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2012 1040 Ez

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2012 1040 Ez

2012 1040 ez 1. 2012 1040 ez   Travel Table of Contents Traveling Away From HomeTax Home Tax Home Different From Family Home Temporary Assignment or Job What Travel Expenses Are Deductible?Employee. 2012 1040 ez Business associate. 2012 1040 ez Bona fide business purpose. 2012 1040 ez Meals Travel in the United States Travel Outside the United States Luxury Water Travel Conventions If you temporarily travel away from your tax home, you can use this chapter to determine if you have deductible travel expenses. 2012 1040 ez This chapter discusses: Traveling away from home, Temporary assignment or job, and What travel expenses are deductible. 2012 1040 ez It also discusses the standard meal allowance, rules for travel inside and outside the United States, luxury water travel, and deductible convention expenses. 2012 1040 ez Travel expenses defined. 2012 1040 ez   For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. 2012 1040 ez   An ordinary expense is one that is common and accepted in your trade or business. 2012 1040 ez A necessary expense is one that is helpful and appropriate for your business. 2012 1040 ez An expense does not have to be required to be considered necessary. 2012 1040 ez   You will find examples of deductible travel expenses in Table 1-1 , later. 2012 1040 ez Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. 2012 1040 ez This rest requirement is not satisfied by merely napping in your car. 2012 1040 ez You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. 2012 1040 ez Example 1. 2012 1040 ez You are a railroad conductor. 2012 1040 ez You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. 2012 1040 ez During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. 2012 1040 ez You are considered to be away from home. 2012 1040 ez Example 2. 2012 1040 ez You are a truck driver. 2012 1040 ez You leave your terminal and return to it later the same day. 2012 1040 ez You get an hour off at your turnaround point to eat. 2012 1040 ez Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. 2012 1040 ez Members of the Armed Forces. 2012 1040 ez   If you are a member of the U. 2012 1040 ez S. 2012 1040 ez Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. 2012 1040 ez You cannot deduct your expenses for meals and lodging. 2012 1040 ez You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. 2012 1040 ez If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. 2012 1040 ez   A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home (explained next) aboard the ship for travel expense purposes. 2012 1040 ez Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. 2012 1040 ez Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. 2012 1040 ez It includes the entire city or general area in which your business or work is located. 2012 1040 ez If you have more than one regular place of business, your tax home is your main place of business. 2012 1040 ez See Main place of business or work , later. 2012 1040 ez If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. 2012 1040 ez See No main place of business or work , later. 2012 1040 ez If you do not have a regular or main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. 2012 1040 ez As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. 2012 1040 ez Main place of business or work. 2012 1040 ez   If you have more than one place of work, consider the following when determining which one is your main place of business or work. 2012 1040 ez The total time you ordinarily spend in each place. 2012 1040 ez The level of your business activity in each place. 2012 1040 ez Whether your income from each place is significant or insignificant. 2012 1040 ez Example. 2012 1040 ez You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. 2012 1040 ez You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. 2012 1040 ez Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. 2012 1040 ez No main place of business or work. 2012 1040 ez   You may have a tax home even if you do not have a regular or main place of work. 2012 1040 ez Your tax home may be the home where you regularly live. 2012 1040 ez Factors used to determine tax home. 2012 1040 ez   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. 2012 1040 ez You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. 2012 1040 ez You have living expenses at your main home that you duplicate because your business requires you to be away from that home. 2012 1040 ez You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. 2012 1040 ez   If you satisfy all three factors, your tax home is the home where you regularly live. 2012 1040 ez If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. 2012 1040 ez If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. 2012 1040 ez Example 1. 2012 1040 ez You are single and live in Boston in an apartment you rent. 2012 1040 ez You have worked for your employer in Boston for a number of years. 2012 1040 ez Your employer enrolls you in a 12-month executive training program. 2012 1040 ez You do not expect to return to work in Boston after you complete your training. 2012 1040 ez During your training, you do not do any work in Boston. 2012 1040 ez Instead, you receive classroom and on-the-job training throughout the United States. 2012 1040 ez You keep your apartment in Boston and return to it frequently. 2012 1040 ez You use your apartment to conduct your personal business. 2012 1040 ez You also keep up your community contacts in Boston. 2012 1040 ez When you complete your training, you are transferred to Los Angeles. 2012 1040 ez You do not satisfy factor (1) because you did not work in Boston. 2012 1040 ez You satisfy factor (2) because you had duplicate living expenses. 2012 1040 ez You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. 2012 1040 ez Therefore, you have a tax home in Boston. 2012 1040 ez Example 2. 2012 1040 ez You are an outside salesperson with a sales territory covering several states. 2012 1040 ez Your employer's main office is in Newark, but you do not conduct any business there. 2012 1040 ez Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. 2012 1040 ez You have a room in your married sister's house in Dayton. 2012 1040 ez You stay there for one or two weekends a year, but you do no work in the area. 2012 1040 ez You do not pay your sister for the use of the room. 2012 1040 ez You do not satisfy any of the three factors listed earlier. 2012 1040 ez You are an itinerant and have no tax home. 2012 1040 ez Tax Home Different From Family Home If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. 2012 1040 ez You also cannot deduct the cost of meals and lodging while at your tax home. 2012 1040 ez See Example 1 , later. 2012 1040 ez If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. 2012 1040 ez See Example 2 , later. 2012 1040 ez Example 1. 2012 1040 ez You are a truck driver and you and your family live in Tucson. 2012 1040 ez You are employed by a trucking firm that has its terminal in Phoenix. 2012 1040 ez At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. 2012 1040 ez You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. 2012 1040 ez This is because Phoenix is your tax home. 2012 1040 ez Example 2. 2012 1040 ez Your family home is in Pittsburgh, where you work 12 weeks a year. 2012 1040 ez The rest of the year you work for the same employer in Baltimore. 2012 1040 ez In Baltimore, you eat in restaurants and sleep in a rooming house. 2012 1040 ez Your salary is the same whether you are in Pittsburgh or Baltimore. 2012 1040 ez Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. 2012 1040 ez You cannot deduct any expenses you have for meals and lodging there. 2012 1040 ez However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. 2012 1040 ez You can deduct the cost of your round trip between Baltimore and Pittsburgh. 2012 1040 ez You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. 2012 1040 ez Temporary Assignment or Job You may regularly work at your tax home and also work at another location. 2012 1040 ez It may not be practical to return to your tax home from this other location at the end of each work day. 2012 1040 ez Temporary assignment vs. 2012 1040 ez indefinite assignment. 2012 1040 ez   If your assignment or job away from your main place of work is temporary, your tax home does not change. 2012 1040 ez You are considered to be away from home for the whole period you are away from your main place of work. 2012 1040 ez You can deduct your travel expenses if they otherwise qualify for deduction. 2012 1040 ez Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. 2012 1040 ez    However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. 2012 1040 ez An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. 2012 1040 ez   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. 2012 1040 ez You may be able to deduct the cost of relocating to your new tax home as a moving expense. 2012 1040 ez See Publication 521 for more information. 2012 1040 ez Exception for federal crime investigations or prosecutions. 2012 1040 ez   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. 2012 1040 ez This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year provided you meet the other requirements for deductibility. 2012 1040 ez   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. 2012 1040 ez Determining temporary or indefinite. 2012 1040 ez   You must determine whether your assignment is temporary or indefinite when you start work. 2012 1040 ez If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. 2012 1040 ez An assignment or job that is initially temporary may become indefinite due to changed circumstances. 2012 1040 ez A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. 2012 1040 ez   The following examples illustrate whether an assignment or job is temporary or indefinite. 2012 1040 ez Example 1. 2012 1040 ez You are a construction worker. 2012 1040 ez You live and regularly work in Los Angeles. 2012 1040 ez You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. 2012 1040 ez Your tax home is Los Angeles. 2012 1040 ez Because of a shortage of work, you took a job on a construction project in Fresno. 2012 1040 ez Your job was scheduled to end in 8 months. 2012 1040 ez The job actually lasted 10 months. 2012 1040 ez You realistically expected the job in Fresno to last 8 months. 2012 1040 ez The job actually did last less than 1 year. 2012 1040 ez The job is temporary and your tax home is still in Los Angeles. 2012 1040 ez Example 2. 2012 1040 ez The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 18 months. 2012 1040 ez The job actually was completed in 10 months. 2012 1040 ez Your job in Fresno is indefinite because you realistically expected the work to last longer than 1 year, even though it actually lasted less than 1 year. 2012 1040 ez You cannot deduct any travel expenses you had in Fresno because Fresno became your tax home. 2012 1040 ez Example 3. 2012 1040 ez The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 9 months. 2012 1040 ez After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months). 2012 1040 ez Initially, you realistically expected the job in Fresno to last for only 9 months. 2012 1040 ez However, due to changed circumstances occurring after 8 months, it was no longer realistic for you to expect that the job in Fresno would last for 1 year or less. 2012 1040 ez You can only deduct your travel expenses for the first 8 months. 2012 1040 ez You cannot deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite. 2012 1040 ez Going home on days off. 2012 1040 ez   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. 2012 1040 ez You cannot deduct the cost of your meals and lodging there. 2012 1040 ez However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. 2012 1040 ez You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. 2012 1040 ez   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. 2012 1040 ez In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. 2012 1040 ez Probationary work period. 2012 1040 ez   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. 2012 1040 ez You cannot deduct any of your expenses for meals and lodging during the probationary period. 2012 1040 ez What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. 2012 1040 ez You can deduct ordinary and necessary expenses you have when you travel away from home on business. 2012 1040 ez The type of expense you can deduct depends on the facts and your circumstances. 2012 1040 ez Table 1-1 summarizes travel expenses you may be able to deduct. 2012 1040 ez You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. 2012 1040 ez When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. 2012 1040 ez You can use a log, diary, notebook, or any other written record to keep track of your expenses. 2012 1040 ez The types of expenses you need to record, along with supporting documentation, are described in Table 5-1 (see chapter 5). 2012 1040 ez Separating costs. 2012 1040 ez   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. 2012 1040 ez You must have a reasonable basis for making this allocation. 2012 1040 ez For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. 2012 1040 ez Travel expenses for another individual. 2012 1040 ez    If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. 2012 1040 ez Employee. 2012 1040 ez   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. 2012 1040 ez Business associate. 2012 1040 ez   If a business associate travels with you and meets the conditions in (2) and (3), earlier, you can deduct the travel expenses you have for that person. 2012 1040 ez A business associate is someone with whom you could reasonably expect to actively conduct business. 2012 1040 ez A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. 2012 1040 ez Bona fide business purpose. 2012 1040 ez   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. 2012 1040 ez Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. 2012 1040 ez Table 1-1. 2012 1040 ez Travel Expenses You Can Deduct   This chart summarizes expenses you can deduct when you travel away from home for business purposes. 2012 1040 ez IF you have expenses for. 2012 1040 ez . 2012 1040 ez . 2012 1040 ez THEN you can deduct the cost of. 2012 1040 ez . 2012 1040 ez . 2012 1040 ez transportation travel by airplane, train, bus, or car between your home and your business destination. 2012 1040 ez If you were provided with a free ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. 2012 1040 ez If you travel by ship, see Luxury Water Travel and Cruise Ships (under Conventions) for additional rules and limits. 2012 1040 ez taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. 2012 1040 ez baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. 2012 1040 ez car operating and maintaining your car when traveling away from home on business. 2012 1040 ez You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking. 2012 1040 ez If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. 2012 1040 ez lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. 2012 1040 ez Meals include amounts spent for food, beverages, taxes, and related tips. 2012 1040 ez See Meals for additional rules and limits. 2012 1040 ez cleaning dry cleaning and laundry. 2012 1040 ez telephone business calls while on your business trip. 2012 1040 ez This includes business communication by fax machine or other communication devices. 2012 1040 ez tips tips you pay for any expenses in this chart. 2012 1040 ez other other similar ordinary and necessary expenses related to your business travel. 2012 1040 ez These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. 2012 1040 ez Example. 2012 1040 ez Jerry drives to Chicago on business and takes his wife, Linda, with him. 2012 1040 ez Linda is not Jerry's employee. 2012 1040 ez Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. 2012 1040 ez The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. 2012 1040 ez Her expenses are not deductible. 2012 1040 ez Jerry pays $199 a day for a double room. 2012 1040 ez A single room costs $149 a day. 2012 1040 ez He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. 2012 1040 ez If he uses public transportation, he can deduct only his fare. 2012 1040 ez Meals You can deduct the cost of meals in either of the following situations. 2012 1040 ez It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. 2012 1040 ez The meal is business-related entertainment. 2012 1040 ez Business-related entertainment is discussed in chapter 2 . 2012 1040 ez The following discussion deals only with meals that are not business-related entertainment. 2012 1040 ez Lavish or extravagant. 2012 1040 ez   You cannot deduct expenses for meals that are lavish or extravagant. 2012 1040 ez An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. 2012 1040 ez Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. 2012 1040 ez 50% limit on meals. 2012 1040 ez   You can figure your meals expense using either of the following methods. 2012 1040 ez Actual cost. 2012 1040 ez The standard meal allowance. 2012 1040 ez Both of these methods are explained below. 2012 1040 ez But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. 2012 1040 ez   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. 2012 1040 ez If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. 2012 1040 ez Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans. 2012 1040 ez Actual Cost You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. 2012 1040 ez If you use this method, you must keep records of your actual cost. 2012 1040 ez Standard Meal Allowance Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. 2012 1040 ez It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. 2012 1040 ez The set amount varies depending on where and when you travel. 2012 1040 ez In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . 2012 1040 ez If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. 2012 1040 ez See the recordkeeping rules for travel in chapter 5 . 2012 1040 ez Incidental expenses. 2012 1040 ez   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. 2012 1040 ez   Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. 2012 1040 ez Incidental-expenses-only method. 2012 1040 ez   You can use an optional method (instead of actual cost) for deducting incidental expenses only. 2012 1040 ez The amount of the deduction is $5 a day. 2012 1040 ez You can use this method only if you did not pay or incur any meal expenses. 2012 1040 ez You cannot use this method on any day that you use the standard meal allowance. 2012 1040 ez This method is subject to the proration rules for partial days. 2012 1040 ez See Travel for days you depart and return , later in this chapter. 2012 1040 ez Note. 2012 1040 ez The incidental-expenses-only method is not subject to the 50% limit discussed below. 2012 1040 ez Federal employees should refer to the Federal Travel Regulations at www. 2012 1040 ez gsa. 2012 1040 ez gov. 2012 1040 ez Find the “Most Requested Links” on the upper left and click on “Regulations: FAR, FMR, FTR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. 2012 1040 ez 50% limit may apply. 2012 1040 ez   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. 2012 1040 ez If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. 2012 1040 ez The 50% limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6. 2012 1040 ez There is no optional standard lodging amount similar to the standard meal allowance. 2012 1040 ez Your allowable lodging expense deduction is your actual cost. 2012 1040 ez Who can use the standard meal allowance. 2012 1040 ez   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. 2012 1040 ez Use of the standard meal allowance for other travel. 2012 1040 ez   You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. 2012 1040 ez You can also use it to figure your meal expenses when you travel for qualifying educational purposes. 2012 1040 ez You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. 2012 1040 ez Amount of standard meal allowance. 2012 1040 ez   The standard meal allowance is the federal M&IE rate. 2012 1040 ez For travel in 2013, the rate for most small localities in the United States is $46 a day. 2012 1040 ez    Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. 2012 1040 ez    You can find this information (organized by state) on the Internet at www. 2012 1040 ez gsa. 2012 1040 ez gov/perdiem. 2012 1040 ez Enter a zip code or select a city and state for the per diem rates for the current fiscal year. 2012 1040 ez Per diem rates for prior fiscal years are available by using the drop down menu under “Search by State. 2012 1040 ez ”   Per diem rates are listed by the Federal government's fiscal year which runs from October 1 to September 30. 2012 1040 ez You can choose to use the rates from the 2013 fiscal year per diem tables or the rates from the 2014 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return for the year. 2012 1040 ez   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. 2012 1040 ez If you work in the transportation industry, however, see Special rate for transportation workers , later. 2012 1040 ez Standard meal allowance for areas outside the continental United States. 2012 1040 ez   The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. 2012 1040 ez The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. 2012 1040 ez S. 2012 1040 ez Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. 2012 1040 ez The Department of State establishes per diem rates for all other foreign areas. 2012 1040 ez    You can access per diem rates for non-foreign areas outside the continental United States at: www. 2012 1040 ez defensetravel. 2012 1040 ez dod. 2012 1040 ez mil/site/perdiemCalc. 2012 1040 ez cfm. 2012 1040 ez You can access all other foreign per diem rates at: www. 2012 1040 ez state. 2012 1040 ez gov/travel/. 2012 1040 ez Click on “Travel Per Diem Allowances for Foreign Areas,” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates. 2012 1040 ez Special rate for transportation workers. 2012 1040 ez   You can use a special standard meal allowance if you work in the transportation industry. 2012 1040 ez You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. 2012 1040 ez If this applies to you, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). 2012 1040 ez   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. 2012 1040 ez If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. 2012 1040 ez Travel for days you depart and return. 2012 1040 ez   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). 2012 1040 ez You can do so by one of two methods. 2012 1040 ez Method 1: You can claim 3/4 of the standard meal allowance. 2012 1040 ez Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. 2012 1040 ez Example. 2012 1040 ez Jen is employed in New Orleans as a convention planner. 2012 1040 ez In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. 2012 1040 ez She left her home in New Orleans at 10 a. 2012 1040 ez m. 2012 1040 ez on Wednesday and arrived in Washington, DC, at 5:30 p. 2012 1040 ez m. 2012 1040 ez After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. 2012 1040 ez m. 2012 1040 ez Jen's employer gave her a flat amount to cover her expenses and included it with her wages. 2012 1040 ez Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. 2012 1040 ez Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. 2012 1040 ez For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. 2012 1040 ez Travel in the United States The following discussion applies to travel in the United States. 2012 1040 ez For this purpose, the United States includes the 50 states and the District of Columbia. 2012 1040 ez The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. 2012 1040 ez See Part of Trip Outside the United States , later. 2012 1040 ez Trip Primarily for Business You can deduct all of your travel expenses if your trip was entirely business related. 2012 1040 ez If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. 2012 1040 ez These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. 2012 1040 ez Example. 2012 1040 ez You work in Atlanta and take a business trip to New Orleans in May. 2012 1040 ez Your business travel totals 850 miles round trip. 2012 1040 ez On your way, you stop in Mobile to visit your parents. 2012 1040 ez You spend $2,120 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. 2012 1040 ez If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,820. 2012 1040 ez You can deduct $1,820 for your trip, including the cost of round-trip transportation to and from New Orleans. 2012 1040 ez The deduction for your meals is subject to the 50% limit on meals mentioned earlier. 2012 1040 ez Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. 2012 1040 ez However, you can deduct any expenses you have while at your destination that are directly related to your business. 2012 1040 ez A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. 2012 1040 ez The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. 2012 1040 ez Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later in this chapter under Travel Outside the United States for that part of the trip. 2012 1040 ez For the part of your trip that is inside the United States, use the rules for travel in the United States. 2012 1040 ez Travel outside the United States does not include travel from one point in the United States to another point in the United States. 2012 1040 ez The following discussion can help you determine whether your trip was entirely within the United States. 2012 1040 ez Public transportation. 2012 1040 ez   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. 2012 1040 ez Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . 2012 1040 ez Example. 2012 1040 ez You fly from New York to Puerto Rico with a scheduled stop in Miami. 2012 1040 ez You return to New York nonstop. 2012 1040 ez The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. 2012 1040 ez Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. 2012 1040 ez Private car. 2012 1040 ez   Travel by private car in the United States is travel between points in the United States, even though you are on your way to a destination outside the United States. 2012 1040 ez Example. 2012 1040 ez You travel by car from Denver to Mexico City and return. 2012 1040 ez Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. 2012 1040 ez The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. 2012 1040 ez Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. 2012 1040 ez For this purpose, the United States includes the 50 states and the District of Columbia. 2012 1040 ez How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. 2012 1040 ez Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. 2012 1040 ez Travel entirely for business. 2012 1040 ez   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. 2012 1040 ez Travel considered entirely for business. 2012 1040 ez   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. 2012 1040 ez Exception 1 - No substantial control. 2012 1040 ez   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. 2012 1040 ez The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. 2012 1040 ez   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, and Are not related to your employer, or Are not a managing executive. 2012 1040 ez    “Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances . 2012 1040 ez   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. 2012 1040 ez   A self-employed person generally has substantial control over arranging business trips. 2012 1040 ez Exception 2 - Outside United States no more than a week. 2012 1040 ez   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. 2012 1040 ez One week means 7 consecutive days. 2012 1040 ez In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. 2012 1040 ez Example. 2012 1040 ez You traveled to Brussels primarily for business. 2012 1040 ez You left Denver on Tuesday and flew to New York. 2012 1040 ez On Wednesday, you flew from New York to Brussels, arriving the next morning. 2012 1040 ez On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. 2012 1040 ez You flew back to New York, arriving Wednesday afternoon. 2012 1040 ez On Thursday, you flew back to Denver. 2012 1040 ez Although you were away from your home in Denver for more than a week, you were not outside the United States for more than a week. 2012 1040 ez This is because the day you depart does not count as a day outside the United States. 2012 1040 ez You can deduct your cost of the round-trip flight between Denver and Brussels. 2012 1040 ez You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. 2012 1040 ez However, you cannot deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities. 2012 1040 ez Exception 3 - Less than 25% of time on personal activities. 2012 1040 ez   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. 2012 1040 ez For this purpose, count both the day your trip began and the day it ended. 2012 1040 ez Example. 2012 1040 ez You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. 2012 1040 ez You then flew back to Seattle. 2012 1040 ez You spent 1 day flying in each direction. 2012 1040 ez Because only 5/21 (less than 25%) of your total time abroad was for nonbusiness activities, you can deduct as travel expenses what it would have cost you to make the trip if you had not engaged in any nonbusiness activity. 2012 1040 ez The amount you can deduct is the cost of the round-trip plane fare and 16 days of meals (subject to the 50% limit), lodging, and other related expenses. 2012 1040 ez Exception 4 - Vacation not a major consideration. 2012 1040 ez   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. 2012 1040 ez Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on other activities, you generally cannot deduct all of your travel expenses. 2012 1040 ez You can only deduct the business portion of your cost of getting to and from your destination. 2012 1040 ez You must allocate the costs between your business and other activities to determine your deductible amount. 2012 1040 ez See Travel allocation rules , later. 2012 1040 ez You do not have to allocate your travel expenses if you meet one of the four exceptions listed earlier under Travel considered entirely for business . 2012 1040 ez In those cases, you can deduct the total cost of getting to and from your destination. 2012 1040 ez Travel allocation rules. 2012 1040 ez   If your trip outside the United States was primarily for business, you must allocate your travel time on a day-to-day basis between business days and nonbusiness days. 2012 1040 ez The days you depart from and return to the United States are both counted as days outside the United States. 2012 1040 ez   To figure the deductible amount of your round-trip travel expenses, use the following fraction. 2012 1040 ez The numerator (top number) is the total number of business days outside the United States. 2012 1040 ez The denominator (bottom number) is the total number of business and nonbusiness days of travel. 2012 1040 ez Counting business days. 2012 1040 ez   Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays. 2012 1040 ez Transportation day. 2012 1040 ez   Count as a business day any day you spend traveling to or from a business destination. 2012 1040 ez However, if because of a nonbusiness activity you do not travel by a direct route, your business days are the days it would take you to travel a reasonably direct route to your business destination. 2012 1040 ez Extra days for side trips or nonbusiness activities cannot be counted as business days. 2012 1040 ez Presence required. 2012 1040 ez   Count as a business day any day your presence is required at a particular place for a specific business purpose. 2012 1040 ez Count it as a business day even if you spend most of the day on nonbusiness activities. 2012 1040 ez Day spent on business. 2012 1040 ez   If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. 2012 1040 ez Also, count as a business day any day you are prevented from working because of circumstances beyond your control. 2012 1040 ez Certain weekends and holidays. 2012 1040 ez   Count weekends, holidays, and other necessary standby days as business days if they fall between business days. 2012 1040 ez But if they follow your business meetings or activity and you remain at your business destination for nonbusiness or personal reasons, do not count them as business days. 2012 1040 ez Example 1. 2012 1040 ez Your tax home is New York City. 2012 1040 ez You travel to Quebec, where you have a business appointment on Friday. 2012 1040 ez You have another appointment on the following Monday. 2012 1040 ez Because your presence was required on both Friday and Monday, they are business days. 2012 1040 ez Because the weekend is between business days, Saturday and Sunday are counted as business days. 2012 1040 ez This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity. 2012 1040 ez Example 2. 2012 1040 ez If, in Example 1, you had no business in Quebec after Friday, but stayed until Monday before starting home, Saturday and Sunday would be nonbusiness days. 2012 1040 ez Nonbusiness activity on the way to or from your business destination. 2012 1040 ez   If you stopped for a vacation or other nonbusiness activity either on the way from the United States to your business destination, or on the way back to the United States from your business destination, you must allocate part of your travel expenses to the nonbusiness activity. 2012 1040 ez   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your nonbusiness destination and a return to the point where travel outside the United States ends. 2012 1040 ez   You determine the nonbusiness portion of that expense by multiplying it by a fraction. 2012 1040 ez The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. 2012 1040 ez Example. 2012 1040 ez You live in New York. 2012 1040 ez On May 4 you flew to Paris to attend a business conference that began on May 5. 2012 1040 ez The conference ended at noon on May 14. 2012 1040 ez That evening you flew to Dublin where you visited with friends until the afternoon of May 21, when you flew directly home to New York. 2012 1040 ez The primary purpose for the trip was to attend the conference. 2012 1040 ez If you had not stopped in Dublin, you would have arrived home the evening of May 14. 2012 1040 ez You do not meet any of the exceptions that would allow you to consider your travel entirely for business. 2012 1040 ez May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days. 2012 1040 ez You can deduct the cost of your meals (subject to the 50% limit), lodging, and other business-related travel expenses while in Paris. 2012 1040 ez You cannot deduct your expenses while in Dublin. 2012 1040 ez You also cannot deduct 7/18 of what it would have cost you to travel round-trip between New York and Dublin. 2012 1040 ez You paid $750 to fly from New York to Paris, $400 to fly from Paris to Dublin, and $700 to fly from Dublin back to New York. 2012 1040 ez Round-trip airfare from New York to Dublin would have been $1,250. 2012 1040 ez You figure the deductible part of your air travel expenses by subtracting 7/18 of the round-trip fare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7/18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850). 2012 1040 ez Your deductible air travel expense is $1,364 ($1,850 − $486). 2012 1040 ez Nonbusiness activity at, near, or beyond business destination. 2012 1040 ez   If you had a vacation or other nonbusiness activity at, near, or beyond your business destination, you must allocate part of your travel expenses to the nonbusiness activity. 2012 1040 ez   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your business destination and a return to the point where travel outside the United States ends. 2012 1040 ez   You determine the nonbusiness portion of that expense by multiplying it by a fraction. 2012 1040 ez The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. 2012 1040 ez   None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible. 2012 1040 ez Example. 2012 1040 ez Assume that the dates are the same as in the previous example but that instead of going to Dublin for your vacation, you fly to Venice, Italy, for a vacation. 2012 1040 ez You cannot deduct any part of the cost of your trip from Paris to Venice and return to Paris. 2012 1040 ez In addition, you cannot deduct 7/18 of the airfare and other expenses from New York to Paris and back to New York. 2012 1040 ez You can deduct 11/18 of the round-trip plane fare and other travel expenses from New York to Paris, plus your meals (subject to the 50% limit), lodging, and any other business expenses you had in Paris. 2012 1040 ez (Assume these expenses total $4,939. 2012 1040 ez ) If the round-trip plane fare and other travel-related expenses (such as food during the trip) are $1,750, you can deduct travel costs of $1,069 (11/18 × $1,750), plus the full $4,939 for the expenses you had in Paris. 2012 1040 ez Other methods. 2012 1040 ez   You can use another method of counting business days if you establish that it more clearly reflects the time spent on other than business activities outside the United States. 2012 1040 ez Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. 2012 1040 ez However, if you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. 2012 1040 ez Example. 2012 1040 ez The university from which you graduated has a continuing education program for members of its alumni association. 2012 1040 ez This program consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. 2012 1040 ez However, none of the conferences are directed toward specific occupations or professions. 2012 1040 ez It is up to each participant to seek out specialists and organizational settings appropriate to his or her occupational interests. 2012 1040 ez Three-hour sessions are held each day over a 5-day period at each of the selected overseas facilities where participants can meet with individual practitioners. 2012 1040 ez These sessions are composed of a variety of activities including workshops, mini-lectures, role playing, skill development, and exercises. 2012 1040 ez Professional conference directors schedule and conduct the sessions. 2012 1040 ez Participants can choose those sessions they wish to attend. 2012 1040 ez You can participate in this program since you are a member of the alumni association. 2012 1040 ez You and your family take one of the trips. 2012 1040 ez You spend about 2 hours at each of the planned sessions. 2012 1040 ez The rest of the time you go touring and sightseeing with your family. 2012 1040 ez The trip lasts less than 1 week. 2012 1040 ez Your travel expenses for the trip are not deductible since the trip was primarily a vacation. 2012 1040 ez However, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. 2012 1040 ez These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses. 2012 1040 ez Luxury Water Travel If you travel by ocean liner, cruise ship, or other form of luxury water transportation for business purposes, there is a daily limit on the amount you can deduct. 2012 1040 ez The limit is twice the highest federal per diem rate allowable at the time of your travel. 2012 1040 ez (Generally, the federal per diem is the amount paid to federal government employees for daily living expenses when they travel away from home, but in the United States, for business purposes. 2012 1040 ez ) Daily limit on luxury water travel. 2012 1040 ez   The highest federal per diem rate allowed and the daily limit for luxury water travel in 2013 is shown in the following table. 2012 1040 ez   2013 Dates Highest Federal Per Diem Daily Limit on Luxury Water Travel   Jan. 2012 1040 ez 1 – Mar. 2012 1040 ez 31 $367 $734   Apr. 2012 1040 ez 1 – June 30 312 624   July 1 – Aug. 2012 1040 ez 31 310 620   Sept. 2012 1040 ez 1 – Sept. 2012 1040 ez 30 366 732   Oct. 2012 1040 ez 1 – Dec. 2012 1040 ez 31 374 748 Example. 2012 1040 ez Caroline, a travel agent, traveled by ocean liner from New York to London, England, on business in May. 2012 1040 ez Her expense for the 6-day cruise was $5,200. 2012 1040 ez Caroline's deduction for the cruise cannot exceed $3,744 (6 days × $624 daily limit). 2012 1040 ez Meals and entertainment. 2012 1040 ez   If your expenses for luxury water travel include separately stated amounts for meals or entertainment, those amounts are subject to the 50% limit on meals and entertainment before you apply the daily limit. 2012 1040 ez For a discussion of the 50% Limit , see chapter 2. 2012 1040 ez Example. 2012 1040 ez In the previous example, Caroline's luxury water travel had a total cost of $5,200. 2012 1040 ez Of that amount, $3,700 was separately stated as meals and entertainment. 2012 1040 ez Caroline, who is self-employed, is not reimbursed for any of her travel expenses. 2012 1040 ez Caroline figures her deductible travel expenses as follows. 2012 1040 ez Meals and entertainment $3,700   50% limit × . 2012 1040 ez 50   Allowable meals &     entertainment $1,850   Other travel expenses + 1,800   Allowable cost before the daily limit $3,650 Daily limit for May 2013 $624   Times number of days × 6   Maximum luxury water travel     deduction $3,744 Amount of allowable deduction $3,650 Caroline's deduction for her cruise is limited to $3,650, even though the limit on luxury water travel is slightly higher. 2012 1040 ez Not separately stated. 2012 1040 ez   If your meal or entertainment charges are not separately stated or are not clearly identifiable, you do not have to allocate any portion of the total charge to meals or entertainment. 2012 1040 ez Exceptions The daily limit on luxury water travel (discussed earlier) does not apply to expenses you have to attend a convention, seminar, or meeting on board a cruise ship. 2012 1040 ez See Cruise Ships under Conventions. 2012 1040 ez Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. 2012 1040 ez You cannot deduct the travel expenses for your family. 2012 1040 ez If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. 2012 1040 ez Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. 2012 1040 ez You can deduct your travel expenses only if your attendance is connected to your own trade or business. 2012 1040 ez Convention agenda. 2012 1040 ez   The convention agenda or program generally shows the purpose of the convention. 2012 1040 ez You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. 2012 1040 ez The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. 2012 1040 ez Conventions Held Outside the North American Area You cannot deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless: The meeting is directly related to your trade or business, and It is reasonable to hold the meeting outside the North American area. 2012 1040 ez See Reasonableness test , later. 2012 1040 ez If the meeting meets these requirements, you also must satisfy the rules for deducting expenses for business trips in general, discussed earlier under Travel Outside the United States . 2012 1040 ez North American area. 2012 1040 ez   The North American area includes the following locations. 2012 1040 ez American Samoa Johnston Island Antigua and Barbuda Kingman Reef Aruba Marshall Islands Bahamas Mexico Baker Island Micronesia Barbados Midway Islands Bermuda Netherlands Antilles Canada Northern Mariana Costa Rica Islands Dominica Palau Dominican Republic Palmyra Atoll Grenada Panama Guam Puerto Rico Guyana Trinidad and Tobago Honduras USA Howland Island U. 2012 1040 ez S. 2012 1040 ez Virgin Islands Jamaica Wake Island Jarvis Island   The North American area also includes U. 2012 1040 ez S. 2012 1040 ez islands, cays, and reefs that are possessions of the United States and not part of the fifty states or the District of Columbia. 2012 1040 ez Reasonableness test. 2012 1040 ez   The following factors are taken into account to determine if it was reasonable to hold the meeting outside the North American area. 2012 1040 ez The purpose of the meeting and the activities taking place at the meeting. 2012 1040 ez The purposes and activities of the sponsoring organizations or groups. 2012 1040 ez The homes of the active members of the sponsoring organizations and the places at which other meetings of the sponsoring organizations or groups have been or will be held. 2012 1040 ez Other relevant factors you may present. 2012 1040 ez Cruise Ships You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. 2012 1040 ez All ships that sail are considered cruise ships. 2012 1040 ez You can deduct these expenses only if all of the following requirements are met. 2012 1040 ez The convention, seminar, or meeting is directly related to your trade or business. 2012 1040 ez The cruise ship is a vessel registered in the United States. 2012 1040 ez All of the cruise ship's ports of call are in the United States or in possessions of the United States. 2012 1040 ez You attach to your return a written statement signed by you that includes information about: The total days of the trip (not including the days of transportation to and from the cruise ship port), The number of hours each day that you devoted to scheduled business activities, and A program of the scheduled business activities of the meeting. 2012 1040 ez You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes: A schedule of the business activities of each day of the meeting, and The number of hours you attended the scheduled business activities. 2012 1040 ez Prev  Up  Next   Home   More Online Publications
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Tax Relief for Victims of Tropical Storm Irene in New Hampshire

E-file to Remain Open through Oct. 31 for Victims of Tropical Storm Irene

NH-2011-31, Sept. 8, 2011

BOSTON — Victims of Tropical Storm Irene that began on Aug. 27, 2011 in parts of New Hampshire may qualify for tax relief from the Internal Revenue Service.

The President has declared the following counties a federal disaster area: Carroll and Grafton. Individuals who reside or have a business in these counties may qualify for tax relief.

The declaration permits the IRS to postpone certain deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Aug. 27, and on or before Oct. 31, have been postponed to Oct. 31, 2011. This includes corporations and other businesses that previously obtained an extension until Sept. 15 to file their 2010 returns, and individuals and businesses that received a similar extension until Oct. 17. It also includes the estimated tax payment for the third quarter, normally due Sept. 15.

In addition, the IRS is waiving the failure-to-deposit penalties for employment and excise tax deposits due on or after Aug. 27, and on or before Sept. 12, as long as the deposits are made by Sept. 12, 2011.

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

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

Covered Disaster Area

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

Affected Taxpayers

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

Grant of Relief

Under section 7508A, the IRS gives affected taxpayers until Oct. 31 to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date occurring on or after Aug. 27 and on or before Oct. 31.

The IRS also gives affected taxpayers until Oct. 31 to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2007-56, 2007-34 I.R.B. 388 (Aug. 20, 2007), that are due to be performed on or after Aug. 27 and on or before Oct. 31.

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

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise tax deposits due on or after Aug. 27 and on or before Sept. 12 provided the taxpayer makes these deposits by Sept. 12.

Casualty Losses

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

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

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation “New Hampshire/Tropical Storm Irene” at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

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

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

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

Related Information

Page Last Reviewed or Updated: 20-Mar-2014

The 2012 1040 Ez

2012 1040 ez Publication 509 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. 2012 1040 ez Tax questions. 2012 1040 ez Background Information for Using the Tax CalendarsElectronic deposit requirement. 2012 1040 ez Legal holidays. 2012 1040 ez Statewide legal holidays. 2012 1040 ez Future Developments For the latest information about developments related to Publication 509, such as legislation enacted after it was published, go to www. 2012 1040 ez irs. 2012 1040 ez gov/pub509. 2012 1040 ez What's New Publication 1518 discontinued after 2013. 2012 1040 ez  Publication 1518, IRS Tax Calendar for Small Businesses and Self-Employed, is discontinued after 2013. 2012 1040 ez An IRS Tax Calendar and most of the information previously contained in Publication 1518 can be found at www. 2012 1040 ez irs. 2012 1040 ez gov/taxcalendar. 2012 1040 ez Reminders Photographs of missing children. 2012 1040 ez  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. 2012 1040 ez Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 2012 1040 ez 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. 2012 1040 ez Introduction A tax calendar is a 12-month calendar divided into quarters. 2012 1040 ez The calendar gives specific due dates for: Filing tax forms, Paying taxes, and Taking other actions required by federal tax law. 2012 1040 ez What does this publication contain?   This publication contains the following. 2012 1040 ez A section on how to use the tax calendars. 2012 1040 ez Three tax calendars: General Tax Calendar, Employer's Tax Calendar, and Excise Tax Calendar. 2012 1040 ez A table showing the semiweekly deposit due dates for payroll taxes for 2014. 2012 1040 ez   Most of the due dates discussed in this publication are also included in the IRS Tax Calendar available at www. 2012 1040 ez irs. 2012 1040 ez gov/taxcalendar. 2012 1040 ez Who should use this publication?   Primarily, employers need to use this publication. 2012 1040 ez However, the General Tax Calendar has important due dates for all businesses and individuals. 2012 1040 ez Anyone who must pay excise taxes may need the Excise Tax Calendar . 2012 1040 ez What are the advantages of using a tax calendar?   The following are advantages of using a calendar. 2012 1040 ez You do not have to figure the due dates yourself. 2012 1040 ez You can file or pay timely and avoid penalties. 2012 1040 ez You do not have to adjust the due dates for Saturdays, Sundays, and legal holidays. 2012 1040 ez You do not have to adjust the due dates for special banking rules if you use the Employer's Tax Calendar or Excise Tax Calendar . 2012 1040 ez Which calendar(s) should I use?   To decide which calendar(s) to use, first look at the General Tax Calendar and highlight the dates that apply to you. 2012 1040 ez If you are an employer, also use the Employer's Tax Calendar . 2012 1040 ez If you must pay excise taxes, use the Excise Tax Calendar . 2012 1040 ez Depending on your situation, you may need to use more than one calendar. 2012 1040 ez Table 1. 2012 1040 ez Useful Publications IF you are. 2012 1040 ez . 2012 1040 ez . 2012 1040 ez THEN you may need. 2012 1040 ez . 2012 1040 ez . 2012 1040 ez An employer • Publication 15 (Circular E), Employer's Tax Guide. 2012 1040 ez  • Publication 15-A, Employer's Supplemental Tax Guide. 2012 1040 ez  • Publication 15-B, Employer's Tax Guide to Fringe Benefits. 2012 1040 ez  • Publication 926, Household Employer's Tax Guide. 2012 1040 ez A farmer • Publication 51 (Circular A), Agricultural Employer's Tax Guide. 2012 1040 ez  • Publication 225, Farmer's Tax Guide. 2012 1040 ez An individual • Publication 505, Tax Withholding and Estimated Tax. 2012 1040 ez Required to pay excise taxes • Publication 510, Excise Taxes. 2012 1040 ez What is not in these calendars?   The calendars do not cover the employment or excise tax deposit rules. 2012 1040 ez You can find the deposit rules for employment taxes in Publication 15 (Circular E), Employer's Tax Guide. 2012 1040 ez The deposit rules for excise taxes are in Publication 510, Excise Taxes, and in the Instructions for Form 720, Quarterly Federal Excise Tax Return. 2012 1040 ez In addition, the calendars do not cover filing forms and other requirements for: Estate taxes, Gift taxes, Trusts, Exempt organizations, Certain types of corporations, or Foreign partnerships. 2012 1040 ez What other publications and tax forms will I need?   Table 1 lists other publications you may need to order. 2012 1040 ez Each calendar lists the forms you may need. 2012 1040 ez   See How To Get Tax Help near the end of this publication for information about getting publications and forms. 2012 1040 ez Comments and suggestions. 2012 1040 ez   We welcome your comments about this publication and your suggestions for future editions. 2012 1040 ez   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. 2012 1040 ez NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. 2012 1040 ez Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. 2012 1040 ez   You can send us comments from www. 2012 1040 ez irs. 2012 1040 ez gov/formspubs. 2012 1040 ez Click on More Information and then click on Comment on Tax Forms and Publications. 2012 1040 ez   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our forms and publications. 2012 1040 ez Ordering forms and publications. 2012 1040 ez   Visit www. 2012 1040 ez irs. 2012 1040 ez gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. 2012 1040 ez Internal Revenue Service 1201 N. 2012 1040 ez Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. 2012 1040 ez   If you have a tax question, check the information available on IRS. 2012 1040 ez gov or call 1-800-829-1040. 2012 1040 ez We cannot answer tax questions sent to either of the above addresses. 2012 1040 ez Background Information for Using the Tax Calendars The following brief explanations may be helpful to you in using the tax calendars. 2012 1040 ez IRS e-services make taxes easier. 2012 1040 ez   Now more than ever before, businesses can enjoy the benefits of filing and paying their federal taxes electronically. 2012 1040 ez Whether you rely on a tax professional or handle your own taxes, the IRS offers you convenient programs to make taxes easier. 2012 1040 ez    You can e-file your Form 1040; certain business tax returns such as Forms 1120, 1120S, and 1065; certain employment tax returns such as Forms 940 and 941; certain excise tax returns such as Forms 720, 2290, and 8849; and Form 1099 and other information returns. 2012 1040 ez Visit www. 2012 1040 ez irs. 2012 1040 ez gov/efile for more information. 2012 1040 ez You can pay taxes online or by phone using the Electronic Federal Tax Payments System (EFTPS). 2012 1040 ez For detailed information about using this free service, see Electronic deposit requirement below. 2012 1040 ez   Use these electronic options to make filing and paying taxes easier. 2012 1040 ez For more information on electronic payments, visit the IRS website at www. 2012 1040 ez irs. 2012 1040 ez gov/e-pay. 2012 1040 ez Tax deposits. 2012 1040 ez   Some taxes can be paid with the return on which they are reported. 2012 1040 ez However, in many cases, you have to deposit the tax before the due date for filing the return. 2012 1040 ez Tax deposits are figured for periods of time that are shorter than the time period covered by the return. 2012 1040 ez See Publication 15 (Circular E) for the employment tax deposit rules. 2012 1040 ez For the excise tax deposit rules, see Publication 510 or the Instructions for Form 720. 2012 1040 ez    Electronic deposit requirement. 2012 1040 ez   You must use electronic funds transfer to make all federal tax deposits (such as deposits of employment tax, excise tax, and corporate income tax). 2012 1040 ez Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). 2012 1040 ez EFTPS is a free service provided by the Department of Treasury. 2012 1040 ez If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. 2012 1040 ez   To get more information or to enroll in EFTPS, call 1-800-555-4477 (business), 1-800-316-6541 (individual), or 1-800-733-4829 (TDD/TTY). 2012 1040 ez You can also visit the EFTPS website at www. 2012 1040 ez eftps. 2012 1040 ez gov. 2012 1040 ez Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide to Getting Started. 2012 1040 ez    If you fail to timely, properly, and in full make your federal tax deposit, you may be subject to a failure-to-deposit penalty. 2012 1040 ez For an EFTPS deposit to be on time, you must initiate the deposit by 8 p. 2012 1040 ez m. 2012 1040 ez Eastern time the day before the date the deposit is due. 2012 1040 ez Saturday, Sunday, or legal holiday. 2012 1040 ez   Generally, if a due date for performing any act for tax purposes falls on a Saturday, Sunday, or legal holiday, the act is considered to be performed timely if it is performed no later than the next day that is not a Saturday, Sunday, or legal holiday. 2012 1040 ez The term legal holiday means any legal holiday in the District of Columbia. 2012 1040 ez The calendars provided in this publication make the adjustment for Saturdays, Sundays, and legal holidays. 2012 1040 ez But you must make any adjustments for statewide legal holidays, as discussed next. 2012 1040 ez An exception to this rule for certain excise taxes is noted later under the Excise Tax Calendar. 2012 1040 ez Legal holidays. 2012 1040 ez   Legal holidays for 2014 are listed below. 2012 1040 ez January 1— New Year's Day January 20— Birthday of Martin Luther King, Jr. 2012 1040 ez / Inauguration Day February 17— Washington's Birthday April 16— District of Columbia Emancipation Day May 26— Memorial Day July 4— Independence Day September 1— Labor Day October 13— Columbus Day November 11— Veterans Day November 27— Thanksgiving Day December 25— Christmas Day Statewide legal holidays. 2012 1040 ez   A statewide legal holiday delays a due date for filing a return only if the IRS office where you are required to file is located in that state. 2012 1040 ez A statewide legal holiday does not delay a due date for making a federal tax deposit. 2012 1040 ez Extended due date for Forms 1098, 1099, and W-2 if filed electronically. 2012 1040 ez   If you file Forms 1098, 1099, or W-2 electronically, your due date for filing them with the IRS or the Social Security Administration (SSA) will be extended to March 31. 2012 1040 ez   For 2014, the due date for giving the recipient these forms is January 31. 2012 1040 ez   For information about filing Forms 1098, 1099, or W-2G electronically, see Publication 1220, Specifications for Filing Forms 1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G Electronically. 2012 1040 ez For information about filing Form W-2 electronically with the SSA, visit www. 2012 1040 ez ssa. 2012 1040 ez gov/employer or call 1-800-772-6270. 2012 1040 ez Penalties. 2012 1040 ez   Whenever possible, you should take action before the listed due date. 2012 1040 ez If you are late, you may have to pay a penalty as well as interest on any overdue taxes. 2012 1040 ez   Be sure to follow all the tax laws that apply to you. 2012 1040 ez In addition to civil penalties, criminal penalties may be imposed for intentionally not paying taxes, for intentionally filing a false return, or for not filing a required return. 2012 1040 ez Use of private delivery services. 2012 1040 ez   You can use certain private delivery services designated by the IRS to meet the timely mailing as timely filing/paying rule for tax returns and payments. 2012 1040 ez These private delivery services include only the following. 2012 1040 ez DHL Express (DHL): DHL Same Day Service. 2012 1040 ez Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Priority, and FedEx International First. 2012 1040 ez United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. 2012 1040 ez M. 2012 1040 ez , UPS Worldwide Express Plus, and UPS Worldwide Express. 2012 1040 ez   For the IRS mailing address to use if you are using a private delivery service, go to IRS. 2012 1040 ez gov and enter “private delivery service” in the search box. 2012 1040 ez   The private delivery service can tell you how to get written proof of the mailing date. 2012 1040 ez    The U. 2012 1040 ez S. 2012 1040 ez Postal Service advises that private delivery services cannot deliver items to P. 2012 1040 ez O. 2012 1040 ez boxes. 2012 1040 ez You must use the U. 2012 1040 ez S. 2012 1040 ez Postal Service to mail any item to an IRS P. 2012 1040 ez O. 2012 1040 ez box address. 2012 1040 ez Prev  Up  Next   Home   More Online Publications