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State Tax Forms 1040

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State Tax Forms 1040

State tax forms 1040 Publication 517 - Introductory Material Table of Contents What's New Reminders IntroductionOrdering forms and publications. State tax forms 1040 Tax questions. State tax forms 1040 Useful Items - You may want to see: What's New SE tax rate. State tax forms 1040  For 2013 and 2014, the Old Age, Survivors, and Disability Insurance (OASDI) portion of the SE tax is 12. State tax forms 1040 4%. State tax forms 1040 The Medicare (HI) portion of the SE tax remains 2. State tax forms 1040 9%. State tax forms 1040 As a result, the SE tax rate returns to 15. State tax forms 1040 3%. State tax forms 1040 For more information, see the Instructions for Schedule SE (Form 1040). State tax forms 1040 Earnings subject to social security. State tax forms 1040  For 2013, the maximum wages and self-employment income subject to social security tax increases from $110,100 to $113,700. State tax forms 1040 For 2014, the maximum wages and self-employment income subject to social security tax is $117,000. State tax forms 1040 Additional Medicare Tax. State tax forms 1040  Beginning in 2013, a 0. State tax forms 1040 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. State tax forms 1040 For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. State tax forms 1040 Modified AGI limit for traditional IRA contributions increased. State tax forms 1040  For 2013, you may be able to take an IRA deduction if you were covered by a retirement plan at work and your modified AGI is: Less than $115,000 if married filing jointly or qualifying widow(er), Less than $69,000 if single or head of household, or Less than $10,000 if married filing separately. State tax forms 1040 If you file a joint return and either you or your spouse was not covered by a retirement plan at work, you may be able to take an IRA deduction if your modified AGI is less than $188,000. State tax forms 1040 Modified AGI limit for Roth IRA contributions increased. State tax forms 1040  For 2013, you may be able to contribute to your Roth IRA if your modified AGI is: Less than $188,000 if married filing jointly or qualifying widow(er), Less than $127,000 if single, head of household, or married filing separately and you did not live with your spouse at any time during the year, or Less than $10,000 if married filing separately and you lived with your spouse at any time during the year. State tax forms 1040 Earned income credit (EIC). State tax forms 1040  For 2013, the maximum amount of income you can earn and still claim the EIC has increased. State tax forms 1040 You may be able to take the EIC if you earned less than $46,227 ($51,567 for married filing jointly) and you have three or more qualifying children; $43,038 ($48,378 for married filing jointly) and you have two qualifying children; $37,870 ($43,210 for married filing jointly) and you have one qualifying child; and $14,340 ($19,680 for married filing jointly) and you do not have any qualifying children. State tax forms 1040 Reminders Future developments. State tax forms 1040 . State tax forms 1040   For the latest information about developments related to Publication 517, such as legislation enacted after it was published, go to www. State tax forms 1040 irs. State tax forms 1040 gov/pub517. State tax forms 1040 Photographs of missing children. State tax forms 1040  The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children. State tax forms 1040 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. State tax forms 1040 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. State tax forms 1040 Introduction Three federal taxes are paid on wages and self-employment income—income tax, social security tax, and Medicare tax. State tax forms 1040 Social security and Medicare taxes are collected under one of two systems. State tax forms 1040 Under the Self-Employment Contributions Act (SECA), the self-employed person pays all the taxes. State tax forms 1040 Under the Federal Insurance Contributions Act (FICA), the employee and the employer each pay half of the social security and Medicare taxes. State tax forms 1040 No earnings are subject to both systems. State tax forms 1040 Table 1. State tax forms 1040 Are Your Ministerial Earnings* Covered Under FICA or SECA? Find the class to which you belong in the left column and read across the table to find if you are covered under FICA or SECA. State tax forms 1040 Do not rely on this table alone. State tax forms 1040 Also read the discussion for the class in the following pages. State tax forms 1040 Class Covered under FICA? Covered under SECA? Minister NO. State tax forms 1040 Your ministerial earnings are exempt. State tax forms 1040 YES, if you do not have an approved exemption from the IRS. State tax forms 1040   NO, if you have an approved exemption. State tax forms 1040 Member of a religious order who has not taken a vow of poverty NO. State tax forms 1040 Your ministerial earnings are exempt. State tax forms 1040 YES, if you do not have an approved exemption from the IRS. State tax forms 1040   NO, if you have an approved exemption. State tax forms 1040 Member of a religious order who has taken a vow of poverty YES, if: Your order elected FICA coverage for its members, or You worked outside the order and the work was not required by, or done on behalf of, the order. State tax forms 1040   NO, if neither of the above applies. State tax forms 1040 NO. State tax forms 1040 Your ministerial earnings are exempt. State tax forms 1040 Christian Science practitioner or reader NO. State tax forms 1040 Your ministerial earnings are exempt. State tax forms 1040 YES, if you do not have an approved exemption from the IRS. State tax forms 1040   NO, if you have an approved exemption. State tax forms 1040 Religious worker (church employee) YES, if your employer did not elect to exclude you. State tax forms 1040    NO, if your employer elected to exclude you. State tax forms 1040 YES, if your employer elected to exclude you from FICA. State tax forms 1040   NO, if you are covered under FICA. State tax forms 1040 Member of a recognized religious sect YES, if you are an employee and do not have an approved exemption from the IRS. State tax forms 1040    NO, if you have an approved exemption. State tax forms 1040 YES, if you are self-employed and do not have an approved exemption from the IRS. State tax forms 1040   NO, if you have an approved exemption. State tax forms 1040 * Ministerial earnings are the self-employment earnings that result from ministerial services, defined and discussed later. State tax forms 1040 In addition, all wages and self-employment income that are subject to Medicare tax are subject to a 0. State tax forms 1040 9% Additional Medicare Tax if they are paid in excess of the applicable threshold for an individual's filing status. State tax forms 1040 Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 for any other filing status. State tax forms 1040 Medicare wages and self-employment income are combined to determine if income exceeds the threshold. State tax forms 1040 A self-employment loss is not considered for purposes of this tax. State tax forms 1040 RRTA compensation is separately compared to the threshold. State tax forms 1040 There is no employer match for Additional Medicare Tax. State tax forms 1040 For more information, see Form 8959, Additional Medicare Tax, and its separate instructions. State tax forms 1040 This publication contains information for the following classes of taxpayers. State tax forms 1040 Ministers. State tax forms 1040 Members of a religious order. State tax forms 1040 Christian Science practitioners and readers. State tax forms 1040 Religious workers (church employees). State tax forms 1040 Members of a recognized religious sect. State tax forms 1040 Note. State tax forms 1040 Unless otherwise noted, in this publication references to members of the clergy include ministers, members of a religious order (but not members of a recognized religious sect), and Christian Science practitioners and readers. State tax forms 1040 This publication covers the following topics about the collection of social security and Medicare taxes from members of the clergy, religious workers, and members of a recognized religious sect. State tax forms 1040 Which earnings are taxed under FICA and which under SECA. State tax forms 1040 See Table 1 above. State tax forms 1040 How a member of the clergy can apply for an exemption from self-employment tax. State tax forms 1040 How a member of a recognized religious sect can apply for an exemption from both self-employment tax and FICA taxes. State tax forms 1040 How a member of the clergy or religious worker figures net earnings from self-employment. State tax forms 1040 This publication also covers certain income tax rules of interest to ministers and members of a religious order. State tax forms 1040 A Comprehensive Example shows filled-in forms for a minister who has income taxed under SECA, other income taxed under FICA, and income tax reporting of items specific to a minister. State tax forms 1040 In the back of Publication 517 is a set of worksheets that you can use to figure the amount of your taxable ministerial income and allowable deductions. State tax forms 1040 You will find these worksheets right after the Comprehensive Example . State tax forms 1040 Note. State tax forms 1040 In this publication, the term “church” is generally used in its generic sense and not in reference to any particular religion. State tax forms 1040 Comments and suggestions. State tax forms 1040   We welcome your comments about this publication and your suggestions for future editions. State tax forms 1040   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. State tax forms 1040 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. State tax forms 1040 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. State tax forms 1040   You can send your comments from www. State tax forms 1040 irs. State tax forms 1040 gov/formspubs/. State tax forms 1040 Click on “More Information” and then on “Give us feedback”. State tax forms 1040   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. State tax forms 1040 Ordering forms and publications. State tax forms 1040   Visit www. State tax forms 1040 irs. State tax forms 1040 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. State tax forms 1040 Internal Revenue Service 1201 N. State tax forms 1040 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. State tax forms 1040   If you have a tax question, check the information available on IRS. State tax forms 1040 gov or call 1-800-829-1040. State tax forms 1040 We cannot answer tax questions sent to either of the above addresses. State tax forms 1040 Useful Items - You may want to see: Publication 54 Tax Guide for U. State tax forms 1040 S. State tax forms 1040 Citizens and Resident Aliens Abroad 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 590 Individual Retirement Arrangements (IRAs) 596 Earned Income Credit (EIC) Form (and Instructions) SS-8 Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding SS-16 Certificate of Election of Coverage Under the Federal Insurance Contributions Act Schedule C (Form 1040) Profit or Loss From Business (Sole Proprietorship) Schedule C-EZ (Form 1040) Net Profit From Business (Sole Proprietorship) Schedule SE (Form 1040) Self-Employment Tax 1040-ES Estimated Tax for Individuals 1040X Amended U. State tax forms 1040 S. State tax forms 1040 Individual Income Tax Return 4029 Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits 4361 Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders and Christian Science Practitioners 8274 Certification by Churches and Qualified Church-Controlled Organizations Electing Exemption From Employer Social Security and Medicare Taxes 8959 Additional Medicare Tax Ordering publications and forms. State tax forms 1040   See How To Get Tax Help , near the end of this publication, for information about getting these publications and forms. State tax forms 1040 Prev  Up  Next   Home   More Online Publications
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Letter 3030C Frequently Asked Questions (FAQs)

What is the letter telling me?

The letter is providing you an explanation of the tax, penalty and interest still due on your account.

What do I have to do?

Pay the balance due in the letter as soon as possible.

How much time do I have?

The letter provides you the full pay amount to a specified date.

What happens if I don't take any action?

If you do not make arrangements to pay the balance you owe, we can proceed with enforcement action and may file a levy on your wages or bank account or file a lien on your personal property.

Who should I contact?

If you have any questions about this letter, call us at the number printed in the letter. The person who answers the phone will assist you.

What if I don't agree or have already taken corrective action?

If you do not agree with this letter, call us immediately at the number included. We will do our best to help you. If you have called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

Page Last Reviewed or Updated: 30-Jan-2014

The State Tax Forms 1040

State tax forms 1040 1. State tax forms 1040   Travel Table of Contents Traveling Away From HomeTax Home Tax Home Different From Family Home Temporary Assignment or Job What Travel Expenses Are Deductible?Employee. State tax forms 1040 Business associate. State tax forms 1040 Bona fide business purpose. State tax forms 1040 Meals Travel in the United States Travel Outside the United States Luxury Water Travel Conventions If you temporarily travel away from your tax home, you can use this chapter to determine if you have deductible travel expenses. State tax forms 1040 This chapter discusses: Traveling away from home, Temporary assignment or job, and What travel expenses are deductible. State tax forms 1040 It also discusses the standard meal allowance, rules for travel inside and outside the United States, luxury water travel, and deductible convention expenses. State tax forms 1040 Travel expenses defined. State tax forms 1040   For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. State tax forms 1040   An ordinary expense is one that is common and accepted in your trade or business. State tax forms 1040 A necessary expense is one that is helpful and appropriate for your business. State tax forms 1040 An expense does not have to be required to be considered necessary. State tax forms 1040   You will find examples of deductible travel expenses in Table 1-1 , later. State tax forms 1040 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 tax forms 1040 This rest requirement is not satisfied by merely napping in your car. State tax forms 1040 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 tax forms 1040 Example 1. State tax forms 1040 You are a railroad conductor. State tax forms 1040 You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. State tax forms 1040 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 tax forms 1040 You are considered to be away from home. State tax forms 1040 Example 2. State tax forms 1040 You are a truck driver. State tax forms 1040 You leave your terminal and return to it later the same day. State tax forms 1040 You get an hour off at your turnaround point to eat. State tax forms 1040 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 tax forms 1040 Members of the Armed Forces. State tax forms 1040   If you are a member of the U. State tax forms 1040 S. State tax forms 1040 Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. State tax forms 1040 You cannot deduct your expenses for meals and lodging. State tax forms 1040 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 tax forms 1040 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 tax forms 1040   A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home (explained next) aboard the ship for travel expense purposes. State tax forms 1040 Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. State tax forms 1040 Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. State tax forms 1040 It includes the entire city or general area in which your business or work is located. State tax forms 1040 If you have more than one regular place of business, your tax home is your main place of business. State tax forms 1040 See Main place of business or work , later. State tax forms 1040 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 tax forms 1040 See No main place of business or work , later. State tax forms 1040 If you do not have a regular or 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 tax forms 1040 As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. State tax forms 1040 Main place of business or work. State tax forms 1040   If you have more than one place of work, consider the following when determining which one is your main place of business or work. State tax forms 1040 The total time you ordinarily spend in each place. State tax forms 1040 The level of your business activity in each place. State tax forms 1040 Whether your income from each place is significant or insignificant. State tax forms 1040 Example. State tax forms 1040 You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. State tax forms 1040 You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. State tax forms 1040 Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. State tax forms 1040 No main place of business or work. State tax forms 1040   You may have a tax home even if you do not have a regular or main place of work. State tax forms 1040 Your tax home may be the home where you regularly live. State tax forms 1040 Factors used to determine tax home. State tax forms 1040   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 tax forms 1040 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 tax forms 1040 You have living expenses at your main home that you duplicate because your business requires you to be away from that home. State tax forms 1040 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 tax forms 1040   If you satisfy all three factors, your tax home is the home where you regularly live. State tax forms 1040 If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. State tax forms 1040 If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. State tax forms 1040 Example 1. State tax forms 1040 You are single and live in Boston in an apartment you rent. State tax forms 1040 You have worked for your employer in Boston for a number of years. State tax forms 1040 Your employer enrolls you in a 12-month executive training program. State tax forms 1040 You do not expect to return to work in Boston after you complete your training. State tax forms 1040 During your training, you do not do any work in Boston. State tax forms 1040 Instead, you receive classroom and on-the-job training throughout the United States. State tax forms 1040 You keep your apartment in Boston and return to it frequently. State tax forms 1040 You use your apartment to conduct your personal business. State tax forms 1040 You also keep up your community contacts in Boston. State tax forms 1040 When you complete your training, you are transferred to Los Angeles. State tax forms 1040 You do not satisfy factor (1) because you did not work in Boston. State tax forms 1040 You satisfy factor (2) because you had duplicate living expenses. State tax forms 1040 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 tax forms 1040 Therefore, you have a tax home in Boston. State tax forms 1040 Example 2. State tax forms 1040 You are an outside salesperson with a sales territory covering several states. State tax forms 1040 Your employer's main office is in Newark, but you do not conduct any business there. State tax forms 1040 Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. State tax forms 1040 You have a room in your married sister's house in Dayton. State tax forms 1040 You stay there for one or two weekends a year, but you do no work in the area. State tax forms 1040 You do not pay your sister for the use of the room. State tax forms 1040 You do not satisfy any of the three factors listed earlier. State tax forms 1040 You are an itinerant and have no tax home. State tax forms 1040 Tax Home Different From Family Home 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 tax forms 1040 You also cannot deduct the cost of meals and lodging while at your tax home. State tax forms 1040 See Example 1 , later. State tax forms 1040 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 tax forms 1040 See Example 2 , later. State tax forms 1040 Example 1. State tax forms 1040 You are a truck driver and you and your family live in Tucson. State tax forms 1040 You are employed by a trucking firm that has its terminal in Phoenix. State tax forms 1040 At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. State tax forms 1040 You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. State tax forms 1040 This is because Phoenix is your tax home. State tax forms 1040 Example 2. State tax forms 1040 Your family home is in Pittsburgh, where you work 12 weeks a year. State tax forms 1040 The rest of the year you work for the same employer in Baltimore. State tax forms 1040 In Baltimore, you eat in restaurants and sleep in a rooming house. State tax forms 1040 Your salary is the same whether you are in Pittsburgh or Baltimore. State tax forms 1040 Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. State tax forms 1040 You cannot deduct any expenses you have for meals and lodging there. State tax forms 1040 However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. State tax forms 1040 You can deduct the cost of your round trip between Baltimore and Pittsburgh. State tax forms 1040 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 tax forms 1040 Temporary Assignment or Job You may regularly work at your tax home and also work at another location. State tax forms 1040 It may not be practical to return to your tax home from this other location at the end of each work day. State tax forms 1040 Temporary assignment vs. State tax forms 1040 indefinite assignment. State tax forms 1040   If your assignment or job away from your main place of work is temporary, your tax home does not change. State tax forms 1040 You are considered to be away from home for the whole period you are away from your main place of work. State tax forms 1040 You can deduct your travel expenses if they otherwise qualify for deduction. State tax forms 1040 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 tax forms 1040    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 tax forms 1040 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 tax forms 1040   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 tax forms 1040 You may be able to deduct the cost of relocating to your new tax home as a moving expense. State tax forms 1040 See Publication 521 for more information. State tax forms 1040 Exception for federal crime investigations or prosecutions. State tax forms 1040   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. State tax forms 1040 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 tax forms 1040   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, prosecute, or provide support services for the investigation or prosecution of a federal crime. State tax forms 1040 Determining temporary or indefinite. State tax forms 1040   You must determine whether your assignment is temporary or indefinite when you start work. State tax forms 1040 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 tax forms 1040 An assignment or job that is initially temporary may become indefinite due to changed circumstances. State tax forms 1040 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 tax forms 1040   The following examples illustrate whether an assignment or job is temporary or indefinite. State tax forms 1040 Example 1. State tax forms 1040 You are a construction worker. State tax forms 1040 You live and regularly work in Los Angeles. State tax forms 1040 You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. State tax forms 1040 Your tax home is Los Angeles. State tax forms 1040 Because of a shortage of work, you took a job on a construction project in Fresno. State tax forms 1040 Your job was scheduled to end in 8 months. State tax forms 1040 The job actually lasted 10 months. State tax forms 1040 You realistically expected the job in Fresno to last 8 months. State tax forms 1040 The job actually did last less than 1 year. State tax forms 1040 The job is temporary and your tax home is still in Los Angeles. State tax forms 1040 Example 2. State tax forms 1040 The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 18 months. State tax forms 1040 The job actually was completed in 10 months. State tax forms 1040 Your job in Fresno is indefinite because you realistically expected the work to last longer than 1 year, even though it actually lasted less than 1 year. State tax forms 1040 You cannot deduct any travel expenses you had in Fresno because Fresno became your tax home. State tax forms 1040 Example 3. State tax forms 1040 The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 9 months. State tax forms 1040 After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months). State tax forms 1040 Initially, you realistically expected the job in Fresno to last for only 9 months. State tax forms 1040 However, due to changed circumstances occurring after 8 months, it was no longer realistic for you to expect that the job in Fresno would last for 1 year or less. State tax forms 1040 You can only deduct your travel expenses for the first 8 months. State tax forms 1040 You cannot deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite. State tax forms 1040 Going home on days off. State tax forms 1040   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 tax forms 1040 You cannot deduct the cost of your meals and lodging there. State tax forms 1040 However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. State tax forms 1040 You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. State tax forms 1040   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. State tax forms 1040 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 tax forms 1040 Probationary work period. State tax forms 1040   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 tax forms 1040 You cannot deduct any of your expenses for meals and lodging during the probationary period. State tax forms 1040 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 tax forms 1040 You can deduct ordinary and necessary expenses you have when you travel away from home on business. State tax forms 1040 The type of expense you can deduct depends on the facts and your circumstances. State tax forms 1040 Table 1-1 summarizes travel expenses you may be able to deduct. State tax forms 1040 You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. State tax forms 1040 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 tax forms 1040 You can use a log, diary, notebook, or any other written record to keep track of your expenses. State tax forms 1040 The types of expenses you need to record, along with supporting documentation, are described in Table 5-1 (see chapter 5). State tax forms 1040 Separating costs. State tax forms 1040   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 tax forms 1040 You must have a reasonable basis for making this allocation. State tax forms 1040 For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. State tax forms 1040 Travel expenses for another individual. State tax forms 1040    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 tax forms 1040 Employee. State tax forms 1040   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 tax forms 1040 Business associate. State tax forms 1040   If a business associate travels with you and meets the conditions in (2) and (3), earlier, you can deduct the travel expenses you have for that person. State tax forms 1040 A business associate is someone with whom you could reasonably expect to actively conduct business. State tax forms 1040 A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. State tax forms 1040 Bona fide business purpose. State tax forms 1040   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. State tax forms 1040 Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. State tax forms 1040 Table 1-1. State tax forms 1040 Travel Expenses You Can Deduct   This chart summarizes expenses you can deduct when you travel away from home for business purposes. State tax forms 1040 IF you have expenses for. State tax forms 1040 . State tax forms 1040 . State tax forms 1040 THEN you can deduct the cost of. State tax forms 1040 . State tax forms 1040 . State tax forms 1040 transportation travel by airplane, train, bus, or car between your home and your business destination. State tax forms 1040 If you were provided with a free ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. State tax forms 1040 If you travel by ship, see Luxury Water Travel and Cruise Ships (under Conventions) for additional rules and limits. State tax forms 1040 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 tax forms 1040 baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. State tax forms 1040 car operating and maintaining your car when traveling away from home on business. State tax forms 1040 You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking. State tax forms 1040 If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. State tax forms 1040 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 tax forms 1040 Meals include amounts spent for food, beverages, taxes, and related tips. State tax forms 1040 See Meals for additional rules and limits. State tax forms 1040 cleaning dry cleaning and laundry. State tax forms 1040 telephone business calls while on your business trip. State tax forms 1040 This includes business communication by fax machine or other communication devices. State tax forms 1040 tips tips you pay for any expenses in this chart. State tax forms 1040 other other similar ordinary and necessary expenses related to your business travel. State tax forms 1040 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 tax forms 1040 Example. State tax forms 1040 Jerry drives to Chicago on business and takes his wife, Linda, with him. State tax forms 1040 Linda is not Jerry's employee. State tax forms 1040 Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. State tax forms 1040 The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. State tax forms 1040 Her expenses are not deductible. State tax forms 1040 Jerry pays $199 a day for a double room. State tax forms 1040 A single room costs $149 a day. State tax forms 1040 He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. State tax forms 1040 If he uses public transportation, he can deduct only his fare. State tax forms 1040 Meals You can deduct the cost of meals in either of the following situations. State tax forms 1040 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 tax forms 1040 The meal is business-related entertainment. State tax forms 1040 Business-related entertainment is discussed in chapter 2 . State tax forms 1040 The following discussion deals only with meals that are not business-related entertainment. State tax forms 1040 Lavish or extravagant. State tax forms 1040   You cannot deduct expenses for meals that are lavish or extravagant. State tax forms 1040 An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. State tax forms 1040 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 tax forms 1040 50% limit on meals. State tax forms 1040   You can figure your meals expense using either of the following methods. State tax forms 1040 Actual cost. State tax forms 1040 The standard meal allowance. State tax forms 1040 Both of these methods are explained below. State tax forms 1040 But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. State tax forms 1040   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 tax forms 1040 If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. State tax forms 1040 Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans. State tax forms 1040 Actual Cost 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 tax forms 1040 If you use this method, you must keep records of your actual cost. State tax forms 1040 Standard Meal Allowance Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. State tax forms 1040 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 tax forms 1040 The set amount varies depending on where and when you travel. State tax forms 1040 In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . State tax forms 1040 If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. State tax forms 1040 See the recordkeeping rules for travel in chapter 5 . State tax forms 1040 Incidental expenses. State tax forms 1040   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. State tax forms 1040   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 tax forms 1040 Incidental-expenses-only method. State tax forms 1040   You can use an optional method (instead of actual cost) for deducting incidental expenses only. State tax forms 1040 The amount of the deduction is $5 a day. State tax forms 1040 You can use this method only if you did not pay or incur any meal expenses. State tax forms 1040 You cannot use this method on any day that you use the standard meal allowance. State tax forms 1040 This method is subject to the proration rules for partial days. State tax forms 1040 See Travel for days you depart and return , later in this chapter. State tax forms 1040 Note. State tax forms 1040 The incidental-expenses-only method is not subject to the 50% limit discussed below. State tax forms 1040 Federal employees should refer to the Federal Travel Regulations at www. State tax forms 1040 gsa. State tax forms 1040 gov. State tax forms 1040 Find the “Most Requested Links” on the upper left and click on “Regulations: FAR, FMR, FTR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. State tax forms 1040 50% limit may apply. State tax forms 1040   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 tax forms 1040 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 tax forms 1040 The 50% limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6. State tax forms 1040 There is no optional standard lodging amount similar to the standard meal allowance. State tax forms 1040 Your allowable lodging expense deduction is your actual cost. State tax forms 1040 Who can use the standard meal allowance. State tax forms 1040   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 tax forms 1040 Use of the standard meal allowance for other travel. State tax forms 1040   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 tax forms 1040 You can also use it to figure your meal expenses when you travel for qualifying educational purposes. State tax forms 1040 You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. State tax forms 1040 Amount of standard meal allowance. State tax forms 1040   The standard meal allowance is the federal M&IE rate. State tax forms 1040 For travel in 2013, the rate for most small localities in the United States is $46 a day. State tax forms 1040    Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. State tax forms 1040    You can find this information (organized by state) on the Internet at www. State tax forms 1040 gsa. State tax forms 1040 gov/perdiem. State tax forms 1040 Enter a zip code or select a city and state for the per diem rates for the current fiscal year. State tax forms 1040 Per diem rates for prior fiscal years are available by using the drop down menu under “Search by State. State tax forms 1040 ”   Per diem rates are listed by the Federal government's fiscal year which runs from October 1 to September 30. State tax forms 1040 You can choose to use the rates from the 2013 fiscal year per diem tables or the rates from the 2014 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return for the year. State tax forms 1040   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 tax forms 1040 If you work in the transportation industry, however, see Special rate for transportation workers , later. State tax forms 1040 Standard meal allowance for areas outside the continental United States. State tax forms 1040   The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. State tax forms 1040 The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. State tax forms 1040 S. State tax forms 1040 Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. State tax forms 1040 The Department of State establishes per diem rates for all other foreign areas. State tax forms 1040    You can access per diem rates for non-foreign areas outside the continental United States at: www. State tax forms 1040 defensetravel. State tax forms 1040 dod. State tax forms 1040 mil/site/perdiemCalc. State tax forms 1040 cfm. State tax forms 1040 You can access all other foreign per diem rates at: www. State tax forms 1040 state. State tax forms 1040 gov/travel/. State tax forms 1040 Click on “Travel Per Diem Allowances for Foreign Areas,” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates. State tax forms 1040 Special rate for transportation workers. State tax forms 1040   You can use a special standard meal allowance if you work in the transportation industry. State tax forms 1040 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 tax forms 1040 If this applies to you, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). State tax forms 1040   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 tax forms 1040 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 tax forms 1040 Travel for days you depart and return. State tax forms 1040   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 tax forms 1040 You can do so by one of two methods. State tax forms 1040 Method 1: You can claim 3/4 of the standard meal allowance. State tax forms 1040 Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. State tax forms 1040 Example. State tax forms 1040 Jen is employed in New Orleans as a convention planner. State tax forms 1040 In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. State tax forms 1040 She left her home in New Orleans at 10 a. State tax forms 1040 m. State tax forms 1040 on Wednesday and arrived in Washington, DC, at 5:30 p. State tax forms 1040 m. State tax forms 1040 After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. State tax forms 1040 m. State tax forms 1040 Jen's employer gave her a flat amount to cover her expenses and included it with her wages. State tax forms 1040 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 tax forms 1040 Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. State tax forms 1040 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 tax forms 1040 Travel in the United States The following discussion applies to travel in the United States. State tax forms 1040 For this purpose, the United States includes the 50 states and the District of Columbia. State tax forms 1040 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 tax forms 1040 See Part of Trip Outside the United States , later. State tax forms 1040 Trip Primarily for Business You can deduct all of your travel expenses if your trip was entirely business related. State tax forms 1040 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 only your business-related travel expenses. State tax forms 1040 These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. State tax forms 1040 Example. State tax forms 1040 You work in Atlanta and take a business trip to New Orleans in May. State tax forms 1040 Your business travel totals 850 miles round trip. State tax forms 1040 On your way, you stop in Mobile to visit your parents. State tax forms 1040 You spend $2,120 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. State tax forms 1040 If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,820. State tax forms 1040 You can deduct $1,820 for your trip, including the cost of round-trip transportation to and from New Orleans. State tax forms 1040 The deduction for your meals is subject to the 50% limit on meals mentioned earlier. State tax forms 1040 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 tax forms 1040 However, you can deduct any expenses you have while at your destination that are directly related to your business. State tax forms 1040 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 tax forms 1040 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 tax forms 1040 Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later in this chapter under Travel Outside the United States for that part of the trip. State tax forms 1040 For the part of your trip that is inside the United States, use the rules for travel in the United States. State tax forms 1040 Travel outside the United States does not include travel from one point in the United States to another point in the United States. State tax forms 1040 The following discussion can help you determine whether your trip was entirely within the United States. State tax forms 1040 Public transportation. State tax forms 1040   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 tax forms 1040 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 tax forms 1040 Example. State tax forms 1040 You fly from New York to Puerto Rico with a scheduled stop in Miami. State tax forms 1040 You return to New York nonstop. State tax forms 1040 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 tax forms 1040 Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. State tax forms 1040 Private car. State tax forms 1040   Travel by private car in the United States is travel between points in the United States, even though you are on your way to a destination outside the United States. State tax forms 1040 Example. State tax forms 1040 You travel by car from Denver to Mexico City and return. State tax forms 1040 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 tax forms 1040 The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. State tax forms 1040 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 tax forms 1040 For this purpose, the United States includes the 50 states and the District of Columbia. State tax forms 1040 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 tax forms 1040 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 tax forms 1040 Travel entirely for business. State tax forms 1040   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 tax forms 1040 Travel considered entirely for business. State tax forms 1040   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 tax forms 1040 Exception 1 - No substantial control. State tax forms 1040   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. State tax forms 1040 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 tax forms 1040   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, and Are not related to your employer, or Are not a managing executive. State tax forms 1040    “Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances . State tax forms 1040   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 tax forms 1040   A self-employed person generally has substantial control over arranging business trips. State tax forms 1040 Exception 2 - Outside United States no more than a week. State tax forms 1040   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 tax forms 1040 One week means 7 consecutive days. State tax forms 1040 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 tax forms 1040 Example. State tax forms 1040 You traveled to Brussels primarily for business. State tax forms 1040 You left Denver on Tuesday and flew to New York. State tax forms 1040 On Wednesday, you flew from New York to Brussels, arriving the next morning. State tax forms 1040 On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. State tax forms 1040 You flew back to New York, arriving Wednesday afternoon. State tax forms 1040 On Thursday, you flew back to Denver. State tax forms 1040 Although you were away from your home in Denver for more than a week, you were not outside the United States for more than a week. State tax forms 1040 This is because the day you depart does not count as a day outside the United States. State tax forms 1040 You can deduct your cost of the round-trip flight between Denver and Brussels. State tax forms 1040 You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. State tax forms 1040 However, you cannot deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities. State tax forms 1040 Exception 3 - Less than 25% of time on personal activities. State tax forms 1040   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 tax forms 1040 For this purpose, count both the day your trip began and the day it ended. State tax forms 1040 Example. State tax forms 1040 You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. State tax forms 1040 You then flew back to Seattle. State tax forms 1040 You spent 1 day flying in each direction. State tax forms 1040 Because only 5/21 (less than 25%) of your total time abroad was for nonbusiness activities, you can deduct as travel expenses what it would have cost you to make the trip if you had not engaged in any nonbusiness activity. State tax forms 1040 The amount you can deduct is the cost of the round-trip plane fare and 16 days of meals (subject to the 50% limit), lodging, and other related expenses. State tax forms 1040 Exception 4 - Vacation not a major consideration. State tax forms 1040   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 tax forms 1040 Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on other activities, you generally cannot deduct all of your travel expenses. State tax forms 1040 You can only deduct the business portion of your cost of getting to and from your destination. State tax forms 1040 You must allocate the costs between your business and other activities to determine your deductible amount. State tax forms 1040 See Travel allocation rules , later. State tax forms 1040 You do not have to allocate your travel expenses if you meet one of the four exceptions listed earlier under Travel considered entirely for business . State tax forms 1040 In those cases, you can deduct the total cost of getting to and from your destination. State tax forms 1040 Travel allocation rules. State tax forms 1040   If your trip outside the United States was primarily for business, you must allocate your travel time on a day-to-day basis between business days and nonbusiness days. State tax forms 1040 The days you depart from and return to the United States are both counted as days outside the United States. State tax forms 1040   To figure the deductible amount of your round-trip travel expenses, use the following fraction. State tax forms 1040 The numerator (top number) is the total number of business days outside the United States. State tax forms 1040 The denominator (bottom number) is the total number of business and nonbusiness days of travel. State tax forms 1040 Counting business days. State tax forms 1040   Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays. State tax forms 1040 Transportation day. State tax forms 1040   Count as a business day any day you spend traveling to or from a business destination. State tax forms 1040 However, if because of a nonbusiness activity you do not travel by a direct route, your business days are the days it would take you to travel a reasonably direct route to your business destination. State tax forms 1040 Extra days for side trips or nonbusiness activities cannot be counted as business days. State tax forms 1040 Presence required. State tax forms 1040   Count as a business day any day your presence is required at a particular place for a specific business purpose. State tax forms 1040 Count it as a business day even if you spend most of the day on nonbusiness activities. State tax forms 1040 Day spent on business. State tax forms 1040   If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. State tax forms 1040 Also, count as a business day any day you are prevented from working because of circumstances beyond your control. State tax forms 1040 Certain weekends and holidays. State tax forms 1040   Count weekends, holidays, and other necessary standby days as business days if they fall between business days. State tax forms 1040 But if they follow your business meetings or activity and you remain at your business destination for nonbusiness or personal reasons, do not count them as business days. State tax forms 1040 Example 1. State tax forms 1040 Your tax home is New York City. State tax forms 1040 You travel to Quebec, where you have a business appointment on Friday. State tax forms 1040 You have another appointment on the following Monday. State tax forms 1040 Because your presence was required on both Friday and Monday, they are business days. State tax forms 1040 Because the weekend is between business days, Saturday and Sunday are counted as business days. State tax forms 1040 This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity. State tax forms 1040 Example 2. State tax forms 1040 If, in Example 1, you had no business in Quebec after Friday, but stayed until Monday before starting home, Saturday and Sunday would be nonbusiness days. State tax forms 1040 Nonbusiness activity on the way to or from your business destination. State tax forms 1040   If you stopped for a vacation or other nonbusiness activity either on the way from the United States to your business destination, or on the way back to the United States from your business destination, you must allocate part of your travel expenses to the nonbusiness activity. State tax forms 1040   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your nonbusiness destination and a return to the point where travel outside the United States ends. State tax forms 1040   You determine the nonbusiness portion of that expense by multiplying it by a fraction. State tax forms 1040 The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. State tax forms 1040 Example. State tax forms 1040 You live in New York. State tax forms 1040 On May 4 you flew to Paris to attend a business conference that began on May 5. State tax forms 1040 The conference ended at noon on May 14. State tax forms 1040 That evening you flew to Dublin where you visited with friends until the afternoon of May 21, when you flew directly home to New York. State tax forms 1040 The primary purpose for the trip was to attend the conference. State tax forms 1040 If you had not stopped in Dublin, you would have arrived home the evening of May 14. State tax forms 1040 You do not meet any of the exceptions that would allow you to consider your travel entirely for business. State tax forms 1040 May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days. State tax forms 1040 You can deduct the cost of your meals (subject to the 50% limit), lodging, and other business-related travel expenses while in Paris. State tax forms 1040 You cannot deduct your expenses while in Dublin. State tax forms 1040 You also cannot deduct 7/18 of what it would have cost you to travel round-trip between New York and Dublin. State tax forms 1040 You paid $750 to fly from New York to Paris, $400 to fly from Paris to Dublin, and $700 to fly from Dublin back to New York. State tax forms 1040 Round-trip airfare from New York to Dublin would have been $1,250. State tax forms 1040 You figure the deductible part of your air travel expenses by subtracting 7/18 of the round-trip fare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7/18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850). State tax forms 1040 Your deductible air travel expense is $1,364 ($1,850 − $486). State tax forms 1040 Nonbusiness activity at, near, or beyond business destination. State tax forms 1040   If you had a vacation or other nonbusiness activity at, near, or beyond your business destination, you must allocate part of your travel expenses to the nonbusiness activity. State tax forms 1040   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your business destination and a return to the point where travel outside the United States ends. State tax forms 1040   You determine the nonbusiness portion of that expense by multiplying it by a fraction. State tax forms 1040 The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. State tax forms 1040   None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible. State tax forms 1040 Example. State tax forms 1040 Assume that the dates are the same as in the previous example but that instead of going to Dublin for your vacation, you fly to Venice, Italy, for a vacation. State tax forms 1040 You cannot deduct any part of the cost of your trip from Paris to Venice and return to Paris. State tax forms 1040 In addition, you cannot deduct 7/18 of the airfare and other expenses from New York to Paris and back to New York. State tax forms 1040 You can deduct 11/18 of the round-trip plane fare and other travel expenses from New York to Paris, plus your meals (subject to the 50% limit), lodging, and any other business expenses you had in Paris. State tax forms 1040 (Assume these expenses total $4,939. State tax forms 1040 ) If the round-trip plane fare and other travel-related expenses (such as food during the trip) are $1,750, you can deduct travel costs of $1,069 (11/18 × $1,750), plus the full $4,939 for the expenses you had in Paris. State tax forms 1040 Other methods. State tax forms 1040   You can use another method of counting business days if you establish that it more clearly reflects the time spent on other than business activities outside the United States. State tax forms 1040 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 tax forms 1040 However, 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 tax forms 1040 Example. State tax forms 1040 The university from which you graduated has a continuing education program for members of its alumni association. State tax forms 1040 This program consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. State tax forms 1040 However, none of the conferences are directed toward specific occupations or professions. State tax forms 1040 It is up to each participant to seek out specialists and organizational settings appropriate to his or her occupational interests. State tax forms 1040 Three-hour sessions are held each day over a 5-day period at each of the selected overseas facilities where participants can meet with individual practitioners. State tax forms 1040 These sessions are composed of a variety of activities including workshops, mini-lectures, role playing, skill development, and exercises. State tax forms 1040 Professional conference directors schedule and conduct the sessions. State tax forms 1040 Participants can choose those sessions they wish to attend. State tax forms 1040 You can participate in this program since you are a member of the alumni association. State tax forms 1040 You and your family take one of the trips. State tax forms 1040 You spend about 2 hours at each of the planned sessions. State tax forms 1040 The rest of the time you go touring and sightseeing with your family. State tax forms 1040 The trip lasts less than 1 week. State tax forms 1040 Your travel expenses for the trip are not deductible since the trip was primarily a vacation. State tax forms 1040 However, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. State tax forms 1040 These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses. State tax forms 1040 Luxury Water Travel If you travel by ocean liner, cruise ship, or other form of luxury water transportation for business purposes, there is a daily limit on the amount you can deduct. State tax forms 1040 The limit is twice the highest federal per diem rate allowable at the time of your travel. State tax forms 1040 (Generally, the federal per diem is the amount paid to federal government employees for daily living expenses when they travel away from home, but in the United States, for business purposes. State tax forms 1040 ) Daily limit on luxury water travel. State tax forms 1040   The highest federal per diem rate allowed and the daily limit for luxury water travel in 2013 is shown in the following table. State tax forms 1040   2013 Dates Highest Federal Per Diem Daily Limit on Luxury Water Travel   Jan. State tax forms 1040 1 – Mar. State tax forms 1040 31 $367 $734   Apr. State tax forms 1040 1 – June 30 312 624   July 1 – Aug. State tax forms 1040 31 310 620   Sept. State tax forms 1040 1 – Sept. State tax forms 1040 30 366 732   Oct. State tax forms 1040 1 – Dec. State tax forms 1040 31 374 748 Example. State tax forms 1040 Caroline, a travel agent, traveled by ocean liner from New York to London, England, on business in May. State tax forms 1040 Her expense for the 6-day cruise was $5,200. State tax forms 1040 Caroline's deduction for the cruise cannot exceed $3,744 (6 days × $624 daily limit). State tax forms 1040 Meals and entertainment. State tax forms 1040   If your expenses for luxury water travel include separately stated amounts for meals or entertainment, those amounts are subject to the 50% limit on meals and entertainment before you apply the daily limit. State tax forms 1040 For a discussion of the 50% Limit , see chapter 2. State tax forms 1040 Example. State tax forms 1040 In the previous example, Caroline's luxury water travel had a total cost of $5,200. State tax forms 1040 Of that amount, $3,700 was separately stated as meals and entertainment. State tax forms 1040 Caroline, who is self-employed, is not reimbursed for any of her travel expenses. State tax forms 1040 Caroline figures her deductible travel expenses as follows. State tax forms 1040 Meals and entertainment $3,700   50% limit × . State tax forms 1040 50   Allowable meals &     entertainment $1,850   Other travel expenses + 1,800   Allowable cost before the daily limit $3,650 Daily limit for May 2013 $624   Times number of days × 6   Maximum luxury water travel     deduction $3,744 Amount of allowable deduction $3,650 Caroline's deduction for her cruise is limited to $3,650, even though the limit on luxury water travel is slightly higher. State tax forms 1040 Not separately stated. State tax forms 1040   If your meal or entertainment charges are not separately stated or are not clearly identifiable, you do not have to allocate any portion of the total charge to meals or entertainment. State tax forms 1040 Exceptions The daily limit on luxury water travel (discussed earlier) does not apply to expenses you have to attend a convention, seminar, or meeting on board a cruise ship. State tax forms 1040 See Cruise Ships under Conventions. State tax forms 1040 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 tax forms 1040 You cannot deduct the travel expenses for your family. State tax forms 1040 If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. State tax forms 1040 Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. State tax forms 1040 You can deduct your travel expenses only if your attendance is connected to your own trade or business. State tax forms 1040 Convention agenda. State tax forms 1040   The convention agenda or program generally shows the purpose of the convention. State tax forms 1040 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 tax forms 1040 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 tax forms 1040 Conventions Held Outside the North American Area You cannot deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless: The meeting is directly related to your trade or business, and It is reasonable to hold the meeting outside the North American area. State tax forms 1040 See Reasonableness test , later. State tax forms 1040 If the meeting meets these requirements, you also must satisfy the rules for deducting expenses for business trips in general, discussed earlier under Travel Outside the United States . State tax forms 1040 North American area. State tax forms 1040   The North American area includes the following locations. State tax forms 1040 American Samoa Johnston Island Antigua and Barbuda Kingman Reef Aruba Marshall Islands Bahamas Mexico Baker Island Micronesia Barbados Midway Islands Bermuda Netherlands Antilles Canada Northern Mariana Costa Rica Islands Dominica Palau Dominican Republic Palmyra Atoll Grenada Panama Guam Puerto Rico Guyana Trinidad and Tobago Honduras USA Howland Island U. State tax forms 1040 S. State tax forms 1040 Virgin Islands Jamaica Wake Island Jarvis Island   The North American area also includes U. State tax forms 1040 S. State tax forms 1040 islands, cays, and reefs that are possessions of the United States and not part of the fifty states or the District of Columbia. State tax forms 1040 Reasonableness test. State tax forms 1040   The following factors are taken into account to determine if it was reasonable to hold the meeting outside the North American area. State tax forms 1040 The purpose of the meeting and the activities taking place at the meeting. State tax forms 1040 The purposes and activities of the sponsoring organizations or groups. State tax forms 1040 The homes of the active members of the sponsoring organizations and the places at which other meetings of the sponsoring organizations or groups have been or will be held. State tax forms 1040 Other relevant factors you may present. State tax forms 1040 Cruise Ships You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. State tax forms 1040 All ships that sail are considered cruise ships. State tax forms 1040 You can deduct these expenses only if all of the following requirements are met. State tax forms 1040 The convention, seminar, or meeting is directly related to your trade or business. State tax forms 1040 The cruise ship is a vessel registered in the United States. State tax forms 1040 All of the cruise ship's ports of call are in the United States or in possessions of the United States. State tax forms 1040 You attach to your return a written statement signed by you that includes information about: The total days of the trip (not including the days of transportation to and from the cruise ship port), The number of hours each day that you devoted to scheduled business activities, and A program of the scheduled business activities of the meeting. State tax forms 1040 You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes: A schedule of the business activities of each day of the meeting, and The number of hours you attended the scheduled business activities. State tax forms 1040 Prev  Up  Next   Home   More Online Publications