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File tax return Publication 587 - Main Content Table of Contents Qualifying for a DeductionExclusive Use Regular Use Trade or Business Use Principal Place of Business Place To Meet Patients, Clients, or Customers Separate Structure Figuring the DeductionUsing Actual Expenses Using the Simplified Method Daycare Facility Standard meal and snack rates. File tax return Sale or Exchange of Your HomeGain on Sale Depreciation Basis Adjustment Reporting the Sale More Information Business Furniture and EquipmentListed Property Property Bought for Business Use Personal Property Converted to Business Use Recordkeeping Where To DeductSelf-Employed Persons Employees Partners How To Get Tax HelpLow Income Taxpayer Clinics Worksheet To Figure the Deduction for Business Use of Your HomeInstructions for the Worksheet Worksheets To Figure the Deduction for Business Use of Your Home (Simplified Method) Instructions for the Simplified Method Worksheet Instructions for the Daycare Facility Worksheet Instructions for the Area Adjustment Worksheet Qualifying for a Deduction Generally, you cannot deduct items related to your home, such as mortgage interest, real estate taxes, utilities, maintenance, rent, depreciation, or property insurance, as business expenses. File tax return However, you may be able to deduct expenses related to the business use of part of your home if you meet specific requirements. File tax return Even then, the deductible amount of these types of expenses may be limited. File tax return Use this section and Figure A, later, to decide if you can deduct expenses for the business use of your home. File tax return To qualify to deduct expenses for business use of your home, you must use part of your home: Exclusively and regularly as your principal place of business (defined later), Exclusively and regularly as a place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, In the case of a separate structure which is not attached to your home, in connection with your trade or business, On a regular basis for certain storage use (see Storage of inventory or product samples , later), For rental use (see Publication 527), or As a daycare facility (see Daycare Facility , later). File tax return Additional tests for employee use. File tax return   If you are an employee and you use a part of your home for business, you may qualify for a deduction for its business use. File tax return You must meet the tests discussed earlier plus: Your business use must be for the convenience of your employer, and You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer. File tax return If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home. File tax return Exclusive Use To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. File tax return The area used for business can be a room or other separately identifiable space. File tax return The space does not need to be marked off by a permanent partition. File tax return You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. File tax return Example. File tax return You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. File tax return Your family also uses the den for recreation. File tax return The den is not used exclusively in your trade or business, so you cannot claim a deduction for the business use of the den. File tax return Exceptions to Exclusive Use You do not have to meet the exclusive use test if either of the following applies. File tax return You use part of your home for the storage of inventory or product samples (discussed next). File tax return You use part of your home as a daycare facility, discussed later under Daycare Facility . File tax return Note. File tax return With the exception of these two uses, any portion of the home used for business purposes must meet the exclusive use test. File tax return Storage of inventory or product samples. File tax return    If you use part of your home for storage of inventory or product samples, you can deduct expenses for the business use of your home without meeting the exclusive use test. File tax return However, you must meet all the following tests. File tax return You sell products at wholesale or retail as your trade or business. File tax return You keep the inventory or product samples in your home for use in your trade or business. File tax return Your home is the only fixed location of your trade or business. File tax return You use the storage space on a regular basis. File tax return The space you use is a separately identifiable space suitable for storage. File tax return Example. File tax return Your home is the only fixed location of your business of selling mechanics' tools at retail. File tax return You regularly use half of your basement for storage of inventory and product samples. File tax return You sometimes use the area for personal purposes. File tax return The expenses for the storage space are deductible even though you do not use this part of your basement exclusively for business. File tax return Regular Use To qualify under the regular use test, you must use a specific area of your home for business on a regular basis. File tax return Incidental or occasional business use is not regular use. File tax return You must consider all facts and circumstances in determining whether your use is on a regular basis. File tax return Trade or Business Use To qualify under the trade-or-business-use test, you must use part of your home in connection with a trade or business. File tax return If you use your home for a profit-seeking activity that is not a trade or business, you cannot take a deduction for its business use. File tax return Example. File tax return You use part of your home exclusively and regularly to read financial periodicals and reports, clip bond coupons, and carry out similar activities related to your own investments. File tax return You do not make investments as a broker or dealer. File tax return So, your activities are not part of a trade or business and you cannot take a deduction for the business use of your home. File tax return Principal Place of Business You can have more than one business location, including your home, for a single trade or business. File tax return To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that trade or business. File tax return To determine whether your home is your principal place of business, you must consider: The relative importance of the activities performed at each place where you conduct business, and The amount of time spent at each place where you conduct business. File tax return Your home office will qualify as your principal place of business if you meet the following requirements. File tax return You use it exclusively and regularly for administrative or management activities of your trade or business. File tax return You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. File tax return If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. File tax return However, see the later discussions under Place To Meet Patients, Clients, or Customers and Separate Structure for other ways to qualify to deduct home office expenses. File tax return Administrative or management activities. File tax return   There are many activities that are administrative or managerial in nature. File tax return The following are a few examples. File tax return Billing customers, clients, or patients. File tax return Keeping books and records. File tax return Ordering supplies. File tax return Setting up appointments. File tax return Forwarding orders or writing reports. File tax return Administrative or management activities performed at other locations. File tax return   The following activities performed by you or others will not disqualify your home office from being your principal place of business. File tax return You have others conduct your administrative or management activities at locations other than your home. File tax return (For example, another company does your billing from its place of business. File tax return ) You conduct administrative or management activities at places that are not fixed locations of your business, such as in a car or a hotel room. File tax return You occasionally conduct minimal administrative or management activities at a fixed location outside your home. File tax return You conduct substantial nonadministrative or nonmanagement business activities at a fixed location outside your home. File tax return (For example, you meet with or provide services to customers, clients, or patients at a fixed location of the business outside your home. File tax return ) You have suitable space to conduct administrative or management activities outside your home, but choose to use your home office for those activities instead. File tax return Please click here for the text description of the image. File tax return Can you deduct business use of the home expenses? Example 1. File tax return John is a self-employed plumber. File tax return Most of John's time is spent at customers' homes and offices installing and repairing plumbing. File tax return He has a small office in his home that he uses exclusively and regularly for the administrative or management activities of his business, such as phoning customers, ordering supplies, and keeping his books. File tax return John writes up estimates and records of work completed at his customers' premises. File tax return He does not conduct any substantial administrative or management activities at any fixed location other than his home office. File tax return John does not do his own billing. File tax return He uses a local bookkeeping service to bill his customers. File tax return John's home office qualifies as his principal place of business for deducting expenses for its use. File tax return He uses the home office for the administrative or managerial activities of his plumbing business and he has no other fixed location where he conducts these administrative or managerial activities. File tax return His choice to have his billing done by another company does not disqualify his home office from being his principal place of business. File tax return He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. File tax return Example 2. File tax return Pamela is a self-employed sales representative for several different product lines. File tax return She has an office in her home that she uses exclusively and regularly to set up appointments and write up orders and other reports for the companies whose products she sells. File tax return She occasionally writes up orders and sets up appointments from her hotel room when she is away on business overnight. File tax return Pamela's business is selling products to customers at various locations throughout her territory. File tax return To make these sales, she regularly visits customers to explain the available products and take orders. File tax return Pamela's home office qualifies as her principal place of business for deducting expenses for its use. File tax return She conducts administrative or management activities there and she has no other fixed location where she conducts substantial administrative or management activities. File tax return The fact that she conducts some administrative or management activities in her hotel room (not a fixed location) does not disqualify her home office from being her principal place of business. File tax return She meets all the qualifications, including principal place of business, so she can deduct expenses (subject to certain limitations, explained later) for the business use of her home. File tax return Example 3. File tax return Paul is a self-employed anesthesiologist. File tax return He spends the majority of his time administering anesthesia and postoperative care in three local hospitals. File tax return One of the hospitals provides him with a small shared office where he could conduct administrative or management activities. File tax return Paul very rarely uses the office the hospital provides. File tax return He uses a room in his home that he has converted to an office. File tax return He uses this room exclusively and regularly to conduct all the following activities. File tax return Contacting patients, surgeons, and hospitals regarding scheduling. File tax return Preparing for treatments and presentations. File tax return Maintaining billing records and patient logs. File tax return Satisfying continuing medical education requirements. File tax return Reading medical journals and books. File tax return Paul's home office qualifies as his principal place of business for deducting expenses for its use. File tax return He conducts administrative or management activities for his business as an anesthesiologist there and he has no other fixed location where he conducts substantial administrative or management activities for this business. File tax return His choice to use his home office instead of the one provided by the hospital does not disqualify his home office from being his principal place of business. File tax return His performance of substantial nonadministrative or nonmanagement activities at fixed locations outside his home also does not disqualify his home office from being his principal place of business. File tax return He meets all the qualifications, including principal place of business, so he can deduct expenses (subject to certain limitations, explained later) for the business use of his home. File tax return Example 4. File tax return Kathleen is employed as a teacher. File tax return She is required to teach and meet with students at the school and to grade papers and tests. File tax return The school provides her with a small office where she can work on her lesson plans, grade papers and tests, and meet with parents and students. File tax return The school does not require her to work at home. File tax return Kathleen prefers to use the office she has set up in her home and does not use the one provided by the school. File tax return She uses this home office exclusively and regularly for the administrative duties of her teaching job. File tax return Kathleen must meet the convenience-of-the-employer test, even if her home qualifies as her principal place of business for deducting expenses for its use. File tax return Her employer provides her with an office and does not require her to work at home, so she does not meet the convenience-of-the-employer test and cannot claim a deduction for the business use of her home. File tax return More Than One Trade or Business The same home office can be the principal place of business for two or more separate business activities. File tax return Whether your home office is the principal place of business for more than one business activity must be determined separately for each of your trade or business activities. File tax return You must use the home office exclusively and regularly for one or more of the following purposes. File tax return As the principal place of business for one or more of your trades or businesses. File tax return As a place to meet or deal with patients, clients, or customers in the normal course of one or more of your trades or businesses. File tax return If your home office is a separate structure, in connection with one or more of your trades or businesses. File tax return You can use your home office for more than one business activity, but you cannot use it for any nonbusiness (i. File tax return e. File tax return , personal) activities. File tax return If you are an employee, any use of the home office in connection with your employment must be for the convenience of your employer. File tax return See Rental to employer , later, if you rent part of your home to your employer. File tax return Example. File tax return Tracy White is employed as a teacher. File tax return Her principal place of work is the school, which provides her office space to do her school work. File tax return She also has a mail order jewelry business. File tax return All her work in the jewelry business is done in her home office and the office is used exclusively for that business. File tax return If she meets all the other tests, she can deduct expenses for the business use of her home for the jewelry business. File tax return If Tracy also uses the office for work related to her teaching, she must meet the exclusive use test for both businesses to qualify for the deduction. File tax return As an employee, Tracy must also meet the convenience-of-the-employer test to qualify for the deduction. File tax return She does not meet this test for her work as a teacher, so she cannot claim a deduction for the business use of her home for either activity. File tax return Place To Meet Patients, Clients, or Customers If you meet or deal with patients, clients, or customers in your home in the normal course of your business, even though you also carry on business at another location, you can deduct your expenses for the part of your home used exclusively and regularly for business if you meet both the following tests. File tax return You physically meet with patients, clients, or customers on your premises. File tax return Their use of your home is substantial and integral to the conduct of your business. File tax return Doctors, dentists, attorneys, and other professionals who maintain offices in their homes generally will meet this requirement. File tax return Using your home for occasional meetings and telephone calls will not qualify you to deduct expenses for the business use of your home. File tax return The part of your home you use exclusively and regularly to meet patients, clients, or customers does not have to be your principal place of business. File tax return Example. File tax return June Quill, a self-employed attorney, works 3 days a week in her city office. File tax return She works 2 days a week in her home office used only for business. File tax return She regularly meets clients there. File tax return Her home office qualifies for a business deduction because she meets clients there in the normal course of her business. File tax return Separate Structure You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. File tax return The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers. File tax return Example. File tax return John Berry operates a floral shop in town. File tax return He grows the plants for his shop in a greenhouse behind his home. File tax return He uses the greenhouse exclusively and regularly in his business, so he can deduct the expenses for its use, subject to certain limitations, explained later. File tax return Figuring the Deduction After you determine that you meet the tests under Qualifying for a Deduction , you can begin to figure how much you can deduct. File tax return When figuring the amount you can deduct for the business use of your home, you will use either your actual expenses or a simplified method. File tax return Electing to use the simplified method. File tax return   The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. File tax return You choose whether or not to figure your deduction using the simplified method each taxable year. File tax return See Using the Simplified Method , later. File tax return Rental to employer. File tax return   If you rent part of your home to your employer and you use the rented part in performing services for your employer as an employee, your deduction for the business use of your home is limited. File tax return You can deduct mortgage interest, qualified mortgage insurance premiums, real estate taxes, and personal casualty losses for the rented part, subject to any limitations. File tax return However, you cannot deduct otherwise allowable trade or business expenses, business casualty losses, or depreciation related to the use of your home (or use the simplified method as an alternative to deducting these actual expenses) in performing services for your employer. File tax return Using Actual Expenses If you do not or cannot elect to use the simplified method for a home, you will figure your deduction for that home using your actual expenses. File tax return You will also need to figure the percentage of your home used for business and the limit on the deduction. File tax return If you are an employee or a partner, or you use your home in your farming business and you file Schedule F (Form 1040), you can use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication, to help you figure your deduction. File tax return If you use your home in a trade or business and you file Schedule C (Form 1040), you will use Form 8829 to figure your deduction. File tax return Part-year use. File tax return   You cannot deduct expenses for the business use of your home incurred during any part of the year you did not use your home for business purposes. File tax return For example, if you begin using part of your home for business on July 1, and you meet all the tests from that date until the end of the year, consider only your expenses for the last half of the year in figuring your allowable deduction. File tax return Expenses related to tax-exempt income. File tax return   Generally, you cannot deduct expenses that are related to tax-exempt allowances. File tax return However, if you receive a tax-exempt parsonage allowance or a tax-exempt military allowance, your expenses for mortgage interest and real estate taxes are deductible under the normal rules. File tax return No deduction is allowed for other expenses related to the tax-exempt allowance. File tax return   If your housing is provided free of charge and the value of the housing is tax exempt, you cannot deduct the rental value of any portion of the housing. File tax return Actual Expenses You must divide the expenses of operating your home between personal and business use. File tax return The part of a home operating expense you can use to figure your deduction depends on both of the following. File tax return Whether the expense is direct, indirect, or unrelated. File tax return The percentage of your home used for business. File tax return Table 1, next, describes the types of expenses you may have and the extent to which they are deductible. File tax return Table 1. File tax return Types of Expenses  Expense  Description  Deductibility Direct Expenses only for  the business part  of your home. File tax return Deductible in full. File tax return *   Examples:  Painting or repairs  only in the area  used for business. File tax return Exception: May be only partially  deductible in a daycare facility. File tax return See Daycare Facility , later. File tax return Indirect Expenses for  keeping up and running your  entire home. File tax return Deductible based on the percentage of your home used for business. File tax return *   Examples:  Insurance, utilities, and  general repairs. File tax return   Unrelated Expenses only for  the parts of your  home not used  for business. File tax return Not deductible. File tax return   Examples:  Lawn care or painting  a room not used  for business. File tax return   *Subject to the deduction limit, discussed later. File tax return Form 8829 and the Worksheet To Figure the Deduction for Business Use of Your Home have separate columns for direct and indirect expenses. File tax return Certain expenses are deductible whether or not you use your home for business. File tax return If you qualify to deduct business use of the home expenses, use the business percentage of these expenses to figure your total business use of the home deduction. File tax return These expenses include the following. File tax return Real estate taxes. File tax return Qualified mortgage insurance premiums. File tax return Deductible mortgage interest. File tax return Casualty losses. File tax return Other expenses are deductible only if you use your home for business. File tax return You can use the business percentage of these expenses to figure your total business use of the home deduction. File tax return These expenses generally include (but are not limited to) the following. File tax return Depreciation (covered under Depreciating Your Home , later). File tax return Insurance. File tax return Rent paid for the use of property you do not own but use in your trade or business. File tax return Repairs. File tax return Security system. File tax return Utilities and services. File tax return Real estate taxes. File tax return   To figure the business part of your real estate taxes, multiply the real estate taxes paid by the percentage of your home used for business. File tax return   For more information on the deduction for real estate taxes, see Publication 530, Tax Information for Homeowners. File tax return Deductible mortgage interest. File tax return   To figure the business part of your deductible mortgage interest, multiply this interest by the percentage of your home used for business. File tax return You can include interest on a second mortgage in this computation. File tax return If your total mortgage debt is more than $1,000,000 or your home equity debt is more than $100,000, your deduction may be limited. File tax return For more information on what interest is deductible, see Publication 936, Home Mortgage Interest Deduction. File tax return Qualified mortgage insurance premiums. File tax return   To figure the business part of your qualified mortgage insurance premiums, multiply the premiums by the percentage of your home used for business. File tax return You can include premiums for insurance on a second mortgage in this computation. File tax return If your adjusted gross income is more than $100,000 ($50,000 if your filing status is married filing separately), your deduction may be limited. File tax return For more information, see Publication 936, and Line 13 in the Instructions for Schedule A (Form 1040). File tax return Casualty losses. File tax return    If you have a casualty loss on your home that you use for business, treat the casualty loss as a direct expense, an indirect expense, or an unrelated expense, depending on the property affected. File tax return A direct expense is the loss on the portion of the property you use only in your business. File tax return Use the entire loss to figure the business use of the home deduction. File tax return An indirect expense is the loss on property you use for both business and personal purposes. File tax return Use only the business portion to figure the deduction. File tax return An unrelated expense is the loss on property you do not use in your business. File tax return Do not use any of the loss to figure the deduction. File tax return Example. File tax return You meet the rules to take a deduction for an office in your home that is 10% of the total area of your house. File tax return A storm damages your roof. File tax return This is an indirect expense as the roof is part of the whole house and is considered to be used both for business and personal purposes. File tax return You would complete Form 4684, Casualties and Thefts, to report your loss. File tax return You complete both section A (Personal Use Property) and section B (Business and Income-Producing Property) as your home is used both for business and personal purposes. File tax return Since you use 90% of your home for personal purposes, use 90% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 2, 3, 5, and 6 of Form 4684. File tax return Since you use 10% of your home for business purposes, use 10% of the cost or adjusted basis of your home, insurance or other reimbursement, and fair market value, both before and after the storm, to figure the amounts to enter on lines 20, 21, 23, and 24 of Form 4684. File tax return Forms and worksheets to use. File tax return   If you are filing Schedule C (Form 1040), get Form 8829 and follow the instructions for casualty losses. File tax return If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. File tax return You will also need to get Form 4684. File tax return More information. File tax return   For more information on casualty losses, see Publication 547, Casualties, Disasters, and Thefts. File tax return Insurance. File tax return   You can deduct the cost of insurance that covers the business part of your home. File tax return However, if your insurance premium gives you coverage for a period that extends past the end of your tax year, you can deduct only the business percentage of the part of the premium that gives you coverage for your tax year. File tax return You can deduct the business percentage of the part that applies to the following year in that year. File tax return Rent. File tax return   If you rent the home you occupy and meet the requirements for business use of the home, you can deduct part of the rent you pay. File tax return To figure your deduction, multiply your rent payments by the percentage of your home used for business. File tax return   If you own your home, you cannot deduct the fair rental value of your home. File tax return However, see Depreciating Your Home , later. File tax return Repairs. File tax return   The cost of repairs that relate to your business, including labor (other than your own labor), is a deductible expense. File tax return For example, a furnace repair benefits the entire home. File tax return If you use 10% of your home for business, you can deduct 10% of the cost of the furnace repair. File tax return   Repairs keep your home in good working order over its useful life. File tax return Examples of common repairs are patching walls and floors, painting, wallpapering, repairing roofs and gutters, and mending leaks. File tax return However, repairs are sometimes treated as a permanent improvement and are not deductible. File tax return See Permanent improvements , later, under Depreciating Your Home. File tax return Security system. File tax return   If you install a security system that protects all the doors and windows in your home, you can deduct the business part of the expenses you incur to maintain and monitor the system. File tax return You also can take a depreciation deduction for the part of the cost of the security system relating to the business use of your home. File tax return Utilities and services. File tax return   Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning services, are primarily personal expenses. File tax return However, if you use part of your home for business, you can deduct the business part of these expenses. File tax return Generally, the business percentage for utilities is the same as the percentage of your home used for business. File tax return Telephone. File tax return   The basic local telephone service charge, including taxes, for the first telephone line into your home (i. File tax return e. File tax return , landline) is a nondeductible personal expense. File tax return However, charges for business long-distance phone calls on that line, as well as the cost of a second line into your home used exclusively for business, are deductible business expenses. File tax return Do not include these expenses as a cost of using your home for business. File tax return Deduct these charges separately on the appropriate form or schedule. File tax return For example, if you file Schedule C (Form 1040), deduct these expenses on line 25, Utilities (instead of line 30, Expenses for business use of your home). File tax return Depreciating Your Home If you own your home and qualify to deduct expenses for its business use, you can claim a deduction for depreciation. File tax return Depreciation is an allowance for the wear and tear on the part of your home used for business. File tax return You cannot depreciate the cost or value of the land. File tax return You recover its cost when you sell or otherwise dispose of the property. File tax return Before you figure your depreciation deduction, you need to know the following information. File tax return The month and year you started using your home for business. File tax return The adjusted basis and fair market value of your home (excluding land) at the time you began using it for business. File tax return The cost of any improvements before and after you began using the property for business. File tax return The percentage of your home used for business. File tax return See Business Percentage , later. File tax return Adjusted basis defined. File tax return   The adjusted basis of your home is generally its cost, plus the cost of any permanent improvements you made to it, minus any casualty losses or depreciation deducted in earlier tax years. File tax return For a discussion of adjusted basis, see Publication 551. File tax return Permanent improvements. File tax return   A permanent improvement increases the value of property, adds to its life, or gives it a new or different use. File tax return Examples of improvements are replacing electric wiring or plumbing, adding a new roof or addition, paneling, or remodeling. File tax return    You must carefully distinguish between repairs and improvements. File tax return See Repairs , earlier, under Actual Expenses. File tax return You also must keep accurate records of these expenses. File tax return These records will help you decide whether an expense is a deductible or a capital (added to the basis) expense. File tax return However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement. File tax return Example. File tax return You buy an older home and fix up two rooms as a beauty salon. File tax return You patch the plaster on the ceilings and walls, paint, repair the floor, install an outside door, and install new wiring, plumbing, and other equipment. File tax return Normally, the patching, painting, and floor work are repairs and the other expenses are permanent improvements. File tax return However, because the work gives your property a new use, the entire remodeling job is a permanent improvement and its cost is added to the basis of the property. File tax return You cannot deduct any portion of it as a repair expense. File tax return Adjusting for depreciation deducted in earlier years. File tax return   Decrease the basis of your property by the depreciation you deducted, or could have deducted, on your tax returns under the method of depreciation you properly selected. File tax return If you deducted less depreciation than you could have under the method you selected, decrease the basis by the amount you could have deducted under that method. File tax return If you did not deduct any depreciation, decrease the basis by the amount you could have deducted. File tax return   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted, plus the part of the excess depreciation you deducted that actually decreased your tax liability for any year. File tax return   If you deducted the incorrect amount of depreciation, see Publication 946. File tax return Fair market value defined. File tax return   The fair market value of your home is the price at which the property would change hands between a buyer and a seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. File tax return Sales of similar property, on or about the date you begin using your home for business, may be helpful in determining the property's fair market value. File tax return Figuring the depreciation deduction for the current year. File tax return   If you began using your home for business before 2013, continue to use the same depreciation method you used in past tax years. File tax return   If you began using your home for business for the first time in 2013, depreciate the business part as nonresidential real property under the modified accelerated cost recovery system (MACRS). File tax return Under MACRS, nonresidential real property is depreciated using the straight line method over 39 years. File tax return For more information on MACRS and other methods of depreciation, see Publication 946. File tax return   To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). File tax return The depreciable basis is figured by multiplying the percentage of your home used for business by the smaller of the following. File tax return The adjusted basis of your home (excluding land) on the date you began using your home for business. File tax return The fair market value of your home (excluding land) on the date you began using your home for business. File tax return Depreciation table. File tax return   If 2013 was the first year you used your home for business, you can figure your 2013 depreciation for the business part of your home by using the appropriate percentage from the following table. File tax return Table 2. File tax return MACRS Percentage Table for 39-Year Nonresidential Real Property Month First Used for Business Percentage To Use 1 2. File tax return 461% 2 2. File tax return 247% 3 2. File tax return 033% 4 1. File tax return 819% 5 1. File tax return 605% 6 1. File tax return 391% 7 1. File tax return 177% 8 0. File tax return 963% 9 0. File tax return 749% 10 0. File tax return 535% 11 0. File tax return 321% 12 0. File tax return 107%   Multiply the depreciable basis of the business part of your home by the percentage from the table for the first month you use your home for business. File tax return See Publication 946 for the percentages for the remaining tax years of the recovery period. File tax return Example. File tax return In May, George Miller began to use one room in his home exclusively and regularly to meet clients. File tax return This room is 8% of the square footage of his home. File tax return He bought the home in 2003 for $125,000. File tax return He determined from his property tax records that his adjusted basis in the house (exclusive of land) is $115,000. File tax return In May, the house had a fair market value of $165,000. File tax return He multiplies his adjusted basis of $115,000 (which is less than the fair market value) by 8%. File tax return The result is $9,200, his depreciable basis for the business part of the house. File tax return George files his return based on the calendar year. File tax return May is the 5th month of his tax year. File tax return He multiplies his depreciable basis of $9,200 by 1. File tax return 605% (. File tax return 01605), the percentage from the table for the 5th month. File tax return His depreciation deduction is $147. File tax return 66. File tax return Depreciating permanent improvements. File tax return   Add the costs of permanent improvements made before you began using your home for business to the basis of your property. File tax return Depreciate these costs as part of the cost of your home as explained earlier. File tax return The costs of improvements made after you begin using your home for business (that affect the business part of your home, such as a new roof) are depreciated separately. File tax return Multiply the cost of the improvement by the business-use percentage and depreciate the result over the recovery period that would apply to your home if you began using it for business at the same time as the improvement. File tax return For improvements made this year, the recovery period is 39 years. File tax return For the percentage to use for the first year, see Table 2, earlier. File tax return For more information on recovery periods, see Publication 946. File tax return Business Percentage To find the business percentage, compare the size of the part of your home that you use for business to your whole house. File tax return Use the resulting percentage to figure the business part of the expenses for operating your entire home. File tax return You can use any reasonable method to determine the business percentage. File tax return The following are two commonly used methods for figuring the percentage. File tax return Divide the area (length multiplied by the width) used for business by the total area of your home. File tax return If the rooms in your home are all about the same size, you can divide the number of rooms used for business by the total number of rooms in your home. File tax return Example 1. File tax return Your office is 240 square feet (12 feet × 20 feet). File tax return Your home is 1,200 square feet. File tax return Your office is 20% (240 ÷ 1,200) of the total area of your home. File tax return Your business percentage is 20%. File tax return Example 2. File tax return You use one room in your home for business. File tax return Your home has 10 rooms, all about equal size. File tax return Your office is 10% (1 ÷ 10) of the total area of your home. File tax return Your business percentage is 10%. File tax return Use lines 1-7 of Form 8829, or lines 1-3 on the Worksheet To Figure the Deduction for Business Use of Your Home (near the end of this publication) to figure your business percentage. File tax return Deduction Limit If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. File tax return If your gross income from the business use of your home is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. File tax return Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation of your home (with depreciation of your home taken last), that are allocable to the business, is limited to the gross income from the business use of your home minus the sum of the following. File tax return The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). File tax return These expenses are discussed in detail under Actual Expenses , earlier. File tax return The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. File tax return If you are self-employed, do not include in (2) above your deduction for one-half of your self-employment tax. File tax return Carryover of unallowed expenses. File tax return   If your deductions are greater than the current year's limit, you can carry over the excess to the next year in which you use actual expenses. File tax return They are subject to the deduction limit for that year, whether or not you live in the same home during that year. File tax return Figuring the deduction limit and carryover. File tax return   If you are an employee or a partner, or you file Schedule F (Form 1040), use the Worksheet To Figure the Deduction for Business Use of Your Home, near the end of this publication. File tax return If you file Schedule C (Form 1040), figure your deduction limit and carryover on Form 8829. File tax return Example. File tax return You meet the requirements for deducting expenses for the business use of your home. File tax return You use 20% of your home for business. File tax return In 2013, your business expenses and the expenses for the business use of your home are deducted from your gross income in the following order. File tax return    Gross income from business $6,000 Minus:   Deductible mortgage interest and real estate taxes (20%) 3,000 Business expenses not related to the use of your home (100%) (business phone, supplies, and depreciation on equipment) 2,000 Deduction limit $1,000 Minus other expenses allocable to business use of home:   Maintenance, insurance, and utilities (20%) 800 Depreciation allowed (20% = $1,600 allowable, but subject to balance of deduction limit) 200 Other expenses up to the deduction limit $1,000 Depreciation carryover to 2014 ($1,600 − $200) (subject to deduction limit in 2014) $1,400   You can deduct all of the business part of your deductible mortgage interest and real estate taxes ($3,000). File tax return You also can deduct all of your business expenses not related to the use of your home ($2,000). File tax return Additionally, you can deduct all of the business part of your expenses for maintenance, insurance, and utilities, because the total ($800) is less than the $1,000 deduction limit. File tax return Your deduction for depreciation for the business use of your home is limited to $200 ($1,000 minus $800) because of the deduction limit. File tax return You can carry over the $1,400 balance and add it to your depreciation for 2014, subject to your deduction limit in 2014. File tax return More than one place of business. File tax return   If part of the gross income from your trade or business is from the business use of part of your home and part is from a place other than your home, you must determine the part of your gross income from the business use of your home before you figure the deduction limit. File tax return In making this determination, consider the time you spend at each location, the business investment in each location, and any other relevant facts and circumstances. File tax return If your home office qualifies as your principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. File tax return For more information on transportation costs, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. File tax return Using the Simplified Method The simplified method is an alternative to the calculation, allocation, and substantiation of actual expenses. File tax return In most cases, you will figure your deduction by multiplying $5, the prescribed rate, by the area of your home used for a qualified business use. File tax return The area you use to figure your deduction is limited to 300 square feet. File tax return See Simplified Amount , later, for information about figuring the amount of the deduction. File tax return For more information about the simplified method, see Revenue Procedure 2013-13, 2013-06 I. File tax return R. File tax return B. File tax return 478, available at www. File tax return irs. File tax return gov/irb/2013-06_IRB/ar09. File tax return html. File tax return Actual expenses and depreciation of your home. File tax return   If you elect to use the simplified method, you cannot deduct any actual expenses for the business except for business expenses that are not related to the use of the home. File tax return You also cannot deduct any depreciation (including any additional first-year depreciation) or section 179 expense for the portion of the home that is used for a qualified business use. File tax return The depreciation deduction allowable for that portion of the home is deemed to be zero for a year you use the simplified method. File tax return If you figure your deduction for business use of the home using actual expenses in a subsequent year, you will have to use the appropriate optional depreciation table for MACRS to figure your depreciation. File tax return More information. File tax return   For more information about claiming depreciation in a subsequent year, see Revenue Procedure 2013-13, 2013-06 I. File tax return R. File tax return B. File tax return 478, available at www. File tax return irs. File tax return gov/irb/2013-06_IRB/ar09. File tax return html. File tax return See Publication 946 for the optional depreciation tables Although you cannot deduct any depreciation or section 179 expense for the portion of your home used for a qualified business use, you may still claim depreciation or the section 179 expense deduction on other assets used in the business (for example, furniture and equipment). File tax return Expenses deductible without regard to business use. File tax return   When using the simplified method, treat as personal expenses those business expenses related to the use of the home that are deductible without regard to whether there is a qualified business use of the home. File tax return These expenses include mortgage interest, real estate taxes, and casualty losses, subject to any limitations. File tax return See Where To Deduct , later. File tax return If you also rent part of your home, you must still allocate these expenses between rental use and personal use (for this purpose, personal use includes business use reported using the simplified method). File tax return No deduction of carryover of actual expenses. File tax return   If you used actual expenses to figure your deduction for business use of the home in a prior year and your deduction was limited, you cannot deduct the disallowed amount carried over from the prior year during a year you figure your deduction using the simplified method. File tax return Instead, you will continue to carry over the disallowed amount to the next year that you use actual expenses to figure your deduction. File tax return Electing the Simplified Method You choose whether or not to figure your deduction using the simplified method each taxable year. File tax return Make the election for a home by using the simplified method to figure the deduction for the qualified business use of that home on a timely filed, original federal income tax return. File tax return An election for a taxable year, once made, is irrevocable. File tax return A change from using the simplified method in one year to actual expenses in a succeeding taxable year, or vice-versa, is not a change in method of accounting and does not require the consent of the Commissioner. File tax return Shared use. File tax return   If you share your home with someone else who also uses the home in a business that qualifies for this deduction, each of you make your own election. File tax return More than one qualified business use. File tax return   If you conduct more than one business that qualifies for this deduction in your home, your election to use the simplified method applies to all your qualified business uses of that home. File tax return More than one home. File tax return   If you used more than one home during the year (for example, you moved during the year), you can elect to use the simplified method for only one of the homes. File tax return You must figure the deduction for any other home using actual expenses. File tax return Simplified Amount Your deduction for the qualified business use of a home is the sum of each amount you figure for a separate qualified business use of your home. File tax return To figure your deduction for the business use of a home using the simplified method, you will need to know the following information for each qualified business use of the home. File tax return The allowable area of your home used in conducting the business. File tax return If you did not conduct the business for the entire year in the home or the area changed during the year, you will need to know the allowable area you used and the number of days you conducted the business for each month. File tax return The gross income from the business use of your home. File tax return The amount of the business expenses that are not related to the use of your home. File tax return If the qualified business use is for a daycare facility that uses space in your home on a regular (but not exclusive) basis, you will also need to know the percentage of time that part of your home is used for daycare. File tax return To figure the amount you can deduct for qualified business use of your home using the simplified method, follow these 3 steps. File tax return Multiply the allowable area by $5 (or less than $5 if the qualified business use is for a daycare that uses space in your home on a regular, but not exclusive, basis). File tax return See Allowable area and Space used regularly for daycare , later. File tax return Subtract the expenses from the business that are not related to the use of the home from the gross income related to the business use of the home. File tax return If these expenses are greater than the gross income from the business use of the home, then you cannot take a deduction for this business use of the home. File tax return See Gross income limitation , later. File tax return Take the smaller of the amounts from (1) and (2). File tax return This is the amount you can deduct for this qualified business use of your home using the simplified method. File tax return If you are an employee or a partner, or you use your home in your farming business and file Schedule F (Form 1040), you can use the Simplified Method Worksheet, near the end of this publication, to help you figure your deduction. File tax return If you use your home in a trade or business and you file Schedule C (Form 1040), you will use the Simplified Method Worksheet in your Instructions for Schedule C to figure your deduction. File tax return Allowable area. File tax return   In most cases, the allowable area is the smaller of the actual area (in square feet) of your home used in conducting the business and 300 square feet. File tax return Your allowable area may be smaller if you conducted the business as a qualified joint venture with your spouse, the area used by the business was shared with another qualified business use, you used the home for the business for only part of the year, or the area used by the business changed during the year. File tax return You can use the Area Adjustment Worksheet (for simplified method), near the end of this publication, to help you figure your allowable area for a qualified business use. File tax return Area used by a qualified joint venture. File tax return   If the qualified business use of the home is also a qualified joint venture, you and your spouse will figure the deduction for the business use separately. File tax return Split the actual area used in conducting business between you and your spouse in the same manner you split your other tax attributes. File tax return Then, each spouse will figure the allowable area separately. File tax return For more information about qualified joint ventures, see Qualified Joint Venture in the Instructions for Schedule C. File tax return Shared use. File tax return   If you share your home with someone else who uses the home to conduct business that also qualifies for this deduction, you may not include the same square feet to figure your deduction as the other person. File tax return You must allocate the shared space between you and the other person in a reasonable manner. File tax return Example. File tax return Kristin and Lindsey are roommates. File tax return Kristin uses 300 square feet of their home for a qualified business use. File tax return Lindsey uses 200 square feet of their home for a separate qualified business use. File tax return The qualified business uses share 100 square feet. File tax return In addition to the portion that they do not share, Kristin and Lindsey can both claim 50 of the 100 square feet or divide the 100 square feet between them in any reasonable manner. File tax return If divided evenly, Kristin could claim 250 square feet using the simplified method and Lindsey could claim 150 square feet. File tax return More than one qualified business use. File tax return   If you conduct more than one business qualifying for the deduction, you are limited to a maximum of 300 square feet for all of the businesses. File tax return Allocate the actual square footage used (up to the maximum of 300 square feet) among your qualified business uses in a reasonable manner. File tax return However, do not allocate more square feet to a qualified business use than you actually use for that business. File tax return Rental use. File tax return   The simplified method does not apply to rental use. File tax return A rental use that qualifies for the deduction must be figured using actual expenses. File tax return If the rental use and a qualified business use share the same area, you will have to allocate the actual area used between the two uses. File tax return You cannot use the same area to figure a deduction for the qualified business use as you are using to figure the deduction for the rental use. File tax return Part-year use or area changes. File tax return   If your qualified business use was for a portion of the taxable year (for example, a seasonal business or a business that begins during the taxable year) or you changed the square footage of your qualified business use, your deduction is limited to the average monthly allowable square footage. File tax return You calculate the average monthly allowable square footage by adding the amount of allowable square feet you used in each month and dividing the sum by 12. File tax return When determining the average monthly allowable square footage, you cannot take more than 300 square feet into account for any one month. File tax return Additionally, if your qualified business use was less than 15 days in a month, you must use -0- for that month. File tax return Example 1. File tax return Andy files his federal income tax return on a calendar year basis. File tax return On July 20, he began using 420 square feet of his home for a qualified business use. File tax return He continued to use the 420 square feet until the end of the year. File tax return His average monthly allowable square footage is 125 square feet, which is figured using 300 square feet for each month August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 0 + 0 + 0 + 300 + 300 + 300 + 300 + 300)/12). File tax return Example 2. File tax return Amy files her federal income tax return on a calendar year basis. File tax return On April 20, she began using 100 square feet of her home for a qualified business use. File tax return On August 5, she expanded the area of her qualified use to 330 square feet. File tax return Amy continued to use the 330 square feet until the end of the year. File tax return Her average monthly allowable square footage is 150 square feet, which is figured using 100 square feet for May through July and 300 square feet for August through December divided by the number of months in the taxable year ((0 + 0 + 0 + 0 + 100 + 100 +100 + 300 + 300 + 300 + 300 + 300)/12). File tax return Gross income limitation. File tax return   Your deduction for business use of the home is limited to an amount equal to the gross income derived from the qualified business use of the home reduced by the business deductions that are unrelated to the use of your home. File tax return If the business deductions that are unrelated to the use of your home are greater than the gross income derived from the qualified business use of your home, then you cannot take a deduction for this qualified business use of your home. File tax return Business expenses not related to use of the home. File tax return   These expenses relate to the business activity in the home, but not to the use of the home itself. File tax return You can still deduct business expenses that are unrelated to the use of the home. File tax return See Where To Deduct , later. File tax return Examples of business expenses that are unrelated to the use of the home are advertising, wages, supplies, dues, and depreciation for equipment. File tax return Space used regularly for daycare. File tax return   If you do not use the area of your home exclusively for daycare, you must reduce the prescribed rate (maximum $5 per square foot) before figuring your deduction. File tax return The reduced rate will equal the prescribed rate times a fraction. File tax return The numerator of the fraction is the number of hours that the space was used during the year for daycare and the denominator is the total number of hours during the year that the space was available for all uses. File tax return You can use the Daycare Facility Worksheet (for simplified method), near the end of this publication, to help you figure the reduced rate. File tax return    If you used at least 300 square feet for daycare regularly and exclusively during the year, then you do not need to reduce the prescribed rate or complete the Daycare Facility Worksheet. File tax return Daycare Facility If you use space in your home on a regular basis for providing daycare, you may be able to claim a deduction for that part of your home even if you use the same space for nonbusiness purposes. File tax return To qualify for this exception to the exclusive use rule, you must meet both of the following requirements. File tax return You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons who are physically or mentally unable to care for themselves. File tax return You must have applied for, been granted, or be exempt from having, a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law. File tax return You do not meet this requirement if your application was rejected or your license or other authorization was revoked. File tax return Figuring the deduction. File tax return   If you elect to use the simplified method for your home, figure your deduction as described earlier in Using the Simplified Method under Figuring the Deduction. File tax return    If you are figuring your deduction using actual expenses and you regularly use part of your home for daycare, figure what part is used for daycare, as explained in Business Percentage , earlier, under Figuring the Deduction. File tax return If you also use that part exclusively for daycare, deduct all the allocable expenses, subject to the deduction limit, as explained earlier. File tax return   If the use of part of your home as a daycare facility is regular, but not exclusive, you must figure the percentage of time that part of your home is used for daycare. File tax return A room that is available for use throughout each business day and that you regularly use in your business is considered to be used for daycare throughout each business day. File tax return You do not have to keep records to show the specific hours the area was used for business. File tax return You can use the area occasionally for personal reasons. File tax return However, a room you use only occasionally for business does not qualify for the deduction. File tax return To find the percentage of time you actually use your home for business, compare the total time used for business to the total time that part of your home can be used for all purposes. File tax return You can compare the hours of business use in a week with the number of hours in a week (168). File tax return Or you can compare the hours of business use for the year with the number of hours in the year (8,760 in 2013). File tax return If you started or stopped using your home for daycare in 2013, you must prorate the number of hours based on the number of days the home was available for daycare. File tax return Example 1. File tax return Mary Lake used her basement to operate a daycare business for children. File tax return She figures the business percentage of the basement as follows. File tax return Square footage of the basement Square footage of her home = 1,600 3,200 = 50%           She used the basement for daycare an average of 12 hours a day, 5 days a week, for 50 weeks a year. File tax return During the other 12 hours a day, the family could use the basement. File tax return She figures the percentage of time the basement was used for daycare as follows. File tax return Number of hours used for daycare (12 x 5 x 50) Total number of hours in the year (24 x 365) = 3,000 8,760 = 34. File tax return 25%           Mary can deduct 34. File tax return 25% of any direct expenses for the basement. File tax return However, because her indirect expenses are for the entire house, she can deduct only 17. File tax return 13% of the indirect expenses. File tax return She figures the percentage for her indirect expenses as follows. File tax return Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 34. File tax return 25% Percentage for indirect expenses 17. File tax return 13% Mary completes Form 8829, Part I, figuring the percentage of her home used for business, including the percentage of time the basement was used. File tax return In Part II, Mary figures her deductible expenses. File tax return She uses the following information to complete Part II. File tax return Gross income from her daycare business $50,000 Expenses not related to the business use of the home $25,000 Tentative profit $25,000 Rent $8,400 Utilities $850 Painting the basement $500 Mary enters her tentative profit, $25,000, on line 8. File tax return (This figure is the same as the amount on line 29 of her Schedule C (Form 1040). File tax return ) The expenses she paid for rent and utilities relate to her entire home. File tax return Therefore, she enters the amount paid for rent on line 18, column (b), and the amount paid for utilities on line 20, column (b). File tax return She shows the total of these expenses on line 22, column (b). File tax return For line 23, she multiplies the amount on line 22, column (b) by the percentage on line 7 and enters the result, $1,585. File tax return Mary paid $500 to have the basement painted. File tax return The painting is a direct expense. File tax return However, because she did not use the basement exclusively for daycare, she must multiply $500 by the percentage of time the basement was used for daycare (34. File tax return 25% – line 6). File tax return She enters $171 (34. File tax return 25% × $500) on line 19, column (a). File tax return She adds line 22, column (a), and line 23 and enters $1,756 ($171 + $1,585) on line 25. File tax return This is less than her deduction limit (line 15), so she can deduct the entire amount. File tax return She follows the instructions to complete the rest of Part II and enters $1,756 on lines 33 and 35. File tax return She then carries the $1,756 to line 30 of her Schedule C (Form 1040). File tax return Example 2. File tax return Assume the same facts as in Example 1 except that Mary also has another room that was available each business day for children to take naps in. File tax return Although she did not keep a record of the number of hours the room was actually used for naps, it was used for part of each business day. File tax return Since the room was available for business use during regular operating hours each business day and was used regularly in the business, it is considered used for daycare throughout each business day. File tax return The basement and room are 60% of the total area of her home. File tax return In figuring her expenses, 34. File tax return 25% of any direct expenses for the basement and room are deductible. File tax return In addition, 20. File tax return 55% (34. File tax return 25% × 60%) of her indirect expenses are deductible. File tax return Example 3. File tax return Assume the same facts as in Example 1 except that Mary stopped using her home for a daycare facility on June 24, 2013. File tax return She used the basement for daycare an average of 12 hours a day, 5 days a week, but for only 25 weeks of the year. File tax return During the other 12 hours a day, the family could still use the basement. File tax return She figures the percentage of time the basement was used for business as follows. File tax return Number of hours used for daycare (12 x 5 x 25) Total number of hours during period used (24 x 175) = 1,500 4,200 = 35. File tax return 71%           Mary can deduct 35. File tax return 71% of any direct expenses for the basement. File tax return However, because her indirect expenses are for the entire house, she can deduct only 17. File tax return 86% of the indirect expenses. File tax return She figures the percentage for her indirect expenses as follows. File tax return Business percentage of the basement 50% Multiplied by: Percentage of time used for daycare × 35. File tax return 71% Percentage for indirect expenses 17. File tax return 86% Meals. File tax return   If you provide food for your daycare recipients, do not include the expense as a cost of using your home for business. File tax return Claim it as a separate deduction on your Schedule C (Form 1040). File tax return You can never deduct the cost of food consumed by you or your family. File tax return You can deduct as a business expense 100% of the actual cost of food consumed by your daycare recipients (see Standard meal and snack rates , later, for an optional method for eligible children) and generally only 50% of the cost of food consumed by your employees. File tax return However, you can deduct 100% of the cost of food consumed by your employees if its value can be excluded from their wages as a de minimis fringe benefit. File tax return For more information on meals that meet these requirements, see Meals in chapter 2 of Publication 15-B, Employer's Tax Guide to Fringe Benefits. File tax return   If you deduct the actual cost of food for your daycare business, keep a separate record (with receipts) of your family's food costs. File tax return   Reimbursements you receive from a sponsor under the Child and Adult Care Food Program of the Department of Agriculture are taxable only to the extent they exceed your expenses for food for eligible children. File tax return If your reimbursements are more than your expenses for food, show the difference as income in Part I of Schedule C (Form 1040). File tax return If your food expenses are greater than the reimbursements, show the difference as an expense in Part V of Schedule C (Form 1040). File tax return Do not include payments or expenses for your own children if they are eligible for the program. File tax return Follow this procedure even if you receive a Form 1099-MISC, Miscellaneous Income, reporting a payment from the sponsor. File tax return Standard meal and snack rates. File tax return   If you qualify as a family daycare provider, you can use the standard meal and snack rates, instead of actual costs, to compute the deductible cost of meals and snacks provided to eligible children. File tax return For these purposes: A family daycare provider is a person engaged in the business of providing family daycare. File tax return Family daycare is childcare provided to eligible children in the home of the family daycare provider. File tax return The care must be non-medical, not involve a transfer of legal custody, and generally last less than 24 hours each day. File tax return Eligible children are minor children receiving family daycare in the home of the family daycare provider. File tax return Eligible children do not include children who are full-time or part-time residents in the home where the childcare is provided or children whose parents or guardians are residents of the same home. File tax return Eligible children do not include children who receive daycare services for personal reasons of the provider. File tax return For example, if a provider provides daycare services for a relative as a favor to that relative, that child is not an eligible child. File tax return   You can compute the deductible cost of each meal and snack you actually purchased and served to an eligible child during the time period you provided family daycare using the standard meal and snack rates shown in Table 3, later. File tax return You can use the standard meal and snack rates for a maximum of one breakfast, one lunch, one dinner, and three snacks per eligible child per day. File tax return If you receive reimbursement for a particular meal or snack, you can deduct only the portion of the applicable standard meal or snack rate that is more than the amount of the reimbursement. File tax return   You can use either the standard meal and snack rates or actual costs to calculate the deductible cost of food provided to eligible children in the family daycare for any particular tax year. File tax return If you choose to use the standard meal and snack rates for a particular tax year, you must use the rates for all your deductible food costs for eligible children during that tax year. File tax return However, if you use the standard meal and snack rates in any tax year, you can use actual costs to compute the deductible cost of food in any other tax year. File tax return   If you use the standard meal and snack rates, you must maintain records to substantiate the computation of the total amount deducted for the cost of food provided to eligible children. File tax return The records kept should include the name of each child, dates and hours of attendance in the daycare, and the type and quantity of meals and snacks served. File tax return This information can be recorded in a log similar to the one shown in Exhibit A, near the end of this publication. File tax return   The standard meal and snack rates include beverages, but do not include non-food supplies used for food preparation, service, or storage, such as containers, paper products, or utensils. File tax return These expenses can be claimed as a separate deduction on your Schedule C (Form 1040). File tax return     Table 3. File tax return Standard Meal and Snack Rates1 Location of Family Daycare Provider Breakfast Lunch Dinner Snack States other than Alaska an
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The U.S. Transportation Command provides transportation services and capabilities to the other combatant commands, the military services and defense agencies..

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Website: Transportation Command

Address: US Transportation Command
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Phone Number: (618) 22-4999

The File Tax Return

File tax return 5. File tax return   How To Get Tax Help Table of Contents Go online, use a smart phone, call or walk in to an office near you. File tax return 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. File tax return Free help with your tax return. File tax return    Free help in preparing your return is available nationwide from IRS-certified volunteers. File tax return The Volunteer Income Tax Assistance (VITA) program is designed to help low-to-moderate income, elderly, persons with disabilities, and limited English proficient taxpayers. File tax return The Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. File tax return 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. File tax return Some VITA and TCE sites provide taxpayers the opportunity to prepare their return with the assistance of an IRS-certified volunteer. File tax return To find the nearest VITA or TCE site, visit IRS. File tax return gov or call 1-800-906-9887. File tax return   As part of the TCE program, AARP offers the Tax-Aide counseling program. File tax return To find the nearest AARP Tax-Aide site, visit AARP's website at www. File tax return aarp. File tax return org/money/taxaide or call 1-888-227-7669. File tax return   For more information on these programs, go to IRS. File tax return gov and enter “VITA” in the search box. File tax return Internet. File tax return IRS. File tax return gov and IRS2Go are ready when you are — every day, every night, 24 hours a day, 7 days a week. File tax return Apply for an Employer Identification Number (EIN). File tax return Go to IRS. File tax return gov and enter Apply for an EIN in the search box. File tax return Request an Electronic Filing PIN by going to IRS. File tax return gov and entering Electronic Filing PIN in the search box. File tax return Check the status of your 2013 refund with Where's My Refund? Go to IRS. File tax return 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. File tax return 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. File tax return Check the status of your amended return. File tax return Go to IRS. File tax return gov and enter Where's My Amended Return in the search box. File tax return Download forms, instructions, and publications, including some accessible versions. File tax return Order free transcripts of your tax returns or tax account using the Order a Transcript tool on IRS. File tax return gov or IRS2Go. File tax return Tax return and tax account transcripts are generally available for the current year and past three years. File tax return Figure your income tax withholding with the IRS Withholding Calculator on IRS. File tax return gov. File tax return 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. File tax return Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. File tax return gov. File tax return Locate the nearest Taxpayer Assistance Center using the Office Locator tool on IRS. File tax return gov or IRS2Go. File tax return Stop by most business days for face-to-face tax help, no appointment necessary — just walk in. File tax return An employee can explain IRS letters, request adjustments to your tax account or help you set up a payment plan. File tax return Before you visit, check the Office Locator for the address, phone number, hours of operation and the services provided. File tax return If you have an ongoing tax account problem or a special need, such as a disability, you can request an appointment. File tax return Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. File tax return Locate the nearest volunteer help site with the VITA Locator Tool on IRS. File tax return gov. File tax return 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. File tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. File tax return Most VITA and TCE sites offer free electronic filing and some provide IRS-certified volunteers who can help prepare your tax return. File tax return AARP offers the Tax-Aide counseling program as part of the TCE program. File tax return Visit AARP's website to find the nearest Tax-Aide location. File tax return Research your tax questions. File tax return Search publications and instructions by topic or keyword. File tax return Read the Internal Revenue Code, regulations, or other official guidance. File tax return Read Internal Revenue Bulletins. File tax return Sign up to receive local and national tax news by email. File tax return Phone. File tax return You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. File tax return Download the free IRS2Go mobile app from the iTunes app store or from Google Play. File tax return 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. File tax return Call to locate the nearest volunteer help site, 1-800-906-9887. File tax return 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. File tax return The Tax Counseling for the Elderly (TCE) program helps taxpayers 60 and older with their tax returns. File tax return Most VITA and TCE sites offer free electronic filing. File tax return Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. File tax return Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. File tax return Call to check the status of your 2013 refund, 1-800-829-1954 or 1-800-829-4477. File tax return The automated Where's My Refund? information is available 24 hours a day, 7 days a week. File tax return 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. File tax return 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. File tax return Where's My Refund? can give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. File tax return Where's My Refund? includes information for the most recent return filed in the current year and does not include information about amended returns. File tax return Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. File tax return 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). File tax return You should receive your order within 10 business days. File tax return Call to order transcripts of your tax returns or tax account, 1-800-908-9946. File tax return Follow the prompts to provide your Social Security Number or Individual Taxpayer Identification Number, date of birth, street address and ZIP code. File tax return Call for TeleTax topics, 1-800-829-4477, to listen to pre-recorded messages covering various tax topics. File tax return Call to ask tax questions, 1-800-829-1040. File tax return Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. File tax return The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. File tax return These individuals can also contact the IRS through relay services such as the Federal Relay Service available at www. File tax return gsa. File tax return gov/fedrelay. File tax return Walk-in. File tax return You can find a selection of forms, publications and services — in-person, face-to-face. File tax return Products. File tax return You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. File tax return Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. File tax return Services. File tax return You can walk in to your local TAC most business days for personal, face-to-face tax help. File tax return An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. File tax return 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. File tax return No appointment is necessary—just walk in. File tax return Before visiting, check www. File tax return irs. File tax return gov/localcontacts for hours of operation and services provided. File tax return Mail. File tax return You can send your order for forms, instructions, and publications to the address below. File tax return You should receive a response within 10 business days after your request is received. File tax return  Internal Revenue Service 1201 N. File tax return Mitsubishi Motorway Bloomington, IL 61705-6613 The Taxpayer Advocate Service Is Here to Help You. File tax return    The Taxpayer Advocate Service (TAS) is your voice at the IRS. File tax return Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. File tax return What can TAS do for you?    We can offer you free help with IRS problems that you can't resolve on your own. File tax return 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. File tax return You face (or your business is facing) an immediate threat of adverse action. File tax return You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. File tax return   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. File tax return Here's why we can help: TAS is an independent organization within the IRS. File tax return Our advocates know how to work with the IRS. File tax return Our services are free and tailored to meet your needs. File tax return We have offices in every state, the District of Columbia, and Puerto Rico. File tax return 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. File tax return irs. File tax return gov/advocate, or call us toll-free at 1-877-777-4778. File tax return How else does TAS help taxpayers?    TAS also works to resolve large-scale, systemic problems that affect many taxpayers. File tax return If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. File tax return irs. File tax return gov/sams. File tax return Low Income Taxpayer Clinics. File tax return    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. File tax return Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. File tax return Visit www. File tax return TaxpayerAdvocate. File tax return irs. File tax return gov or see IRS Publication 4134, Low Income Taxpayer Clinic List. File tax return Prev  Up  Next   Home   More Online Publications