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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Ammend

Hr Block Free State FileIrs Free E File 2012Free 1040 State Tax FormsHow Do I File An Amended Return For 2012Irs E File 2012Tax Online Free1040nr E2011 1040a Tax Form1040ez 2010Need 2007 TaxesUnemployment TaxesFree Tax Filing Back TaxesFree Tax Filing For MilitaryHow To File An Ammended Tax ReturnHow To File A 1040x Form To The IrsCalif State Taxes Website2006 Free Tax FilingCan I File 2012 Taxes In 2013Turbo Tax2011 TaxesH&r Block Free Online TaxFiling Back TaxesFederal Ez Form1040ez Help1040ez Tax Form2012 Tax Return SoftwareDo I File Back Taxes Free1040 Ez DownloadNy State Tax Forms 2011Www Freefilefillableforms Com Ffa Freefileforms HtmWhere To File 1040xWww Irs Gov Freefile Com2010 E File TaxesIrs 2010 Tax Forms1040ez Instructions 20122012 Tax Form 88632011 Form 1040 EzIl 1040xHow To File An Ammended Return1040ez 2011 OnlineWhen Last Day File Taxes 2012

Ammend

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

Workplace Issues

Find information on workplace issues including back pay, child care, discrimination, disability employment, Family and Medical Leave Act, minimum wage, pensions and more.

The Ammend

Ammend Publication 531 - Main Content Table of Contents Keeping a Daily Tip RecordElectronic tip record. Ammend Reporting Tips to Your EmployerElectronic tip statement. Ammend Final report. Ammend Tip Rate Determination and Education Program Reporting Tips on Your Tax Return Allocated Tips How To Get Tax Help Keeping a Daily Tip Record Why keep a daily tip record. Ammend   You must keep a daily tip record so you can: Report your tips accurately to your employer, Report your tips accurately on your tax return, and Prove your tip income if your return is ever questioned. Ammend How to keep a daily tip record. Ammend   There are two ways to keep a daily tip record. Ammend You can either: Write information about your tips in a tip diary, or Keep copies of documents that show your tips, such as restaurant bills and credit or debit card charge slips. Ammend You should keep your daily tip record with your tax or other personal records. Ammend You must keep your records for as long as they are important for administration of the federal tax law. Ammend For information on how long to keep records, see How Long to Keep Records in chapter 1 of Publication 17, Your Federal Income Tax. Ammend    If you keep a tip diary, you can use Form 4070A, Employee's Daily Record of Tips. Ammend To get Form 4070A, ask the Internal Revenue Service (IRS) or your employer for Publication 1244, Employee's Daily Record of Tips and Report to Employer. Ammend Publication 1244 is also available at www. Ammend irs. Ammend gov/pub1244. Ammend Publication 1244 includes a 1-year supply of Form 4070A. Ammend Each day, write in the information asked for on the form. Ammend A filled-in Form 4070A is shown on the following page. Ammend   In addition to the information asked for on Form 4070A, you also need to keep a record of the date and value of any noncash tips you get, such as tickets, passes, or other items of value. Ammend Although you do not report these tips to your employer, you must report them on your tax return. Ammend   If you do not use Form 4070A, start your records by writing your name, your employer's name, and the name of the business (if it is different from your employer's name). Ammend Then, each workday, write the date and the following information. Ammend Cash tips you get directly from customers or from other employees. Ammend Tips from credit and debit card charge customers that your employer pays you. Ammend The value of any noncash tips you get, such as tickets, passes, or other items of value. Ammend The amount of tips you paid out to other employees through tip pools or tip splitting, or other arrangements, and the names of the employees to whom you paid the tips. Ammend Please click here for the text description of the image. Ammend Sample Filled-in Form 4070A from Publication 1244 Electronic tip record. Ammend   You can use an electronic system provided by your employer to record your daily tips. Ammend If you do, you must receive and keep a paper copy of this record. Ammend Service charges. Ammend    Do not write in your tip diary the amount of any service charge that your employer adds to a customer's bill and then pays to you and treats as wages. Ammend This is part of your wages, not a tip. Ammend The following factors determine if you have a tip or service charge: The payment is made free from compulsion; The customer has the right to determine the amount of payment; The payment is not subject to negotiation or dictated by employer policy; and The customer generally has the right to determine who receives the payment. Ammend See examples below. Ammend Example 1. Ammend Good Food Restaurant adds an 18% charge to the bill for parties of 6 or more customers. Ammend Jane's bill for food and beverages for her party of 8 includes an amount on the tip line equal to 18% of the charges for food and beverages, and the total includes this amount. Ammend Because Jane did not have an unrestricted right to determine the amount on the “tip line,” the 18% charge is considered a service charge. Ammend Do not include the 18% charge in your tip diary. Ammend Service charges that are paid to you are considered wages, not tips. Ammend Example 2. Ammend Good Food Restaurant includes sample calculations of tip amounts at the bottom of its bills for food and beverages provided to customers. Ammend David's bill includes a blank “tip line,” with sample tip calculations of 15%, 18%, and 20% of the charges for food and beverages at the bottom of the bill beneath the signature line. Ammend Because David is free to enter any amount on the “tip line” or leave it blank, any amount he includes is considered a tip. Ammend Be sure to include this amount in your tip diary. Ammend Sample Filled-in Form 4070 from Publication 1244 Please click here for the text description of the image. Ammend Filled-in Form 4070 Reporting Tips to Your Employer Why report tips to your employer. Ammend   You must report tips to your employer so that: Your employer can withhold federal income tax and social security, Medicare, Additional Medicare, or railroad retirement taxes, Your employer can report the correct amount of your earnings to the Social Security Administration or Railroad Retirement Board (which affects your benefits when you retire or if you become disabled, or your family's benefits if you die), and You can avoid the penalty for not reporting tips to your employer (explained later). Ammend What tips to report. Ammend   Report to your employer only cash, check, and debit and credit card tips you receive. Ammend   If your total tips for any 1 month from any one job are less than $20, do not report the tips for that month to that employer. Ammend   If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Ammend Do not report to your employer any portion of the tips you receive that you pass on to other employees. Ammend However, you must report tips you receive from other employees. Ammend   Do not report the value of any noncash tips, such as tickets or passes, to your employer. Ammend You do not pay social security, Medicare, Additional Medicare, or railroad retirement taxes on these tips. Ammend How to report. Ammend   If your employer does not give you any other way to report your tips, you can use Form 4070, Employee's Report of Tips to Employer. Ammend Fill in the information asked for on the form, sign and date the form, and give it to your employer. Ammend A sample filled-in Form 4070 is shown above. Ammend To get a 1-year supply of the form, ask the IRS or your employer for Publication 1244. Ammend   If you do not use Form 4070, give your employer a statement with the following information. Ammend Your name, address, and social security number. Ammend Your employer's name, address, and business name (if it is different from your employer's name). Ammend The month (or the dates of any shorter period) in which you received tips. Ammend The total tips required to be reported for that period. Ammend You must sign and date the statement. Ammend Be sure to keep a copy with your tax or other personal records. Ammend   Your employer may require you to report your tips more than once a month. Ammend However, the statement cannot cover a period of more than 1 calendar month. Ammend Electronic tip statement. Ammend   Your employer can have you furnish your tip statements electronically. Ammend When to report. Ammend   Give your report for each month to your employer by the 10th of the next month. Ammend If the 10th falls on a Saturday, Sunday, or legal holiday, give your employer the report by the next day that is not a Saturday, Sunday, or legal holiday. Ammend Example. Ammend You must report your tips received in September 2014 by October 10, 2014. Ammend Final report. Ammend   If your employment ends during the month, you can report your tips when your employment ends. Ammend Penalty for not reporting tips. Ammend   If you do not report tips to your employer as required, you may be subject to a penalty equal to 50% of the social security, Medicare, Additional Medicare, or railroad retirement taxes you owe on the unreported tips. Ammend (For information about these taxes, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, later. Ammend ) The penalty amount is in addition to the taxes you owe. Ammend   You can avoid this penalty if you can show reasonable cause for not reporting the tips to your employer. Ammend To do so, attach a statement to your return explaining why you did not report them. Ammend Giving your employer money for taxes. Ammend   Your regular pay may not be enough for your employer to withhold all the taxes you owe on your regular pay plus your reported tips. Ammend If this happens, you can give your employer money until the close of the calendar year to pay the rest of the taxes. Ammend   If you do not give your employer enough money, your employer will apply your regular pay and any money you give to the taxes, in the following order. Ammend All taxes on your regular pay. Ammend Social security, Medicare, Additional Medicare, or railroad retirement taxes on your reported tips. Ammend Federal, state, and local income taxes on your reported tips. Ammend    Any taxes that remain unpaid can be collected by your employer from your next paycheck. Ammend If withholding taxes remain uncollected at the end of the year, you may be subject to a penalty for underpayment of estimated taxes. Ammend See Publication 505, Tax Withholding and Estimated Tax, for more information. Ammend    Uncollected taxes. Ammend You must report on your tax return any social security and Medicare taxes, or railroad retirement taxes that remained uncollected at the end of 2013. Ammend These uncollected taxes will be shown on your 2013 Form W-2. Ammend See Reporting uncollected social security, Medicare, Additional Medicare, or railroad retirement taxes on tips reported to your employer under Reporting Tips on Your Tax Return, later. Ammend Tip Rate Determination and Education Program Your employer may participate in the Tip Rate Determination and Education Program. Ammend The program was developed to help employees and employers understand and meet their tip reporting responsibilities. Ammend There are two agreements under the program: the Tip Rate Determination Agreement (TRDA) and the Tip Reporting Alternative Commitment (TRAC). Ammend A variation of the TRAC program, the Employer Tip Reporting Alternative Commitment, (EmTRAC) was designed to allow employers in the food and beverage industry to design and receive approval for their own TRAC programs. Ammend For information on the EmTRAC program, see Notice 2001-1, which is on page 261 of Internal Revenue Bulletin 2001-2 at www. Ammend irs. Ammend gov/pub/irs-irbs/irb01-02. Ammend pdf. Ammend If you are employed in the gaming industry, your employer may participate in the Gaming Industry Tip Compliance Agreement Program. Ammend See Revenue Procedure 2007-32, 2007-22 I. Ammend R. Ammend B. Ammend 1322, available at www. Ammend irs. Ammend gov/pub/irs-irbs/irb07_22. Ammend pdf. Ammend Your employer can provide you with a copy of any applicable agreement. Ammend To find out more about these agreements, visit IRS. Ammend gov and enter “restaurant tip reporting” in the search box. Ammend You may also call 1-800-829-4933, visit www. Ammend irs. Ammend gov/localcontacts for the IRS Taxpayer Assistance Center in your area, or send an email to Tip. Ammend Program@irs. Ammend gov and request information on this program. Ammend Reporting Tips on Your Tax Return How to report tips. Ammend   Report your tips with your wages on Form 1040, line 7; Form 1040A, line 7; Form 1040EZ, line 1; Form 1040NR, line 8; or Form 1040NR-EZ, line 3. Ammend What tips to report. Ammend   Generally, you must report all tips you received in 2013 on your tax return, including both cash tips and noncash tips. Ammend Any tips you reported to your employer as required in 2013 are included in the wages shown in box 1 of your Form W-2. Ammend Add to the amount in box 1 only the tips you did not report to your employer. Ammend   However, any tips you received in 2013 that you reported to your employer as required after 2013 but before January 11, 2014, are not included in the wages shown in box 1 of your 2013 Form W-2. Ammend Do not include the amount of these tips on your 2013 tax return. Ammend Instead, include them on your 2014 tax return. Ammend Tips you received in 2012 that you reported to your employer as required after 2012 but before January 11, 2013, are included in the wages shown in box 1 of your 2013 Form W-2. Ammend Although these tips were received in 2012, you must report them on your 2013 tax return. Ammend   If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Ammend Do not report on your income tax return any portion of the tips you receive that you pass on to other employees. Ammend However, you must report tips you receive from other employees. Ammend    If you received $20 or more in cash and charge tips in a month and did not report all of those tips to your employer, see Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer, later. Ammend    If you did not keep a daily tip record as required and an amount is shown in box 8 of your Form W-2, see Allocated Tips, later. Ammend   If you kept a daily tip record and reported tips to your employer as required under the rules explained earlier, add the following tips to the amount in box 1 of your Form W-2. Ammend Cash and charge tips you received that totaled less than $20 for any month. Ammend The value of noncash tips, such as tickets, passes, or other items of value. Ammend Example. Ammend Ben Smith began working at the Blue Ocean Restaurant (his only employer in 2013) on June 30 and received $10,000 in wages during the year. Ammend Ben kept a daily tip record showing that his tips for June were $18 and his tips for the rest of the year totaled $7,000. Ammend He was not required to report his June tips to his employer, but he reported all of the rest of his tips to his employer as required. Ammend Ben's Form W-2 from Blue Ocean Restaurant shows $17,000 ($10,000 wages + $7,000 reported tips) in box 1. Ammend He adds the $18 unreported tips to that amount and reports $17,018 as wages on his tax return. Ammend Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer. Ammend    If you received $20 or more in cash and charge tips in a month from any one job and did not report all of those tips to your employer, you must report the social security, Medicare, and Additional Medicare taxes on the unreported tips as additional tax on your return. Ammend To report these taxes, you must file a return even if you would not otherwise have to file. Ammend You must use Form 1040, Form 1040NR, Form 1040NR-EZ, Form 1040-SS, or 1040-PR (as appropriate) for this purpose. Ammend (You cannot file Form 1040EZ or Form 1040A. Ammend )    Use Form 4137, Social Security and Medicare Tax on Unreported Tip Income, to figure social security and Medicare taxes. Ammend Enter the tax on your return as instructed, and attach the completed Form 4137 to your return. Ammend Use Form 8959 to figure Additional Medicare Tax. Ammend If you are subject to the Railroad Retirement Tax Act, you cannot use Form 4137 to pay railroad retirement tax on unreported tips. Ammend To get railroad retirement credit, you must report tips to your employer. Ammend Reporting uncollected social security, Medicare, Additional Medicare, or railroad retirement taxes on tips reported to your employer. Ammend    You may have uncollected taxes if your regular pay was not enough for your employer to withhold all the taxes you owe and you did not give your employer enough money to pay the rest of the taxes. Ammend For more information, see Giving your employer money for taxes , under Reporting Tips to Your Employer, earlier. Ammend   If your employer could not collect all the social security and Medicare taxes, or railroad retirement taxes you owe on tips reported for 2013, the uncollected taxes will be shown in box 12 of your Form W-2 (codes A and B). Ammend You must report these amounts as additional tax on your return. Ammend   If you worked in the U. Ammend S. Ammend possessions and received Form W-2AS, Form W-2CM, Form W-2GU, or Form W-2VI, any uncollected taxes on tips will be shown in box 12 with codes A and B. Ammend If you received Form 499R-2/W-2PR, any uncollected taxes will be shown in boxes 22 and 23. Ammend Unlike the uncollected portion of the regular (1. Ammend 45%) Medicare tax, the uncollected Additional Medicare Tax is not reported on Form W-2. Ammend   To report these uncollected taxes, you must file a return even if you would not otherwise have to file. Ammend You can report these taxes on Form 1040, in the space next to line 60; Form 1040NR, line 59; Form 1040-SS, Part I, line 6; or Form 1040-PR, Part I, line 6. Ammend See the instructions for the appropriate form and line number indicated, and Form 8959. Ammend (You cannot file Form 1040A, Form 1040EZ, or Form 1040NR-EZ. Ammend ) Self-employed persons. Ammend    If you receive tips as a self-employed person, you should report these tips as income on Schedule C or C-EZ. Ammend See Publication 334, Tax Guide for Small Business, for more information on reporting business income. Ammend Allocated Tips If your employer allocated tips to you, they are shown separately in box 8 of your Form W-2. Ammend They are not included in box 1 with your wages and reported tips. Ammend If box 8 is blank, this discussion does not apply to you. Ammend What are allocated tips. Ammend   These are tips that your employer assigned to you in addition to the tips you reported to your employer for the year. Ammend Your employer will have done this only if: You worked in an establishment (restaurant, cocktail lounge, or similar business) that must allocate tips to employees, and The tips you reported to your employer were less than your share of 8% of food and drink sales. Ammend No income, social security, Medicare, Additional Medicare, or railroad retirement taxes are withheld on allocated tips. Ammend How were your allocated tips figured. Ammend   The tips allocated to you are your share of an amount figured by subtracting the reported tips of all employees from 8% (or an approved lower rate) of food and drink sales (other than carryout sales and sales with a service charge of 10% or more). Ammend Your share of that amount was figured using either a method provided by an employer-employee agreement or a method provided by IRS regulations based on employees' sales or hours worked. Ammend For information about the exact allocation method used, ask your employer. Ammend Must you report your allocated tips on your tax return. Ammend   You must report tips you received in 2013 (including both cash and noncash tips) on your tax return as explained in What tips to report , earlier. Ammend Any tips you reported to your employer in 2013 as required (explained under Reporting Tips to Your Employer , earlier) are included in the wages shown in box 1 of your Form W-2. Ammend Add to the amount in box 1 only the tips you did not report to your employer as required. Ammend This should include any allocated tips shown in box 8 on your Form(s) W-2, unless you have adequate records to show that you received less tips in the year than the allocated amount. Ammend   See What tips to report under Reporting Tips on Your Tax Return, and Keeping a Daily Tip Record , earlier. Ammend How to report allocated tips. Ammend   If you received any tips in 2013 that you did not report to your employer as required (including allocated tips that you are required to report on your tax return), add these tips to the amount in box 1 of your Form(s) W-2 and report this amount as wages on Form 1040, line 7; Form 1040NR, line 8; or Form 1040NR-EZ, line 3. Ammend (You cannot file Form 1040A or Form 1040EZ). Ammend    Because social security, Medicare, or Additional Medicare taxes were not withheld from the allocated tips, you must report those taxes as additional tax on your return. Ammend Complete Form 4137 and include the allocated tips on line 1 of the form as provided in its instructions. Ammend See Reporting social security, Medicare, Additional Medicare, or railroad retirement taxes on tips not reported to your employer under Reporting Tips on Your Tax Return, earlier. Ammend How to request an approved lower rate. Ammend   Your employer can use a tip rate lower than 8% (but not lower than 2%) to figure allocated tips only if the IRS approves the lower rate. Ammend Either the employer or the employees can request approval of a lower rate by filing a petition with the IRS. Ammend The petition must include specific information about the establishment that will justify the lower rate. Ammend A user fee must be paid with the petition. Ammend    An employee petition can be filed only with the consent of a majority of the directly tipped employees (waiters, bartenders, and others who receive tips directly from customers). Ammend The petition must state the total number of directly tipped employees and the number of employees consenting to the petition. Ammend Employees filing the petition must promptly notify the employer, and the employer must promptly give the IRS a copy of all Forms 8027, Employer's Annual Information Return of Tip Income and Allocated Tips, filed for the establishment for the previous 3 years. Ammend   For more information about how to file a petition and what information to include, see Allocation of Tips in the Instructions for Form 8027. Ammend How To Get Tax Help Go online, use a smart phone, call or walk in to an office near you. Ammend Whether it's help with a tax issue, preparing your tax return or picking up a free publication or form, get the help you need the way you want it. Ammend Free help with your tax return. Ammend   Free help in preparing your return is available nationwide from IRS-certified volunteers. Ammend The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. Ammend The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Ammend Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Ammend Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Ammend To find the nearest VITA or TCE site, visit IRS. Ammend gov or call 1-800-906-9887. Ammend   As part of the TCE program, AARP offers the Tax-Aide counseling program. Ammend To find the nearest AARP Tax-Aide site, visit AARP's website at www. Ammend aarp. Ammend org/money/taxaide or call 1-888-227-7669. Ammend   For more information on these programs, go to IRS. Ammend gov and enter “VITA” in the search box. Ammend Internet. Ammend IRS. Ammend gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. Ammend Apply for an Employer Identification Number (EIN). Ammend Go to IRS. Ammend gov and enter Apply for an EIN in the search box. Ammend Request an Electronic Filing PIN by going to IRS. Ammend gov and entering Electronic Filing PIN in the search box. Ammend Check the status of your 2013 refund with Where's My Refund? Go to IRS. Ammend gov or the IRS2Go app, and click on Where's My Refund? You'll get a personalized refund date as soon as the IRS processes your tax return and approves your refund. Ammend If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Ammend Check the status of your amended return. Ammend Go to IRS. Ammend gov and enter Where's My Amended Return in the search box. Ammend Download forms, instructions, and publications, including some accessible versions. Ammend Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. Ammend gov or IRS2Go. Ammend Tax return and tax account transcripts are generally available for the current year and past three years. Ammend Figure your income tax withholding with the IRS Withholding Calculator on IRS. Ammend gov. Ammend Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Ammend Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Ammend gov. Ammend Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. Ammend gov or IRS2Go. Ammend Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. Ammend An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. Ammend Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. Ammend If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. Ammend Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Ammend Locate the nearest volunteer help site with the VITA Locator Tool on IRS. Ammend gov. Ammend Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Ammend The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Ammend Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. Ammend AARP offers the Tax-Aide counseling program as part of the TCE program. Ammend Visit AARP's website to find the nearest Tax-Aide location. Ammend Research your tax questions. Ammend Search publications and instructions by topic or keyword. Ammend Read the Internal Revenue Code, regulations, or other official guidance. Ammend Read Internal Revenue Bulletins. Ammend Sign up to receive local and national tax news by email. Ammend Phone. Ammend You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Ammend Download the free IRS2Go mobile app from the iTunes app store or from Google Play. Ammend Use it to watch the IRS YouTube channel, get IRS news as soon as it's released to the public, order transcripts of your tax returns or tax account, check your refund status, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Ammend Call to locate the nearest volunteer help site, 1-800-906-9887. Ammend Low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Ammend The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. Ammend Most VITA and TCE sites offer free electronic filing. Ammend Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Ammend Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Ammend Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. Ammend The automated Where's My Refund? information is available 24 hours a day, 7 days a week. Ammend If you e-file, your refund status is usually available within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Ammend Before you call, have your 2013 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ammend Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Ammend Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Ammend Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Ammend Call to order forms, instructions and publications, 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions and publications, and prior-year forms and instructions (limited to 5 years). Ammend You should receive your order within 10 business days. Ammend Call to order transcripts of your tax returns or tax account, 1-800-908-9946. Ammend Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. Ammend Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. Ammend Call to ask tax questions, 1-800-829-1040. Ammend Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Ammend The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Ammend These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. Ammend gsa. Ammend gov/fedrelay. Ammend Walk-in. Ammend You can find a selection of forms, publications and services — in-person, face-to-face. Ammend Products. Ammend You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Ammend Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Ammend Services. Ammend You can walk in to your local TAC most business days for personal, face-to-face tax help. Ammend An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Ammend If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you are more comfortable talking with someone in person, visit your local TAC where you can talk with an IRS representative face-to-face. Ammend No appointment is necessary—just walk in. Ammend Before visiting, check www. Ammend irs. Ammend gov/localcontacts for hours of operation and services provided. Ammend Mail. Ammend You can send your order for forms, instructions, and publications to the address below. Ammend You should receive a response within 10 business days after your request is received. Ammend  Internal Revenue Service 1201 N. Ammend Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. Ammend   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Ammend Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Ammend What can TAS do for you?   We can offer you free help with IRS problems that you can't resolve on your own. Ammend We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Ammend You face (or your business is facing) an immediate threat of adverse action. Ammend You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Ammend   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Ammend Here's why we can help: TAS is an independent organization within the IRS. Ammend Our advocates know how to work with the IRS. Ammend Our services are free and tailored to meet your needs. Ammend We have offices in every state, the District of Columbia, and Puerto Rico. Ammend How can you reach us?   If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Ammend irs. Ammend gov/advocate, or call us toll-free at 1-877-777-4778. Ammend How else does TAS help taxpayers?   TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Ammend If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Ammend irs. Ammend gov/sams. Ammend Low Income Taxpayer Clinics. Ammend   Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Ammend Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Ammend Visit www. Ammend TaxpayerAdvocate. Ammend irs. Ammend gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. Ammend Prev  Up  Next   Home   More Online Publications