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Us Government Form 1040x

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Us Government Form 1040x

Us government form 1040x Publication 595 - Introductory Material Table of Contents Introduction Important Reminder Introduction This publication discusses the Capital Construction Fund (CCF). Us government form 1040x The CCF is a special investment program administered by the National Marine Fisheries Service (NMFS) and the Internal Revenue Service (IRS). Us government form 1040x This program allows fishermen to defer paying income tax on certain income they invest in a CCF account and later use to acquire, build, or rebuild fishing vessels. Us government form 1040x This publication does not discuss all the tax rules that may apply to your fishing trade or business. Us government form 1040x For general information about the federal tax laws that apply to individuals, including commercial fishermen, who file Schedule C or C-EZ, see Publication 334, Tax Guide for Small Business. Us government form 1040x If your trade or business is a partnership or corporation, see Publication 541, Partnerships, or Publication 542, Corporations. Us government form 1040x Comments and suggestions. Us government form 1040x   We welcome your comments about this publication and your suggestions for future editions. Us government form 1040x   You can email us at *taxforms@irs. Us government form 1040x gov. Us government form 1040x Please put “Publications Comment” on the subject line. Us government form 1040x   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. Us government form 1040x NW, IR-6406 Washington, DC 20224   We respond to many letters by telephone. Us government form 1040x Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Us government form 1040x Important Reminder Photographs of missing children. Us government form 1040x  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Us government form 1040x Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Us government form 1040x 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. Us government form 1040x Prev  Up  Next   Home   More Online Publications
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The Us Government Form 1040x

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