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

Ez 1040 E-file

File State Income Tax FreeHandrblockWww Irs Gov FileNeed To File My 2011 TaxesCan I Still File 2012 Taxes OnlineTax Forms Download Ez 1040E-file State Taxes Free2012 Tax Forms IrsHow Do I File My 2012 Taxes For FreeHow To File An Amended Return For 20121040x Forms To PrintState Taxes Free E File2011 Ez Tax Form1040 Ez File1040 Tax FormsHow To Refile TaxesAarp Free Tax Preparation LocationsFree Electronic Tax FilingForm 1040ezHave Not Filed 2011 TaxesHow To File An Amended Tax Return Online2012 Tax Tables FederalCan 1040x Filed ElectronicallyFile Taxes Online Free 2012How To Amend Tax ReturnFederal Tax Form 1040 EzWww Myfreetaxes Com SwfloridaFree 1040x FilingH&r Block State Tax FeeHow Do I File 2009 Taxes OnlineHow To File 1040x FormIncome Tax FormsFree State Tax Forms IncomeFiling Taxes With UnemploymentTaxact 2011 Tax ReturnTax Act 2012 Return1040 Irs Tax Forms 2012Can I File 2010 Taxes OnlineTaxact 2011 Login1040ez Tax Form And Booklet

Ez 1040 E-file

Ez 1040 e-file Publication 901 - Additional Material Table of Contents How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Ez 1040 e-file How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Ez 1040 e-file By selecting the method that is best for you, you will have quick and easy access to tax help. Ez 1040 e-file Free help with your tax return. Ez 1040 e-file   Free help in preparing your return is available nationwide from IRS-certified volunteers. Ez 1040 e-file The Volunteer Income Tax Assistance (VITA) program is designed to help low-moderate income, elderly, disabled, and limited English proficient taxpayers. Ez 1040 e-file The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Ez 1040 e-file 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. Ez 1040 e-file Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. Ez 1040 e-file To find the nearest VITA or TCE site, visit IRS. Ez 1040 e-file gov or call 1-800-906-9887 or 1-800-829-1040. Ez 1040 e-file   As part of the TCE program, AARP offers the Tax-Aide counseling program. Ez 1040 e-file To find the nearest AARP Tax-Aide site, visit AARP's website at www. Ez 1040 e-file aarp. Ez 1040 e-file org/money/taxaide or call 1-888-227-7669. Ez 1040 e-file   For more information on these programs, go to IRS. Ez 1040 e-file gov and enter “VITA” in the search box. Ez 1040 e-file Internet. Ez 1040 e-file You can access the IRS website at IRS. Ez 1040 e-file gov 24 hours a day, 7 days a week to: E-file your return. Ez 1040 e-file Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Ez 1040 e-file Check the status of your 2012 refund. Ez 1040 e-file Go to IRS. Ez 1040 e-file gov and click on Where’s My Refund. Ez 1040 e-file Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Ez 1040 e-file If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Ez 1040 e-file Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ez 1040 e-file Where's My Refund? has a new look this year! The tool will include a tracker that displays progress through three stages: (1) return received, (2) refund approved, and (3) refund sent. Ez 1040 e-file Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Ez 1040 e-file So in a change from previous filing seasons, you won't get an estimated refund date right away. Ez 1040 e-file Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Ez 1040 e-file You can obtain a free transcript online at IRS. Ez 1040 e-file gov by clicking on Order a Return or Account Transcript under “Tools. Ez 1040 e-file ” For a transcript by phone, call 1-800-908-9946 and follow the prompts in the recorded message. Ez 1040 e-file You will be prompted to provide your SSN or Individual Taxpayer Identification Number (ITIN), date of birth, street address and ZIP code. Ez 1040 e-file Download forms, including talking tax forms, instructions, and publications. Ez 1040 e-file Order IRS products. Ez 1040 e-file Research your tax questions. Ez 1040 e-file Search publications by topic or keyword. Ez 1040 e-file Use the Internal Revenue Code, regulations, or other official guidance. Ez 1040 e-file View Internal Revenue Bulletins (IRBs) published in the last few years. Ez 1040 e-file Figure your withholding allowances using the IRS Withholding Calculator at www. Ez 1040 e-file irs. Ez 1040 e-file gov/individuals. Ez 1040 e-file Determine if Form 6251 (Alternative Minimum Tax— Individuals), must be filed by using our Alternative Minimum Tax (AMT) Assistant available at IRS. Ez 1040 e-file gov by typing Alternative Minimum Tax Assistant in the search box. Ez 1040 e-file Sign up to receive local and national tax news by email. Ez 1040 e-file Get information on starting and operating a small business. Ez 1040 e-file Phone. Ez 1040 e-file Many services are available by phone. Ez 1040 e-file   Ordering forms, instructions, and publications. Ez 1040 e-file Call 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). Ez 1040 e-file You should receive your order within 10 days. Ez 1040 e-file Asking tax questions. Ez 1040 e-file Call the IRS with your tax questions at 1-800-829-1040. Ez 1040 e-file Solving problems. Ez 1040 e-file You can get face-to-face help solving tax problems most business days in IRS Taxpayer Assistance Centers (TAC). Ez 1040 e-file An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Ez 1040 e-file Call your local Taxpayer Assistance Center for an appointment. Ez 1040 e-file To find the number, go to www. Ez 1040 e-file irs. Ez 1040 e-file gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Ez 1040 e-file TTY/TDD equipment. Ez 1040 e-file If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Ez 1040 e-file The TTY/TDD telephone number is for individuals who are deaf, hard of hearing, or have a speech disability. Ez 1040 e-file These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Ez 1040 e-file gsa. Ez 1040 e-file gov/fedrelay. Ez 1040 e-file TeleTax topics. Ez 1040 e-file Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Ez 1040 e-file Checking the status of your 2012 refund. Ez 1040 e-file To check the status of your 2012 refund, call 1-800-829-1954 or 1-800-829-4477 (automated Where's My Refund? information 24 hours a day, 7 days a week). Ez 1040 e-file Information about your return will generally be available within 24 hours after the IRS receives your e-filed return, or 4 weeks after you mail your paper return. Ez 1040 e-file If you filed Form 8379 with your return, wait 14 weeks (11 weeks if you filed electronically). Ez 1040 e-file Have your 2012 tax return handy so you can provide your social security number, your filing status, and the exact whole dollar amount of your refund. Ez 1040 e-file Where's My Refund? will provide an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. Ez 1040 e-file Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. Ez 1040 e-file Evaluating the quality of our telephone services. Ez 1040 e-file To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Ez 1040 e-file One method is for a second IRS representative to listen in on or record random telephone calls. Ez 1040 e-file Another is to ask some callers to complete a short survey at the end of the call. Ez 1040 e-file Walk-in. Ez 1040 e-file Some products and services are available on a walk-in basis. Ez 1040 e-file   Products. Ez 1040 e-file You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Ez 1040 e-file Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Ez 1040 e-file Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Ez 1040 e-file Services. Ez 1040 e-file You can walk in to your local TAC most business days for personal, face-to-face tax help. Ez 1040 e-file An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Ez 1040 e-file 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. Ez 1040 e-file No appointment is necessary—just walk in. Ez 1040 e-file Before visiting, check www. Ez 1040 e-file irs. Ez 1040 e-file gov/localcontacts for hours of operation and services provided. Ez 1040 e-file If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment can be requested by calling your local TAC. Ez 1040 e-file You can leave a message and a representative will call you back within 2 business days. Ez 1040 e-file All other issues will be handled without an appointment. Ez 1040 e-file To call your local TAC, go to  www. Ez 1040 e-file irs. Ez 1040 e-file gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Ez 1040 e-file Mail. Ez 1040 e-file You can send your order for forms, instructions, and publications to the address below. Ez 1040 e-file You should receive a response within 10 days after your request is received. Ez 1040 e-file  Internal Revenue Service 1201 N. Ez 1040 e-file Mitsubishi Motorway Bloomington, IL 61705-6613 Taxpayer Advocate Service. Ez 1040 e-file   The Taxpayer Advocate Service (TAS) is your voice at the IRS. Ez 1040 e-file Its job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. Ez 1040 e-file TAS offers free help to guide you through the often-confusing process of resolving tax problems that you haven’t been able to solve on your own. Ez 1040 e-file Remember, the worst thing you can do is nothing at all. Ez 1040 e-file   TAS can help if you can’t resolve your problem with the IRS and: Your problem is causing financial difficulties for you, your family, or your business. Ez 1040 e-file You face (or your business is facing) an immediate threat of adverse action. Ez 1040 e-file You have tried repeatedly to contact the IRS but no one has responded, or the IRS has not responded to you by the date promised. Ez 1040 e-file   If you qualify for help, they will do everything they can to get your problem resolved. Ez 1040 e-file You will be assigned to one advocate who will be with you at every turn. Ez 1040 e-file TAS has offices in every state, the District of Columbia, and Puerto Rico. Ez 1040 e-file Although TAS is independent within the IRS, their advocates know how to work with the IRS to get your problems resolved. Ez 1040 e-file And its services are always free. Ez 1040 e-file   As a taxpayer, you have rights that the IRS must abide by in its dealings with you. Ez 1040 e-file The TAS tax toolkit at www. Ez 1040 e-file TaxpayerAdvocate. Ez 1040 e-file irs. Ez 1040 e-file gov can help you understand these rights. Ez 1040 e-file   If you think TAS might be able to help you, call your local advocate, whose number is in your phone book and on our website at www. Ez 1040 e-file irs. Ez 1040 e-file gov/advocate. Ez 1040 e-file You can also call the toll-free number at 1-877-777-4778. Ez 1040 e-file Deaf and hard of hearing individuals who have access to TTY/TDD equipment can call 1-800-829-4059. Ez 1040 e-file These individuals can also access the IRS through relay services such as the Federal Relay Service at www. Ez 1040 e-file gsa. Ez 1040 e-file gov/fedrelay. Ez 1040 e-file   TAS also handles large-scale or systemic problems that affect many taxpayers. Ez 1040 e-file If you know of one of these broad issues, please report it through the Systemic Advocacy Management System at www. Ez 1040 e-file irs. Ez 1040 e-file gov/advocate. Ez 1040 e-file Low Income Taxpayer Clinics (LITCs). Ez 1040 e-file   Low Income Taxpayer Clinics (LITCs) are independent from the IRS. Ez 1040 e-file Some clinics serve individuals whose income is below a certain level and who need to resolve a tax problem. Ez 1040 e-file These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee. Ez 1040 e-file Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language. Ez 1040 e-file For more information and to find a clinic near you, see the LITC page on www. Ez 1040 e-file irs. Ez 1040 e-file gov/advocate or IRS Publication 4134, Low Income Taxpayer Clinic List. Ez 1040 e-file This publication is also available by calling 1-800-TAX-FORM (1-800-829-3676) or at your local IRS office. Ez 1040 e-file Free tax services. Ez 1040 e-file   Publication 910, IRS Guide to Free Tax Services, is your guide to IRS services and resources. Ez 1040 e-file Learn about free tax information from the IRS, including publications, services, and education and assistance programs. Ez 1040 e-file The publication also has an index of over 100 TeleTax topics (recorded tax information) you can listen to on the telephone. Ez 1040 e-file The majority of the information and services listed in this publication are available to you free of charge. Ez 1040 e-file If there is a fee associated with a resource or service, it is listed in the publication. Ez 1040 e-file   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Ez 1040 e-file DVD for tax products. Ez 1040 e-file You can order Publication 1796, IRS Tax Products DVD, and obtain: Current-year forms, instructions, and publications. Ez 1040 e-file Prior-year forms, instructions, and publications. Ez 1040 e-file Tax Map: an electronic research tool and finding aid. Ez 1040 e-file Tax law frequently asked questions. Ez 1040 e-file Tax Topics from the IRS telephone response system. Ez 1040 e-file Internal Revenue Code—Title 26 of the U. Ez 1040 e-file S. Ez 1040 e-file Code. Ez 1040 e-file Links to other Internet-based tax research materials. Ez 1040 e-file Fill-in, print, and save features for most tax forms. Ez 1040 e-file Internal Revenue Bulletins. Ez 1040 e-file Toll-free and email technical support. Ez 1040 e-file Two releases during the year. Ez 1040 e-file  – The first release will ship the beginning of January 2013. Ez 1040 e-file  – The final release will ship the beginning of March 2013. Ez 1040 e-file Purchase the DVD from National Technical Information Service (NTIS) at www. Ez 1040 e-file irs. Ez 1040 e-file gov/cdorders for $30 (no handling fee) or call 1-877-233-6767 toll free to buy the DVD for $30 (plus a $6 handling fee). Ez 1040 e-file Prev  Up  Next   Home   More Online Publications
Español

Bureau of Indian Affairs (BIA)

The Bureau of Indian Affairs’ mission is to enhance the quality of life, to promote economic opportunity, and to carry out the responsibility to protect and improve the trust assets of American Indians, Indian tribes and Alaska Natives.

Contact the Agency or Department

Website: Bureau of Indian Affairs (BIA)

Contact In-Person: Regional Offices

Address: MS-4606-MIB
1849 C Street, NW

Washington, DC 20240

Phone Number: (202) 208-5116

Parent Agency

The Ez 1040 E-file

Ez 1040 e-file 6. Ez 1040 e-file   How To Report Table of Contents Where To ReportGifts. Ez 1040 e-file Statutory employees. Ez 1040 e-file Vehicle Provided by Your Employer ReimbursementsAccountable Plans Nonaccountable Plans Rules for Independent Contractors and Clients How To Use Per Diem Rate TablesThe Two Substantiation Methods Transition Rules Completing Forms 2106 and 2106-EZInformation on use of cars. Ez 1040 e-file Standard mileage rate. Ez 1040 e-file Actual expenses. Ez 1040 e-file Car rentals. Ez 1040 e-file Hours of service limits. Ez 1040 e-file Allocating your reimbursement. Ez 1040 e-file 1. Ez 1040 e-file Limit on meals and entertainment. Ez 1040 e-file 2. Ez 1040 e-file Limit on miscellaneous itemized deductions. Ez 1040 e-file 3. Ez 1040 e-file Limit on total itemized deductions. Ez 1040 e-file Special Rules This chapter explains where and how to report the expenses discussed in this publication. Ez 1040 e-file It discusses reimbursements and how to treat them under accountable and nonaccountable plans. Ez 1040 e-file It also explains rules for independent contractors and clients, fee-basis officials, certain performing artists, Armed Forces reservists, and certain disabled employees. Ez 1040 e-file The chapter ends with illustrations of how to report travel, entertainment, gift, and car expenses on Forms 2106 and 2106-EZ. Ez 1040 e-file Where To Report This section provides general information on where to report the expenses discussed in this publication. Ez 1040 e-file Self-employed. Ez 1040 e-file   You must report your income and expenses on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) if you are a sole proprietor, or on Schedule F (Form 1040) if you are a farmer. Ez 1040 e-file You do not use Form 2106 or 2106-EZ. Ez 1040 e-file    If you claim car or truck expenses, you must provide certain information on the use of your vehicle. Ez 1040 e-file You provide this information on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Form 4562. Ez 1040 e-file   If you file Schedule C (Form 1040): Report your travel expenses, except meals, on line 24a, Report your deductible meals (actual cost or standard meal allowance) and entertainment on line 24b, Report your gift expenses and transportation expenses, other than car expenses, on line 27a, and Report your car expenses on line 9. Ez 1040 e-file Complete Part IV of the form unless you have to file Form 4562 for depreciation or amortization. Ez 1040 e-file   If you file Schedule C-EZ (Form 1040), report the total of all business expenses on line 2. Ez 1040 e-file You can only include 50% of your meals and entertainment in that total. Ez 1040 e-file If you include car expenses, you must also complete Part III of the form. Ez 1040 e-file    If you file Schedule F (Form 1040): Report your car expenses on line 10. Ez 1040 e-file Attach Form 4562 and provide information on the use of your car in Part V of Form 4562. Ez 1040 e-file Report all other business expenses discussed in this publication on line 32. Ez 1040 e-file You can only include 50% of your meals and entertainment on that line. Ez 1040 e-file See your form instructions for more information on how to complete your tax return. Ez 1040 e-file Both self-employed and an employee. Ez 1040 e-file   If you are both self-employed and an employee, you must keep separate records for each business activity. Ez 1040 e-file Report your business expenses for self-employment on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040), as discussed earlier. Ez 1040 e-file Report your business expenses for your work as an employee on Form 2106 or 2106-EZ, as discussed next. Ez 1040 e-file Employees. Ez 1040 e-file    If you are an employee, you generally must complete Form 2106 to deduct your travel, transportation, and entertainment expenses. Ez 1040 e-file However, you can use the shorter Form 2106-EZ instead of Form 2106 if you meet all of the following conditions. Ez 1040 e-file You are an employee deducting expenses attributable to your job. Ez 1040 e-file You were not reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 are not considered reimbursements). Ez 1040 e-file If you claim car expenses, you use the standard mileage rate. Ez 1040 e-file   For more information on how to report your expenses on Forms 2106 and 2106-EZ, see Completing Forms 2106 and 2106-EZ , later. Ez 1040 e-file Gifts. Ez 1040 e-file   If you did not receive any reimbursements (or the reimbursements were all included in box 1 of your Form W-2), the only business expense you are claiming is for gifts, and the Special Rules discussed later do not apply to you, do not complete Form 2106 or 2106-EZ. Ez 1040 e-file Instead, claim the amount of your deductible gifts directly on line 21 of Schedule A (Form 1040). Ez 1040 e-file Statutory employees. Ez 1040 e-file    If you received a Form W-2 and the “Statutory employee” box in box 13 was checked, report your income and expenses related to that income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040). Ez 1040 e-file Do not complete Form 2106 or 2106-EZ. Ez 1040 e-file   Statutory employees include full-time life insurance salespersons, certain agent or commission drivers, traveling salespersons, and certain homeworkers. Ez 1040 e-file If you are entitled to a reimbursement from your employer but you do not claim it, you cannot claim a deduction for the expenses to which that unclaimed reimbursement applies. Ez 1040 e-file Reimbursement for personal expenses. Ez 1040 e-file    If your employer reimburses you for nondeductible personal expenses, such as for vacation trips, your employer must report the reimbursement as wage income in box 1 of your Form W-2. Ez 1040 e-file You cannot deduct personal expenses. Ez 1040 e-file Income-producing property. Ez 1040 e-file   If you have travel or transportation expenses related to income-producing property, report your deductible expenses on the form appropriate for that activity. Ez 1040 e-file   For example, if you have rental real estate income and expenses, report your expenses on Schedule E (Form 1040), Supplemental Income and Loss. Ez 1040 e-file See Publication 527, Residential Rental Property, for more information on the rental of real estate. Ez 1040 e-file If you have deductible investment-related transportation expenses, report them on Schedule A (Form 1040), line 23. Ez 1040 e-file Vehicle Provided by Your Employer If your employer provides you with a car, you may be able to deduct the actual expenses of operating that car for business purposes. Ez 1040 e-file The amount you can deduct depends on the amount that your employer included in your income and the business and personal miles you drove during the year. Ez 1040 e-file You cannot use the standard mileage rate. Ez 1040 e-file Value reported on Form W-2. Ez 1040 e-file   Your employer can figure and report either the actual value of your personal use of the car or the value of the car as if you used it only for personal purposes (100% income inclusion). Ez 1040 e-file Your employer must separately state the amount if 100% of the annual lease value was included in your income. Ez 1040 e-file If you are unsure of the amount included on your Form W-2, ask your employer. Ez 1040 e-file Full value included in your income. Ez 1040 e-file   You can deduct the value of the business use of an employer-provided car if your employer reported 100% of the value of the car in your income. Ez 1040 e-file On your 2013 Form W-2, the amount of the value will be included in box 1, Wages, tips, other compensation, and box 14. Ez 1040 e-file    To claim your expenses, complete Form 2106, Part II, Sections A and C. Ez 1040 e-file Enter your actual expenses on line 23 of Section C and include the entire value of the employer-provided car on line 25. Ez 1040 e-file Complete the rest of the form. Ez 1040 e-file Less than full value included in your income. Ez 1040 e-file   If less than the full annual lease value of the car was included on your Form W-2, this means that your Form W-2 only includes the value of your personal use of the car. Ez 1040 e-file Do not enter this value on your Form 2106 because it is not deductible. Ez 1040 e-file   If you paid any actual costs (that your employer did not provide or reimburse you for) to operate the car, you can deduct the business portion of those costs. Ez 1040 e-file Examples of costs that you may have are gas, oil, and repairs. Ez 1040 e-file Complete Form 2106, Part II, Sections A and C. Ez 1040 e-file Enter your actual costs on line 23 of Section C and leave line 25 blank. Ez 1040 e-file Complete the rest of the form. Ez 1040 e-file Reimbursements This section explains what to do when you receive an advance or are reimbursed for any of the employee business expenses discussed in this publication. Ez 1040 e-file If you received an advance, allowance, or reimbursement for your expenses, how you report this amount and your expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan. Ez 1040 e-file This section explains the two types of plans, how per diem and car allowances simplify proving the amount of your expenses, and the tax treatment of your reimbursements and expenses. Ez 1040 e-file It also covers rules for independent contractors. Ez 1040 e-file No reimbursement. Ez 1040 e-file   You are not reimbursed or given an allowance for your expenses if you are paid a salary or commission with the understanding that you will pay your own expenses. Ez 1040 e-file In this situation, you have no reimbursement or allowance arrangement, and you do not have to read this section on reimbursements. Ez 1040 e-file Instead, see Completing Forms 2106 and 2106-EZ , later, for information on completing your tax return. Ez 1040 e-file Reimbursement, allowance, or advance. Ez 1040 e-file   A reimbursement or other expense allowance arrangement is a system or plan that an employer uses to pay, substantiate, and recover the expenses, advances, reimbursements, and amounts charged to the employer for employee business expenses. Ez 1040 e-file Arrangements include per diem and car allowances. Ez 1040 e-file    A per diem allowance is a fixed amount of daily reimbursement your employer gives you for your lodging, meals, and incidental expenses when you are away from home on business. Ez 1040 e-file (The term “ incidental expenses ” is defined in chapter 1 under Standard Meal Allowance. Ez 1040 e-file ) A car allowance is an amount your employer gives you for the business use of your car. Ez 1040 e-file   Your employer should tell you what method of reimbursement is used and what records you must provide. Ez 1040 e-file Employers. Ez 1040 e-file   If you are an employer and you reimburse employee business expenses, how you treat this reimbursement on your employee's Form W-2 depends in part on whether you have an accountable plan. Ez 1040 e-file Reimbursements treated as paid under an accountable plan, as explained next, are not reported as pay. Ez 1040 e-file Reimbursements treated as paid under nonaccountable plans , as explained later, are reported as pay. Ez 1040 e-file See Publication 15 (Circular E), Employer's Tax Guide, for information on employee pay. Ez 1040 e-file Accountable Plans To be an accountable plan, your employer's reimbursement or allowance arrangement must include all of the following rules: Your expenses must have a business connection — that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. Ez 1040 e-file You must adequately account to your employer for these expenses within a reasonable period of time. Ez 1040 e-file You must return any excess reimbursement or allowance within a reasonable period of time. Ez 1040 e-file “ Adequate accounting ” and “ returning excess reimbursements ” are discussed later. Ez 1040 e-file An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. Ez 1040 e-file Reasonable period of time. Ez 1040 e-file   The definition of reasonable period of time depends on the facts and circumstances of your situation. Ez 1040 e-file However, regardless of the facts and circumstances of your situation, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. Ez 1040 e-file You receive an advance within 30 days of the time you have an expense. Ez 1040 e-file You adequately account for your expenses within 60 days after they were paid or incurred. Ez 1040 e-file You return any excess reimbursement within 120 days after the expense was paid or incurred. Ez 1040 e-file You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. Ez 1040 e-file Employee meets accountable plan rules. Ez 1040 e-file   If you meet the three rules for accountable plans, your employer should not include any reimbursements in your income in box 1 of your Form W-2. Ez 1040 e-file If your expenses equal your reimbursements, you do not complete Form 2106. Ez 1040 e-file You have no deduction since your expenses and reimbursement are equal. Ez 1040 e-file    If your employer included reimbursements in box 1 of your Form W-2 and you meet all the rules for accountable plans, ask your employer for a corrected Form W-2. Ez 1040 e-file Accountable plan rules not met. Ez 1040 e-file   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules. Ez 1040 e-file All reimbursements that fail to meet all three rules for accountable plans are generally treated as having been reimbursed under a nonaccountable plan (discussed later). Ez 1040 e-file Failure to return excess reimbursements. Ez 1040 e-file   If you are reimbursed under an accountable plan, but you fail to return, within a reasonable time, any amounts in excess of the substantiated amounts, the amounts paid in excess of the substantiated expenses are treated as paid under a nonaccountable plan. Ez 1040 e-file See Reasonable period of time , earlier, and Returning Excess Reimbursements , later. Ez 1040 e-file Reimbursement of nondeductible expenses. Ez 1040 e-file   You may be reimbursed under your employer's accountable plan for expenses related to that employer's business, some of which are deductible as employee business expenses and some of which are not deductible. Ez 1040 e-file The reimbursements you receive for the nondeductible expenses do not meet rule (1) for accountable plans, and they are treated as paid under a nonaccountable plan. Ez 1040 e-file Example. Ez 1040 e-file Your employer's plan reimburses you for travel expenses while away from home on business and also for meals when you work late at the office, even though you are not away from home. Ez 1040 e-file The part of the arrangement that reimburses you for the nondeductible meals when you work late at the office is treated as paid under a nonaccountable plan. Ez 1040 e-file The employer makes the decision whether to reimburse employees under an accountable plan or a nonaccountable plan. Ez 1040 e-file If you are an employee who receives payments under a nonaccountable plan, you cannot convert these amounts to payments under an accountable plan by voluntarily accounting to your employer for the expenses and voluntarily returning excess reimbursements to the employer. Ez 1040 e-file Adequate Accounting One of the rules for an accountable plan is that you must adequately account to your employer for your expenses. Ez 1040 e-file You adequately account by giving your employer a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it, along with documentary evidence (such as receipts) of your travel, mileage, and other employee business expenses. Ez 1040 e-file (See Table 5-1 in chapter 5 for details you need to enter in your record and documents you need to prove certain expenses. Ez 1040 e-file ) A per diem or car allowance satisfies the adequate accounting requirement under certain conditions. Ez 1040 e-file See Per Diem and Car Allowances , later. Ez 1040 e-file You must account for all amounts you received from your employer during the year as advances, reimbursements, or allowances. Ez 1040 e-file This includes amounts you charged to your employer by credit card or other method. Ez 1040 e-file You must give your employer the same type of records and supporting information that you would have to give to the IRS if the IRS questioned a deduction on your return. Ez 1040 e-file You must pay back the amount of any reimbursement or other expense allowance for which you do not adequately account or that is more than the amount for which you accounted. Ez 1040 e-file Per Diem and Car Allowances If your employer reimburses you for your expenses using a per diem or a car allowance, you can generally use the allowance as proof for the amount of your expenses. Ez 1040 e-file A per diem or car allowance satisfies the adequate accounting requirements for the amount of your expenses only if all the following conditions apply. Ez 1040 e-file Your employer reasonably limits payments of your expenses to those that are ordinary and necessary in the conduct of the trade or business. Ez 1040 e-file The allowance is similar in form to and not more than the federal rate (defined later). Ez 1040 e-file You prove the time (dates), place, and business purpose of your expenses to your employer (as explained in Table 5-1 ) within a reasonable period of time. Ez 1040 e-file You are not related to your employer (as defined next). Ez 1040 e-file If you are related to your employer, you must be able to prove your expenses to the IRS even if you have already adequately accounted to your employer and returned any excess reimbursement. Ez 1040 e-file If the IRS finds that an employer's travel allowance practices are not based on reasonably accurate estimates of travel costs (including recognition of cost differences in different areas for per diem amounts), you will not be considered to have accounted to your employer. Ez 1040 e-file In this case, you must be able to prove your expenses to the IRS. Ez 1040 e-file Related to employer. Ez 1040 e-file   You are related to your employer if: Your employer is your brother or sister, half brother or half sister, spouse, ancestor, or lineal descendant, Your employer is a corporation in which you own, directly or indirectly, more than 10% in value of the outstanding stock, or Certain relationships (such as grantor, fiduciary, or beneficiary) exist between you, a trust, and your employer. Ez 1040 e-file You may be considered to indirectly own stock, for purposes of (2), if you have an interest in a corporation, partnership, estate, or trust that owns the stock or if a member of your family or your partner owns the stock. Ez 1040 e-file The federal rate. Ez 1040 e-file   The federal rate can be figured using any one of the following methods. Ez 1040 e-file For per diem amounts: The regular federal per diem rate. Ez 1040 e-file The standard meal allowance. Ez 1040 e-file The high-low rate. Ez 1040 e-file For car expenses: The standard mileage rate. Ez 1040 e-file A fixed and variable rate (FAVR). Ez 1040 e-file    For per diem amounts, use the rate in effect for the area where you stop for sleep or rest. Ez 1040 e-file Regular federal per diem rate. Ez 1040 e-file   The regular federal per diem rate is the highest amount that the federal government will pay to its employees for lodging, meals, and incidental expenses (or meals and incidental expenses only) while they are traveling away from home in a particular area. Ez 1040 e-file The rates are different for different locations. Ez 1040 e-file Your employer should have these rates available. Ez 1040 e-file You can also find federal per diem rates at www. Ez 1040 e-file gsa. Ez 1040 e-file gov/perdiem. Ez 1040 e-file The standard meal allowance. Ez 1040 e-file   The standard meal allowance (discussed in chapter 1) is the federal rate for meals and incidental expenses (M&IE). Ez 1040 e-file The rate for most small localities in the United States is $46 a day. Ez 1040 e-file Most major cities and many other localities qualify for higher rates. Ez 1040 e-file You can find this information on the Internet at www. Ez 1040 e-file gsa. Ez 1040 e-file gov/perdiem. Ez 1040 e-file   You receive an allowance only for meals and incidental expenses when your employer does one of the following. Ez 1040 e-file Provides you with lodging (furnishes it in kind). Ez 1040 e-file Reimburses you, based on your receipts, for the actual cost of your lodging. Ez 1040 e-file Pays the hotel, motel, etc. Ez 1040 e-file , directly for your lodging. Ez 1040 e-file Does not have a reasonable belief that you had (or will have) lodging expenses, such as when you stay with friends or relatives or sleep in the cab of your truck. Ez 1040 e-file Figures the allowance on a basis similar to that used in computing your compensation, such as number of hours worked or miles traveled. Ez 1040 e-file High-low rate. Ez 1040 e-file   This is a simplified method of computing the federal per diem rate for travel within the continental United States. Ez 1040 e-file It eliminates the need to keep a current list of the per diem rates for each city. Ez 1040 e-file   Under the high-low method, the per diem amount for travel during January through September of 2013 is $242 (including $65 for M&IE) for certain high-cost locations. Ez 1040 e-file All other areas have a per diem amount of $163 (including $52 for M&IE). Ez 1040 e-file For more information, see Notice 2012-63, which can be found on the Internet at www. Ez 1040 e-file irs. Ez 1040 e-file gov/irb/2012-42_IRB/ar12. Ez 1040 e-file html. Ez 1040 e-file    Effective October 1, 2013, the per diem rate for certain high-cost locations increased to $251 (including $65 for M&IE). Ez 1040 e-file The rate for all other locations increased to $170 (including $52 for M&IE). Ez 1040 e-file Employers who did not use the high-low method during the first 9 months of 2013 cannot begin to use it before 2014. Ez 1040 e-file For more information, see Notice 2013-65, which can be found on the Internet at www. Ez 1040 e-file irs. Ez 1040 e-file gov/pub/irs-drop/n-13–65. Ez 1040 e-file pdf and Revenue Procedure 2011-47 at www. Ez 1040 e-file irs. Ez 1040 e-file gov/irb/2011-42_IRB/ar12. Ez 1040 e-file html. Ez 1040 e-file Prorating the standard meal allowance on partial days of travel. Ez 1040 e-file   The standard meal allowance is for a full 24-hour day of travel. Ez 1040 e-file If you travel for part of a day, such as on the days you depart and return, you must prorate the full-day M&IE rate. Ez 1040 e-file This rule also applies if your employer uses the regular federal per diem rate or the high-low rate. Ez 1040 e-file   You can use either of the following methods to figure the federal M&IE for that day. Ez 1040 e-file Method 1: For the day you depart, add 3/4 of the standard meal allowance amount for that day. Ez 1040 e-file For the day you return, add 3/4 of the standard meal allowance amount for the preceding day. Ez 1040 e-file Method 2: Prorate the standard meal allowance using any method you consistently apply in accordance with reasonable business practice. Ez 1040 e-file For example, an employer can treat 2 full days of per diem (that includes M&IE) paid for travel away from home from 9 a. Ez 1040 e-file m. Ez 1040 e-file of one day to 5 p. Ez 1040 e-file m. Ez 1040 e-file of the next day as being no more than the federal rate. Ez 1040 e-file This is true even though a federal employee would be limited to a reimbursement of M&IE for only 1½ days of the federal M&IE rate. Ez 1040 e-file The standard mileage rate. Ez 1040 e-file   This is a set rate per mile that you can use to compute your deductible car expenses. Ez 1040 e-file For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. Ez 1040 e-file Fixed and variable rate (FAVR). Ez 1040 e-file   This is an allowance your employer may use to reimburse your car expenses. Ez 1040 e-file Under this method, your employer pays an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your variable operating costs (such as gas, oil, etc. Ez 1040 e-file ) plus a flat amount to cover your fixed costs (such as depreciation (or lease payments), insurance, etc. Ez 1040 e-file ). Ez 1040 e-file If your employer chooses to use this method, your employer will request the necessary records from you. Ez 1040 e-file Reporting your expenses with a per diem or car allowance. Ez 1040 e-file   If your reimbursement is in the form of an allowance received under an accountable plan, the following facts affect your reporting. Ez 1040 e-file The federal rate. Ez 1040 e-file Whether the allowance or your actual expenses were more than the federal rate. Ez 1040 e-file The following discussions explain where to report your expenses depending upon how the amount of your allowance compares to the federal rate. Ez 1040 e-file Allowance less than or equal to the federal rate. Ez 1040 e-file   If your allowance is less than or equal to the federal rate, the allowance will not be included in box 1 of your Form W-2. Ez 1040 e-file You do not need to report the related expenses or the allowance on your return if your expenses are equal to or less than the allowance. Ez 1040 e-file   However, if your actual expenses are more than your allowance, you can complete Form 2106 and deduct the excess amount on Schedule A (Form 1040). Ez 1040 e-file If you are using actual expenses, you must be able to prove to the IRS the total amount of your expenses and reimbursements for the entire year. Ez 1040 e-file If you are using the standard meal allowance or the standard mileage rate, you do not have to prove that amount. Ez 1040 e-file Example 1. Ez 1040 e-file In April, Jeremy takes a 2-day business trip to Denver. Ez 1040 e-file The federal rate for Denver is $215 per day. Ez 1040 e-file As required by his employer's accountable plan, he accounts for the time (dates), place, and business purpose of the trip. Ez 1040 e-file His employer reimburses him $215 a day ($430 total) for living expenses. Ez 1040 e-file Jeremy's living expenses in Denver are not more than $215 a day. Ez 1040 e-file Jeremy's employer does not include any of the reimbursement on his Form W-2 and Jeremy does not deduct the expenses on his return. Ez 1040 e-file Example 2. Ez 1040 e-file In June, Matt takes a 2-day business trip to Boston. Ez 1040 e-file Matt's employer uses the high-low method to reimburse employees. Ez 1040 e-file Since Boston is a high-cost area, Matt is given an advance of $242 a day ($484 total) for his lodging, meals, and incidental expenses. Ez 1040 e-file Matt's actual expenses totaled $700. Ez 1040 e-file Since Matt's $700 of expenses are more than his $484 advance, he includes the excess expenses when he itemizes his deductions. Ez 1040 e-file Matt completes Form 2106 (showing all of his expenses and reimbursements). Ez 1040 e-file He must also allocate his reimbursement between his meals and other expenses as discussed later under Completing Forms 2106 and 2106-EZ . Ez 1040 e-file Example 3. Ez 1040 e-file Nicole drives 10,000 miles in 2013 for business. Ez 1040 e-file Under her employer's accountable plan, she accounts for the time (dates), place, and business purpose of each trip. Ez 1040 e-file Her employer pays her a mileage allowance of 40 cents a mile. Ez 1040 e-file Since Nicole's $5,650 expense computed under the standard mileage rate (10,000 miles x 56½ cents) is more than her $4,000 reimbursement (10,000 miles × 40 cents), she itemizes her deductions to claim the excess expense. Ez 1040 e-file Nicole completes Form 2106 (showing all her expenses and reimbursements) and enters $1,650 ($5,650 − $4,000) as an itemized deduction. Ez 1040 e-file Allowance more than the federal rate. Ez 1040 e-file   If your allowance is more than the federal rate, your employer must include the allowance amount up to the federal rate in box 12 of your Form W-2. Ez 1040 e-file This amount is not taxable. Ez 1040 e-file However, the excess allowance will be included in box 1 of your Form W-2. Ez 1040 e-file You must report this part of your allowance as if it were wage income. Ez 1040 e-file   If your actual expenses are less than or equal to the federal rate, you do not complete Form 2106 or claim any of your expenses on your return. Ez 1040 e-file   However, if your actual expenses are more than the federal rate, you can complete Form 2106 and deduct those excess expenses. Ez 1040 e-file You must report on Form 2106 your reimbursements up to the federal rate (as shown in box 12 of your Form W-2) and all your expenses. Ez 1040 e-file You should be able to prove these amounts to the IRS. Ez 1040 e-file Example 1. Ez 1040 e-file Laura lives and works in Austin. Ez 1040 e-file In July her employer sent her to Albuquerque for 4 days on business. Ez 1040 e-file Laura's employer paid the hotel directly for her lodging and reimbursed Laura $65 a day ($260 total) for meals and incidental expenses. Ez 1040 e-file Laura's actual meal expenses were not more than the federal rate for Albuquerque, which is $56 per day. Ez 1040 e-file Table 6-1. Ez 1040 e-file Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements IF the type of reimbursement (or  other expense allowance)  arrangement is under: THEN the employer reports on Form W-2: AND the employee reports on  Form 2106: * An accountable plan with: Actual expense reimbursement: Adequate accounting made and excess returned. Ez 1040 e-file No amount. Ez 1040 e-file No amount. Ez 1040 e-file Actual expense reimbursement: Adequate accounting and return of excess both required but excess not returned. Ez 1040 e-file The excess amount as wages in box 1. Ez 1040 e-file No amount. Ez 1040 e-file Per diem or mileage allowance up to the federal rate: Adequate accounting made and excess returned. Ez 1040 e-file No amount. Ez 1040 e-file All expenses and reimbursements only if excess expenses are claimed. Ez 1040 e-file Otherwise, form is not filed. Ez 1040 e-file Per diem or mileage allowance up to the federal rate: Adequate accounting and return of excess both required but excess not returned. Ez 1040 e-file The excess amount as wages in box 1. Ez 1040 e-file The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Ez 1040 e-file No amount. Ez 1040 e-file Per diem or mileage allowance exceeds the federal rate: Adequate accounting up to the federal rate only and excess not returned. Ez 1040 e-file The excess amount as wages in box 1. Ez 1040 e-file The amount up to the federal rate is reported only in box 12—it is not reported in box 1. Ez 1040 e-file All expenses (and reimbursements reported on Form W-2, box 12) only if expenses in excess of the federal rate are claimed. Ez 1040 e-file Otherwise, form is not filed. Ez 1040 e-file A nonaccountable plan with: Either adequate accounting or return of excess, or both, not required by plan. Ez 1040 e-file The entire amount as wages in box 1. Ez 1040 e-file All expenses. Ez 1040 e-file No reimbursement plan: The entire amount as wages in box 1. Ez 1040 e-file All expenses. Ez 1040 e-file * You may be able to use Form 2106-EZ. Ez 1040 e-file See Completing Forms 2106 and 2106-EZ . Ez 1040 e-file Her employer included the $36 that was more than the federal rate (($65 − $56) × 4) in box 1 of Laura's Form W-2. Ez 1040 e-file Her employer shows $224 ($56 a day × 4) in box 12 of her Form W-2. Ez 1040 e-file This amount is not included in Laura's income. Ez 1040 e-file Laura does not have to complete Form 2106; however, she must include the $36 in her gross income as wages (by reporting the total amount shown in box 1 of her Form W-2). Ez 1040 e-file Example 2. Ez 1040 e-file Joe also lives in Austin and works for the same employer as Laura. Ez 1040 e-file In May the employer sent Joe to San Diego for 4 days and paid the hotel directly for Joe's hotel bill. Ez 1040 e-file The employer reimbursed Joe $75 a day for his meals and incidental expenses. Ez 1040 e-file The federal rate for San Diego is $71 a day. Ez 1040 e-file Joe can prove that his actual meal expenses totaled $380. Ez 1040 e-file His employer's accountable plan will not pay more than $75 a day for travel to San Diego, so Joe does not give his employer the records that prove that he actually spent $380. Ez 1040 e-file However, he does account for the time, place, and business purpose of the trip. Ez 1040 e-file This is Joe's only business trip this year. Ez 1040 e-file Joe was reimbursed $300 ($75 × 4 days), which is $16 more than the federal rate of $284 ($71 × 4 days). Ez 1040 e-file The employer includes the $16 as income on Joe's Form W-2 in box 1. Ez 1040 e-file The employer also enters $284 in box 12 of Joe's Form W-2. Ez 1040 e-file Joe completes Form 2106 to figure his deductible expenses. Ez 1040 e-file He enters the total of his actual expenses for the year ($380) on Form 2106. Ez 1040 e-file He also enters the reimbursements that were not included in his income ($284). Ez 1040 e-file His total deductible expense, before the 50% limit, is $96. Ez 1040 e-file After he figures the 50% limit on his unreimbursed meals and entertainment, he will include the balance, $48, as an itemized deduction. Ez 1040 e-file Example 3. Ez 1040 e-file Debbie drives 10,000 miles in 2013 for business. Ez 1040 e-file Under her employer's accountable plan, she gets reimbursed 60 cents a mile, which is more than the standard mileage rate. Ez 1040 e-file Her total reimbursement is $6,000. Ez 1040 e-file Debbie's employer must include the reimbursement amount up to the standard mileage rate, $5,650 (10,000 × 56½ cents), in box 12 of her Form W-2. Ez 1040 e-file That amount is not taxable. Ez 1040 e-file Her employer must also include $350 ($6,000 − $5,650) in box 1 of her Form W-2. Ez 1040 e-file This is the reimbursement that is more than the standard mileage rate. Ez 1040 e-file If Debbie's expenses are equal to or less than the standard mileage rate, she would not complete Form 2106. Ez 1040 e-file If her expenses are more than the standard mileage rate, she would complete Form 2106 and report her total expenses and reimbursement (shown in box 12 of her Form W-2). Ez 1040 e-file She would then claim the excess expenses as an itemized deduction. Ez 1040 e-file Returning Excess Reimbursements Under an accountable plan, you are required to return any excess reimbursement or other expense allowances for your business expenses to the person paying the reimbursement or allowance. Ez 1040 e-file Excess reimbursement means any amount for which you did not adequately account within a reasonable period of time. Ez 1040 e-file For example, if you received a travel advance and you did not spend all the money on business-related expenses or you do not have proof of all your expenses, you have an excess reimbursement. Ez 1040 e-file “ Adequate accounting ” and “ reasonable period of time ” were discussed earlier in this chapter. Ez 1040 e-file Travel advance. Ez 1040 e-file   You receive a travel advance if your employer provides you with an expense allowance before you actually have the expense, and the allowance is reasonably expected to be no more than your expense. Ez 1040 e-file Under an accountable plan, you are required to adequately account to your employer for this advance and to return any excess within a reasonable period of time. Ez 1040 e-file   If you do not adequately account for or do not return any excess advance within a reasonable period of time, the amount you do not account for or return will be treated as having been paid under a nonaccountable plan (discussed later). Ez 1040 e-file Unproved amounts. Ez 1040 e-file   If you do not prove that you actually traveled on each day for which you received a per diem or car allowance (proving the elements described in Table 5-1 ), you must return this unproved amount of the travel advance within a reasonable period of time. Ez 1040 e-file If you do not do this, the unproved amount will be considered paid under a nonaccountable plan (discussed later). Ez 1040 e-file Per diem allowance more than federal rate. Ez 1040 e-file   If your employer's accountable plan pays you an allowance that is higher than the federal rate, you do not have to return the difference between the two rates for the period you can prove business-related travel expenses. Ez 1040 e-file However, the difference will be reported as wages on your Form W-2. Ez 1040 e-file This excess amount is considered paid under a nonaccountable plan (discussed later). Ez 1040 e-file Example. Ez 1040 e-file Your employer sends you on a 5-day business trip to Phoenix in March 2013 and gives you a $400 ($80 × 5 days) advance to cover your meals and incidental expenses. Ez 1040 e-file The federal per diem for meals and incidental expenses for Phoenix is $71. Ez 1040 e-file Your trip lasts only 3 days. Ez 1040 e-file Under your employer's accountable plan, you must return the $160 ($80 × 2 days) advance for the 2 days you did not travel. Ez 1040 e-file For the 3 days you did travel you do not have to return the $27 difference between the allowance you received and the federal rate for Phoenix (($80 − $71) × 3 days). Ez 1040 e-file However, the $27 will be reported on your Form W-2 as wages. Ez 1040 e-file Nonaccountable Plans A nonaccountable plan is a reimbursement or expense allowance arrangement that does not meet one or more of the three rules listed earlier under Accountable Plans. Ez 1040 e-file In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan: Excess reimbursements you fail to return to your employer, and Reimbursement of nondeductible expenses related to your employer's business. Ez 1040 e-file See Reimbursement of nondeductible expenses , earlier, under Accountable Plans. Ez 1040 e-file An arrangement that repays you for business expenses by reducing the amount reported as your wages, salary, or other pay will be treated as a nonaccountable plan. Ez 1040 e-file This is because you are entitled to receive the full amount of your pay whether or not you have any business expenses. Ez 1040 e-file If you are not sure if the reimbursement or expense allowance arrangement is an accountable or nonaccountable plan, ask your employer. Ez 1040 e-file Reporting your expenses under a nonaccountable plan. Ez 1040 e-file   Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay. Ez 1040 e-file Your employer will report the total in box 1 of your Form W-2. Ez 1040 e-file    You must complete Form 2106 or 2106-EZ and itemize your deductions to deduct your expenses for travel, transportation, meals, or entertainment. Ez 1040 e-file Your meal and entertainment expenses will be subject to the 50% limit discussed in chapter 2. Ez 1040 e-file Also, your total expenses will be subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Ez 1040 e-file Example 1. Ez 1040 e-file Kim's employer gives her $1,000 a month ($12,000 total for the year) for her business expenses. Ez 1040 e-file Kim does not have to provide any proof of her expenses to her employer, and Kim can keep any funds that she does not spend. Ez 1040 e-file Kim is being reimbursed under a nonaccountable plan. Ez 1040 e-file Her employer will include the $12,000 on Kim's Form W-2 as if it were wages. Ez 1040 e-file If Kim wants to deduct her business expenses, she must complete Form 2106 or 2106-EZ and itemize her deductions. Ez 1040 e-file Example 2. Ez 1040 e-file Kevin is paid $2,000 a month by his employer. Ez 1040 e-file On days that he travels away from home on business, his employer designates $50 a day of his salary as paid to reimburse his travel expenses. Ez 1040 e-file Because his employer would pay Kevin his monthly salary whether or not he was traveling away from home, the arrangement is a nonaccountable plan. Ez 1040 e-file No part of the $50 a day designated by his employer is treated as paid under an accountable plan. Ez 1040 e-file Rules for Independent Contractors and Clients This section provides rules for independent contractors who incur expenses on behalf of a client or customer. Ez 1040 e-file The rules cover the reporting and substantiation of certain expenses discussed in this publication, and they affect both independent contractors and their clients or customers. Ez 1040 e-file You are considered an independent contractor if you are self-employed and you perform services for a customer or client. Ez 1040 e-file Accounting to Your Client If you received a reimbursement or an allowance for travel, entertainment, or gift expenses that you incurred on behalf of a client, you should provide an adequate accounting of these expenses to your client. Ez 1040 e-file If you do not account to your client for these expenses, you must include any reimbursements or allowances in income. Ez 1040 e-file You must keep adequate records of these expenses whether or not you account to your client for these expenses. Ez 1040 e-file If you do not separately account for and seek reimbursement for meals and entertainment in connection with providing services for a client, you are subject to the 50% limit on those expenses. Ez 1040 e-file See 50% Limit in chapter 2. Ez 1040 e-file Adequate accounting. Ez 1040 e-file   As a self-employed person, you adequately account by reporting your actual expenses. Ez 1040 e-file You should follow the recordkeeping rules in chapter 5 . Ez 1040 e-file How to report. Ez 1040 e-file   For information on how to report expenses on your tax return, see Self-employed at the beginning of this chapter. Ez 1040 e-file Required Records for Clients or Customers If you are a client or customer, you generally do not have to keep records to prove the reimbursements or allowances you give, in the course of your business, to an independent contractor for travel or gift expenses incurred on your behalf. Ez 1040 e-file However, you must keep records if: You reimburse the contractor for entertainment expenses incurred on your behalf, and The contractor adequately accounts to you for these expenses. Ez 1040 e-file Contractor adequately accounts. Ez 1040 e-file   If the contractor adequately accounts to you for entertainment expenses, you (the client or customer) must keep records documenting each element of the expense, as explained in chapter 5 . Ez 1040 e-file Use your records as proof for a deduction on your tax return. Ez 1040 e-file If entertainment expenses are accounted for separately, you are subject to the 50% limit on entertainment. Ez 1040 e-file If the contractor adequately accounts to you for reimbursed amounts, you do not have to report the amounts on an information return. Ez 1040 e-file Contractor does not adequately account. Ez 1040 e-file    If the contractor does not adequately account to you for allowances or reimbursements of entertainment expenses, you do not have to keep records of these items. Ez 1040 e-file You are not subject to the 50% limit on entertainment in this case. Ez 1040 e-file You can deduct the reimbursements or allowances as payment for services if they are ordinary and necessary business expenses. Ez 1040 e-file However, you must file Form 1099-MISC to report amounts paid to the independent contractor if the total of the reimbursements and any other fees is $600 or more during the calendar year. Ez 1040 e-file How To Use Per Diem Rate Tables This section contains information about the per diem rate substantiation methods available and the choice of rates you must make for the last 3 months of the year. Ez 1040 e-file The Two Substantiation Methods High-low method. Ez 1040 e-file   IRS notices list the localities that are treated under the high-low substantiation method as high-cost localities for all or part of the year. Ez 1040 e-file Notice 2012–63, available at www. Ez 1040 e-file irs. Ez 1040 e-file gov/irb/2012–42_IRB/ar12. Ez 1040 e-file html, lists the localities that are eligible for $242 ($65 meals and incidental expenses (M&IE)) per diem, effective October 1, 2012. Ez 1040 e-file For travel on or after October 1, 2012, all other localities within CONUS are eligible for $163 ($52 M&IE) per diem under the high-low method. Ez 1040 e-file   Notice 2013–65, available at www. Ez 1040 e-file irs. Ez 1040 e-file gov/pub/irs-drop/n-13–65. Ez 1040 e-file pdf, lists the localities that are eligible for $251 ($65 M&IE) per diem, effective October 1, 2013. Ez 1040 e-file For travel on or after October 1, 2013, the per diem for all other localities increased to $170 ($52 M&IE). Ez 1040 e-file Regular federal per diem rate method. Ez 1040 e-file   Regular federal per diem rates are published by the General Services Administration (GSA). Ez 1040 e-file Both tables include the separate rate for meals and incidental expenses (M&IE) for each locality. Ez 1040 e-file The rates listed for FY2013 at www. Ez 1040 e-file gsa. Ez 1040 e-file gov/perdiem are effective October 1, 2012 and those listed for FY2014 are effective October 1, 2013. Ez 1040 e-file The standard rate for all locations within CONUS not specifically listed for FY2013 is $123 ($77 for lodging and $46 for M&IE). Ez 1040 e-file For FY2014, this rate increased to $129 ($83 for lodging and $46 for M&IE). Ez 1040 e-file Transition Rules The transition period covers the last 3 months of the calendar year, from the time that new rates are effective (generally October 1) through December 31. Ez 1040 e-file During this period, you generally may change to the new rates or finish out the year with the rates you had been using. Ez 1040 e-file High-low method. Ez 1040 e-file   If you use the high-low substantiation method, when new rates become effective (generally October 1) you can either continue with the rates you used for the first part of the year or change to the new rates. Ez 1040 e-file However, you must continue using the high-low method for the rest of the calendar year (through December 31). Ez 1040 e-file If you are an employer, you must use the same rates for all employees reimbursed under the high-low method during that calendar year. Ez 1040 e-file   The new rates and localities for the high-low method are included each year in a notice that is generally published in mid-to-late-September. Ez 1040 e-file You can find the notice in the weekly Internal Revenue Bulletin (IRB) on the Internet at www. Ez 1040 e-file irs. Ez 1040 e-file gov/irb. Ez 1040 e-file Federal per diem rate method. Ez 1040 e-file   New CONUS per diem rates become effective on October 1 of each year and remain in effect through September 30 of the following year. Ez 1040 e-file Employees being reimbursed under the per diem rate method during the first 9 months of a year (January 1–September 30) must continue under the same method through the end of that calendar year (December 31). Ez 1040 e-file However, for travel by these employees from October 1 through December 31, you can choose to continue using the same per diem rates or use the new rates. Ez 1040 e-file   The new federal CONUS per diem rates are published each year, generally early in September, on the Internet. Ez 1040 e-file Go to www. Ez 1040 e-file gsa. Ez 1040 e-file gov/perdiem. Ez 1040 e-file Per diem rates for localities listed for FY2014 may change at any time. Ez 1040 e-file To be sure you have the most current rate, check www. Ez 1040 e-file gsa. Ez 1040 e-file gov/perdiem. Ez 1040 e-file Completing Forms 2106 and 2106-EZ This section briefly describes how employees complete Forms 2106 and 2106-EZ. Ez 1040 e-file Table 6-1 explains what the employer reports on Form W-2 and what the employee reports on Form 2106. Ez 1040 e-file The instructions for the forms have more information on completing them. Ez 1040 e-file If you are self-employed, do not file Form 2106 or 2106-EZ. Ez 1040 e-file Report your expenses on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040). Ez 1040 e-file See the instructions for the form that you must file. Ez 1040 e-file Form 2106-EZ. Ez 1040 e-file   You may be able to use the shorter Form 2106-EZ to claim your employee business expenses. Ez 1040 e-file You can use this form if you meet all the following conditions. Ez 1040 e-file You are an employee deducting ordinary and necessary expenses attributable to your job. Ez 1040 e-file You were not reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 are not considered reimbursements). Ez 1040 e-file If you are claiming car expenses, you are using the standard mileage rate. Ez 1040 e-file Car expenses. Ez 1040 e-file   If you used a car to perform your job as an employee, you may be able to deduct certain car expenses. Ez 1040 e-file These are generally figured on Form 2106, Part II, and then claimed on Form 2106, Part I, line 1, Column A. Ez 1040 e-file Car expenses using the standard mileage rate can also be figured on Form 2106-EZ by completing Part II and Part I, line 1. Ez 1040 e-file Information on use of cars. Ez 1040 e-file   If you claim any deduction for the business use of a car, you must answer certain questions and provide information about the use of the car. Ez 1040 e-file The information relates to the following items. Ez 1040 e-file Date placed in service. Ez 1040 e-file Mileage (total, business, commuting, and other personal mileage). Ez 1040 e-file Percentage of business use. Ez 1040 e-file After-work use. Ez 1040 e-file Use of other vehicles. Ez 1040 e-file Whether you have evidence to support the deduction. Ez 1040 e-file Whether or not the evidence is written. Ez 1040 e-file Employees must complete Form 2106, Part II, Section A, or Form 2106-EZ, Part II, to provide this information. Ez 1040 e-file Standard mileage rate. Ez 1040 e-file   If you claim a deduction based on the standard mileage rate instead of your actual expenses, you must complete Form 2106, Part II, Section B. Ez 1040 e-file The amount on line 22 (Section B) is carried to Form 2106, Part I, line 1. Ez 1040 e-file In addition, on Part 1, line 2, you can deduct parking fees and tolls that apply to the business use of the car. Ez 1040 e-file If you file Form 2106-EZ, complete Part I, line 1, for the standard mileage rate and line 2 for parking fees and tolls. Ez 1040 e-file See Standard Mileage Rate in chapter 4 for information on using this rate. Ez 1040 e-file Actual expenses. Ez 1040 e-file   If you claim a deduction based on actual car expenses, you cannot use Form 2106-EZ. Ez 1040 e-file You must complete Form 2106, Part II, Section C. Ez 1040 e-file In addition, unless you lease your car, you must complete Section D to show your depreciation deduction and any section 179 deduction you claim. Ez 1040 e-file   If you are still using a car that is fully depreciated, continue to complete Section C. Ez 1040 e-file Since you have no depreciation deduction, enter zero on line 28. Ez 1040 e-file In this case, do not complete Section D. Ez 1040 e-file Car rentals. Ez 1040 e-file   If you claim car rental expenses on Form 2106, line 24a, you may have to reduce that expense by an inclusion amount as described in chapter 4. Ez 1040 e-file If so, you can show your car expenses and any inclusion amount as follows. Ez 1040 e-file Compute the inclusion amount without taking into account your business use percentage for the tax year. Ez 1040 e-file Report the inclusion amount from (1) on Form 2106, Part II, line 24b. Ez 1040 e-file Report on line 24c the net amount of car rental expenses (total car rental expenses minus the inclusion amount computed in (1)). Ez 1040 e-file The net amount of car rental expenses will be adjusted on Form 2106, Part II, line 27, to reflect the percentage of business use for the tax year. Ez 1040 e-file Transportation expenses. Ez 1040 e-file   Show your transportation expenses that did not involve overnight travel on Form 2106, line 2, Column A, or on Form 2106-EZ, Part I, line 2. Ez 1040 e-file Also include on this line business expenses you have for parking fees and tolls. Ez 1040 e-file Do not include expenses of operating your car or expenses of commuting between your home and work. Ez 1040 e-file Employee business expenses other than meals and entertainment. Ez 1040 e-file   Show your other employee business expenses on Form 2106, lines 3 and 4, Column A, or Form 2106-EZ, lines 3 and 4. Ez 1040 e-file Do not include expenses for meals and entertainment on those lines. Ez 1040 e-file Line 4 is for expenses such as gifts, educational expenses (tuition and books), office-in-the-home expenses, and trade and professional publications. Ez 1040 e-file    If line 4 expenses are the only ones you are claiming, you received no reimbursements (or the reimbursements were all included in box 1 of your Form W-2), and the Special Rules discussed later do not apply to you, do not complete Form 2106 or 2106-EZ. Ez 1040 e-file Claim these amounts directly on Schedule A (Form 1040), line 21. Ez 1040 e-file List the type and amount of each expense on the dotted lines and include the total on line 21. Ez 1040 e-file Meal and entertainment expenses. Ez 1040 e-file   Show the full amount of your expenses for business-related meals and entertainment on Form 2106, line 5, Column B. Ez 1040 e-file Include meals while away from your tax home overnight and other business meals and entertainment. Ez 1040 e-file Enter 50% of the line 8, Column B, meal and entertainment expenses on line 9, Column B. Ez 1040 e-file   If you file Form 2106-EZ, enter the full amount of your meals and entertainment on the line to the left of line 5 and multiply the total by 50%. Ez 1040 e-file Enter the result on line 5. Ez 1040 e-file Hours of service limits. Ez 1040 e-file   If you are subject to the Department of Transportation's “hours of service” limits (as explained earlier under Individuals subject to “hours of service” limits in chapter 2), use 80% instead of 50% for meals while away from your tax home. Ez 1040 e-file Reimbursements. Ez 1040 e-file   Enter on Form 2106, line 7 (you cannot use Form 2106-EZ) the amounts your employer (or third party) reimbursed you that were not reported to you in box 1 of your Form W-2. Ez 1040 e-file This includes any amount reported under code L in box 12 of Form W-2. Ez 1040 e-file Allocating your reimbursement. Ez 1040 e-file   If you were reimbursed under an accountable plan and want to deduct excess expenses that were not reimbursed, you may have to allocate your reimbursement. Ez 1040 e-file This is necessary when your employer pays your reimbursement in the following manner: Pays you a single amount that covers meals and/or entertainment, as well as other business expenses, and Does not clearly identify how much is for deductible meals and/or entertainment. Ez 1040 e-file You must allocate that single payment so that you know how much to enter on Form 2106, line 7, Column A and Column B. Ez 1040 e-file Example. Ez 1040 e-file Rob's employer paid him an expense allowance of $12,000 this year under an accountable plan. Ez 1040 e-file The $12,000 payment consisted of $5,000 for airfare and $7,000 for meals, entertainment, and car expenses. Ez 1040 e-file The employer did not clearly show how much of the $7,000 was for the cost of deductible meals and entertainment. Ez 1040 e-file Rob actually spent $14,000 during the year ($5,500 for airfare, $4,500 for meals and entertainment, and $4,000 for car expenses). Ez 1040 e-file Since the airfare allowance was clearly identified, Rob knows that $5,000 of the payment goes in Column A, line 7, of Form 2106. Ez 1040 e-file To allocate the remaining $7,000, Rob uses the worksheet from the Instructions for Form 2106. Ez 1040 e-file His completed worksheet follows. Ez 1040 e-file Reimbursement Allocation Worksheet (Keep for your records)   1. Ez 1040 e-file Enter the total amount of reimbursements your employer gave you that were not reported to you in box 1 of Form W-2 $7,000   2. Ez 1040 e-file Enter the total amount of your expenses for the periods covered by this reimbursement 8,500   3. Ez 1040 e-file Of the amount on line 2, enter your total expense for meals and entertainment 4,500   4. Ez 1040 e-file Divide line 3 by line 2. Ez 1040 e-file Enter the result as a decimal (rounded to at least three places) . Ez 1040 e-file 529   5. Ez 1040 e-file Multiply line 1 by line 4. Ez 1040 e-file Enter the result here and in Column B, line 7 3,703   6. Ez 1040 e-file Subtract line 5 from line 1. Ez 1040 e-file Enter the result here and in Column A, line 7 $3,297 On line 7 of Form 2106, Rob enters $8,297 ($5,000 airfare and $3,297 of the $7,000) in Column A and $3,703 (of the $7,000) in Column B. Ez 1040 e-file After you complete the form. Ez 1040 e-file   After you have completed your Form 2106 or 2106-EZ, follow the directions on that form to deduct your expenses on the appropriate line of your tax return. Ez 1040 e-file For most taxpayers, this is line 21 of Schedule A (Form 1040). Ez 1040 e-file However, if you are a government official paid on a fee basis, a performing artist, an Armed Forces reservist, or a disabled employee with impairment-related work expenses, see Special Rules , later. Ez 1040 e-file Limits on employee business expenses. Ez 1040 e-file   Your employee business expenses may be subject to either of the limits described next. Ez 1040 e-file They are figured in the following order on the specified form. Ez 1040 e-file 1. Ez 1040 e-file Limit on meals and entertainment. Ez 1040 e-file   Certain meal and entertainment expenses are subject to a 50% limit. Ez 1040 e-file If you are an employee, you figure this limit on line 9 of Form 2106 or line 5 of Form 2106-EZ. Ez 1040 e-file (See 50% Limit in chapter 2. Ez 1040 e-file ) 2. Ez 1040 e-file Limit on miscellaneous itemized deductions. Ez 1040 e-file   If you are an employee, deduct your employee business expenses (as figured on Form 2106 or 2106-EZ) on line 21 of Schedule A (Form 1040). Ez 1040 e-file Most miscellaneous itemized deductions, including employee business expenses, are subject to a 2%-of-adjusted-gross-income limit. Ez 1040 e-file This limit is figured on line 26 of Schedule A (Form 1040). Ez 1040 e-file 3. Ez 1040 e-file Limit on total itemized deductions. Ez 1040 e-file   If your adjusted gross income (line 38 of Form 1040) is more than $300,000 ($150,000 if you are married filing separately), the total of certain itemized deductions, including employee business expenses, may be limited. Ez 1040 e-file See your form instructions for information on how to figure this limit. Ez 1040 e-file Special Rules This section discusses special rules that apply only to Armed Forces reservists, government officials who are paid on a fee basis, performing artists, and disabled employees with impairment-related work expenses. Ez 1040 e-file Armed Forces Reservists Traveling More Than 100 Miles From Home If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Ez 1040 e-file The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Ez 1040 e-file See Per Diem and Car Allowances , earlier, for more information. Ez 1040 e-file Any expenses in excess of these amounts can be claimed only as a miscellaneous itemized deduction subject to the 2% limit. Ez 1040 e-file Member of a reserve component. Ez 1040 e-file   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States; or the Reserve Corps of the Public Health Service. Ez 1040 e-file How to report. Ez 1040 e-file   If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106 or Form 2106-EZ. Ez 1040 e-file Then include your expenses for reserve travel over 100 miles from home, up to the federal rate, from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. Ez 1040 e-file Subtract this amount from the total on Form 2106, line 10, or Form 2106-EZ, line 6, and deduct the balance as an itemized deduction on Schedule A (Form 1040), line 21. Ez 1040 e-file   You cannot deduct expenses of travel that does not take you more than 100 miles from home as an adjustment to gross income. Ez 1040 e-file Instead, you must complete Form 2106 or 2106-EZ and deduct those expenses as an itemized deduction on Schedule A (Form 1040), line 21. Ez 1040 e-file Officials Paid on a Fee Basis Certain fee-basis officials can claim their employee business expenses whether or not they itemize their other deductions on Schedule A (Form 1040). Ez 1040 e-file Fee-basis officials are persons who are employed by a state or local government and who are paid in whole or in part on a fee basis. Ez 1040 e-file They can deduct their business expenses in performing services in that job as an adjustment to gross income rather than as a miscellaneous itemized deduction. Ez 1040 e-file If you are a fee-basis official, include your employee business expenses from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. Ez 1040 e-file Expenses of Certain Performing Artists If you are a performing artist, you may qualify to deduct your employee business expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Ez 1040 e-file To qualify, you must meet all of the following requirements. Ez 1040 e-file During the tax year, you perform services in the performing arts as an employee for at least two employers. Ez 1040 e-file You receive at least $200 each from any two of these employers. Ez 1040 e-file Your related performing-arts business expenses are more than 10% of your gross income from the performance of those services. Ez 1040 e-file Your adjusted gross income is not more than $16,000 before deducting these business expenses. Ez 1040 e-file Special rules for married persons. Ez 1040 e-file   If you are married, you must file a joint return unless you lived apart from your spouse at all times during the tax year. Ez 1040 e-file If you file a joint return, you must figure requirements (1), (2), and (3) separately for both you and your spouse. Ez 1040 e-file However, requirement (4) applies to your and your spouse's combined adjusted gross income. Ez 1040 e-file Where to report. Ez 1040 e-file   If you meet all of the above requirements, you should first complete Form 2106 or 2106-EZ. Ez 1040 e-file Then you include your performing-arts-related expenses from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. Ez 1040 e-file   If you do not meet all of the above requirements, you do not qualify to deduct your expenses as an adjustment to gross income. Ez 1040 e-file Instead, you must complete Form 2106 or 2106-EZ and deduct your employee business expenses as an itemized deduction on Schedule A (Form 1040), line 21. Ez 1040 e-file Impairment-Related Work Expenses of Disabled Employees If you are an employee with a physical or mental disability, your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to most other employee business expenses. Ez 1040 e-file After you complete Form 2106 or 2106-EZ, enter your impairment-related work expenses from Form 2106, line 10, or Form 2106-EZ, line 6, on Schedule A (Form 1040), line 28, and identify the type and amount of this expense on the dotted line next to line 28. Ez 1040 e-file Enter your employee business expenses that are unrelated to your disability from Form 2106, line 10, or Form 2106-EZ, line 6, on Schedule A (Form 1040), line 21. Ez 1040 e-file Impairment-related work expenses are your allowable expenses for attendant care at your workplace and other expenses in connection with your workplace that are necessary for you to be able to work. Ez 1040 e-file You are disabled if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. Ez 1040 e-file You can deduct impairment-related expenses as business expenses if they are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. Ez 1040 e-file Example 1. Ez 1040 e-file You are blind. Ez 1040 e-file You must use a reader to do your work. Ez 1040 e-file You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Ez 1040 e-file The reader's services are only for your work. Ez 1040 e-file You can deduct your expenses for the reader as business expenses. Ez 1040 e-file Example 2. Ez 1040 e-file You are deaf. Ez 1040 e-file You must use a sign language interpreter during meetings while you are at work. Ez 1040 e-file The interpreter's services are used only for your work. Ez 1040 e-file You can deduct your expenses for the interpreter as business expenses. Ez 1040 e-file Prev  Up  Next   Home   More Online Publications