File your Taxes for Free!
  • Get your maximum refund*
  • 100% accurate calculations guaranteed*

TurboTax Federal Free Edition - File Taxes Online

Don't let filing your taxes get you down! We'll help make it as easy as possible. With e-file and direct deposit, there's no faster way to get your refund!

Approved TurboTax Affiliate Site. TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.


© 2012 - 2018 All rights reserved.

This is an Approved TurboTax Affiliate site. TurboTax and TurboTax Online, among other are registered trademarks and/or service marks of Intuit, Inc. in the United States and other countries. Other parties' trademarks or service marks are the property of the respective owners.
When discussing "Free e-file", note that state e-file is an additional fee. E-file fees do not apply to New York state returns. Prices are subject to change without notice. E-file and get your refund faster
*If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
*Maximum Refund Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. TurboTax Federal Free Edition customers are entitled to payment of $14.99 and a refund of your state purchase price paid. Claims must be submitted within sixty (60) days of your TurboTax filing date and no later than 6/15/14. E-file, Audit Defense, Professional Review, Refund Transfer and technical support fees are excluded. This guarantee cannot be combined with the TurboTax Satisfaction (Easy) Guarantee. *We're so confident your return will be done right, we guarantee it. Accurate calculations guaranteed. If you pay an IRS or state penalty or interest because of a TurboTax calculations error, we'll pay you the penalty and interest.
https://turbotax.intuit.com/corp/guarantees.jsp

State Income Tax Charts

How To File Tax ExtentionState 1040ez Tax FormWhere To File 2012 Tax Return2012 Pdf Tax Forms 10402012 Irs FormsFiling Amended ReturnIrs GovFile Extension For FreeFree Military Taxes1040ez Free Online File2006 Tax Software2011 Tax BookletIrs Amended Tax Return2006 Tax Software Free DownloadState Income Tax E FileFederal Tax Amendment FormHow Do I File State TaxesWhere To File My 2011 Tax Return1040 Income Tax FormsH&r Block Online Filing1040ez TaxesHow To File A Tax ExtensionHow To File 1040ezCollege Students Filing Taxes2011 Federal Tax Form 1040ezFreetaxusa20112010 Turbotax DownloadFiling An Amended Tax ReturnFile Only State Taxes Online Free2013 State Tax Forms2011 Taxact Online1040ez Fillable FormFree Online TaxesHow To File 2010 Taxes Late2009 FreetaxusaIrs Extention FormsFree Tax Filing For College StudentsWww Freefilefillableforms Com2012 Federal Tax Form 1040ezOnline Tax Filing

State Income Tax Charts

State income tax charts Index Symbols 401(k) Plan Elective Deferrals, Elective Deferrals (401(k) Plans) Safe harbor, Safe harbor 401(k) plan. State income tax charts A Annual additions, Annual additions. State income tax charts Annual benefits, Annual benefits. State income tax charts Assistance (see Tax help) Automatic Enrollment, Automatic Enrollment B Business, definition, Business. State income tax charts C Common-law employee, Common-law employee. State income tax charts Compensation, Compensation. State income tax charts Contribution Defined, Contribution. State income tax charts Limits Qualified plans, Limits on Contributions and Benefits SEP-IRAs, Contribution Limits SIMPLE IRA plan, Contribution Limits D Deduction Defined, SIMPLE plans. State income tax charts , Deduction. State income tax charts Deduction worksheet for self-employed, Figuring your deduction. State income tax charts Defined benefit plan Deduction limits, Defined benefit plans. State income tax charts Limits on contributions, Defined benefit plan. State income tax charts Defined contribution plan Automatic Enrollment, Automatic Enrollment Deduction limits, Defined contribution plans. State income tax charts Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. State income tax charts Forfeitures, Forfeiture. State income tax charts Limits on contributions, Defined contribution plan. State income tax charts Money purchase pension plan, Money purchase pension plan. State income tax charts Profit-sharing plan, Profit-sharing plan. State income tax charts Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. State income tax charts Definitions you need to know, Definitions You Need To Know Disqualified person, Prohibited Transactions Distributions (withdrawals), Distributions (Withdrawals) E EACA, Eligible automatic contribution arrangement. State income tax charts Earned income, Earned income. State income tax charts Eligible automatic contribution arrangement, Eligible automatic contribution arrangement. State income tax charts Employees Eligible, Eligible employee. State income tax charts Excludable, Excludable employees. State income tax charts Highly compensated, Highly compensated employee. State income tax charts Leased, Leased employee. State income tax charts Employer Defined, Employer. State income tax charts Excess Deferrals, Treatment of Excess Deferrals Excise tax, Excise Tax on Reversion of Plan Assets Nondeductible (excess) contributions, Excise Tax for Nondeductible (Excess) Contributions Reduced benefit accrual, Notification of Significant Benefit Accrual Reduction SEP excess contributions, Excise tax. State income tax charts Excludable employees, Excludable employees. State income tax charts F Form 1040, Where To Deduct Contributions, Reporting the tax. State income tax charts 1099-R, Reporting corrective distributions on Form 1099-R. State income tax charts 5304–SIMPLE, How To Set Up a SIMPLE IRA Plan 5305–S, Setting up a SIMPLE IRA. State income tax charts 5305–SA, Setting up a SIMPLE IRA. State income tax charts 5305–SEP, Formal written agreement. State income tax charts 5305–SIMPLE, How To Set Up a SIMPLE IRA Plan 5310, Form 5310. State income tax charts 5329, Reporting the tax. State income tax charts 5330, Reporting the tax. State income tax charts , Tax on excess contributions of highly compensated employees. State income tax charts , Excise Tax on Reversion of Plan Assets, Payment of the 15% tax. State income tax charts 5500, Form 5500. State income tax charts , Electronic filing of Forms 5500 and 5500-SF. State income tax charts 5500-EZ, Form 5500-EZ. State income tax charts Form W-2, Reporting on Form W-2. State income tax charts Schedule K (Form 1065), Where To Deduct Contributions Free tax services, Free help with your return. State income tax charts H Highly compensated employee, Highly compensated employee. State income tax charts K Keogh plans (see Qualified plans) L Leased employee, Leased employee. State income tax charts N Net earnings from self-employment, Net earnings from self-employment. State income tax charts Notification requirements, Notification Requirement P Participant, definition, Participant. State income tax charts Participation, Participation. State income tax charts Partner, definition, Partner. State income tax charts Publications (see Tax help) Q QACA, Qualified automatic contribution arrangement. State income tax charts Qualified automatic contribution arrangement, Qualified automatic contribution arrangement. State income tax charts Qualified Plan, definition, Qualified plan. State income tax charts Qualified plans, Limits on Contributions and Benefits Assignment of benefits, Benefits must not be assigned or alienated. State income tax charts Benefits starting date, Benefit payment must begin when required. State income tax charts Contributions, Contributions, Employer Contributions, Limits on Contributions and Benefits, When Contributions Are Considered Made, Where To Deduct Contributions Deduction limits, Deduction Limits, Defined contribution plans. State income tax charts , Defined benefit plans. State income tax charts , Deduction Limit for Self-Employed Individuals, Carryover of Excess Contributions, Excise Tax for Nondeductible (Excess) Contributions Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Deductions, Employer Deduction Deferrals, Treatment of contributions. State income tax charts , Reporting on Form W-2. State income tax charts Defined benefit plan, Defined Benefit Plan Defined contribution plan, Defined Contribution Plan Distributions, Distributions Minimum, Required Distributions Required beginning date, Required beginning date. State income tax charts Rollover, Rollover. State income tax charts Tax on excess benefits, Tax on Excess Benefits Tax on premature, Tax on Early Distributions Tax treatment, Tax Treatment of Distributions Elective Deferrals, Elective Deferrals (401(k) Plans) Limits, Limit on Elective Deferrals Employee nondeductible contributions, Employee Contributions Excess Deferrals, Treatment of Excess Deferrals Investing plan assets, Investing Plan Assets Kinds of plans, Kinds of Plans Leased employees, Leased employee. State income tax charts Minimum requirements Coverage, Minimum coverage requirement must be met. State income tax charts Funding, Minimum Funding Requirement Vesting, Minimum vesting standard must be met. State income tax charts Prohibited transactions, Prohibited Transactions Qualification rules, Qualification Rules Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting requirements, Reporting Requirements Setting up, Setting Up a Qualified Plan Qualified Plans Survivor benefits, Survivor benefits. State income tax charts Qualified Roth Contribution Program, Qualified Roth Contribution Program R Rate Table for Self-Employed, Rate table for self-employed. State income tax charts Rate Worksheet for Self-Employed, Rate worksheet for self-employed. State income tax charts Required distributions, Required Distributions Rollovers, Rollover. State income tax charts S Safe harbor 401(k) plan, Safe harbor 401(k) plan. State income tax charts Salary reduction arrangement, Deferral percentage. State income tax charts , Limit on Elective Deferrals Salary Reduction Simplified Employee Pension(SARSEP), Salary Reduction Simplified Employee Pensions (SARSEPs) SARSEP ADP test, SARSEP ADP test. State income tax charts Section 402(f) notice, Section 402(f) Notice. State income tax charts Self-employed individual, Self-employed individual. State income tax charts SEP plans Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Table for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Reporting and Disclosure, Reporting and Disclosure Requirements SEP-IRAs Contributions, Contributions for yourself. State income tax charts Deductible contributions, Deducting Contributions, Excise tax. State income tax charts Carryover of excess contributions, Carryover of Excess SEP Contributions Deduction limits, Deduction Limit for Contributions for Participants Limits for self-employed, Deduction Limit for Self-Employed Individuals When to deduct, When To Deduct Contributions Where to deduct, Where To Deduct Contributions Distributions (withdrawals), Distributions (Withdrawals) Eligible employee, Eligible employee. State income tax charts Excludable employees, Excludable employees. State income tax charts SIMPLE IRA plan Compensation, Compensation. State income tax charts Contributions, Contribution Limits Deductions, Nonelective contributions. State income tax charts Distributions(withdrawals), Distributions (Withdrawals) Employee election period, Election period. State income tax charts Employer matching contributions, Employer matching contributions. State income tax charts Excludable employees, Excludable employees. State income tax charts Notification requirements, Notification Requirement When to deduct contributions, When To Deduct Contributions SIMPLE plans, Who Can Set Up a SIMPLE IRA Plan?, Reporting on Form W-2. State income tax charts SIMPLE 401(k), SIMPLE 401(k) Plan SIMPLE IRA plan, SIMPLE IRA Plan Simplified employee pension (SEP), Salary Reduction Simplified Employee Pensions (SARSEPs) Salary reduction arrangement Compensation of self-employed individuals, Compensation of self-employed individuals. State income tax charts Employee compensation, Employee compensation. State income tax charts Who can have a SARSEP, Who can have a SARSEP? SEP-IRA contributions, How Much Can I Contribute? Setting up a SEP, Setting Up a SEP Sixty-day employee election period, Election period. State income tax charts Sole proprietor, definition, Sole proprietor. State income tax charts T Tax help, How To Get Tax Help U User fee, User fee. State income tax charts W Worksheets Deduction Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Rate Worksheet for Self-Employed, Table and Worksheets for the Self-Employed Prev  Up     Home   More Online Publications
Print - Click this link to Print this page

Tax Relief for Victims of Tropical Storm Debby in Florida

Updated 7/19/2012 to include Citrus, Gilchrist, Lafayette, Polk, Sarasota counties.
Updated 7/13/2012 to include Hillsborough, Manatee and Taylor counties.

FL-2012-07, Jul. 5, 2012

PLANTATION — Victims of tropical storm Debby that began on June 23, 2012 in parts of Florida may qualify for tax relief from the Internal Revenue Service.

The President has declared Baker, Bradford, Citrus, Clay, Columbia, Duval, Franklin, Gilchrist, Hernando, Highlands, Hillsborough, Lafayette, Manatee, Nassau, Pasco, Pinellas, Polk, Sarasota, Suwannee, Taylor, Union, and Wakulla counties a federal disaster area. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after June 23, and on or before Aug. 22, have been postponed to Aug. 22, 2012.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after June 23, and on or before July 9, as long as the deposits are made by July 9, 2012.

If an affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the telephone number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply. Penalties or interest will be abated only for taxpayers who have an original or extended filing, payment or deposit due date, including an extended filing or payment due date, that falls within the postponement period.

The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. But affected taxpayers who reside or have a business located outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request this tax relief.

Covered Disaster Area

The counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose records necessary to meet a deadline listed in Treas. Reg. § 301.7508A-1(c) are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area and any individual visiting the covered disaster area who was killed or injured as a result of the disaster are entitled to relief.

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Aug. 22 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after June 23 and on or before Aug. 22.

The IRS also gives affected taxpayers until Aug. 22 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after June 23 and on or before Aug. 22.

This relief also includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2007-56. The relief described in section 17 of Rev. Proc. 2007-56, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after June 23 and on or before July 9 provided the taxpayer makes these deposits by July 9.

Casualty Losses

Affected taxpayers in a federally declared disaster area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year's return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements. For details, see Form 4684 and its instructions.

Affected taxpayers claiming the disaster loss on last year's return should put the Disaster Designation "Florida/Tropical Storm Debby" at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers. Taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from the official IRS website, irs.gov, or order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Information

Disaster Assistance and Emergency Relief for Individuals and Businesses
Recent IRS Disaster Relief Announcements

Page Last Reviewed or Updated: 25-Jun-2013

The State Income Tax Charts

State income tax charts 26. State income tax charts   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. State income tax charts Parking fees. State income tax charts Advertising display on car. State income tax charts Car pools. State income tax charts Hauling tools or instruments. State income tax charts Union members' trips from a union hall. State income tax charts Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. State income tax charts Statutory employees. State income tax charts Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. State income tax charts  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. State income tax charts Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. State income tax charts Depreciation limits on cars, trucks, and vans. State income tax charts  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). State income tax charts For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). State income tax charts For more information, see Depreciation limits in Publication 463. State income tax charts Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. State income tax charts An ordinary expense is one that is common and accepted in your trade or business. State income tax charts A necessary expense is one that is helpful and appropriate for your business. State income tax charts An expense does not have to be required to be considered necessary. State income tax charts This chapter explains the following. State income tax charts What expenses are deductible. State income tax charts How to report your expenses on your return. State income tax charts What records you need to prove your expenses. State income tax charts How to treat any expense reimbursements you may receive. State income tax charts Who does not need to use this chapter. State income tax charts   If you are an employee, you will not need to read this chapter if all of the following are true. State income tax charts You fully accounted to your employer for your work-related expenses. State income tax charts You received full reimbursement for your expenses. State income tax charts Your employer required you to return any excess reimbursement and you did so. State income tax charts There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. State income tax charts If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. State income tax charts See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. State income tax charts    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. State income tax charts Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. State income tax charts This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. State income tax charts It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. State income tax charts Travel expenses defined. State income tax charts   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. State income tax charts   You will find examples of deductible travel expenses in Table 26-1 . State income tax charts Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. State income tax charts This rest requirement is not satisfied by merely napping in your car. State income tax charts You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. State income tax charts Example 1. State income tax charts You are a railroad conductor. State income tax charts You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. State income tax charts During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. State income tax charts You are considered to be away from home. State income tax charts Example 2. State income tax charts You are a truck driver. State income tax charts You leave your terminal and return to it later the same day. State income tax charts You get an hour off at your turnaround point to eat. State income tax charts Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. State income tax charts Members of the Armed Forces. State income tax charts   If you are a member of the U. State income tax charts S. State income tax charts Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. State income tax charts You cannot deduct your expenses for meals and lodging. State income tax charts You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. State income tax charts If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. State income tax charts    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. State income tax charts Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. State income tax charts Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. State income tax charts It includes the entire city or general area in which your business or work is located. State income tax charts If you have more than one regular place of business, your tax home is your main place of business. State income tax charts See Main place of business or work , later. State income tax charts If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. State income tax charts See No main place of business or work , later. State income tax charts If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. State income tax charts As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. State income tax charts Main place of business or work. State income tax charts   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. State income tax charts The total time you ordinarily spend in each place. State income tax charts The level of your business activity in each place. State income tax charts Whether your income from each place is significant or insignificant. State income tax charts Example. State income tax charts You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. State income tax charts You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. State income tax charts Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. State income tax charts No main place of business or work. State income tax charts   You may have a tax home even if you do not have a regular or main place of business or work. State income tax charts Your tax home may be the home where you regularly live. State income tax charts Factors used to determine tax home. State income tax charts   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. State income tax charts You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. State income tax charts You have living expenses at your main home that you duplicate because your business requires you to be away from that home. State income tax charts You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. State income tax charts   If you satisfy all three factors, your tax home is the home where you regularly live. State income tax charts If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. State income tax charts If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. State income tax charts Example. State income tax charts You are single and live in Boston in an apartment you rent. State income tax charts You have worked for your employer in Boston for a number of years. State income tax charts Your employer enrolls you in a 12-month executive training program. State income tax charts You do not expect to return to work in Boston after you complete your training. State income tax charts During your training, you do not do any work in Boston. State income tax charts Instead, you receive classroom and on-the-job training throughout the United States. State income tax charts You keep your apartment in Boston and return to it frequently. State income tax charts You use your apartment to conduct your personal business. State income tax charts You also keep up your community contacts in Boston. State income tax charts When you complete your training, you are transferred to Los Angeles. State income tax charts You do not satisfy factor (1) because you did not work in Boston. State income tax charts You satisfy factor (2) because you had duplicate living expenses. State income tax charts You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. State income tax charts Therefore, you have a tax home in Boston. State income tax charts Tax home different from family home. State income tax charts   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. State income tax charts You also cannot deduct the cost of meals and lodging while at your tax home. State income tax charts See Example 1 . State income tax charts   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. State income tax charts See Example 2 . State income tax charts Example 1. State income tax charts You are a truck driver and you and your family live in Tucson. State income tax charts You are employed by a trucking firm that has its terminal in Phoenix. State income tax charts At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. State income tax charts You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. State income tax charts This is because Phoenix is your tax home. State income tax charts Example 2. State income tax charts Your family home is in Pittsburgh, where you work 12 weeks a year. State income tax charts The rest of the year you work for the same employer in Baltimore. State income tax charts In Baltimore, you eat in restaurants and sleep in a rooming house. State income tax charts Your salary is the same whether you are in Pittsburgh or Baltimore. State income tax charts Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. State income tax charts You cannot deduct any expenses you have for meals and lodging there. State income tax charts However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. State income tax charts You can deduct the cost of your round trip between Baltimore and Pittsburgh. State income tax charts You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. State income tax charts Temporary Assignment or Job You may regularly work at your tax home and also work at another location. State income tax charts It may not be practical to return to your tax home from this other location at the end of each work day. State income tax charts Temporary assignment vs. State income tax charts indefinite assignment. State income tax charts   If your assignment or job away from your main place of work is temporary, your tax home does not change. State income tax charts You are considered to be away from home for the whole period you are away from your main place of work. State income tax charts You can deduct your travel expenses if they otherwise qualify for deduction. State income tax charts Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. State income tax charts   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. State income tax charts An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. State income tax charts   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. State income tax charts You may be able to deduct the cost of relocating to your new tax home as a moving expense. State income tax charts See Publication 521 for more information. State income tax charts Exception for federal crime investigations or prosecutions. State income tax charts   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. State income tax charts This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. State income tax charts   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. State income tax charts Determining temporary or indefinite. State income tax charts   You must determine whether your assignment is temporary or indefinite when you start work. State income tax charts If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. State income tax charts An assignment or job that is initially temporary may become indefinite due to changed circumstances. State income tax charts A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. State income tax charts Going home on days off. State income tax charts   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. State income tax charts You cannot deduct the cost of your meals and lodging there. State income tax charts However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. State income tax charts You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. State income tax charts   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. State income tax charts In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. State income tax charts Probationary work period. State income tax charts   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. State income tax charts You cannot deduct any of your expenses for meals and lodging during the probationary period. State income tax charts What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. State income tax charts You can deduct ordinary and necessary expenses you have when you travel away from home on business. State income tax charts The type of expense you can deduct depends on the facts and your circumstances. State income tax charts Table 26-1 summarizes travel expenses you may be able to deduct. State income tax charts You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. State income tax charts When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. State income tax charts You can use a log, diary, notebook, or any other written record to keep track of your expenses. State income tax charts The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. State income tax charts Separating costs. State income tax charts   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. State income tax charts You must have a reasonable basis for making this allocation. State income tax charts For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. State income tax charts Travel expenses for another individual. State income tax charts   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. State income tax charts Employee. State income tax charts   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. State income tax charts Business associate. State income tax charts   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. State income tax charts A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. State income tax charts A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. State income tax charts Bona fide business purpose. State income tax charts   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. State income tax charts Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. State income tax charts Example. State income tax charts Jerry drives to Chicago on business and takes his wife, Linda, with him. State income tax charts Linda is not Jerry's employee. State income tax charts Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. State income tax charts The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. State income tax charts Her expenses are not deductible. State income tax charts Jerry pays $199 a day for a double room. State income tax charts A single room costs $149 a day. State income tax charts He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. State income tax charts If he uses public transportation, he can deduct only his fare. State income tax charts Table 26-1. State income tax charts Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. State income tax charts IF you have expenses for. State income tax charts . State income tax charts . State income tax charts THEN you can deduct the cost of. State income tax charts . State income tax charts . State income tax charts transportation travel by airplane, train, bus, or car between your home and your business destination. State income tax charts If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. State income tax charts If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. State income tax charts taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. State income tax charts baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. State income tax charts car operating and maintaining your car when traveling away from home on business. State income tax charts You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. State income tax charts If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. State income tax charts lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. State income tax charts Meals include amounts spent for food, beverages, taxes, and related tips. State income tax charts See Meals and Incidental Expenses for additional rules and limits. State income tax charts cleaning dry cleaning and laundry. State income tax charts telephone business calls while on your business trip. State income tax charts This includes business communication by fax machine or other communication devices. State income tax charts tips tips you pay for any expenses in this chart. State income tax charts other other similar ordinary and necessary expenses related to your business travel. State income tax charts These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. State income tax charts Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. State income tax charts It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. State income tax charts The meal is business-related entertainment. State income tax charts Business-related entertainment is discussed under Entertainment Expenses , later. State income tax charts The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. State income tax charts Lavish or extravagant. State income tax charts   You cannot deduct expenses for meals that are lavish or extravagant. State income tax charts An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. State income tax charts Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. State income tax charts 50% limit on meals. State income tax charts   You can figure your meal expenses using either of the following methods. State income tax charts Actual cost. State income tax charts The standard meal allowance. State income tax charts Both of these methods are explained below. State income tax charts But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. State income tax charts   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. State income tax charts If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. State income tax charts The 50% limit is explained later under Entertainment Expenses . State income tax charts Accountable and nonaccountable plans are discussed later under Reimbursements . State income tax charts Actual cost. State income tax charts   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. State income tax charts If you use this method, you must keep records of your actual cost. State income tax charts Standard meal allowance. State income tax charts   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. State income tax charts It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. State income tax charts The set amount varies depending on where and when you travel. State income tax charts In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . State income tax charts If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. State income tax charts See Recordkeeping , later. State income tax charts Incidental expenses. State income tax charts   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. State income tax charts Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. State income tax charts Incidental expenses only method. State income tax charts   You can use an optional method (instead of actual cost) for deducting incidental expenses only. State income tax charts The amount of the deduction is $5 a day. State income tax charts You can use this method only if you did not pay or incur any meal expenses. State income tax charts You cannot use this method on any day that you use the standard meal allowance. State income tax charts    Federal employees should refer to the Federal Travel Regulations at  www. State income tax charts gsa. State income tax charts gov. State income tax charts Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. State income tax charts 50% limit may apply. State income tax charts   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. State income tax charts If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. State income tax charts The 50% limit is explained later under Entertainment Expenses . State income tax charts Accountable and nonaccountable plans are discussed later under Reimbursements . State income tax charts There is no optional standard lodging amount similar to the standard meal allowance. State income tax charts Your allowable lodging expense deduction is your actual cost. State income tax charts Who can use the standard meal allowance. State income tax charts   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. State income tax charts   Use of the standard meal allowance for other travel. State income tax charts    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. State income tax charts You can also use it to figure your meal expenses when you travel for qualifying educational purposes. State income tax charts You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. State income tax charts Amount of standard meal allowance. State income tax charts   The standard meal allowance is the federal M&IE rate. State income tax charts For travel in 2013, the daily rate for most small localities in the United States is $46. State income tax charts   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. State income tax charts You can find this information (organized by state) on the Internet at www. State income tax charts gsa. State income tax charts gov. State income tax charts Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. State income tax charts However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. State income tax charts You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. State income tax charts   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. State income tax charts If you work in the transportation industry, however, see Special rate for transportation workers , later. State income tax charts Standard meal allowance for areas outside the continental United States. State income tax charts    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. State income tax charts The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. State income tax charts S. State income tax charts Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. State income tax charts The Department of State establishes per diem rates for all other foreign areas. State income tax charts    You can access per diem rates for non-foreign areas outside the continental United States at: www. State income tax charts defensetravel. State income tax charts dod. State income tax charts mil/site/perdiemCalc. State income tax charts cfm. State income tax charts You can access all other foreign per diem rates at www. State income tax charts state. State income tax charts gov/travel/. State income tax charts Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. State income tax charts Special rate for transportation workers. State income tax charts   You can use a special standard meal allowance if you work in the transportation industry. State income tax charts You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. State income tax charts If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). State income tax charts   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. State income tax charts If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. State income tax charts Travel for days you depart and return. State income tax charts   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). State income tax charts You can do so by one of two methods. State income tax charts Method 1: You can claim 3/4 of the standard meal allowance. State income tax charts Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. State income tax charts Example. State income tax charts Jen is employed in New Orleans as a convention planner. State income tax charts In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. State income tax charts She left her home in New Orleans at 10 a. State income tax charts m. State income tax charts on Wednesday and arrived in Washington, DC, at 5:30 p. State income tax charts m. State income tax charts After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. State income tax charts m. State income tax charts Jen's employer gave her a flat amount to cover her expenses and included it with her wages. State income tax charts Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. State income tax charts Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. State income tax charts For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. State income tax charts Travel in the United States The following discussion applies to travel in the United States. State income tax charts For this purpose, the United States includes only the 50 states and the District of Columbia. State income tax charts The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. State income tax charts See Part of Trip Outside the United States , later. State income tax charts Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. State income tax charts If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. State income tax charts These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. State income tax charts Example. State income tax charts You work in Atlanta and take a business trip to New Orleans in May. State income tax charts On your way home, you stop in Mobile to visit your parents. State income tax charts You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. State income tax charts If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. State income tax charts You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. State income tax charts The deduction for your meals is subject to the 50% limit on meals mentioned earlier. State income tax charts Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. State income tax charts However, you can deduct any expenses you have while at your destination that are directly related to your business. State income tax charts A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. State income tax charts The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. State income tax charts Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. State income tax charts For the part of your trip that is inside the United States, use the rules for travel in the United States. State income tax charts Travel outside the United States does not include travel from one point in the United States to another point in the United States. State income tax charts The following discussion can help you determine whether your trip was entirely within the United States. State income tax charts Public transportation. State income tax charts   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. State income tax charts Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . State income tax charts Example. State income tax charts You fly from New York to Puerto Rico with a scheduled stop in Miami. State income tax charts You return to New York nonstop. State income tax charts The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. State income tax charts Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. State income tax charts Private car. State income tax charts   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. State income tax charts Example. State income tax charts You travel by car from Denver to Mexico City and return. State income tax charts Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. State income tax charts The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. State income tax charts Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. State income tax charts For this purpose, the United States includes only the 50 states and the District of Columbia. State income tax charts How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. State income tax charts See chapter 1 of Publication 463 for information on luxury water travel. State income tax charts Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. State income tax charts Travel entirely for business. State income tax charts   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. State income tax charts Travel considered entirely for business. State income tax charts   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. State income tax charts Exception 1 - No substantial control. State income tax charts   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. State income tax charts The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. State income tax charts   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. State income tax charts    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . State income tax charts   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. State income tax charts    A self-employed person generally has substantial control over arranging business trips. State income tax charts Exception 2 - Outside United States no more than a week. State income tax charts   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. State income tax charts One week means 7 consecutive days. State income tax charts In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. State income tax charts Exception 3 - Less than 25% of time on personal activities. State income tax charts   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. State income tax charts For this purpose, count both the day your trip began and the day it ended. State income tax charts Exception 4 - Vacation not a major consideration. State income tax charts   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. State income tax charts Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. State income tax charts You can only deduct the business portion of your cost of getting to and from your destination. State income tax charts You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. State income tax charts These travel allocation rules are discussed in chapter 1 of Publication 463. State income tax charts You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. State income tax charts In those cases, you can deduct the total cost of getting to and from your destination. State income tax charts Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. State income tax charts If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. State income tax charts Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. State income tax charts You cannot deduct the travel expenses for your family. State income tax charts If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. State income tax charts Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. State income tax charts You can deduct your travel expenses only if your attendance is connected to your own trade or business. State income tax charts Convention agenda. State income tax charts   The convention agenda or program generally shows the purpose of the convention. State income tax charts You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. State income tax charts The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. State income tax charts Conventions held outside the North American area. State income tax charts    See chapter 1 of Publication 463 for information on conventions held outside the North American area. State income tax charts Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. State income tax charts You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. State income tax charts Directly-related test. State income tax charts Associated test. State income tax charts Both of these tests are explained in chapter 2 of Publication 463. State income tax charts The amount you can deduct for entertainment expenses may be limited. State income tax charts Generally, you can deduct only 50% of your unreimbursed entertainment expenses. State income tax charts This limit is discussed next. State income tax charts 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. State income tax charts (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. State income tax charts See Individuals subject to “hours of service” limits , later. State income tax charts ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. State income tax charts Figure 26-A summarizes the general rules explained in this section. State income tax charts The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. State income tax charts Included expenses. State income tax charts   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. State income tax charts However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. State income tax charts Application of 50% limit. State income tax charts   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later in this section. State income tax charts   The 50% limit also applies to certain meal and entertainment expenses that are not business related. State income tax charts It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. State income tax charts It also applies to the cost of meals included in deductible educational expenses. State income tax charts When to apply the 50% limit. State income tax charts   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. State income tax charts You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. State income tax charts Example 1. State income tax charts You spend $200 for a business-related meal. State income tax charts If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. State income tax charts Your deduction cannot be more than $45 (. State income tax charts 50 × $90). State income tax charts Example 2. State income tax charts You purchase two tickets to a concert and give them to a client. State income tax charts You purchased the tickets through a ticket agent. State income tax charts You paid $200 for the two tickets, which had a face value of $80 each ($160 total). State income tax charts Your deduction cannot be more than $80 (. State income tax charts 50 × $160). State income tax charts Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. State income tax charts Figure 26-A can help you determine if the 50% limit applies to you. State income tax charts Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. State income tax charts Employee's reimbursed expenses. State income tax charts   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. State income tax charts Accountable plans are discussed later under Reimbursements . State income tax charts Individuals subject to “hours of service” limits. State income tax charts   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. State income tax charts The percentage is 80%. State income tax charts   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. State income tax charts Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. State income tax charts Interstate truck operators and bus drivers who are under Department of Transportation regulations. State income tax charts Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. State income tax charts Certain merchant mariners who are under Coast Guard regulations. State income tax charts Other exceptions. State income tax charts   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. State income tax charts These are discussed in Publication 463. State income tax charts Figure 26-A. State income tax charts Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. State income tax charts See Exceptions to the 50% Limit . State income tax charts Please click here for the text description of the image. State income tax charts Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. State income tax charts Entertainment. State income tax charts    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. State income tax charts Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. State income tax charts A meal as a form of entertainment. State income tax charts   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. State income tax charts A meal expense includes the cost of food, beverages, taxes, and tips for the meal. State income tax charts To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. State income tax charts You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. State income tax charts Separating costs. State income tax charts   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. State income tax charts You must have a reasonable basis for making this allocation. State income tax charts For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. State income tax charts Taking turns paying for meals or entertainment. State income tax charts   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. State income tax charts Lavish or extravagant expenses. State income tax charts   You cannot deduct expenses for entertainment that are lavish or extravagant. State income tax charts An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. State income tax charts Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. State income tax charts Trade association meetings. State income tax charts    You can deduct entertainment expenses that are directly related to, and necessary for, attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. State income tax charts These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. State income tax charts Entertainment tickets. State income tax charts   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. State income tax charts For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. State income tax charts What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. State income tax charts Club dues and membership fees. State income tax charts   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. State income tax charts This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities. State income tax charts   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. State income tax charts You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. State income tax charts Entertainment facilities. State income tax charts   Generally, you cannot deduct any expense for the use of an entertainment facility. State income tax charts This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. State income tax charts   An entertainment facility is any property you own, rent, or use for entertainment. State income tax charts Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. State income tax charts Out-of-pocket expenses. State income tax charts   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. State income tax charts These are not expenses for the use of an entertainment facility. State income tax charts However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. State income tax charts Additional information. State income tax charts   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. State income tax charts Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. State income tax charts This section explains the limits and rules for deducting the costs of gifts. State income tax charts $25 limit. State income tax charts   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. State income tax charts A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. State income tax charts   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. State income tax charts This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. State income tax charts   If you and your spouse both give gifts, both of you are treated as one taxpayer. State income tax charts It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. State income tax charts If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. State income tax charts Incidental costs. State income tax charts   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. State income tax charts   A cost is incidental only if it does not add substantial value to the gift. State income tax charts For example, the cost of customary gift wrapping is an incidental cost. State income tax charts However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. State income tax charts Exceptions. State income tax charts   The following items are not considered gifts for purposes of the $25 limit. State income tax charts An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. State income tax charts Examples include pens, desk sets, and plastic bags and cases. State income tax charts Signs, display racks, or other promotional material to be used on the business premises of the recipient. State income tax charts Gift or entertainment. State income tax charts   Any item that might be considered either a gift or entertainment generally will be considered entertainment. State income tax charts However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. State income tax charts    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. State income tax charts You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. State income tax charts    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. State income tax charts You cannot choose, in this case, to treat the cost of the tickets as a gift expense. State income tax charts Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . State income tax charts These expenses include the cost of transportation by air, rail, bus, taxi, etc. State income tax charts , and the cost of driving and maintaining your car. State income tax charts Transportation expenses include the ordinary and necessary costs of all of the following. State income tax charts Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. State income tax charts (Tax home is defined earlier under Travel Expenses . State income tax charts ) Visiting clients or customers. State income tax charts Going to a business meeting away from your regular workplace. State income tax charts Getting from your home to a temporary workplace when you have one or more regular places of work. State income tax charts These temporary workplaces can be either within the area of your tax home or outside that area. State income tax charts Transportation expenses do not include expenses you have while traveling away from home overnight. State income tax charts Those expenses are travel expenses, discussed earlier. State income tax charts However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. State income tax charts See Car Expenses , later. State income tax charts Illustration of transportation expenses. State income tax charts    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. State income tax charts You may want to refer to it when deciding whether you can deduct your transportation expenses. State income tax charts Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. State income tax charts However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. State income tax charts Temporary work location. State income tax charts   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. State income tax charts   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. State income tax charts   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. State income tax charts   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. State income tax charts It will not be treated as temporary after the date you determine it will last more than 1 year. State income tax charts   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. State income tax charts You may have deductible travel expenses as discussed earlier in this chapter. State income tax charts No regular place of work. State income tax charts   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. State income tax charts   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. State income tax charts   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. State income tax charts These are nondeductible commuting expenses. State income tax charts Two places of work. State income tax charts   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. State income tax charts However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. State income tax charts   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. State income tax charts You cannot deduct them. State income tax charts Armed Forces reservists. State income tax charts   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. State income tax charts You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. State income tax charts   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. State income tax charts In this case, your transportation generally is a nondeductible commuting expense. State income tax charts However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. State income tax charts   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. State income tax charts   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. State income tax charts These expenses are discussed earlier under Travel Expenses . State income tax charts   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. State income tax charts See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. State income tax charts Commuting expenses. State income tax charts   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. State income tax charts These costs are personal commuting expenses. State income tax charts You cannot deduct commuting expenses no matter how far your home is from your regular place of work. State income tax charts You cannot deduct commuting expenses even if you work during the commuting trip. State income tax charts Example. State income tax charts You sometimes use your cell phone to make business calls while commuting to and from work. State income tax charts Sometimes business associates ride with you to and from work, and you have a business discussion in the car. State income tax charts These activities do not change the trip from personal to business. State income tax charts You cannot deduct your commuting expenses. State income tax charts Parking fees. State income tax charts   Fees you pay to park your car at your place of business are nondeductible commuting expenses. State income tax charts You can, however, deduct business-related parking fees when visiting a customer or client. State income tax charts Advertising display on car. State income tax charts   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. State income tax charts If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. State income tax charts Car pools. State income tax charts   You cannot deduct the cost of using your car in a nonprofit car pool. State income tax charts Do not include payments you receive from the passengers in your income. State income tax charts These payments are considered reimbursements of your expenses. State income tax charts However, if you operate a car pool for a profit, you must include payments from passengers in your income. State income tax charts You can then deduct your car expenses (using the rules in this chapter). State income tax charts Hauling tools or instruments. State income tax charts   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. State income tax charts However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). State income tax charts Union members' trips from a union hall. State income tax charts   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. State income tax charts Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. State income tax charts Office in the home. State income tax charts   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. State income tax charts (See chapter 28 for information on determining if your home office qualifies as a principal place of business. State income tax charts ) Figure 26-B. State income tax charts When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. State income tax charts (Do not use this chart if your home is your principal place of business. State income tax charts See Office in the home . State income tax charts ) Please click here for the text description of the image. State income tax charts Figure 26-B. State income tax charts Local Transportation Examples of deductible transportation. State income tax charts   The following examples show when you can deduct transportation expenses based on the location of your work and your home. State income tax charts Example 1. State income tax charts You regularly work in an office in the city where you live. State income tax charts Your employer sends you to a 1-week training session at a different office in the same city. State income tax charts You travel directly from your home to the training location and return each day. State income tax charts You can deduct the cost of your daily round-trip transportation between your home and the training location. State income tax charts Example 2. State income tax charts Your principal place of business is in your home. State income tax charts You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. State income tax charts Example 3. State income tax charts You have no regular office, and you do not have an office in your home. State income tax charts In this case, the location of your first business contact inside the metropolitan area is considered your office. State income tax charts Transportation expenses between your home and this first contact are nondeductible commuting expenses. State income tax charts Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. State income tax charts While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. State income tax charts With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. State income tax charts Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. State income tax charts You generally can use one of the two following methods to figure your deductible expenses. State income tax charts Standard mileage rate. State income tax charts Actual car expenses. State income tax charts If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. State income tax charts See Leasing a car under Actual Car Expenses, later. State income tax charts In this chapter, “car” includes a van, pickup, or panel truck. State income tax charts Rural mail carriers. State income tax charts   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. State income tax charts Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. State income tax charts   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). State income tax charts You must complete Form 2106 and attach it to your Form 1040. State income tax charts   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. State income tax charts It is given as an equipment maintenance allowance (EMA) to employees of the U. State income tax charts S. State income tax charts Postal Service. State income tax charts It is at the rate contained in the 1991 collective bargaining agreement. State income tax charts Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. State income tax charts See your employer for information on your reimbursement. State income tax charts If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. State income tax charts Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. State income tax charts For 2013, the standard mileage rate for business use is 56½ cents per mile. State income tax charts If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. State income tax charts You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. State income tax charts See Reimbursements under How To Report, later. State income tax charts Choosing the standard mileage rate. State income tax charts   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. State income tax charts Then in later years, you can choose to use either the standard mileage rate or actual expenses. State income tax charts   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. State income tax charts   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. State income tax charts You cannot revoke the choice. State income tax charts However, in a later year, you can switch from the standard mileage rate to the actual expenses method. State income tax charts If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. State income tax charts Example. State income tax charts Larry is an employee who occasionally uses his own car for business purposes. State income tax charts He purchased the car in 2011, but he did not claim any unreimburse