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Amended Return Instructions

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Amended Return Instructions

Amended return instructions 37. Amended return instructions   Other Credits Table of Contents What's New Introduction Useful Items - You may want to see: Nonrefundable CreditsAdoption Credit Alternative Motor Vehicle Credit Alternative Fuel Vehicle Refueling Property Credit Credit to Holders of Tax Credit Bonds Foreign Tax Credit Mortgage Interest Credit Nonrefundable Credit for Prior Year Minimum Tax Plug-in Electric Drive Motor Vehicle Credit Residential Energy Credits Retirement Savings Contributions Credit (Saver's Credit) Refundable CreditsCredit for Tax on Undistributed Capital Gain Health Coverage Tax Credit Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld What's New Adoption credit. Amended return instructions  The maximum adoption credit is $12,970 for 2013. Amended return instructions See Adoption Credit . Amended return instructions Plug-in electric vehicle credit. Amended return instructions  This credit has expired. Amended return instructions Credit for prior year minimum tax. Amended return instructions  The refundable portion of the credit for prior year minimum tax has expired. Amended return instructions Excess withholding of social security and railroad retirement tax. Amended return instructions  Social security tax and tier 1 railroad retirement (RRTA) tax were both withheld during 2013 at a rate of 6. Amended return instructions 2% of wages up to $113,700. Amended return instructions If you worked for more than one employer and had too much social security or RRTA tax withheld during 2013, you may be entitled to a credit for the excess withholding. Amended return instructions See Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld . Amended return instructions Introduction This chapter discusses the following nonrefundable credits. Amended return instructions Adoption credit. Amended return instructions Alternative motor vehicle credit. Amended return instructions Alternative fuel vehicle refueling property credit. Amended return instructions Credit to holders of tax credit bonds. Amended return instructions Foreign tax credit. Amended return instructions Mortgage interest credit. Amended return instructions Nonrefundable credit for prior year minimum tax. Amended return instructions Plug-in electric drive motor vehicle credit. Amended return instructions Residential energy credits. Amended return instructions Retirement savings contributions credit. Amended return instructions This chapter also discusses the following refundable credits. Amended return instructions Credit for tax on undistributed capital gain. Amended return instructions Health coverage tax credit. Amended return instructions Credit for excess social security tax or railroad retirement tax withheld. Amended return instructions Several other credits are discussed in other chapters in this publication. Amended return instructions Child and dependent care credit (chapter 32). Amended return instructions Credit for the elderly or the disabled (chapter 33). Amended return instructions Child tax credit (chapter 34). Amended return instructions Education credits (chapter 35). Amended return instructions Earned income credit (chapter 36). Amended return instructions Nonrefundable credits. Amended return instructions   The first part of this chapter, Nonrefundable Credits , covers ten credits that you subtract from your tax. Amended return instructions These credits may reduce your tax to zero. Amended return instructions If these credits are more than your tax, the excess is not refunded to you. Amended return instructions Refundable credits. Amended return instructions   The second part of this chapter, Refundable Credits , covers three credits that are treated as payments and are refundable to you. Amended return instructions These credits are added to the federal income tax withheld and any estimated tax payments you made. Amended return instructions If this total is more than your total tax, the excess will be refunded to you. Amended return instructions Useful Items - You may want to see: Publication 502 Medical and Dental Expenses 514 Foreign Tax Credit for  Individuals 530 Tax Information for Homeowners 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) 1116 Foreign Tax Credit 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains 5695 Residential Energy Credits 8396 Mortgage Interest Credit 8801 Credit For Prior Year Minimum Tax — Individuals, Estates, and Trusts 8828 Recapture of Federal Mortgage Subsidy 8839 Qualified Adoption Expenses 8880 Credit for Qualified Retirement Savings Contributions 8885 Health Coverage Tax Credit 8910 Alternative Motor Vehicle Credit 8911 Alternative Fuel Vehicle Refueling Property Credit 8912 Credit to Holders of Tax Credit Bonds 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Nonrefundable Credits The credits discussed in this part of the chapter can reduce your tax. Amended return instructions However, if the total of these credits is more than your tax, the excess is not refunded to you. Amended return instructions Adoption Credit You may be able to take a tax credit of up to $12,970 for qualified expenses paid to adopt an eligible child. Amended return instructions The credit may be allowed for the adoption of a child with special needs even if you do not have any qualified expenses. Amended return instructions If your modified adjusted gross income (AGI) is more than $194,580, your credit is reduced. Amended return instructions If your modified AGI is $234,580 or more, you cannot take the credit. Amended return instructions Qualified adoption expenses. Amended return instructions   Qualified adoption expenses are reasonable and necessary expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child. Amended return instructions These expenses include: Adoption fees, Court costs, Attorney fees, Travel expenses (including amounts spent for meals and lodging) while away from home, and Re-adoption expenses to adopt a foreign child. Amended return instructions Nonqualified expenses. Amended return instructions   Qualified adoption expenses do not include expenses: That violate state or federal law, For carrying out any surrogate parenting arrangement, For the adoption of your spouse's child, For which you received funds under any federal, state, or local program, Allowed as a credit or deduction under any other federal income tax rule, or Paid or reimbursed by your employer or any other person or organization. Amended return instructions Eligible child. Amended return instructions   The term “eligible child” means any individual: Under 18 years old, or Physically or mentally incapable of caring for himself or herself. Amended return instructions Child with special needs. Amended return instructions   An eligible child is a child with special needs if all three of the following apply. Amended return instructions The child was a citizen or resident of the United States (including U. Amended return instructions S. Amended return instructions possessions) at the time the adoption process began. Amended return instructions A state (including the District of Columbia) has determined that the child cannot or should not be returned to his or her parents' home. Amended return instructions The state has determined that the child will not be adopted unless assistance is provided to the adoptive parents. Amended return instructions Factors used by states to make this determination include: The child's ethnic background, The child's age, Whether the child is a member of a minority or sibling group, and Whether the child has a medical condition or a physical, mental, or emotional handicap. Amended return instructions When to take the credit. Amended return instructions   Generally, until the adoption becomes final, you take the credit in the year after your qualified expenses were paid or incurred. Amended return instructions If the adoption becomes final, you take the credit in the year your expenses were paid or incurred. Amended return instructions See the Instructions for Form 8839 for more specific information on when to take the credit. Amended return instructions Foreign child. Amended return instructions   If the child is not a U. Amended return instructions S. Amended return instructions citizen or resident at the time the adoption process began, you cannot take the credit unless the adoption becomes final. Amended return instructions You treat all adoption expenses paid or incurred in years before the adoption becomes final as paid or incurred in the year it becomes final. Amended return instructions How to take the credit. Amended return instructions   Figure your 2013 nonrefundable credit and any carryforward to 2014 on Form 8839 and attach it to your Form 1040. Amended return instructions Include the credit in your total for Form 1040, line 53. Amended return instructions Check box c and enter “8839” on the line next to that box. Amended return instructions More information. Amended return instructions   For more information, see the Instructions for Form 8839. Amended return instructions Alternative Motor Vehicle Credit You may be able to take this credit if you place a qualified fuel cell vehicle in service in 2013. Amended return instructions Amount of credit. Amended return instructions   Generally, you can rely on the manufacturer's certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and the amount of the credit for which it qualifies. Amended return instructions In the case of a foreign manufacturer, you generally can rely on its domestic distributor's certification to the IRS. Amended return instructions   Ordinarily the amount of the credit is 100% of the manufacturer's (or domestic distributor's) certification to the IRS of the maximum credit allowable. Amended return instructions How to take the credit. Amended return instructions   To take the credit, you must complete Form 8910 and attach it to your Form 1040. Amended return instructions Include the credit in your total for Form 1040, line 53. Amended return instructions Check box c and enter “8910” on the line next to that box. Amended return instructions More information. Amended return instructions   For more information on the credit, see the Instructions for Form 8910. Amended return instructions Alternative Fuel Vehicle Refueling Property Credit You may be able to take a credit if you place qualified alternative fuel vehicle refueling property in service in 2013. Amended return instructions Qualified alternative fuel vehicle refueling property. Amended return instructions   Qualified alternative fuel vehicle refueling property is any property (other than a building or its structural components) used for either of the following. Amended return instructions To store or dispense alternative fuel into the fuel tank of a motor vehicle propelled by the fuel, but only if the storage or dispensing is at the point where the fuel is delivered into that tank. Amended return instructions To recharge an electric vehicle, but only if the recharging property is located at the point where the vehicle is recharged. Amended return instructions   The following are alternative fuels. Amended return instructions Any fuel at least 85% of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen. Amended return instructions Any mixture which consists of two or more of the following: biodiesel, diesel fuel, or kerosene, and at least 20% of the volume of which consists of biodiesel determined without regard to any kerosene. Amended return instructions Electricity. Amended return instructions Amount of the credit. Amended return instructions   For personal use property, the credit is generally the smaller of 30% of the property's cost or $1,000. Amended return instructions For business use property, the credit is generally the smaller of 30% of the property's cost or $30,000. Amended return instructions How to take the credit. Amended return instructions   To take the credit, you must complete Form 8911 and attach it to your Form 1040. Amended return instructions Include the credit in your total for Form 1040, line 53. Amended return instructions Check box c and enter “8911” on the line next to that box. Amended return instructions More information. Amended return instructions   For more information on the credit, see the Form 8911 instructions. Amended return instructions Credit to Holders of Tax Credit Bonds Tax credit bonds are bonds in which the holder receives a tax credit in lieu of some or all of the interest on the bond. Amended return instructions You may be able to take a credit if you are a holder of one of the following bonds. Amended return instructions Clean renewable energy bonds (issued before 2010). Amended return instructions New clean renewable energy bonds. Amended return instructions Qualified energy conservation bonds. Amended return instructions Qualified school construction bonds. Amended return instructions Qualified zone academy bonds. Amended return instructions Build America bonds. Amended return instructions In some instances, an issuer may elect to receive a credit for interest paid on the bond. Amended return instructions If the issuer makes this election, you cannot also claim a credit. Amended return instructions Interest income. Amended return instructions   The amount of any tax credit allowed (figured before applying tax liability limits) must be included as interest income on your tax return. Amended return instructions How to take the credit. Amended return instructions   Complete Form 8912 and attach it to your Form 1040. Amended return instructions Include the credit in your total for Form 1040, line 53. Amended return instructions Check box c and enter “8912” on the line next to that box. Amended return instructions More information. Amended return instructions   For more information, see the Instructions for Form 8912. Amended return instructions Foreign Tax Credit You generally can choose to take income taxes you paid or accrued during the year to a foreign country or U. Amended return instructions S. Amended return instructions possession as a credit against your U. Amended return instructions S. Amended return instructions income tax. Amended return instructions Or, you can deduct them as an itemized deduction (see chapter 22). Amended return instructions You cannot take a credit (or deduction) for foreign income taxes paid on income that you exclude from U. Amended return instructions S. Amended return instructions tax under any of the following. Amended return instructions Foreign earned income exclusion. Amended return instructions Foreign housing exclusion. Amended return instructions Income from Puerto Rico exempt from U. Amended return instructions S. Amended return instructions tax. Amended return instructions Possession exclusion. Amended return instructions Limit on the credit. Amended return instructions   Unless you can elect not to file Form 1116 (see Exception , later), your foreign tax credit cannot be more than your U. Amended return instructions S. Amended return instructions tax liability (Form 1040, line 44), multiplied by a fraction. Amended return instructions The numerator of the fraction is your taxable income from sources outside the United States. Amended return instructions The denominator is your total taxable income from U. Amended return instructions S. Amended return instructions and foreign sources. Amended return instructions See Publication 514 for more information. Amended return instructions How to take the credit. Amended return instructions   Complete Form 1116 and attach it to your Form 1040. Amended return instructions Enter the credit on Form 1040, line 47. Amended return instructions Exception. Amended return instructions   You do not have to complete Form 1116 to take the credit if all of the following apply. Amended return instructions All of your gross foreign source income was from interest and dividends and all of that income and the foreign tax paid on it were reported to you on Form 1099-INT, Form 1099-DIV, or Schedule K-1 (or substitute statement). Amended return instructions If you had dividend income from shares of stock, you held those shares for at least 16 days. Amended return instructions You are not filing Form 4563 or excluding income from sources within Puerto Rico. Amended return instructions The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly). Amended return instructions All of your foreign taxes were: Legally owed and not eligible for a refund, and Paid to countries that are recognized by the United States and do not support terrorism. Amended return instructions More information. Amended return instructions   For more information on the credit and these requirements, see the Instructions for Form 1116. Amended return instructions Mortgage Interest Credit The mortgage interest credit is intended to help lower-income individuals own a home. Amended return instructions If you qualify, you can take the credit each year for part of the home mortgage interest you pay. Amended return instructions Who qualifies. Amended return instructions   You may be eligible for the credit if you were issued a qualified mortgage credit certificate (MCC) from your state or local government. Amended return instructions Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home. Amended return instructions Amount of credit. Amended return instructions   Figure your credit on Form 8396. Amended return instructions If your mortgage loan amount is equal to (or smaller than) the certified indebtedness (loan) amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year. Amended return instructions   If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. Amended return instructions To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction. Amended return instructions      Certified indebtedness amount on your MCC     Original amount of your mortgage   Limit based on credit rate. Amended return instructions   If the certificate credit rate is more than 20%, the credit you are allowed cannot be more than $2,000. Amended return instructions If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, this $2,000 limit must be divided based on the interest held by each person. Amended return instructions See Publication 530 for more information. Amended return instructions Carryforward. Amended return instructions   Your credit (after applying the limit based on the credit rate) is also subject to a limit based on your tax that is figured using Form 8396. Amended return instructions If your allowable credit is reduced because of this tax liability limit, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first. Amended return instructions   If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit). Amended return instructions How to take the credit. Amended return instructions    Figure your 2013 credit and any carryforward to 2014 on Form 8396, and attach it to your Form 1040. Amended return instructions Be sure to include any credit carryforward from 2010, 2011, and 2012. Amended return instructions   Include the credit in your total for Form 1040, line 53. Amended return instructions Check box c and enter “8396” on the line next to that box. Amended return instructions Reduced home mortgage interest deduction. Amended return instructions   If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. Amended return instructions You must do this even if part of that amount is to be carried forward to 2014. Amended return instructions For more information about the home mortgage interest deduction, see chapter 23. Amended return instructions Recapture of federal mortgage subsidy. Amended return instructions   If you received an MCC with your mortgage loan, you may have to recapture (pay back) all or part of the benefit you received from that program. Amended return instructions The recapture may be required if you sell or dispose of your home at a gain during the first 9 years after the date you closed your mortgage loan. Amended return instructions See the Instructions for Form 8828 and chapter 15 for more information. Amended return instructions More information. Amended return instructions   For more information on the credit, see the Form 8396 instructions. Amended return instructions Nonrefundable Credit for Prior Year Minimum Tax The tax laws give special treatment to some kinds of income and allow special deductions and credits for some kinds of expenses. Amended return instructions If you benefit from these laws, you may have to pay at least a minimum amount of tax in addition to any other tax on these items. Amended return instructions This is called the alternative minimum tax. Amended return instructions The special treatment of some items of income and expenses only allows you to postpone paying tax until a later year. Amended return instructions If in prior years you paid alternative minimum tax because of these tax postponement items, you may be able to take a credit for prior year minimum tax against your current year's regular tax. Amended return instructions You may be able to take a credit against your regular tax if for 2012 you had: An alternative minimum tax liability and adjustments or preferences other than exclusion items, A minimum tax credit that you are carrying forward to 2013, or An unallowed qualified electric vehicle credit. Amended return instructions How to take the credit. Amended return instructions    Figure your 2013 nonrefundable credit (if any), and any carryforward to 2014 on Form 8801, and attach it to your Form 1040. Amended return instructions Include the credit in your total for Form 1040, line 53, and check box b. Amended return instructions You can carry forward any unused credit for prior year minimum tax to later years until it is completely used. Amended return instructions More information. Amended return instructions   For more information on the credit, see the Instructions for Form 8801. Amended return instructions Plug-in Electric Drive Motor Vehicle Credit You may be able to take this credit if you placed in service for business or personal use a qualified plug-in electric drive motor vehicle or a qualified two- or three-wheeled plug-in electric vehicle in 2013 and you meet some other requirements. Amended return instructions Qualified plug-in electric drive motor vehicle. Amended return instructions   This is a new vehicle with at least four wheels that: Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 4 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Amended return instructions Qualified two- or three-wheeled plug-in electric vehicle. Amended return instructions   This is a new vehicle with two or three wheels that: Is capable of achieving a speed of 45 miles per hour or greater, Is propelled to a significant extent by an electric motor that draws electricity from a battery that has a capacity of not less than 2. Amended return instructions 5 kilowatt hours and is capable of being recharged from an external source of electricity, and Has a gross vehicle weight of less than 14,000 pounds. Amended return instructions Certification and other requirements. Amended return instructions   Generally, you can rely on the manufacturer's (or, in the case of a foreign manufacturer, its domestic distributor's) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. Amended return instructions However, if the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle purchased after the date of publication of the withdrawal announcement. Amended return instructions   The following requirements must also be met to qualify for the credit. Amended return instructions You are the owner of the vehicle. Amended return instructions If the vehicle is leased, only the lessor, and not the lessee, is entitled to the credit. Amended return instructions You placed the vehicle in service during 2013. Amended return instructions The vehicle is manufactured primarily for use on public streets, roads, and highways. Amended return instructions The original use of the vehicle began with you. Amended return instructions You acquired the vehicle for your use or to lease to others, and not for resale. Amended return instructions In the case of the qualified two- or three-wheeled plug-in electric vehicle, the vehicle is acquired after 2011 and before 2014. Amended return instructions You use the vehicle primarily in the United States. Amended return instructions How to take the credit. Amended return instructions   To take the credit, you must complete Form 8936 and attach it to your Form 1040. Amended return instructions Include the credit in your total for Form 1040, line 53. Amended return instructions Check box c and enter “8936” on the line next to that box. Amended return instructions More information. Amended return instructions   For more information on the credit, see the Form 8936 instructions. Amended return instructions Residential Energy Credits You may be able to take one or both of the following credits if you made energy saving improvements to your home located in the United States in 2013. Amended return instructions Nonbusiness energy property credit. Amended return instructions Residential energy efficient property credit. Amended return instructions If you are a member of a condominium management association for a condominium you own or a tenant-stockholder in a cooperative housing corporation, you are treated as having paid your proportionate share of any costs of the association or corporation for purposes of these credits. Amended return instructions Nonbusiness energy property credit. Amended return instructions   You may be able to take a credit equal to the sum of: 10% of the amount paid or incurred for qualified energy efficiency improvements installed during 2013, and Any residential energy property costs paid or incurred in 2013. Amended return instructions   There is a lifetime limit of $500 for all years after 2005, of which only $200 can be for windows; $50 for any advanced main air circulating fan; $150 for any qualified natural gas, propane, or oil furnace or hot water boiler; and $300 for any item of energy efficient building property. Amended return instructions    If the total of nonbusiness energy property credits you have taken in previous years (after 2005) is more than $500, you cannot take this credit in 2013. Amended return instructions   Qualified energy efficiency improvements are the following improvements that are new, can be expected to remain in use at least 5 years, and meet certain requirements for energy efficiency. Amended return instructions Any insulation material or system that is specifically and primarily designed to reduce heat loss or gain of a home. Amended return instructions Exterior window (including skylights). Amended return instructions Exterior doors. Amended return instructions Any metal or asphalt roof that has appropriate pigmented coatings or cooling granules specifically and primarily designed to reduce heat gain of the home. Amended return instructions   Residential energy property is any of the following. Amended return instructions Certain electric heat pump water heaters; electric heat pumps; central air conditioners; natural gas, propane, or oil water heater; and stoves that use biomass fuel. Amended return instructions Qualified natural gas, propane, or oil furnaces; and qualified natural gas, propane, or oil hot water boilers. Amended return instructions Certain advanced main air circulating fans used in natural gas, propane, or oil furnaces. Amended return instructions Residential energy efficient property credit. Amended return instructions   You may be able to take a credit of 30% of your costs of qualified solar electric property, solar water heating property, fuel cell property, small wind energy property, and geothermal heat pump property. Amended return instructions The credit amount for costs paid for qualified fuel cell property is limited to $500 for each one-half kilowatt of capacity of the property. Amended return instructions Basis reduction. Amended return instructions   You must reduce the basis of your home by the amount of any credit allowed. Amended return instructions How to take the credit. Amended return instructions   Complete Form 5695 and attach it to your Form 1040. Amended return instructions Enter the credit on Form 1040, line 52. Amended return instructions More information. Amended return instructions   For more information on these credits, see the Form 5695 instructions. Amended return instructions Retirement Savings Contributions Credit (Saver's Credit) You may be able to take this credit if you, or your spouse if filing jointly, made: Contributions (other than rollover contributions) to a traditional or Roth IRA, Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions) or to a governmental 457, SEP, or SIMPLE plan, Voluntary employee contributions to a qualified retirement plan (including the federal Thrift Savings Plan), or Contributions to a 501(c)(18)(D) plan. Amended return instructions However, you cannot take the credit if either of the following applies. Amended return instructions The amount on Form 1040, line 38, or Form 1040A, line 22, is more than $29,500 ($44,250 if head of household; $59,000 if married filing jointly). Amended return instructions The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1996, (b) is claimed as a dependent on someone else's 2013 tax return, or (c) was a student (defined next). Amended return instructions Student. Amended return instructions   You were a student if during any part of 5 calendar months of 2013 you: Were enrolled as a full-time student at a school, or Took a full-time, on-farm training course given by a school or a state, county, or local government agency. Amended return instructions School. Amended return instructions   A school includes a technical, trade, or mechanical school. Amended return instructions It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Amended return instructions How to take the credit. Amended return instructions   Figure the credit on Form 8880. Amended return instructions Enter the credit on your Form 1040, line 50, or your Form 1040A, line 32, and attach Form 8880 to your return. Amended return instructions More information. Amended return instructions   For more information on the credit, see the Form 8880 instructions. Amended return instructions Refundable Credits The credits discussed in this part of the chapter are treated as payments of tax. Amended return instructions If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you. Amended return instructions Credit for Tax on Undistributed Capital Gain You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. Amended return instructions If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. Amended return instructions The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any. Amended return instructions How to take the credit. Amended return instructions   To take the credit, attach Copy B of Form 2439 to your Form 1040. Amended return instructions Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 71, and check box a. Amended return instructions More information. Amended return instructions   See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains. Amended return instructions Health Coverage Tax Credit You may be able to take this credit for any month in which all the following statements were true on the first day of the month. Amended return instructions You were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment TAA (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient (defined later); or you were a qualified family member of one of these individuals when the individual died or you finalized a divorce with one of these individuals. Amended return instructions You and/or your family members were covered by a qualified health insurance plan for which you paid the entire premiums, or your portion of the premiums, directly to your health plan or to “U. Amended return instructions S. Amended return instructions Treasury–HCTC. Amended return instructions ” You were not enrolled in Medicare Part A, B, or C, or you were enrolled in Medicare but your family member(s) qualified for the HCTC. Amended return instructions You were not enrolled in Medicaid or the Children's Health Insurance Program (CHIP). Amended return instructions You were not enrolled in the Federal Employees Health Benefits program (FEHBP) or eligible to receive benefits under the U. Amended return instructions S. Amended return instructions military health system (TRICARE). Amended return instructions You were not imprisoned under federal, state, or local authority. Amended return instructions Your employer did not pay 50% or more of the cost of coverage. Amended return instructions You did not receive a 65% COBRA premium reduction from your former employer or COBRA administrator. Amended return instructions But, you cannot take the credit if you can be claimed as a dependent on someone else's 2013 tax return. Amended return instructions If you meet all of these conditions, you may be able to take a credit of up to 72. Amended return instructions 5% of the amount you paid directly to a qualified health plan for you and any qualifying family members. Amended return instructions You cannot take the credit for insurance premiums on coverage that was actually paid for with a National Emergency Grant. Amended return instructions The amount you paid for qualified health insurance coverage must be reduced by any Archer MSA and health savings account distributions used to pay for the coverage. Amended return instructions You can take this credit on your tax return or have it paid on your behalf in advance to your insurance company. Amended return instructions If the credit is paid on your behalf in advance, that amount will reduce the amount of the credit you can take on your tax return. Amended return instructions TAA recipient. Amended return instructions   You were an eligible TAA recipient on the first day of the month if, for any day in that month or the prior month, you: Received a trade readjustment allowance, or Would have been entitled to receive such an allowance except that you had not exhausted all rights to any unemployment insurance (except additional compensation that is funded by a state and is not reimbursed from any federal funds) to which you were entitled (or would be entitled if you applied). Amended return instructions Example. Amended return instructions You received a trade adjustment allowance for January 2013. Amended return instructions You were an eligible TAA recipient on the first day of January and February. Amended return instructions Alternative TAA recipient. Amended return instructions   You were an eligible alternative TAA recipient on the first day of the month if, for that month or the prior month, you received benefits under an alternative trade adjustment assistance program for older workers established by the Department of Labor. Amended return instructions Example. Amended return instructions You received benefits under an alternative trade adjustment assistance program for older workers for October 2013. Amended return instructions The program was established by the Department of Labor. Amended return instructions You were an eligible alternative TAA recipient on the first day of October and November. Amended return instructions RTAA recipient. Amended return instructions   You were an eligible RTAA recipient on the first day of the month if, for that month or the prior month, you received benefits under a reemployment trade adjustment assistance program for older workers established by the Department of Labor. Amended return instructions PBGC pension recipient. Amended return instructions   You were an eligible PBGC pension recipient on the first day of the month, if both of the following apply. Amended return instructions You were age 55 or older on the first day of the month. Amended return instructions You received a benefit for that month paid by the PBGC under title IV of the Employee Retirement Income Security Act of 1974 (ERISA). Amended return instructions If you received a lump-sum payment from the PBGC after August 5, 2002, you meet item (2) above for any month that you would have received a PBGC benefit if you had not received the lump-sum payment. Amended return instructions How to take the credit. Amended return instructions   To take the credit, complete Form 8885 and attach it to your Form 1040. Amended return instructions Include your credit in the total for Form 1040, line 71, and check box c. Amended return instructions   You must attach health insurance bills (or COBRA payment coupons) and proof of payment for any amounts you include on Form 8885, line 2. Amended return instructions For details, see Publication 502 or Form 8885. Amended return instructions More information. Amended return instructions   For definitions and special rules, including those relating to qualified health insurance plans, qualifying family members, the effect of certain life events, and employer-sponsored health insurance plans, see Publication 502 and the Form 8885 instructions. Amended return instructions Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld Most employers must withhold social security tax from your wages. Amended return instructions If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. Amended return instructions If you worked for two or more employers in 2013, you may have had too much social security tax withheld from your pay. Amended return instructions If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6. Amended return instructions 2% rate. Amended return instructions You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. Amended return instructions For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6. Amended return instructions 2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1. Amended return instructions 45%) or the Additional Medicare Tax rate (. Amended return instructions 9%). Amended return instructions The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2013. Amended return instructions Type of tax Maximum  wages subject to tax Maximum tax that should have been withheld Social security or RRTA tier 1 $113,700 $7,049. Amended return instructions 40 RRTA tier 2 $84,300 $3,709. Amended return instructions 20 All wages are subject to Medicare tax withholding. Amended return instructions   Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. Amended return instructions Be sure to attach a copy of all of your W-2 forms. Amended return instructions Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount. Amended return instructions Employer's error. Amended return instructions   If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. Amended return instructions The employer should adjust the tax for you. Amended return instructions If the employer does not adjust the overcollection, you can file a claim for refund using Form 843. Amended return instructions Joint return. Amended return instructions   If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. Amended return instructions Figure the withholding separately for you and your spouse to determine if either of you has excess withholding. Amended return instructions How to figure the credit if you did not work for a railroad. Amended return instructions   If you did not work for a railroad during 2013, figure the credit as follows: 1. Amended return instructions Add all social security tax withheld (but not more than $7,049. Amended return instructions 40 for each employer). Amended return instructions Enter the total here   2. Amended return instructions Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Amended return instructions Add lines 1 and 2. Amended return instructions If $7,049. Amended return instructions 40 or less, stop here. Amended return instructions You cannot take  the credit   4. Amended return instructions Social security tax limit 7,049. Amended return instructions 40 5. Amended return instructions Credit. Amended return instructions Subtract line 4 from line 3. Amended return instructions Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ Example. Amended return instructions You are married and file a joint return with your spouse who had no gross income in 2013. Amended return instructions During 2013, you worked for the Brown Technology Company and earned $60,000 in wages. Amended return instructions Social security tax of $3,720 was withheld. Amended return instructions You also worked for another employer in 2013 and earned $55,000 in wages. Amended return instructions $3,410 of social security tax was withheld from these wages. Amended return instructions Because you worked for more than one employer and your total wages were more than $113,700, you can take a credit of $80. Amended return instructions 60 for the excess social security tax withheld. Amended return instructions 1. Amended return instructions Add all social security tax withheld (but not more than $7,049. Amended return instructions 40 for each employer). Amended return instructions Enter the total here $7,130. Amended return instructions 00 2. Amended return instructions Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT” -0- 3. Amended return instructions Add lines 1 and 2. Amended return instructions If $7,049. Amended return instructions 40 or less, stop here. Amended return instructions You cannot take the credit 7,130. Amended return instructions 00 4. Amended return instructions Social security tax limit 7,049. Amended return instructions 40 5. Amended return instructions Credit. Amended return instructions Subtract line 4 from line 3. Amended return instructions Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $80. Amended return instructions 60 How to figure the credit if you worked for a railroad. Amended return instructions   If you were a railroad employee at any time during 2013, figure the credit as follows: 1. Amended return instructions Add all social security and tier 1 RRTA tax withheld at the 6. Amended return instructions 2% rate (but not more than $7,049. Amended return instructions 40 for each employer). Amended return instructions Enter the total here   2. Amended return instructions Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 60, identified by “UT”   3. Amended return instructions Add lines 1 and 2. Amended return instructions If $7,049. Amended return instructions 40 or less, stop here. Amended return instructions You cannot take  the credit   4. Amended return instructions Social security and tier 1 RRTA  tax limit 7,049. Amended return instructions 40 5. Amended return instructions Credit. Amended return instructions Subtract line 4 from line 3. Amended return instructions Enter the result here and on Form 1040, line 69 (or Form 1040A, line 41) $ How to take the credit. Amended return instructions   Enter the credit on Form 1040, line 69, or include it in the total for Form 1040A, line 41. Amended return instructions More information. Amended return instructions   For more information on the credit, see Publication 505. Amended return instructions Prev  Up  Next   Home   More Online Publications
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U.S. Sentencing Commission

The U.S. Sentencing Commission studies and develops sentencing policies for the federal courts. The Commission serves as an information resource for Congress, the executive, the courts and the public on matters relating to federal crime and sentencing as well.

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The Amended Return Instructions

Amended return instructions 5. Amended return instructions   Recordkeeping Table of Contents How To Prove ExpensesWhat Are Adequate Records? What If I Have Incomplete Records? Separating and Combining Expenses How Long To Keep Records and Receipts Examples of Records If you deduct travel, entertainment, gift, or transportation expenses, you must be able to prove (substantiate) certain elements of expense. Amended return instructions This chapter discusses the records you need to keep to prove these expenses. Amended return instructions If you keep timely and accurate records, you will have support to show the IRS if your tax return is ever examined. Amended return instructions You will also have proof of expenses that your employer may require if you are reimbursed under an accountable plan. Amended return instructions These plans are discussed in chapter 6 under Reimbursements . Amended return instructions How To Prove Expenses Table 5-1 is a summary of records you need to prove each expense discussed in this publication. Amended return instructions You must be able to prove the elements listed across the top portion of the chart. Amended return instructions You prove them by having the information and receipts (where needed) for the expenses listed in the first column. Amended return instructions You cannot deduct amounts that you approximate or estimate. Amended return instructions You should keep adequate records to prove your expenses or have sufficient evidence that will support your own statement. Amended return instructions You must generally prepare a written record for it to be considered adequate. Amended return instructions This is because written evidence is more reliable than oral evidence alone. Amended return instructions However, if you prepare a record on a computer, it is considered an adequate record. Amended return instructions What Are Adequate Records? You should keep the proof you need in an account book, diary, log, statement of expense, trip sheets, or similar record. Amended return instructions You should also keep documentary evidence that, together with your record, will support each element of an expense. Amended return instructions Documentary evidence. Amended return instructions   You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses. Amended return instructions Exception. Amended return instructions   Documentary evidence is not needed if any of the following conditions apply. Amended return instructions You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. Amended return instructions ( Accountable plans and per diem allowances are discussed in chapter 6. Amended return instructions ) Your expense, other than lodging, is less than $75. Amended return instructions You have a transportation expense for which a receipt is not readily available. Amended return instructions Adequate evidence. Amended return instructions   Documentary evidence ordinarily will be considered adequate if it shows the amount, date, place, and essential character of the expense. Amended return instructions   For example, a hotel receipt is enough to support expenses for business travel if it has all of the following information. Amended return instructions The name and location of the hotel. Amended return instructions The dates you stayed there. Amended return instructions Separate amounts for charges such as lodging, meals, and telephone calls. Amended return instructions   A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information. Amended return instructions The name and location of the restaurant. Amended return instructions The number of people served. Amended return instructions The date and amount of the expense. Amended return instructions If a charge is made for items other than food and beverages, the receipt must show that this is the case. Amended return instructions Canceled check. Amended return instructions   A canceled check, together with a bill from the payee, ordinarily establishes the cost. Amended return instructions However, a canceled check by itself does not prove a business expense without other evidence to show that it was for a business purpose. Amended return instructions Duplicate information. Amended return instructions   You do not have to record information in your account book or other record that duplicates information shown on a receipt as long as your records and receipts complement each other in an orderly manner. Amended return instructions   You do not have to record amounts your employer pays directly for any ticket or other travel item. Amended return instructions However, if you charge these items to your employer, through a credit card or otherwise, you must keep a record of the amounts you spend. Amended return instructions Timely-kept records. Amended return instructions   You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence. Amended return instructions A timely-kept record has more value than a statement prepared later when generally there is a lack of accurate recall. Amended return instructions   You do not need to write down the elements of every expense on the day of the expense. Amended return instructions If you maintain a log on a weekly basis that accounts for use during the week, the log is considered a timely-kept record. Amended return instructions   If you give your employer, client, or customer an expense account statement, it can also be considered a timely-kept record. Amended return instructions This is true if you copy it from your account book, diary, log, statement of expense, trip sheets, or similar record. Amended return instructions Proving business purpose. Amended return instructions   You must generally provide a written statement of the business purpose of an expense. Amended return instructions However, the degree of proof varies according to the circumstances in each case. Amended return instructions If the business purpose of an expense is clear from the surrounding circumstances, then you do not need to give a written explanation. Amended return instructions Example. Amended return instructions If you are a sales representative who calls on customers on an established sales route, you do not have to give a written explanation of the business purpose for traveling that route. Amended return instructions You can satisfy the requirements by recording the length of the delivery route once, the date of each trip at or near the time of the trips, and the total miles you drove the car during the tax year. Amended return instructions You could also establish the date of each trip with a receipt, record of delivery, or other documentary evidence. Amended return instructions Confidential information. Amended return instructions   You do not need to put confidential information relating to an element of a deductible expense (such as the place, business purpose, or business relationship) in your account book, diary, or other record. Amended return instructions However, you do have to record the information elsewhere at or near the time of the expense and have it available to fully prove that element of the expense. Amended return instructions What If I Have Incomplete Records? If you do not have complete records to prove an element of an expense, then you must prove the element with: Your own written or oral statement containing specific information about the element, and Other supporting evidence that is sufficient to establish the element. Amended return instructions If the element is the description of a gift, or the cost, time, place, or date of an expense, the supporting evidence must be either direct evidence or documentary evidence. Amended return instructions Direct evidence can be written statements or the oral testimony of your guests or other witnesses setting forth detailed information about the element. Amended return instructions Documentary evidence can be receipts, paid bills, or similar evidence. Amended return instructions If the element is either the business relationship of your guests or the business purpose of the amount spent, the supporting evidence can be circumstantial rather than direct. Amended return instructions For example, the nature of your work, such as making deliveries, provides circumstantial evidence of the use of your car for business purposes. Amended return instructions Invoices of deliveries establish when you used the car for business. Amended return instructions Table 5-1. Amended return instructions How To Prove Certain Business Expenses IF you have expenses for . Amended return instructions . Amended return instructions THEN you must keep records that show details of the following elements . Amended return instructions . Amended return instructions . Amended return instructions   Amount Time Place or  Description Business Purpose Business Relationship Travel Cost of each separate expense for travel, lodging, and meals. Amended return instructions Incidental expenses may be totaled in reasonable categories such as taxis, fees and tips, etc. Amended return instructions Dates you left and returned for each trip and number of days spent on business. Amended return instructions Destination or area of your travel (name of city, town, or other designation). Amended return instructions Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. Amended return instructions    Relationship: N/A Entertainment Cost of each separate expense. Amended return instructions Incidental expenses such as taxis, telephones, etc. Amended return instructions , may be totaled on a daily basis. Amended return instructions Date of entertainment. Amended return instructions (Also see Business Purpose. Amended return instructions ) Name and address or location of place of entertainment. Amended return instructions Type of entertainment if not otherwise apparent. Amended return instructions (Also see Business Purpose. Amended return instructions ) Purpose: Business purpose for the expense or the business benefit gained or expected to be gained. Amended return instructions  For entertainment, the nature of the business discussion or activity. Amended return instructions If the entertainment was directly before or after a business discussion: the date, place, nature, and duration of the business discussion, and the identities of the persons who took part in both the business discussion and the entertainment activity. Amended return instructions    Relationship: Occupations or other information (such as names, titles, or other designations) about the recipients that shows their business relationship to you. Amended return instructions  For entertainment, you must also prove that you or your employee was present if the entertainment was a business meal. Amended return instructions Gifts Cost of the gift. Amended return instructions Date of the gift. Amended return instructions Description of the gift. Amended return instructions   Transportation Cost of each separate expense. Amended return instructions For car expenses, the cost of the car and any improvements, the date you started using it for business, the mileage for each business use, and the total miles for the year. Amended return instructions Date of the expense. Amended return instructions For car expenses, the date of the use of the car. Amended return instructions Your business destination. Amended return instructions Purpose: Business purpose for the expense. Amended return instructions    Relationship: N/A Sampling. Amended return instructions   You can keep an adequate record for parts of a tax year and use that record to prove the amount of business or investment use for the entire year. Amended return instructions You must demonstrate by other evidence that the periods for which an adequate record is kept are representative of the use throughout the tax year. Amended return instructions Example. Amended return instructions You use your car to visit the offices of clients, meet with suppliers and other subcontractors, and pick up and deliver items to clients. Amended return instructions There is no other business use of the car, but you and your family use the car for personal purposes. Amended return instructions You keep adequate records during the first week of each month that show that 75% of the use of the car is for business. Amended return instructions Invoices and bills show that your business use continues at the same rate during the later weeks of each month. Amended return instructions Your weekly records are representative of the use of the car each month and are sufficient evidence to support the percentage of business use for the year. Amended return instructions Exceptional circumstances. Amended return instructions   You can satisfy the substantiation requirements with other evidence if, because of the nature of the situation in which an expense is made, you cannot get a receipt. Amended return instructions This applies if all the following are true. Amended return instructions You were unable to obtain evidence for an element of the expense or use that completely satisfies the requirements explained earlier under What Are Adequate Records . Amended return instructions You are unable to obtain evidence for an element that completely satisfies the two rules listed earlier under What If I Have Incomplete Records . Amended return instructions You have presented other evidence for the element that is the best proof possible under the circumstances. Amended return instructions Destroyed records. Amended return instructions   If you cannot produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. Amended return instructions Reasons beyond your control include fire, flood, and other casualties. Amended return instructions    Table 5-2. Amended return instructions Daily Business Mileage and Expense Log Name:       Odometer Readings Expenses Date Destination  (City, Town, or Area) Business Purpose Start Stop Miles  this trip Type  (Gas, oil, tolls, etc. Amended return instructions ) Amount                                                                                                                   Weekly  Total             Total Year-to-Date             Separating and Combining Expenses This section explains when expenses must be kept separate and when expenses can be combined. Amended return instructions Separating expenses. Amended return instructions   Each separate payment is generally considered a separate expense. Amended return instructions For example, if you entertain a customer or client at dinner and then go to the theater, the dinner expense and the cost of the theater tickets are two separate expenses. Amended return instructions You must record them separately in your records. Amended return instructions Season or series tickets. Amended return instructions   If you buy season or series tickets for business use, you must treat each ticket in the series as a separate item. Amended return instructions To determine the cost of individual tickets, divide the total cost (but not more than face value) by the number of games or performances in the series. Amended return instructions You must keep records to show whether you use each ticket as a gift or entertainment. Amended return instructions Also, you must be able to prove the cost of nonluxury box seat tickets if you rent a skybox or other private luxury box for more than one event. Amended return instructions See Entertainment tickets in chapter 2. Amended return instructions Combining items. Amended return instructions   You can make one daily entry in your record for reasonable categories of expenses. Amended return instructions Examples are taxi fares, telephone calls, or other incidental travel costs. Amended return instructions Meals should be in a separate category. Amended return instructions You can include tips for meal-related services with the costs of the meals. Amended return instructions   Expenses of a similar nature occurring during the course of a single event are considered a single expense. Amended return instructions For example, if during entertainment at a cocktail lounge, you pay separately for each serving of refreshments, the total expense for the refreshments is treated as a single expense. Amended return instructions Car expenses. Amended return instructions   You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. Amended return instructions Minimal personal use, such as a stop for lunch on the way between two business stops, is not an interruption of business use. Amended return instructions Example. Amended return instructions You make deliveries at several different locations on a route that begins and ends at your employer's business premises and that includes a stop at the business premises between two deliveries. Amended return instructions You can account for these using a single record of miles driven. Amended return instructions Gift expenses. Amended return instructions   You do not always have to record the name of each recipient of a gift. Amended return instructions A general listing will be enough if it is evident that you are not trying to avoid the $25 annual limit on the amount you can deduct for gifts to any one person. Amended return instructions For example, if you buy a large number of tickets to local high school basketball games and give one or two tickets to each of many customers, it is usually enough to record a general description of the recipients. Amended return instructions Allocating total cost. Amended return instructions   If you can prove the total cost of travel or entertainment but you cannot prove how much it cost for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro rata basis. Amended return instructions To do so, you must establish the number of persons who participated in the event. Amended return instructions   An allocation would be needed, for example, if you did not have a business relationship with all of your guests. Amended return instructions See Allocating between business and nonbusiness in chapter 2. Amended return instructions If your return is examined. Amended return instructions    If your return is examined, you may have to provide additional information to the IRS. Amended return instructions This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed. Amended return instructions    THIS IS NOT AN OFFICIAL INTERNAL REVENUE FORM Table 5-3. Amended return instructions Weekly Traveling Expense and Entertainment Record From: To: Name: Expenses Sunday Monday Tuesday Wednesday Thursday Friday Saturday Total 1. Amended return instructions Travel Expenses: Airlines                                 Excess Baggage                                 Bus – Train                                 Cab and Limousine                                 Tips                                 Porter                                 2. Amended return instructions Meals and Lodging:  Breakfast                                 Lunch                                 Dinner                                 Hotel and Motel  (Detail in Schedule B)                                 3. Amended return instructions Entertainment  (Detail in Schedule C)                                 4. Amended return instructions Other Expenses:  Postage                                 Telephone & Telegraph                                 Stationery & Printing                                 Stenographer                                 Sample Room                                 Advertising                                 Assistant(s)                                 Trade Shows                                 5. Amended return instructions Car Expenses: (List all car expenses - the division between business and personal expenses may be made at the end of the year. Amended return instructions ) (Detail mileage in Schedule A. Amended return instructions ) Gas, oil, lube, wash                                 Repairs, parts                                 Tires, supplies                                 Parking fees, tolls                                 6. Amended return instructions Other (Identify)                                 Total                                 Note: Attach receipted bills for (1) ALL lodging and (2) any other expenses of $75. Amended return instructions 00 or more. Amended return instructions Schedule A – Car Mileage: End                 Start                 Total                 Business Mileage                 Schedule B – Lodging Hotel or Motel Name                 City                 Schedule C – Entertainment Date Item Place Amount Business Purpose Business Relationship                                             WEEKLY REIMBURSEMENTS:     Travel and transportation expenses     Other reimbursements     TOTAL   How Long To Keep Records and Receipts You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Amended return instructions Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed. Amended return instructions A return filed early is considered filed on the due date. Amended return instructions For a more complete explanation of how long to keep records, see Publication 583, Starting a Business and Keeping Records. Amended return instructions You must keep records of the business use of your car for each year of the recovery period. Amended return instructions See More-than-50%-use test in chapter 4 under Depreciation Deduction. Amended return instructions Reimbursed for expenses. Amended return instructions   Employees who give their records and documentation to their employers and are reimbursed for their expenses generally do not have to keep copies of this information. Amended return instructions However, you may have to prove your expenses if any of the following conditions apply. Amended return instructions You claim deductions for expenses that are more than reimbursements. Amended return instructions Your expenses are reimbursed under a nonaccountable plan. Amended return instructions Your employer does not use adequate accounting procedures to verify expense accounts. Amended return instructions You are related to your employer as defined under Per Diem and Car Allowances , in chapter 6. Amended return instructions Reimbursements , adequate accounting , and nonaccountable plans are discussed in chapter 6. Amended return instructions Examples of Records Table 5-2 and Table 5-3 are examples of worksheets which can be used for tracking business expenses. Amended return instructions Prev  Up  Next   Home   More Online Publications