim head of household filing status. Past year tax IF the person is your . Past year tax . Past year tax . Past year tax   AND . Past year tax . Past year tax . Past year tax   THEN that person is . Past year tax . Past year tax . Past year tax qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. Past year tax   he or she is married and you can claim an exemption for him or her   a qualifying person. Past year tax   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. Past year tax 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. Past year tax 6   you cannot claim an exemption for him or her   not a qualifying person. Past year tax qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests). Past year tax   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you , later, and you can claim an exemption for him or her5   a qualifying person. Past year tax   he or she did not live with you more than half the year   not a qualifying person. Past year tax   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you , later, and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. Past year tax   you cannot claim an exemption for him or her   not a qualifying person. Past year tax 1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. Past year tax 2 The term “qualifying child” is defined under Exemptions for Dependents, later. Past year tax Note: If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child, later. Past year tax If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. Past year tax 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. Past year tax 4 The term “qualifying relative” is defined under Exemptions for Dependents, later. Past year tax 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. Past year tax See Multiple Support Agreement . Past year tax 6 See Special rule for parent . Past year tax Eligibility rules. Past year tax    You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all the following tests. Past year tax You were entitled to file a joint return with your spouse for the year your spouse died. Past year tax It does not matter whether you actually filed a joint return. Past year tax Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. Past year tax You have a child or stepchild for whom you can claim an exemption. Past year tax This does not include a foster child. Past year tax This child lived in your home all year, except for temporary absences. Past year tax See Temporary absences , earlier, under Head of Household. Past year tax There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. Past year tax You paid more than half the cost of keeping up a home for the year. Past year tax See Keeping Up a Home , earlier, under Head of Household. Past year tax Example. Past year tax John's wife died in 2011. Past year tax John has not remarried. Past year tax He has continued during 2012 and 2013 to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. Past year tax For 2011 he was entitled to file a joint return for himself and his deceased wife. Past year tax For 2012 and 2013, he can file as a qualifying widower with a dependent child. Past year tax After 2013, he can file as head of household if he qualifies. Past year tax Death or birth. Past year tax    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. Past year tax You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. Past year tax Kidnapped child. Past year tax    You may be eligible to file as a qualifying widow(er) with dependent child even if the child who qualifies you for this filing status has been kidnapped. Past year tax You can claim qualifying widow(er) with dependent child filing status if all the following statements are true. Past year tax The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. Past year tax In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. Past year tax You would have qualified for qualifying widow(er) with dependent child filing status if the child had not been kidnapped. Past year tax As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. Past year tax Exemptions Exemptions reduce your taxable income. Past year tax You can deduct $3,900 for each exemption you claim in 2013. Past year tax If you are entitled to two exemptions for 2013, you can deduct $7,800 ($3,900 × 2). Past year tax But you may lose the benefit of part or all of your exemptions if your adjusted gross income is above a certain amount. Past year tax See Phaseout of Exemptions , later. Past year tax Types of exemptions. Past year tax    There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Past year tax While each is worth the same amount ($3,900 for 2013), different rules, discussed later, apply to each type. Past year tax Dependent cannot claim a personal exemption. Past year tax    If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim a personal exemption on his or her own tax return. Past year tax How to claim exemptions. Past year tax    How you claim an exemption on your tax return depends on which form you file. Past year tax Form 1040EZ filers. Past year tax    If you file Form 1040EZ, the exemption amount is combined with the standard deduction and entered on line 5. Past year tax Form 1040A filers. Past year tax    If you file Form 1040A, complete lines 6a through 6d. Past year tax The total number of exemptions you can claim is the total in the box on line 6d. Past year tax Also complete line 26. Past year tax Form 1040 filers. Past year tax    If you file Form 1040, complete lines 6a through 6d. Past year tax The total number of exemptions you can claim is the total in the box on line 6d. Past year tax Also complete line 42. Past year tax If your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. Past year tax U. Past year tax S. Past year tax citizen or resident alien. Past year tax    If you are a U. Past year tax S. Past year tax citizen, U. Past year tax S. Past year tax resident alien, U. Past year tax S. Past year tax national (defined later) or a resident of Canada or Mexico, you may qualify for any of the exemptions discussed here. Past year tax Nonresident aliens. Past year tax    Generally, if you are a nonresident alien (other than a resident of Canada or Mexico, or certain residents of India or Korea), you can qualify for only one personal exemption for yourself. Past year tax You cannot claim exemptions for a spouse or dependents. Past year tax   These restrictions do not apply if you are a nonresident alien married to a U. Past year tax S. Past year tax citizen or resident alien and have chosen to be treated as a resident of the United States. Past year tax More information. Past year tax    For more information on exemptions if you are a nonresident alien, see chapter 5 in Publication 519. Past year tax Dual-status taxpayers. Past year tax    If you have been both a nonresident alien and a resident alien in the same tax year, you should see Publication 519 for information on determining your exemptions. Past year tax Personal Exemptions You are generally allowed one exemption for yourself. Past year tax If you are married, you may be allowed one exemption for your spouse. Past year tax These are called personal exemptions. Past year tax Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Past year tax If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Past year tax Your Spouse's Exemption Your spouse is never considered your dependent. Past year tax Joint return. Past year tax    On a joint return, you can claim one exemption for yourself and one for your spouse. Past year tax Separate return. Past year tax    If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Past year tax This is true even if the other taxpayer does not actually claim your spouse as a dependent. Past year tax You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Past year tax S. Past year tax tax purposes and satisfy the other conditions listed above. Past year tax Head of household. Past year tax    If you qualify for head of household filing status because you are considered unmarried, you can claim an exemption for your spouse if the conditions described in the preceding paragraph are satisfied. Past year tax   To claim the exemption for your spouse, check the box on line 6b of Form 1040 or Form 1040A and enter the name of your spouse in the space to the right of the box. Past year tax Enter the SSN or ITIN of your spouse in the space provided at the top of Form 1040 or Form 1040A. Past year tax Death of spouse. Past year tax    If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Past year tax If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Past year tax   If you remarried during the year, you cannot take an exemption for your deceased spouse. Past year tax   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Past year tax If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Past year tax Divorced or separated spouse. Past year tax    If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Past year tax This rule applies even if you provided all of your former spouse's support. Past year tax Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Past year tax You can claim an exemption for a dependent even if your dependent files a return. Past year tax The term “dependent” means: A qualifying child, or A qualifying relative. Past year tax The terms “ qualifying child ” and “ qualifying relative ” are defined later. Past year tax You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Past year tax Dependent taxpayer test. Past year tax Joint return test. Past year tax Citizen or resident test. Past year tax These three tests are explained in detail later. Past year tax All the requirements for claiming an exemption for a dependent are summarized in Table 5. Past year tax Table 5. Past year tax Overview of the Rules for Claiming an Exemption for a Dependent This table is only an overview of the rules. Past year tax For details, see the rest of this publication. Past year tax You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. Past year tax   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Past year tax   You cannot claim a person as a dependent unless that person is a U. Past year tax S. Past year tax citizen, U. Past year tax S. Past year tax resident alien, U. Past year tax S. Past year tax national, or a resident of Canada or Mexico. Past year tax 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Past year tax   Tests To Be a Qualifying Child Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Past year tax   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. Past year tax   The child must have lived with you for more than half of the year. Past year tax 2  The child must not have provided more than half of his or her own support for the year. Past year tax   The child is not filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid). Past year tax  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Past year tax See the Special Rule for Qualifying Child of More Than One Person described later to find out which person is the person entitled to claim the child as a qualifying child. Past year tax The person cannot be your qualifying child or the qualifying child of any other taxpayer. Past year tax   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Past year tax   The person's gross income for the year must be less than $3,900. Past year tax 3  You must provide more than half of the person's total support for the year. Past year tax 4  1 There is an exception for certain adopted children. Past year tax 2 There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Past year tax 3 There is an exception if the person is disabled and has income from a sheltered workshop. Past year tax 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Past year tax Dependent not allowed a personal exemption. Past year tax If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Past year tax This is true even if you do not claim the dependent's exemption on your return. Past year tax It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Past year tax Housekeepers, maids, or servants. Past year tax    If these people work for you, you cannot claim exemptions for them. Past year tax Child tax credit. Past year tax    You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Past year tax For more information, see the instructions for the tax form you file (Form 1040 or 1040A). Past year tax Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Past year tax Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Past year tax If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Past year tax Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Past year tax Exception. Past year tax    You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Past year tax Example 1—child files joint return. Past year tax You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Past year tax He earned $25,000 for the year. Past year tax The couple files a joint return. Past year tax You cannot take an exemption for your daughter. Past year tax Example 2—child files joint return only as claim for refund of withheld tax. Past year tax Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Past year tax Neither is required to file a tax return. Past year tax They do not have a child. Past year tax Taxes were taken out of their pay so they file a joint return only to get a refund of the withheld taxes. Past year tax The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Past year tax You can claim exemptions for each of them if all the other tests to do so are met. Past year tax Example 3—child files joint return to claim American opportunity credit. Past year tax The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Past year tax He and his wife are not required to file a tax return. Past year tax However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Past year tax Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income
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Understanding your CP12E Notice

We made changes to correct a miscalculation on your return.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Review the notice, and compare our changes to the information on your tax return.
  • If you agree with the changes we made, do nothing; you should receive a refund check in 4-6 weeks, as long as you don't owe other tax or debts we're required to collect.
  • If you don't agree, call 1-800-829-8374 to review your account or contact us by mail. Include any correspondence or documentation.

You may want to...

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Answers to Common Questions

Why did I receive this notice?
We issue Notice CP12E when we correct one or more mistakes on your tax return, and

  • The overpayment is different from the one you expected, or
  • You have an overpayment when you thought you owed money or had an even balance.

How can I find out what caused my tax return to change?
Please contact us at the toll free number listed on the top right corner of your notice for specific information concerning your tax return.

What should I do if I disagree with the changes you made?
If you disagree, contact us at the toll free number listed on the top right corner of your notice.

If you contact us in writing within 60 days of the date of this notice, we'll reverse the change we made to your account. However, if you're unable to provide us with additional information that justifies the reversal and we believe the reversal is in error, we'll forward your case to examination for audit. This step gives you formal appeal rights, including the right to appeal our decision in court. After we forward your case, the audit staff will contact you within five to six weeks to fully explain the audit process and your rights. If you don't contact us within the 60 day period, you'll lose your right to appeal our decision before payment of tax.


Tips for next year

Consider filing your taxes electronically. Filing online can help you avoid mistakes and find credits and deductions that you may qualify for. In many cases you can file for free. Learn more about e-file.

Page Last Reviewed or Updated: 19-Feb-2014

The Past Year Tax

Past year tax 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. Past year tax Computer used in a home office. Past year tax 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). Past year tax You can claim the amount of expenses that is more than 2% of your adjusted gross income. Past year tax You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Past year tax Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. Past year tax Generally, you apply the 2% limit after you apply any other deduction limit. Past year tax 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. Past year tax Deductions subject to the 2% limit are discussed in the following three categories. Past year tax Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). Past year tax Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). Past year tax Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). Past year tax Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Past year tax 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. Past year tax An expense is ordinary if it is common and accepted in your trade, business, or profession. Past year tax An expense is necessary if it is appropriate and helpful to your business. Past year tax An expense does not have to be required to be considered necessary. Past year tax You may be able to deduct the following items as unreimbursed employee expenses. Past year tax Business bad debt of an employee. Past year tax Business liability insurance premiums. Past year tax Damages paid to a former employer for breach of an employment contract. Past year tax Depreciation on a computer your employer requires you to use in your work. Past year tax Dues to a chamber of commerce if membership helps you do your job. Past year tax Dues to professional societies. Past year tax Educator expenses. Past year tax Home office or part of your home used regularly and exclusively in your work. Past year tax Job search expenses in your present occupation. Past year tax Laboratory breakage fees. Past year tax Legal fees related to your job. Past year tax Licenses and regulatory fees. Past year tax Malpractice insurance premiums. Past year tax Medical examinations required by an employer. Past year tax Occupational taxes. Past year tax Passport for a business trip. Past year tax Repayment of an income aid payment received under an employer's plan. Past year tax Research expenses of a college professor. Past year tax Rural mail carriers' vehicle expenses. Past year tax Subscriptions to professional journals and trade magazines related to your work. Past year tax Tools and supplies used in your work. Past year tax Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Past year tax Union dues and expenses. Past year tax Work clothes and uniforms if required and not suitable for everyday use. Past year tax Work-related education. Past year tax Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. Past year tax 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. Past year tax 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. Past year tax Example. Past year tax You make a bona fide loan to the corporation you work for. Past year tax It fails to pay you back. Past year tax You had to make the loan in order to keep your job. Past year tax You have a business bad debt as an employee. Past year tax More information. Past year tax   For more information on business bad debts, see chapter 10 in Publication 535. Past year tax For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. Past year tax Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Past year tax 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. Past year tax 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. Past year tax For the convenience of your employer. Past year tax   This means that your use of the computer is for a substantial business reason of your employer. Past year tax You must consider all facts in making this determination. Past year tax Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. Past year tax Required as a condition of your employment. Past year tax   This means that you cannot properly perform your duties without the computer. Past year tax Whether you can properly perform your duties without it depends on all the facts and circumstances. Past year tax It is not necessary that your employer explicitly requires you to use your computer. Past year tax But neither is it enough that your employer merely states that your use of the item is a condition of your employment. Past year tax Example. Past year tax You are an engineer with an engineering firm. Past year tax You occasionally take work home at night rather than work late at the office. Past year tax You own and use a computer that is similar to the one you use at the office to complete your work at home. Past year tax 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. Past year tax Which depreciation method to use. Past year tax   The depreciation method you use depends on whether you meet the more-than-50%-use test. Past year tax More-than-50%-use test met. Past year tax   You meet this test if you use the computer more than 50% in your work. Past year tax If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). Past year tax In addition, you may be able to take the section 179 deduction for the year you place the item in service. Past year tax More-than-50%-use test not met. Past year tax   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). Past year tax You also cannot claim the section 179 deduction. Past year tax (But if you use your computer in a home office, see the exception below. Past year tax ) Investment use. Past year tax   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. Past year tax However, you can combine your investment use with your work use in figuring your depreciation deduction. Past year tax Exception for computer used in a home office. Past year tax   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 . Past year tax 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. Past year tax You also may be able to take a section 179 deduction for the year you place the computer in service. Past year tax See Computer used in a home office under How To Report, later. Past year tax More information. Past year tax   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. Past year tax Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. Past year tax Reporting your depreciation deduction. Past year tax    See How To Report, later, for information about reporting a deduction for depreciation. Past year tax You must keep records to prove your percentage of business and investment use. Past year tax 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. Past year tax Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Past year tax Lobbying and political activities. Past year tax    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Past year tax See Lobbying Expenses under Nondeductible Expenses, later. Past year tax 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. Past year tax If you file Form 1040A, you can deduct these expenses on line 16. Past year tax If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Past year tax However, neither spouse can deduct more than $250 of his or her qualified expenses. Past year tax Eligible educator. Past year tax   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. Past year tax Qualified expenses. Past year tax   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. Past year tax An ordinary expense is one that is common and accepted in your educational field. Past year tax A necessary expense is one that is helpful and appropriate for your profession as an educator. Past year tax An expense does not have to be required to be considered necessary. Past year tax   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Past year tax You must reduce your qualified expenses by the following amounts. Past year tax Excludable U. Past year tax S. Past year tax series EE and I savings bond interest from Form 8815. Past year tax Nontaxable qualified state tuition program earnings. Past year tax Nontaxable earnings from Coverdell education savings accounts. Past year tax Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. Past year tax Educator expenses over limit. Past year tax   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. Past year tax 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. Past year tax 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. Past year tax The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Past year tax Principal place of business. Past year tax   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. Past year tax   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. Past year tax You should keep records that will give the information needed to figure the deduction according to these rules. Past year tax Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. Past year tax More information. Past year tax   See Publication 587 for more detailed information and a worksheet for figuring the deduction. Past year tax 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. Past year tax 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. Past year tax Employment and outplacement agency fees. Past year tax    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Past year tax Employer pays you back. Past year tax   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. Past year tax See Recoveries in Publication 525. Past year tax Employer pays the employment agency. Past year tax   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. Past year tax Résumé. Past year tax   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. Past year tax Travel and transportation expenses. Past year tax   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. Past year tax You can deduct the travel expenses if the trip is primarily to look for a new job. Past year tax 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. Past year tax   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. Past year tax    You can choose to use the standard mileage rate to figure your car expenses. Past year tax The 2013 rate for business use of a vehicle is 56½ cents per mile. Past year tax See Publication 463 for more information on travel and car expenses. Past year tax Legal Fees You can deduct legal fees related to doing or keeping your job. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax However, you cannot deduct the cost of travel as a form of education. Past year tax 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. Past year tax See chapter 4 of Publication 463 for more information. Past year tax 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. Past year tax You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Past year tax For more information about depreciation, see Publication 946. Past year tax 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. Past year tax Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. Past year tax Travel expenses. Past year tax   Travel expenses are those incurred while traveling away from home for your employer. Past year tax You can deduct travel expenses paid or incurred in connection with a temporary work assignment. Past year tax Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. Past year tax   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. Past year tax ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. Past year tax   Travel expenses are discussed more fully in chapter 1 of Publication 463. Past year tax Temporary work assignment. Past year tax    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. Past year tax Indefinite work assignment. Past year tax   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. Past year tax 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. Past year tax Federal crime investigation and prosecution. Past year tax   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. Past year tax 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. Past year tax   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. Past year tax Armed Forces reservists traveling more than 100 miles from home. Past year tax   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. Past year tax 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. Past year tax The balance, if any, is reported on Schedule A. Past year tax   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. Past year tax   For more information on travel expenses, see Publication 463. Past year tax Local transportation expenses. Past year tax   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. Past year tax They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. Past year tax   You can choose to use the standard mileage rate to figure your car expenses. Past year tax The 2013 rate for business use of a vehicle is 56½ cents per mile. Past year tax    In general, the costs of commuting between your residence and your place of business are nondeductible. Past year tax Work at two places in a day. Past year tax   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. Past year tax Temporary work location. Past year tax   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. Past year tax The work location is outside the metropolitan area where you live and normally work. Past year tax You have at least one regular work location (other than your home) for the same trade or business. Past year tax (If this applies, the distance between your home and the temporary work location does not matter. Past year tax )   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. Past year tax 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. Past year tax 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. Past year tax For more information, see chapter 1 of Publication 463. Past year tax Home office. Past year tax   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. Past year tax (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. Past year tax ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. Past year tax Meals and entertainment. Past year tax   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. Past year tax 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. Past year tax   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. Past year tax You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. Past year tax Meals when subject to “hours of service” limits. Past year tax   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. Past year tax You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. Past year tax Gift expenses. Past year tax   You can generally deduct up to $25 of business gifts you give to any one individual during the year. Past year tax The following items do not count toward the $25 limit. Past year tax Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. Past year tax Signs, racks, and promotional materials to be displayed on the business premises of the recipient. Past year tax Local lodging. Past year tax   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. Past year tax   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. Past year tax Additional information. Past year tax    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. Past year tax Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Past year tax You can also deduct assessments for benefit payments to unemployed union members. Past year tax However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Past year tax Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. Past year tax You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Past year tax See Lobbying Expenses under Nondeductible Expenses, later. Past year tax Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Past year tax You must wear them as a condition of your employment. Past year tax The clothes are not suitable for everyday wear. Past year tax It is not enough that you wear distinctive clothing. Past year tax The clothing must be specifically required by your employer. Past year tax Nor is it enough that you do not, in fact, wear your work clothes away from work. Past year tax The clothing must not be suitable for taking the place of your regular clothing. Past year tax 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. Past year tax ). Past year tax Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Past year tax 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. Past year tax Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Past year tax Protective clothing. Past year tax   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. Past year tax   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. Past year tax Military uniforms. Past year tax   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Past year tax 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. Past year tax In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Past year tax   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. Past year tax   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. Past year tax However, you can deduct the cost of insignia, shoulder boards, and related items. Past year tax    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Past year tax 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. Past year tax It maintains or improves skills required in your present work. Past year tax 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. Past year tax 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. Past year tax If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. Past year tax 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. Past year tax Travel as education. Past year tax   You cannot deduct the cost of travel that in itself constitutes a form of education. Past year tax 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. Past year tax More information. Past year tax    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. Past year tax 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. Past year tax Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Past year tax Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. Past year tax Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Past year tax These fees include the cost of tax preparation software programs and tax publications. Past year tax They also include any fee you paid for electronic filing of your return. Past year tax See Tax preparation fees under How To Report, later. Past year tax Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. Past year tax 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. Past year tax 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. Past year tax These other expenses include the following items. Past year tax Appraisal fees for a casualty loss or charitable contribution. Past year tax Casualty and theft losses from property used in performing services as an employee. Past year tax Clerical help and office rent in caring for investments. Past year tax Depreciation on home computers used for investments. Past year tax Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. Past year tax Fees to collect interest and dividends. Past year tax Hobby expenses, but generally not more than hobby income. Past year tax Indirect miscellaneous deductions from pass-through entities. Past year tax Investment fees and expenses. Past year tax Legal fees related to producing or collecting taxable income or getting tax advice. Past year tax Loss on deposits in an insolvent or bankrupt financial institution. Past year tax Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. Past year tax Repayments of income. Past year tax Repayments of social security benefits. Past year tax Safe deposit box rental, except for storing jewelry and other personal effects. Past year tax Service charges on dividend reinvestment plans. Past year tax Tax advice fees. Past year tax Trustee's fees for your IRA, if separately billed and paid. Past year tax If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. Past year tax Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Past year tax 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. Past year tax First report the loss in Section B of Form 4684, Casualties and Thefts. Past year tax You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Past year tax 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. Past year tax For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Past year tax 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. Past year tax 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. Past year tax The fees are deductible on the return for the year in which you paid them. Past year tax For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. Past year tax 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). Past year tax You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Past year tax But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. Past year tax For more information on depreciation, see Publication 946. Past year tax 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. Past year tax Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Past year tax 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. Past year tax For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Past year tax 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. Past year tax But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Past year tax You must add the fee to the cost of the property. Past year tax You cannot deduct the fee you pay to a broker to sell securities. Past year tax You can use the fee only to figure gain or loss from the sale. Past year tax See the instructions for Schedule D (Form 1040) for information on how to report the fee. Past year tax Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Past year tax A hobby is not a business because it is not carried on to make a profit. Past year tax See Not-for-Profit Activities in chapter 1 of Publication 535. Past year tax Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Past year tax Deductions of pass-through entities are passed through to the partners or shareholders. Past year tax The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Past year tax Example. Past year tax You are a member of an investment club that is formed solely to invest in securities. Past year tax The club is treated as a partnership. Past year tax The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Past year tax In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Past year tax 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. Past year tax Publicly offered mutual funds. Past year tax   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Past year tax 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. Past year tax   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). Past year tax This net figure is the amount you report on your return as income. Past year tax You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Past year tax Information returns. Past year tax   You should receive information returns from pass-through entities. Past year tax Partnerships and S corporations. Past year tax   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. Past year tax Nonpublicly offered mutual funds. Past year tax   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. Past year tax You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). Past year tax See Tax Preparation Fees, earlier. Past year tax Unlawful discrimination claims. Past year tax   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. Past year tax S. Past year tax Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. Past year tax 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. Past year tax See Publication 525 for more information. Past year tax Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Past year tax 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. Past year tax If elected, the casualty loss is subject to certain deduction limitations. Past year tax The election is made on Form 4684. Past year tax Once you make this choice, you cannot change it without IRS approval. Past year tax If none of the deposit is federally insured, you can deduct the loss in either of the following ways. Past year tax As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). Past year tax 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. Past year tax 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. Past year tax As a casualty loss. Past year tax Report it on Form 4684 first and then on Schedule A (Form 1040). Past year tax See Publication 547 for details. Past year tax As a nonbusiness bad debt. Past year tax Report it on Schedule D (Form 1040). Past year tax If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. Past year tax Exception. Past year tax   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. Past year tax For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. Past year tax Actual loss different from estimated loss. Past year tax   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. Past year tax See Recoveries in Publication 525. Past year tax If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. Past year tax Choice not made. Past year tax   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. Past year tax See Nonbusiness Bad Debts in chapter 4 of Publication 550. Past year tax 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. Past year tax For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Past year tax 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. Past year tax If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Past year tax If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Past year tax 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. Past year tax 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. Past year tax The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. Past year tax 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). Past year tax If the deduction is more than $3,000, you will have to use a special computation to figure your tax. Past year tax See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. Past year tax 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. Past year tax You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Past year tax Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Past year tax 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. Past year tax 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. Past year tax Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Past year tax They are not subject to the 2% limit. Past year tax Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Past year tax List of Deductions Amortizable premium on taxable bonds. Past year tax Casualty and theft losses from income-producing property. Past year tax Federal estate tax on income in respect of a decedent. Past year tax Gambling losses up to the amount of gambling winnings. Past year tax Impairment-related work expenses of persons with disabilities. Past year tax Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Past year tax Losses from Ponzi-type investment schemes. Past year tax Repayments of more than $3,000 under a claim of right. Past year tax Unrecovered investment in an annuity. Past year tax 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. Past year tax You can elect to amortize the premium on taxable bonds. Past year tax The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Past year tax Pre-1998 election to amortize bond premium. Past year tax   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. Past year tax Bonds acquired after October 22, 1986, and before 1988. Past year tax   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. Past year tax Bonds acquired before October 23, 1986. Past year tax   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. Past year tax Deduction for excess premium. Past year tax   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. Past year tax If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. Past year tax 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. Past year tax 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. Past year tax    Pre-1998 choice to amortize bond premium. Past year tax 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. Past year tax More information. Past year tax    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. Past year tax 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). Past year tax First report the loss in Section B of Form 4684. Past year tax You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Past year tax 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. Past year tax For more information on casualty and theft losses, see Publication 547. Past year tax 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. Past year tax 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. Past year tax See Publication 559 for information about figuring the amount of this deduction. Past year tax 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. Past year tax You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Past year tax You cannot deduct gambling losses that are more than your winnings. Past year tax Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). Past year tax You cannot reduce your gambling winnings by your gambling losses and report the difference. Past year tax 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. Past year tax Therefore, your records should show your winnings separately from your losses. Past year tax Diary of winnings and losses. Past year tax You must keep an accurate diary or similar record of your losses and winnings. Past year tax Your diary should contain at least the following information. Past year tax The date and type of your specific wager or wagering activity. Past year tax The name and address or location of the gambling establishment. Past year tax The names of other persons present with you at the gambling establishment. Past year tax The amount(s) you won or lost. Past year tax Proof of winnings and losses. Past year tax   In addition to your diary, you should also have other documentation. Past year tax 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. Past year tax   For specific wagering transactions, you can use the following items to support your winnings and losses. Past year tax    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. Past year tax They are not all-inclusive. Past year tax Your tax liability depends on your particular facts and circumstances. Past year tax Keno. Past year tax   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. Past year tax Slot machines. Past year tax   A record of the machine number and all winnings by date and time the machine was played. Past year tax Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. Past year tax ). Past year tax   The number of the table at which you were playing. Past year tax Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. Past year tax Bingo. Past year tax   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Past year tax Supplemental records include any receipts from the casino, parlor, etc. Past year tax Racing (horse, harness, dog, etc. Past year tax ). Past year tax   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Past year tax Supplemental records include unredeemed tickets and payment records from the racetrack. Past year tax Lotteries. Past year tax   A record of ticket purchases, dates, winnings, and losses. Past year tax Supplemental records include unredeemed tickets, payment slips, and winnings statements. Past year tax 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. Past year tax 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. Past year tax Example. Past year tax You are blind. Past year tax You must use a reader to do your work. Past year tax 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. Past year tax The reader's services are only for your work. Past year tax You can deduct your expenses for the reader as impairment-related work expenses. Past year tax Self-employed. Past year tax   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. Past year tax See Impairment-related work expenses. Past year tax , later under How To Report. Past year tax 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. Past year tax S. Past year tax trade or business). Past year tax It is not subject to the passive activity limitations. Past year tax 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. Past year tax See Publication 463 for more information. Past year tax 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. Past year tax If you are an employee, complete Form 2106 or Form 2106-EZ. Past year tax See Publication 463 for more information. Past year tax 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. Past year tax You figure the deductible loss in Section B of Form 4684. Past year tax 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. Past year tax Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Past year tax You do not need to complete Appendix A. Past year tax See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. Past year tax 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. Past year tax See Repayments in Publication 525 for more information. Past year tax 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. Past year tax 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. Past year tax See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. Past year tax Nondeductible Expenses You cannot deduct the following expenses. Past year tax List of Nondeductible Expenses Adoption expenses. Past year tax Broker's commissions. Past year tax Burial or funeral expenses, including the cost of a cemetery lot. Past year tax Campaign expenses. Past year tax Capital expenses. Past year tax Check-writing fees. Past year tax Club dues. Past year tax Commuting expenses. Past year tax Fees and licenses, such as car licenses, marriage licenses, and dog tags. Past year tax Fines and penalties, such as parking tickets. Past year tax Health spa expenses. Past year tax Hobby losses—but see Hobby Expenses, earlier. Past year tax Home repairs, insurance, and rent. Past year tax Home security system. Past year tax Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. Past year tax Investment-related seminars. Past year tax Life insurance premiums paid by the insured. Past year tax Lobbying expenses. Past year tax Losses from the sale of your home, furniture, personal car, etc. Past year tax Lost or misplaced cash or property. Past year tax Lunches with co-workers. Past year tax Meals while working late. Past year tax Medical expenses as business expenses other than medical examinations required by your employer. Past year tax Personal disability insurance premiums. Past year tax Personal legal expenses. Past year tax Personal, living, or family expenses. Past year tax Political contributions. Past year tax Professional accreditation fees. Past year tax Professional reputation, expenses to improve. Past year tax Relief fund contributions. Past year tax Residential telephone line. Past year tax Stockholders' meeting, expenses of attending. Past year tax Tax-exempt income, expenses of earning or collecting. Past year tax The value of wages never received or lost vacation time. Past year tax Travel expenses for another individual. Past year tax Voluntary unemployment benefit fund contributions. Past year tax Wristwatches. Past year tax Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. Past year tax For details, see Form 8839, Qualified Adoption Expenses. Past year tax Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. Past year tax Instead, these fees must be added to the taxpayer's cost of the securities. Past year tax Commissions paid on the sale are deductible as business expenses only by dealers. Past year tax Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Past year tax These include qualification and registration fees for primary elections. Past year tax Legal fees. Past year tax   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Past year tax 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. Past year tax If you use such property in your work, you may be able to take a depreciation deduction. Past year tax See Publication 946. Past year tax If the property is a car used in your work, also see Publication 463. Past year tax 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. Past year tax Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Past year tax This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Past year tax 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. Past year tax Dues paid to airline, hotel, and luncheon clubs are not deductible. Past year tax Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Past year tax 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. Past year tax Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Past year tax This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Past year tax Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Past year tax 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. Past year tax Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Past year tax However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Past year tax See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. Past year tax Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Past year tax Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Past year tax You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Past year tax See Publication 504, Divorced or Separated Individuals, for information on alimony. Past year tax Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Past year tax 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. Past year tax Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Past year tax Covered executive branch official. Past year tax   A covered executive branch official, for the purpose of (4) above, is any of the following officials. Past year tax The President. Past year tax The Vice President. Past year tax 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. Past year tax 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. Past year tax Dues used for lobbying. Past year tax   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. Past year tax Exceptions. Past year tax   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. Past year tax You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). Past year tax An Indian tribal government is considered a local council or similar governing body. Past year tax 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). Past year tax 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. Past year tax Payments by the other person to you for lobbying activities cannot be deducted. Past year tax Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Past year tax 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. Past year tax See Publication 547. Past year tax Example. Past year tax A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Past year tax The diamond falls from the ring and is never found. Past year tax The loss of the diamond is a casualty. Past year tax Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Past year tax See Publication 463 for information on deductible expenses while traveling away from home. Past year tax Meals While Working Late You cannot deduct the cost of meals while working late. Past year tax 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. Past year tax See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. Past year tax Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Past year tax Custody of children. Past year tax Breach of promise to marry suit. Past year tax Civil or criminal charges resulting from a personal relationship. Past year tax Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). Past year tax For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. Past year tax Preparation of a title (or defense or perfection of a title). Past year tax Preparation of a will. Past year tax Property claims or property settlement in a divorce. Past year tax You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Past year tax Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Past year tax Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Past year tax Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Past year tax Accounting certificate fees paid for the initial right to practice accounting. Past year tax Bar exam fees and incidental expenses in securing initial admission to the bar. Past year tax Medical and dental license fees paid to get initial licensing. Past year tax Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Past year tax 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. Past year tax 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. Past year tax 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. Past year tax You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Past year tax Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Past year tax You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. Past year tax If you have expenses to p