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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Www Irs Gov Freefile

2010 Form 1040aIrs Forms 2010How To Fill Out A 1040x Form For The IrsFile 2010 Taxes Online FreeAmend 2011 Tax Return FormTax SlayerFree 2010 Tax Filing1040 Ez FormFree Tax Usa 20112012 Tax How ComTax CutAmmended Tax ReturnHow To Amend A Tax Return Already FiledPrintable Tax Forms 1040ez1040x 2013Irs Form 1040aHow Can I File 2011 Taxes OnlineMilitaryFile 2010 State Tax ReturnE File Taxes1040x Where To FileWww H & R Block ComH&r Block Taxes Online FreeEfile State TaxFree Income Tax Preparation2010 Federal Tax FormsState Tax Form2012 Tax Forms IrsFile 2011 TaxesTurbo TaxMilitary Tax Return CalculatorH&r Block Taxes OnlineForm 1040x For 2012Tax Return H&r BlockFree Filing State Income TaxHow Do You File An Amended Federal Tax ReturnIrs 1040ez FormsHow To Amend My Taxes OnlineFree Efile For State TaxesTurbotax Online 2012

Www Irs Gov Freefile

Www irs gov freefile 10. Www irs gov freefile   Education Savings Bond Program Table of Contents Introduction Who Can Cash In Bonds Tax FreeAdjusted qualified education expenses. Www irs gov freefile Eligible educational institution. Www irs gov freefile Dependent for whom you claim an exemption. Www irs gov freefile MAGI when using Form 1040A. Www irs gov freefile MAGI when using Form 1040. Www irs gov freefile Figuring the Tax-Free AmountEffect of the Amount of Your Income on the Amount of Your Exclusion Claiming the Exclusion Introduction Generally, you must pay tax on the interest earned on U. Www irs gov freefile S. Www irs gov freefile savings bonds. Www irs gov freefile If you do not include the interest in income in the years it is earned, you must include it in your income in the year in which you cash in the bonds. Www irs gov freefile However, when you cash in certain savings bonds under an education savings bond program, you may be able to exclude the interest from income. Www irs gov freefile Who Can Cash In Bonds Tax Free You may be able to cash in qualified U. Www irs gov freefile S. Www irs gov freefile savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions. Www irs gov freefile You pay qualified education expenses for yourself, your spouse, or a dependent for whom you claim an exemption on your return. Www irs gov freefile Your modified adjusted gross income (MAGI) is less than the amount specified for your filing status. Www irs gov freefile Your filing status is not married filing separately. Www irs gov freefile Qualified U. Www irs gov freefile S. Www irs gov freefile savings bonds. Www irs gov freefile   A qualified U. Www irs gov freefile S. Www irs gov freefile savings bond is a series EE bond issued after 1989 or a series I bond. Www irs gov freefile The bond must be issued either in your name (as the sole owner) or in the name of both you and your spouse (as co-owners). Www irs gov freefile   The owner must be at least 24 years old before the bond's issue date. Www irs gov freefile The issue date is printed on the front of the savings bond. Www irs gov freefile    The issue date is not necessarily the date of purchase—it will be the first day of the month in which the bond is purchased (or posted, if bought electronically). Www irs gov freefile Qualified education expenses. Www irs gov freefile   These include the following items you pay for either yourself, your spouse, or a dependent for whom you claim an exemption. Www irs gov freefile Tuition and fees required to enroll at or attend an eligible educational institution. Www irs gov freefile Qualified education expenses do not include expenses for room and board or for courses involving sports, games, or hobbies that are not part of a degree or certificate granting program. Www irs gov freefile Contributions to a qualified tuition program (QTP) (see How Much Can You Contribute in chapter 8, Qualified Tuition Program). Www irs gov freefile Contributions to a Coverdell education savings account (ESA) (see Contributions in chapter 7, Coverdell Education Savings Account). Www irs gov freefile Adjusted qualified education expenses. Www irs gov freefile   You must reduce your qualified education expenses by all of the following tax-free benefits. Www irs gov freefile Tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Www irs gov freefile Expenses used to figure the tax-free portion of distributions from a Coverdell ESA (see Qualified Education Expenses in chapter 7, Coverdell Education Savings Account). Www irs gov freefile Expenses used to figure the tax-free portion of distributions from a QTP (see Qualified education expenses in chapter 8, Qualified Tuition Program). Www irs gov freefile Any tax-free payments (other than gifts or inheritances) received as educational assistance, such as: Veterans' educational assistance benefits (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Qualified tuition reductions (see Qualified Tuition Reduction in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), or Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ). Www irs gov freefile Any expenses used in figuring the American opportunity and lifetime learning credits. Www irs gov freefile See What Expenses Qualify in chapter 2, American Opportunity Credit, and What Expenses Qualify in chapter 3, Lifetime Learning Credit, for more information. Www irs gov freefile Eligible educational institution. Www irs gov freefile   An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U. Www irs gov freefile S. Www irs gov freefile Department of Education. Www irs gov freefile It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. Www irs gov freefile The educational institution should be able to tell you if it is an eligible educational institution. Www irs gov freefile   Certain educational institutions located outside the United States also participate in the U. Www irs gov freefile S. Www irs gov freefile Department of Education's Federal Student Aid (FSA) programs. Www irs gov freefile Dependent for whom you claim an exemption. Www irs gov freefile   You claim an exemption for a person if you list his or her name and other required information on Form 1040 (or Form 1040A), line 6c. Www irs gov freefile Modified adjusted gross income (MAGI). Www irs gov freefile   For most taxpayers, MAGI is adjusted gross income (AGI) as figured on their federal income tax return without taking into account this interest exclusion. Www irs gov freefile However, as discussed below, there may be other modifications. Www irs gov freefile MAGI when using Form 1040A. Www irs gov freefile   If you file Form 1040A, your MAGI is the AGI on line 22 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any amount on line 18 (student loan interest deduction) and line 19 (tuition and fees deduction). Www irs gov freefile MAGI when using Form 1040. Www irs gov freefile   If you file Form 1040, your MAGI is the AGI on line 38 of that form figured without taking into account any savings bond interest exclusion and modified by adding back any: Foreign earned income exclusion, Foreign housing exclusion, Foreign housing deduction, Exclusion of income by bona fide residents of American Samoa, Exclusion of income by bona fide residents of Puerto Rico, Exclusion for adoption benefits received under an employer's adoption assistance program, Deduction for student loan interest, Deduction for tuition and fees, and Deduction for domestic production activities. Www irs gov freefile    Use the worksheet in the instructions for line 9 of Form 8815 to figure your MAGI. Www irs gov freefile If you claim any of the exclusion or deduction items (1)–(6) listed above, add the amount of the exclusion or deduction to the amount on line 5 of the worksheet. Www irs gov freefile Do not add in the deduction for (7) student loan interest, and (8) tuition and fees, or (9) domestic production activities because line 4 of the worksheet already includes these amounts. Www irs gov freefile Enter the total on Form 8815, line 9, as your modified adjusted gross income (MAGI). Www irs gov freefile    Because the deduction for interest expenses attributable to royalties and other investments is limited to your net investment income, you cannot figure the deduction until you have figured this interest exclusion. Www irs gov freefile Therefore, if you had interest expenses attributable to royalties and deductible on Schedule E (Form 1040), Supplemental Income and Loss, you must make a special computation of your deductible interest without regard to this exclusion to figure the net royalty income included in your MAGI. Www irs gov freefile See Royalties included in MAGI under Education Savings Bond Program in Publication 550, chapter 1. Www irs gov freefile Figuring the Tax-Free Amount If the total you receive when you cash in the bonds is not more than the adjusted qualified education expenses for the year, all of the interest on the bonds may be tax free. Www irs gov freefile However, if the total you receive when you cash in the bonds is more than the adjusted expenses, only part of the interest may be tax free. Www irs gov freefile To determine the tax-free amount, multiply the interest part of the proceeds by a fraction. Www irs gov freefile The numerator (top part) of the fraction is the adjusted qualified education expenses (AQEE) you paid during the year. Www irs gov freefile The denominator (bottom part) of the fraction is the total proceeds you received during the year. Www irs gov freefile Example. Www irs gov freefile In February 2013, Mark and Joan Washington, a married couple, cashed a qualified series EE U. Www irs gov freefile S. Www irs gov freefile savings bond. Www irs gov freefile They received proceeds of $9,000, representing principal of $6,000 and interest of $3,000. Www irs gov freefile In 2013, they paid $7,650 of their daughter's college tuition. Www irs gov freefile They are not claiming an American opportunity or lifetime learning credit for those expenses, and their daughter does not have any tax-free educational assistance. Www irs gov freefile Their MAGI for 2013 was $80,000. Www irs gov freefile   $3,000 interest × $7,650 AQEE  $9,000 proceeds = $2,550 tax-free interest   They can exclude $2,550 of interest in 2013. Www irs gov freefile They must pay tax on the remaining $450 ($3,000 − $2,550) interest. Www irs gov freefile Effect of the Amount of Your Income on the Amount of Your Exclusion The amount of your interest exclusion is gradually reduced (phased out) based on your MAGI and filing status. Www irs gov freefile Claiming the Exclusion Use Form 8815 to figure your education savings bond interest exclusion. Www irs gov freefile Enter your exclusion on line 3 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends. Www irs gov freefile Attach Form 8815 to your tax return. Www irs gov freefile Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Art Appraisal Services

Art Advisory Panel

The Panel helps IRS review and evaluate property appraisals submitted by taxpayers in support of the fair market value claimed for works of art included in federal income, estate and gift tax cases in accordance with the Internal Revenue Code. The Panel members, up to 25 renowned art experts, serve without compensation.

Referral to the Art Advisory Panel

All taxpayer cases selected for examination that include artwork with a claimed value of $50,000 or more per item must be referred to Art Appraisal Services for possible review by the Commissioner's Art Advisory Panel (See IRM 4.48.2 and IRM 8.18.1.3). Please review the photographic requirements for referrals, and also our preferred individual appraisal item format (PDF) for works of art valued at over $50,000.

For general inquiries, contact Director, Art Appraisal Services at 202-317-8975.

Internal Revenue Service/Art Appraisal Services
1111 Constitution Ave., Suite 700
C:AP:SO:ART 
Washington, DC 20004
ATT: AAS

Annual Summary Report

The Annual Summary Report describes the closed meeting activity of the Commissioner's Art Advisory Panel for the most recent year. The report discusses the procedures of the Art Panel, provides a list of Panelists and summarizes the art items reviewed during this year by the Panel broken down by estate and charitable contribution. If you would like older Annual Summary Reports, please contact the IRS Freedom of Information Reading Room at 1111 Constitution Ave, Washington D.C. 20224.

Publications

  • Publication 526, Charitable Contributions.
  • Publication 561, Determining the Value of Donated Property. Designed to help donors and appraisers determine the value of property that is given to qualified organizations. It includes the kind of information you must have to support your decision.

Forms

  • Form 8283, Non-cash Charitable Contributions. The necessary form filed with the taxpayer's return.
  • Form 8282, Donee Information Return. Form filed by donee upon sale of property.

Revenue Procedures
Revenue Procedure 96-15 provides procedures for taxpayers to request a review of art valuations for income, estate, and gift returns. Taxpayers may obtain a Statement of Value from the Service for an advance review of art valuation claims prior to filing the return. The Statement of Value may then be used to complete the taxpayer's return.

The procedure generally applies to an item of art that has been appraised at $50,000 or more. The appraisal submitted must meet specific substantiation requirements. A user fee is charged for each request. The current fees for a Statement of Value are $5,400 for one to three items and $270 for each additional item. See Revenue Procedure 2013-01.

Send requests for a Statement of Value to:
Internal Revenue Service
Attention: Art Appraisal Services (C:AP:SO:AAS)
P.O. Box 27720
McPherson Station
Washington, DC 20038

Page Last Reviewed or Updated: 25-Feb-2014

The Www Irs Gov Freefile

Www irs gov freefile 28. Www irs gov freefile   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. Www irs gov freefile  The 2013 rate for business use of a vehicle is 56½ cents per mile. Www irs gov freefile Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). Www irs gov freefile You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Www irs gov freefile This chapter covers the following topics. Www irs gov freefile Deductions subject to the 2% limit. Www irs gov freefile Deductions not subject to the 2% limit. Www irs gov freefile Expenses you cannot deduct. Www irs gov freefile You must keep records to verify your deductions. Www irs gov freefile You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. Www irs gov freefile For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. Www irs gov freefile 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). Www irs gov freefile You can claim the amount of expenses that is more than 2% of your adjusted gross income. Www irs gov freefile You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Www irs gov freefile Your adjusted gross income is the amount on Form 1040, line 38. Www irs gov freefile Generally, you apply the 2% limit after you apply any other deduction limit. Www irs gov freefile 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. Www irs gov freefile Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). Www irs gov freefile Unreimbursed employee expenses (line 21). Www irs gov freefile Tax preparation fees (line 22). Www irs gov freefile Other expenses (line 23). Www irs gov freefile 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. Www irs gov freefile An expense is ordinary if it is common and accepted in your trade, business, or profession. Www irs gov freefile An expense is necessary if it is appropriate and helpful to your business. Www irs gov freefile An expense does not have to be required to be considered necessary. Www irs gov freefile Examples of unreimbursed employee expenses are listed next. Www irs gov freefile The list is followed by discussions of additional unreimbursed employee expenses. Www irs gov freefile Business bad debt of an employee. Www irs gov freefile Education that is work related. Www irs gov freefile (See chapter 27. Www irs gov freefile ) Legal fees related to your job. Www irs gov freefile Licenses and regulatory fees. Www irs gov freefile Malpractice insurance premiums. Www irs gov freefile Medical examinations required by an employer. Www irs gov freefile Occupational taxes. Www irs gov freefile Passport for a business trip. Www irs gov freefile Subscriptions to professional journals and trade magazines related to your work. Www irs gov freefile Travel, transportation, entertainment, and gifts related to your work. Www irs gov freefile (See chapter 26. Www irs gov freefile ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. Www irs gov freefile 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. Www irs gov freefile Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Www irs gov freefile Lobbying and political activities. Www irs gov freefile   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Www irs gov freefile See Dues used for lobbying under Nondeductible Expenses, later. Www irs gov freefile 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. Www irs gov freefile If you file Form 1040A, you can deduct these expenses on line 16. Www irs gov freefile If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Www irs gov freefile However, neither spouse can deduct more than $250 of his or her qualified expenses. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Www irs gov freefile See Publication 587 for more detailed information and a worksheet. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile Employment and outplacement agency fees. Www irs gov freefile   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Www irs gov freefile Employer pays you back. Www irs gov freefile   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. Www irs gov freefile (See Recoveries in chapter 12. Www irs gov freefile ) Employer pays the employment agency. Www irs gov freefile   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. Www irs gov freefile Résumé. Www irs gov freefile   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. Www irs gov freefile Travel and transportation expenses. Www irs gov freefile   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. Www irs gov freefile You can deduct the travel expenses if the trip is primarily to look for a new job. Www irs gov freefile 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. Www irs gov freefile   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. Www irs gov freefile   You can choose to use the standard mileage rate to figure your car expenses. Www irs gov freefile The 2013 rate for business use of a vehicle is 56½ cents per mile. Www irs gov freefile See chapter 26 for more information. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile However, you cannot deduct the cost of travel as a form of education. Www irs gov freefile 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. Www irs gov freefile You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Www irs gov freefile For more information about depreciation, see Publication 946. Www irs gov freefile Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Www irs gov freefile You can also deduct assessments for benefit payments to unemployed union members. Www irs gov freefile However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Www irs gov freefile Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. Www irs gov freefile You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Www irs gov freefile See Lobbying Expenses under Nondeductible Expenses, later. Www irs gov freefile Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Www irs gov freefile You must wear them as a condition of your employment. Www irs gov freefile The clothes are not suitable for everyday wear. Www irs gov freefile It is not enough that you wear distinctive clothing. Www irs gov freefile The clothing must be specifically required by your employer. Www irs gov freefile Nor is it enough that you do not, in fact, wear your work clothes away from work. Www irs gov freefile The clothing must not be suitable for taking the place of your regular clothing. Www irs gov freefile 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. Www irs gov freefile ). Www irs gov freefile Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Www irs gov freefile 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. Www irs gov freefile Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Www irs gov freefile Protective clothing. Www irs gov freefile   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. Www irs gov freefile   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. Www irs gov freefile Military uniforms. Www irs gov freefile   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Www irs gov freefile 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. Www irs gov freefile In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Www irs gov freefile   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. Www irs gov freefile   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Www irs gov freefile Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. Www irs gov freefile Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Www irs gov freefile These fees include the cost of tax preparation software programs and tax publications. Www irs gov freefile They also include any fee you paid for electronic filing of your return. Www irs gov freefile Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile Some of these other expenses are explained in the following discussions. Www irs gov freefile If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. Www irs gov freefile Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Www irs gov freefile 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. Www irs gov freefile First report the loss in Section B of Form 4684, Casualties and Thefts. Www irs gov freefile You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Www irs gov freefile 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. Www irs gov freefile For other casualty and theft losses, see chapter 25. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile The fees are deductible in the year paid. Www irs gov freefile 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). Www irs gov freefile You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Www irs gov freefile But if you work as an employee and also use the computer in that work, see Publication 946. Www irs gov freefile 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. Www irs gov freefile Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Www irs gov freefile 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. Www irs gov freefile For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Www irs gov freefile 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. Www irs gov freefile But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Www irs gov freefile You must add the fee to the cost of the property. Www irs gov freefile You cannot deduct the fee you pay to a broker to sell securities. Www irs gov freefile You can use the fee only to figure gain or loss from the sale. Www irs gov freefile See the Instructions for Form 8949 for information on how to report the fee. Www irs gov freefile Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Www irs gov freefile A hobby is not a business because it is not carried on to make a profit. Www irs gov freefile See Activity not for profit in chapter 12 under Other Income. Www irs gov freefile Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Www irs gov freefile Deductions of pass-through entities are passed through to the partners or shareholders. Www irs gov freefile The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Www irs gov freefile Example. Www irs gov freefile You are a member of an investment club that is formed solely to invest in securities. Www irs gov freefile The club is treated as a partnership. Www irs gov freefile The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Www irs gov freefile In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Www irs gov freefile 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. Www irs gov freefile Publicly offered mutual funds. Www irs gov freefile   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Www irs gov freefile 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. Www irs gov freefile   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). Www irs gov freefile This net figure is the amount you report on your return as income. Www irs gov freefile You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Www irs gov freefile Information returns. Www irs gov freefile   You should receive information returns from pass-through entities. Www irs gov freefile Partnerships and S corporations. Www irs gov freefile   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. Www irs gov freefile Nonpublicly offered mutual funds. Www irs gov freefile   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. Www irs gov freefile You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). Www irs gov freefile See Tax Preparation Fees , earlier. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Www irs gov freefile If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Www irs gov freefile Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile For more information about IRAs, see chapter 17. Www irs gov freefile Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Www irs gov freefile They are not subject to the 2% limit. Www irs gov freefile Report these items on Schedule A (Form 1040), line 28. Www irs gov freefile List of Deductions Each of the following items is discussed in detail after the list (except where indicated). Www irs gov freefile Amortizable premium on taxable bonds. Www irs gov freefile Casualty and theft losses from income- producing property. Www irs gov freefile Federal estate tax on income in respect of a decedent. Www irs gov freefile Gambling losses up to the amount of gambling winnings. Www irs gov freefile Impairment-related work expenses of persons with disabilities. Www irs gov freefile Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Www irs gov freefile Losses from Ponzi-type investment schemes. Www irs gov freefile See Losses from Ponzi-type investment schemes under Theft in chapter 25. Www irs gov freefile Repayments of more than $3,000 under a claim of right. Www irs gov freefile Unrecovered investment in an annuity. Www irs gov freefile 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. Www irs gov freefile You can elect to amortize the premium on taxable bonds. Www irs gov freefile The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Www irs gov freefile Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. Www irs gov freefile 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. Www irs gov freefile 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). Www irs gov freefile First, report the loss in Form 4684, Section B. Www irs gov freefile You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. Www irs gov freefile 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. Www irs gov freefile For more information on casualty and theft losses, see chapter 25. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile See Publication 559 for more information. Www irs gov freefile 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. Www irs gov freefile You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Www irs gov freefile You cannot deduct gambling losses that are more than your winnings. Www irs gov freefile You cannot reduce your gambling winnings by your gambling losses and report the difference. Www irs gov freefile 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. Www irs gov freefile Therefore, your records should show your winnings separately from your losses. Www irs gov freefile Diary of winnings and losses. Www irs gov freefile You must keep an accurate diary or similar record of your losses and winnings. Www irs gov freefile Your diary should contain at least the following information. Www irs gov freefile The date and type of your specific wager or wagering activity. Www irs gov freefile The name and address or location of the gambling establishment. Www irs gov freefile The names of other persons present with you at the gambling establishment. Www irs gov freefile The amount(s) you won or lost. Www irs gov freefile See Publication 529 for more information. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile Self-employed. Www irs gov freefile   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. Www irs gov freefile 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. Www irs gov freefile It is not subject to the passive activity limitations. Www irs gov freefile 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. Www irs gov freefile See Repayments in chapter 12 for more information. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile See chapter 10 for more information about the tax treatment of pensions and annuities. Www irs gov freefile Nondeductible Expenses Examples of nondeductible expenses are listed next. Www irs gov freefile The list is followed by discussions of additional nondeductible expenses. Www irs gov freefile List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. Www irs gov freefile Burial or funeral expenses, including the cost of a cemetery lot. Www irs gov freefile Capital expenses. Www irs gov freefile Fees and licenses, such as car licenses, marriage licenses, and dog tags. Www irs gov freefile Hobby losses, but see Hobby Expenses , earlier. Www irs gov freefile Home repairs, insurance, and rent. Www irs gov freefile Illegal bribes and kickbacks. Www irs gov freefile See Bribes and kickbacks in chapter 11 of Publication 535. Www irs gov freefile Losses from the sale of your home, furniture, personal car, etc. Www irs gov freefile Personal disability insurance premiums. Www irs gov freefile Personal, living, or family expenses. Www irs gov freefile The value of wages never received or lost vacation time. Www irs gov freefile Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. Www irs gov freefile See chapter 37. Www irs gov freefile Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Www irs gov freefile These include qualification and registration fees for primary elections. Www irs gov freefile Legal fees. Www irs gov freefile   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Www irs gov freefile 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. Www irs gov freefile Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Www irs gov freefile This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Www irs gov freefile 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. Www irs gov freefile Dues paid to airline, hotel, and luncheon clubs are not deductible. Www irs gov freefile Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Www irs gov freefile 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. Www irs gov freefile Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Www irs gov freefile This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Www irs gov freefile Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Www irs gov freefile 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. Www irs gov freefile Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Www irs gov freefile However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Www irs gov freefile See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. Www irs gov freefile Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Www irs gov freefile Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Www irs gov freefile You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Www irs gov freefile See chapter 18 for information on alimony. Www irs gov freefile Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Www irs gov freefile 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. Www irs gov freefile Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Www irs gov freefile Dues used for lobbying. Www irs gov freefile   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. Www irs gov freefile See Lobbying Expenses in Publication 529 for information on exceptions. Www irs gov freefile Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Www irs gov freefile 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. Www irs gov freefile See chapter 25. Www irs gov freefile Example. Www irs gov freefile A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Www irs gov freefile The diamond falls from the ring and is never found. Www irs gov freefile The loss of the diamond is a casualty. Www irs gov freefile Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Www irs gov freefile See chapter 26 for information on deductible expenses while traveling away from home. Www irs gov freefile Meals While Working Late You cannot deduct the cost of meals while working late. Www irs gov freefile 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. Www irs gov freefile See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. Www irs gov freefile Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Www irs gov freefile Custody of children. Www irs gov freefile Breach of promise to marry suit. Www irs gov freefile Civil or criminal charges resulting from a personal relationship. Www irs gov freefile Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. Www irs gov freefile Preparation of a title (or defense or perfection of a title). Www irs gov freefile Preparation of a will. Www irs gov freefile Property claims or property settlement in a divorce. Www irs gov freefile You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Www irs gov freefile Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Www irs gov freefile Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Www irs gov freefile Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Www irs gov freefile Accounting certificate fees paid for the initial right to practice accounting. Www irs gov freefile Bar exam fees and incidental expenses in securing initial admission to the bar. Www irs gov freefile Medical and dental license fees paid to get initial licensing. Www irs gov freefile Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Www irs gov freefile Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Www irs gov freefile You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. Www irs gov freefile 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. Www irs gov freefile Example. Www irs gov freefile During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. Www irs gov freefile In earning this income, you had total expenses of $500 during the year. Www irs gov freefile You cannot identify the amount of each expense item that is for each income item. Www irs gov freefile 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. Www irs gov freefile You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). Www irs gov freefile 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. Www irs gov freefile See chapter 26 for more information on deductible travel expenses. Www irs gov freefile Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. Www irs gov freefile 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. Www irs gov freefile 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. Www irs gov freefile Prev  Up  Next   Home   More Online Publications