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Filing An Amended Tax Return For 2012

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Filing An Amended Tax Return For 2012

Filing an amended tax return for 2012 Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. Filing an amended tax return for 2012 Computer used in a home office. Filing an amended tax return for 2012 Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). Filing an amended tax return for 2012 You can claim the amount of expenses that is more than 2% of your adjusted gross income. Filing an amended tax return for 2012 You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Filing an amended tax return for 2012 Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. Filing an amended tax return for 2012 Generally, you apply the 2% limit after you apply any other deduction limit. Filing an amended tax return for 2012 For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. Filing an amended tax return for 2012 Deductions subject to the 2% limit are discussed in the following three categories. Filing an amended tax return for 2012 Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). Filing an amended tax return for 2012 Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). Filing an amended tax return for 2012 Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). Filing an amended tax return for 2012 Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Filing an amended tax return for 2012 You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Filing an amended tax return for 2012 An expense is ordinary if it is common and accepted in your trade, business, or profession. Filing an amended tax return for 2012 An expense is necessary if it is appropriate and helpful to your business. Filing an amended tax return for 2012 An expense does not have to be required to be considered necessary. Filing an amended tax return for 2012 You may be able to deduct the following items as unreimbursed employee expenses. Filing an amended tax return for 2012 Business bad debt of an employee. Filing an amended tax return for 2012 Business liability insurance premiums. Filing an amended tax return for 2012 Damages paid to a former employer for breach of an employment contract. Filing an amended tax return for 2012 Depreciation on a computer your employer requires you to use in your work. Filing an amended tax return for 2012 Dues to a chamber of commerce if membership helps you do your job. Filing an amended tax return for 2012 Dues to professional societies. Filing an amended tax return for 2012 Educator expenses. Filing an amended tax return for 2012 Home office or part of your home used regularly and exclusively in your work. Filing an amended tax return for 2012 Job search expenses in your present occupation. Filing an amended tax return for 2012 Laboratory breakage fees. Filing an amended tax return for 2012 Legal fees related to your job. Filing an amended tax return for 2012 Licenses and regulatory fees. Filing an amended tax return for 2012 Malpractice insurance premiums. Filing an amended tax return for 2012 Medical examinations required by an employer. Filing an amended tax return for 2012 Occupational taxes. Filing an amended tax return for 2012 Passport for a business trip. Filing an amended tax return for 2012 Repayment of an income aid payment received under an employer's plan. Filing an amended tax return for 2012 Research expenses of a college professor. Filing an amended tax return for 2012 Rural mail carriers' vehicle expenses. Filing an amended tax return for 2012 Subscriptions to professional journals and trade magazines related to your work. Filing an amended tax return for 2012 Tools and supplies used in your work. Filing an amended tax return for 2012 Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Filing an amended tax return for 2012 Union dues and expenses. Filing an amended tax return for 2012 Work clothes and uniforms if required and not suitable for everyday use. Filing an amended tax return for 2012 Work-related education. Filing an amended tax return for 2012 Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. Filing an amended tax return for 2012 Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. Filing an amended tax return for 2012 A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 You make a bona fide loan to the corporation you work for. Filing an amended tax return for 2012 It fails to pay you back. Filing an amended tax return for 2012 You had to make the loan in order to keep your job. Filing an amended tax return for 2012 You have a business bad debt as an employee. Filing an amended tax return for 2012 More information. Filing an amended tax return for 2012   For more information on business bad debts, see chapter 10 in Publication 535. Filing an amended tax return for 2012 For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. Filing an amended tax return for 2012 Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Filing an amended tax return for 2012 Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. Filing an amended tax return for 2012 Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Filing an amended tax return for 2012 For the convenience of your employer. Filing an amended tax return for 2012   This means that your use of the computer is for a substantial business reason of your employer. Filing an amended tax return for 2012 You must consider all facts in making this determination. Filing an amended tax return for 2012 Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. Filing an amended tax return for 2012 Required as a condition of your employment. Filing an amended tax return for 2012   This means that you cannot properly perform your duties without the computer. Filing an amended tax return for 2012 Whether you can properly perform your duties without it depends on all the facts and circumstances. Filing an amended tax return for 2012 It is not necessary that your employer explicitly requires you to use your computer. Filing an amended tax return for 2012 But neither is it enough that your employer merely states that your use of the item is a condition of your employment. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 You are an engineer with an engineering firm. Filing an amended tax return for 2012 You occasionally take work home at night rather than work late at the office. Filing an amended tax return for 2012 You own and use a computer that is similar to the one you use at the office to complete your work at home. Filing an amended tax return for 2012 Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. Filing an amended tax return for 2012 Which depreciation method to use. Filing an amended tax return for 2012   The depreciation method you use depends on whether you meet the more-than-50%-use test. Filing an amended tax return for 2012 More-than-50%-use test met. Filing an amended tax return for 2012   You meet this test if you use the computer more than 50% in your work. Filing an amended tax return for 2012 If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). Filing an amended tax return for 2012 In addition, you may be able to take the section 179 deduction for the year you place the item in service. Filing an amended tax return for 2012 More-than-50%-use test not met. Filing an amended tax return for 2012   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). Filing an amended tax return for 2012 You also cannot claim the section 179 deduction. Filing an amended tax return for 2012 (But if you use your computer in a home office, see the exception below. Filing an amended tax return for 2012 ) Investment use. Filing an amended tax return for 2012   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. Filing an amended tax return for 2012 However, you can combine your investment use with your work use in figuring your depreciation deduction. Filing an amended tax return for 2012 Exception for computer used in a home office. Filing an amended tax return for 2012   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . Filing an amended tax return for 2012 You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. Filing an amended tax return for 2012 You also may be able to take a section 179 deduction for the year you place the computer in service. Filing an amended tax return for 2012 See Computer used in a home office under How To Report, later. Filing an amended tax return for 2012 More information. Filing an amended tax return for 2012   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. Filing an amended tax return for 2012 Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. Filing an amended tax return for 2012 Reporting your depreciation deduction. Filing an amended tax return for 2012    See How To Report, later, for information about reporting a deduction for depreciation. Filing an amended tax return for 2012 You must keep records to prove your percentage of business and investment use. Filing an amended tax return for 2012 Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Filing an amended tax return for 2012 Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Filing an amended tax return for 2012 Lobbying and political activities. Filing an amended tax return for 2012    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Filing an amended tax return for 2012 See Lobbying Expenses under Nondeductible Expenses, later. Filing an amended tax return for 2012 Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Filing an amended tax return for 2012 If you file Form 1040A, you can deduct these expenses on line 16. Filing an amended tax return for 2012 If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Filing an amended tax return for 2012 However, neither spouse can deduct more than $250 of his or her qualified expenses. Filing an amended tax return for 2012 Eligible educator. Filing an amended tax return for 2012   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. Filing an amended tax return for 2012 Qualified expenses. Filing an amended tax return for 2012   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Filing an amended tax return for 2012 An ordinary expense is one that is common and accepted in your educational field. Filing an amended tax return for 2012 A necessary expense is one that is helpful and appropriate for your profession as an educator. Filing an amended tax return for 2012 An expense does not have to be required to be considered necessary. Filing an amended tax return for 2012   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Filing an amended tax return for 2012 You must reduce your qualified expenses by the following amounts. Filing an amended tax return for 2012 Excludable U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 series EE and I savings bond interest from Form 8815. Filing an amended tax return for 2012 Nontaxable qualified state tuition program earnings. Filing an amended tax return for 2012 Nontaxable earnings from Coverdell education savings accounts. Filing an amended tax return for 2012 Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. Filing an amended tax return for 2012 Educator expenses over limit. Filing an amended tax return for 2012   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. Filing an amended tax return for 2012 Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Filing an amended tax return for 2012 You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Filing an amended tax return for 2012 The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Filing an amended tax return for 2012 Principal place of business. Filing an amended tax return for 2012   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Filing an amended tax return for 2012   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. Filing an amended tax return for 2012 You should keep records that will give the information needed to figure the deduction according to these rules. Filing an amended tax return for 2012 Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. Filing an amended tax return for 2012 More information. Filing an amended tax return for 2012   See Publication 587 for more detailed information and a worksheet for figuring the deduction. Filing an amended tax return for 2012 Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Filing an amended tax return for 2012 You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Filing an amended tax return for 2012 Employment and outplacement agency fees. Filing an amended tax return for 2012    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Filing an amended tax return for 2012 Employer pays you back. Filing an amended tax return for 2012   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Filing an amended tax return for 2012 See Recoveries in Publication 525. Filing an amended tax return for 2012 Employer pays the employment agency. Filing an amended tax return for 2012   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Filing an amended tax return for 2012 Résumé. Filing an amended tax return for 2012   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Filing an amended tax return for 2012 Travel and transportation expenses. Filing an amended tax return for 2012   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Filing an amended tax return for 2012 You can deduct the travel expenses if the trip is primarily to look for a new job. Filing an amended tax return for 2012 The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Filing an amended tax return for 2012   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Filing an amended tax return for 2012    You can choose to use the standard mileage rate to figure your car expenses. Filing an amended tax return for 2012 The 2013 rate for business use of a vehicle is 56½ cents per mile. Filing an amended tax return for 2012 See Publication 463 for more information on travel and car expenses. Filing an amended tax return for 2012 Legal Fees You can deduct legal fees related to doing or keeping your job. Filing an amended tax return for 2012 Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Filing an amended tax return for 2012 Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Filing an amended tax return for 2012 If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Filing an amended tax return for 2012 Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Filing an amended tax return for 2012 If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Filing an amended tax return for 2012 Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Filing an amended tax return for 2012 You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Filing an amended tax return for 2012 However, you cannot deduct the cost of travel as a form of education. Filing an amended tax return for 2012 Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. Filing an amended tax return for 2012 See chapter 4 of Publication 463 for more information. Filing an amended tax return for 2012 Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Filing an amended tax return for 2012 You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Filing an amended tax return for 2012 For more information about depreciation, see Publication 946. Filing an amended tax return for 2012 Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. Filing an amended tax return for 2012 Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. Filing an amended tax return for 2012 Travel expenses. Filing an amended tax return for 2012   Travel expenses are those incurred while traveling away from home for your employer. Filing an amended tax return for 2012 You can deduct travel expenses paid or incurred in connection with a temporary work assignment. Filing an amended tax return for 2012 Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. Filing an amended tax return for 2012   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. Filing an amended tax return for 2012 ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. Filing an amended tax return for 2012   Travel expenses are discussed more fully in chapter 1 of Publication 463. Filing an amended tax return for 2012 Temporary work assignment. Filing an amended tax return for 2012    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. Filing an amended tax return for 2012 Indefinite work assignment. Filing an amended tax return for 2012   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. Filing an amended tax return for 2012 If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. Filing an amended tax return for 2012 Federal crime investigation and prosecution. Filing an amended tax return for 2012   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. Filing an amended tax return for 2012 This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. Filing an amended tax return for 2012   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Filing an amended tax return for 2012 Armed Forces reservists traveling more than 100 miles from home. Filing an amended tax return for 2012   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 some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Filing an amended tax return for 2012 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. Filing an amended tax return for 2012 The balance, if any, is reported on Schedule A. Filing an amended tax return for 2012   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, 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. Filing an amended tax return for 2012   For more information on travel expenses, see Publication 463. Filing an amended tax return for 2012 Local transportation expenses. Filing an amended tax return for 2012   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. Filing an amended tax return for 2012 They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. Filing an amended tax return for 2012   You can choose to use the standard mileage rate to figure your car expenses. Filing an amended tax return for 2012 The 2013 rate for business use of a vehicle is 56½ cents per mile. Filing an amended tax return for 2012    In general, the costs of commuting between your residence and your place of business are nondeductible. Filing an amended tax return for 2012 Work at two places in a day. Filing an amended tax return for 2012   If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. Filing an amended tax return for 2012 Temporary work location. Filing an amended tax return for 2012   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. Filing an amended tax return for 2012 The work location is outside the metropolitan area where you live and normally work. Filing an amended tax return for 2012 You have at least one regular work location (other than your home) for the same trade or business. Filing an amended tax return for 2012 (If this applies, the distance between your home and the temporary work location does not matter. Filing an amended tax return for 2012 )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. Filing an amended tax return for 2012 It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. Filing an amended tax return for 2012 If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. Filing an amended tax return for 2012 For more information, see chapter 1 of Publication 463. Filing an amended tax return for 2012 Home office. Filing an amended tax return for 2012   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. Filing an amended tax return for 2012 (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. Filing an amended tax return for 2012 ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. Filing an amended tax return for 2012 Meals and entertainment. Filing an amended tax return for 2012   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. Filing an amended tax return for 2012 However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. Filing an amended tax return for 2012   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. Filing an amended tax return for 2012 You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. Filing an amended tax return for 2012 Meals when subject to “hours of service” limits. Filing an amended tax return for 2012   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. Filing an amended tax return for 2012 You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. Filing an amended tax return for 2012 Gift expenses. Filing an amended tax return for 2012   You can generally deduct up to $25 of business gifts you give to any one individual during the year. Filing an amended tax return for 2012 The following items do not count toward the $25 limit. Filing an amended tax return for 2012 Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. Filing an amended tax return for 2012 Signs, racks, and promotional materials to be displayed on the business premises of the recipient. Filing an amended tax return for 2012 Local lodging. Filing an amended tax return for 2012   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. Filing an amended tax return for 2012   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. Filing an amended tax return for 2012 Additional information. Filing an amended tax return for 2012    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. Filing an amended tax return for 2012 Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Filing an amended tax return for 2012 You can also deduct assessments for benefit payments to unemployed union members. Filing an amended tax return for 2012 However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Filing an amended tax return for 2012 Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. Filing an amended tax return for 2012 You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Filing an amended tax return for 2012 See Lobbying Expenses under Nondeductible Expenses, later. Filing an amended tax return for 2012 Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Filing an amended tax return for 2012 You must wear them as a condition of your employment. Filing an amended tax return for 2012 The clothes are not suitable for everyday wear. Filing an amended tax return for 2012 It is not enough that you wear distinctive clothing. Filing an amended tax return for 2012 The clothing must be specifically required by your employer. Filing an amended tax return for 2012 Nor is it enough that you do not, in fact, wear your work clothes away from work. Filing an amended tax return for 2012 The clothing must not be suitable for taking the place of your regular clothing. Filing an amended tax return for 2012 Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Filing an amended tax return for 2012 ). Filing an amended tax return for 2012 Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Filing an amended tax return for 2012 However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Filing an amended tax return for 2012 Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Filing an amended tax return for 2012 Protective clothing. Filing an amended tax return for 2012   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Filing an amended tax return for 2012   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Filing an amended tax return for 2012 Military uniforms. Filing an amended tax return for 2012   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Filing an amended tax return for 2012 However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Filing an amended tax return for 2012 In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Filing an amended tax return for 2012   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Filing an amended tax return for 2012   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. Filing an amended tax return for 2012 However, you can deduct the cost of insignia, shoulder boards, and related items. Filing an amended tax return for 2012    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Filing an amended tax return for 2012 Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. Filing an amended tax return for 2012 It maintains or improves skills required in your present work. Filing an amended tax return for 2012 It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. Filing an amended tax return for 2012 You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. Filing an amended tax return for 2012 If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. Filing an amended tax return for 2012 If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. Filing an amended tax return for 2012 Travel as education. Filing an amended tax return for 2012   You cannot deduct the cost of travel that in itself constitutes a form of education. Filing an amended tax return for 2012 For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. Filing an amended tax return for 2012 More information. Filing an amended tax return for 2012    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. Filing an amended tax return for 2012 Education Expenses During Unemployment If you stop working for a year or less in order to get education in order to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Filing an amended tax return for 2012 Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Filing an amended tax return for 2012 Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. Filing an amended tax return for 2012 Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Filing an amended tax return for 2012 These fees include the cost of tax preparation software programs and tax publications. Filing an amended tax return for 2012 They also include any fee you paid for electronic filing of your return. Filing an amended tax return for 2012 See Tax preparation fees under How To Report, later. Filing an amended tax return for 2012 Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. Filing an amended tax return for 2012 On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Filing an amended tax return for 2012 You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. Filing an amended tax return for 2012 These other expenses include the following items. Filing an amended tax return for 2012 Appraisal fees for a casualty loss or charitable contribution. Filing an amended tax return for 2012 Casualty and theft losses from property used in performing services as an employee. Filing an amended tax return for 2012 Clerical help and office rent in caring for investments. Filing an amended tax return for 2012 Depreciation on home computers used for investments. Filing an amended tax return for 2012 Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. Filing an amended tax return for 2012 Fees to collect interest and dividends. Filing an amended tax return for 2012 Hobby expenses, but generally not more than hobby income. Filing an amended tax return for 2012 Indirect miscellaneous deductions from pass-through entities. Filing an amended tax return for 2012 Investment fees and expenses. Filing an amended tax return for 2012 Legal fees related to producing or collecting taxable income or getting tax advice. Filing an amended tax return for 2012 Loss on deposits in an insolvent or bankrupt financial institution. Filing an amended tax return for 2012 Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. Filing an amended tax return for 2012 Repayments of income. Filing an amended tax return for 2012 Repayments of social security benefits. Filing an amended tax return for 2012 Safe deposit box rental, except for storing jewelry and other personal effects. Filing an amended tax return for 2012 Service charges on dividend reinvestment plans. Filing an amended tax return for 2012 Tax advice fees. Filing an amended tax return for 2012 Trustee's fees for your IRA, if separately billed and paid. Filing an amended tax return for 2012 If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. Filing an amended tax return for 2012 Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Filing an amended tax return for 2012 Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Filing an amended tax return for 2012 First report the loss in Section B of Form 4684, Casualties and Thefts. Filing an amended tax return for 2012 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Filing an amended tax return for 2012 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Filing an amended tax return for 2012 For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Filing an amended tax return for 2012 Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Filing an amended tax return for 2012 Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Filing an amended tax return for 2012 The fees are deductible on the return for the year in which you paid them. Filing an amended tax return for 2012 For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. Filing an amended tax return for 2012 Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Filing an amended tax return for 2012 You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Filing an amended tax return for 2012 But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. Filing an amended tax return for 2012 For more information on depreciation, see Publication 946. Filing an amended tax return for 2012 Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Filing an amended tax return for 2012 Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Filing an amended tax return for 2012 The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Filing an amended tax return for 2012 For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Filing an amended tax return for 2012 Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Filing an amended tax return for 2012 But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Filing an amended tax return for 2012 You must add the fee to the cost of the property. Filing an amended tax return for 2012 You cannot deduct the fee you pay to a broker to sell securities. Filing an amended tax return for 2012 You can use the fee only to figure gain or loss from the sale. Filing an amended tax return for 2012 See the instructions for Schedule D (Form 1040) for information on how to report the fee. Filing an amended tax return for 2012 Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Filing an amended tax return for 2012 A hobby is not a business because it is not carried on to make a profit. Filing an amended tax return for 2012 See Not-for-Profit Activities in chapter 1 of Publication 535. Filing an amended tax return for 2012 Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Filing an amended tax return for 2012 Deductions of pass-through entities are passed through to the partners or shareholders. Filing an amended tax return for 2012 The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 You are a member of an investment club that is formed solely to invest in securities. Filing an amended tax return for 2012 The club is treated as a partnership. Filing an amended tax return for 2012 The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Filing an amended tax return for 2012 In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Filing an amended tax return for 2012 However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Filing an amended tax return for 2012 Publicly offered mutual funds. Filing an amended tax return for 2012   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Filing an amended tax return for 2012 A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Filing an amended tax return for 2012   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Filing an amended tax return for 2012 This net figure is the amount you report on your return as income. Filing an amended tax return for 2012 You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Filing an amended tax return for 2012 Information returns. Filing an amended tax return for 2012   You should receive information returns from pass-through entities. Filing an amended tax return for 2012 Partnerships and S corporations. Filing an amended tax return for 2012   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. Filing an amended tax return for 2012 Nonpublicly offered mutual funds. Filing an amended tax return for 2012   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. Filing an amended tax return for 2012 You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Filing an amended tax return for 2012 Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Filing an amended tax return for 2012 Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Filing an amended tax return for 2012 You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Filing an amended tax return for 2012 You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. Filing an amended tax return for 2012 You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). Filing an amended tax return for 2012 See Tax Preparation Fees, earlier. Filing an amended tax return for 2012 Unlawful discrimination claims. Filing an amended tax return for 2012   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. Filing an amended tax return for 2012 However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. Filing an amended tax return for 2012 See Publication 525 for more information. Filing an amended tax return for 2012 Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Filing an amended tax return for 2012 If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. Filing an amended tax return for 2012 If elected, the casualty loss is subject to certain deduction limitations. Filing an amended tax return for 2012 The election is made on Form 4684. Filing an amended tax return for 2012 Once you make this choice, you cannot change it without IRS approval. Filing an amended tax return for 2012 If none of the deposit is federally insured, you can deduct the loss in either of the following ways. Filing an amended tax return for 2012 As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). Filing an amended tax return for 2012 Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Filing an amended tax return for 2012 This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. Filing an amended tax return for 2012 As a casualty loss. Filing an amended tax return for 2012 Report it on Form 4684 first and then on Schedule A (Form 1040). Filing an amended tax return for 2012 See Publication 547 for details. Filing an amended tax return for 2012 As a nonbusiness bad debt. Filing an amended tax return for 2012 Report it on Schedule D (Form 1040). Filing an amended tax return for 2012 If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. Filing an amended tax return for 2012 Exception. Filing an amended tax return for 2012   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. Filing an amended tax return for 2012 For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. Filing an amended tax return for 2012 Actual loss different from estimated loss. Filing an amended tax return for 2012   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. Filing an amended tax return for 2012 See Recoveries in Publication 525. Filing an amended tax return for 2012 If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. Filing an amended tax return for 2012 Choice not made. Filing an amended tax return for 2012   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. Filing an amended tax return for 2012 See Nonbusiness Bad Debts in chapter 4 of Publication 550. Filing an amended tax return for 2012 Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. Filing an amended tax return for 2012 For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Filing an amended tax return for 2012 Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Filing an amended tax return for 2012 If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Filing an amended tax return for 2012 If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Filing an amended tax return for 2012 Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. Filing an amended tax return for 2012 The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. Filing an amended tax return for 2012 The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. Filing an amended tax return for 2012 It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). Filing an amended tax return for 2012 If the deduction is more than $3,000, you will have to use a special computation to figure your tax. Filing an amended tax return for 2012 See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. Filing an amended tax return for 2012 Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Filing an amended tax return for 2012 You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Filing an amended tax return for 2012 Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Filing an amended tax return for 2012 These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Filing an amended tax return for 2012 Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Filing an amended tax return for 2012 Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Filing an amended tax return for 2012 They are not subject to the 2% limit. Filing an amended tax return for 2012 Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Filing an amended tax return for 2012 List of Deductions Amortizable premium on taxable bonds. Filing an amended tax return for 2012 Casualty and theft losses from income-producing property. Filing an amended tax return for 2012 Federal estate tax on income in respect of a decedent. Filing an amended tax return for 2012 Gambling losses up to the amount of gambling winnings. Filing an amended tax return for 2012 Impairment-related work expenses of persons with disabilities. Filing an amended tax return for 2012 Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Filing an amended tax return for 2012 Losses from Ponzi-type investment schemes. Filing an amended tax return for 2012 Repayments of more than $3,000 under a claim of right. Filing an amended tax return for 2012 Unrecovered investment in an annuity. Filing an amended tax return for 2012 Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Filing an amended tax return for 2012 You can elect to amortize the premium on taxable bonds. Filing an amended tax return for 2012 The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Filing an amended tax return for 2012 Pre-1998 election to amortize bond premium. Filing an amended tax return for 2012   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Filing an amended tax return for 2012 Bonds acquired after October 22, 1986, and before 1988. Filing an amended tax return for 2012   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. Filing an amended tax return for 2012 Bonds acquired before October 23, 1986. Filing an amended tax return for 2012   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. Filing an amended tax return for 2012 Deduction for excess premium. Filing an amended tax return for 2012   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. Filing an amended tax return for 2012 If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. Filing an amended tax return for 2012 However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. Filing an amended tax return for 2012 If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. Filing an amended tax return for 2012    Pre-1998 choice to amortize bond premium. Filing an amended tax return for 2012 If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. Filing an amended tax return for 2012 More information. Filing an amended tax return for 2012    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. Filing an amended tax return for 2012 Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Filing an amended tax return for 2012 First report the loss in Section B of Form 4684. Filing an amended tax return for 2012 You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Filing an amended tax return for 2012 To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Filing an amended tax return for 2012 For more information on casualty and theft losses, see Publication 547. Filing an amended tax return for 2012 Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Filing an amended tax return for 2012 Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Filing an amended tax return for 2012 See Publication 559 for information about figuring the amount of this deduction. Filing an amended tax return for 2012 Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Filing an amended tax return for 2012 You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Filing an amended tax return for 2012 You cannot deduct gambling losses that are more than your winnings. Filing an amended tax return for 2012 Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). Filing an amended tax return for 2012 You cannot reduce your gambling winnings by your gambling losses and report the difference. Filing an amended tax return for 2012 You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Filing an amended tax return for 2012 Therefore, your records should show your winnings separately from your losses. Filing an amended tax return for 2012 Diary of winnings and losses. Filing an amended tax return for 2012 You must keep an accurate diary or similar record of your losses and winnings. Filing an amended tax return for 2012 Your diary should contain at least the following information. Filing an amended tax return for 2012 The date and type of your specific wager or wagering activity. Filing an amended tax return for 2012 The name and address or location of the gambling establishment. Filing an amended tax return for 2012 The names of other persons present with you at the gambling establishment. Filing an amended tax return for 2012 The amount(s) you won or lost. Filing an amended tax return for 2012 Proof of winnings and losses. Filing an amended tax return for 2012   In addition to your diary, you should also have other documentation. Filing an amended tax return for 2012 You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. Filing an amended tax return for 2012   For specific wagering transactions, you can use the following items to support your winnings and losses. Filing an amended tax return for 2012    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. Filing an amended tax return for 2012 They are not all-inclusive. Filing an amended tax return for 2012 Your tax liability depends on your particular facts and circumstances. Filing an amended tax return for 2012 Keno. Filing an amended tax return for 2012   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. Filing an amended tax return for 2012 Slot machines. Filing an amended tax return for 2012   A record of the machine number and all winnings by date and time the machine was played. Filing an amended tax return for 2012 Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. Filing an amended tax return for 2012 ). Filing an amended tax return for 2012   The number of the table at which you were playing. Filing an amended tax return for 2012 Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. Filing an amended tax return for 2012 Bingo. Filing an amended tax return for 2012   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Filing an amended tax return for 2012 Supplemental records include any receipts from the casino, parlor, etc. Filing an amended tax return for 2012 Racing (horse, harness, dog, etc. Filing an amended tax return for 2012 ). Filing an amended tax return for 2012   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Filing an amended tax return for 2012 Supplemental records include unredeemed tickets and payment records from the racetrack. Filing an amended tax return for 2012 Lotteries. Filing an amended tax return for 2012   A record of ticket purchases, dates, winnings, and losses. Filing an amended tax return for 2012 Supplemental records include unredeemed tickets, payment slips, and winnings statements. Filing an amended tax return for 2012 Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Filing an amended tax return for 2012 Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 You are blind. Filing an amended tax return for 2012 You must use a reader to do your work. Filing an amended tax return for 2012 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. Filing an amended tax return for 2012 The reader's services are only for your work. Filing an amended tax return for 2012 You can deduct your expenses for the reader as impairment-related work expenses. Filing an amended tax return for 2012 Self-employed. Filing an amended tax return for 2012   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Filing an amended tax return for 2012 See Impairment-related work expenses. Filing an amended tax return for 2012 , later under How To Report. Filing an amended tax return for 2012 Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 trade or business). Filing an amended tax return for 2012 It is not subject to the passive activity limitations. Filing an amended tax return for 2012 Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. Filing an amended tax return for 2012 See Publication 463 for more information. Filing an amended tax return for 2012 Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. Filing an amended tax return for 2012 If you are an employee, complete Form 2106 or Form 2106-EZ. Filing an amended tax return for 2012 See Publication 463 for more information. Filing an amended tax return for 2012 Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. Filing an amended tax return for 2012 You figure the deductible loss in Section B of Form 4684. Filing an amended tax return for 2012 However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. Filing an amended tax return for 2012 Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Filing an amended tax return for 2012 You do not need to complete Appendix A. Filing an amended tax return for 2012 See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. Filing an amended tax return for 2012 Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. Filing an amended tax return for 2012 See Repayments in Publication 525 for more information. Filing an amended tax return for 2012 Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Filing an amended tax return for 2012 If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Filing an amended tax return for 2012 See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. Filing an amended tax return for 2012 Nondeductible Expenses You cannot deduct the following expenses. Filing an amended tax return for 2012 List of Nondeductible Expenses Adoption expenses. Filing an amended tax return for 2012 Broker's commissions. Filing an amended tax return for 2012 Burial or funeral expenses, including the cost of a cemetery lot. Filing an amended tax return for 2012 Campaign expenses. Filing an amended tax return for 2012 Capital expenses. Filing an amended tax return for 2012 Check-writing fees. Filing an amended tax return for 2012 Club dues. Filing an amended tax return for 2012 Commuting expenses. Filing an amended tax return for 2012 Fees and licenses, such as car licenses, marriage licenses, and dog tags. Filing an amended tax return for 2012 Fines and penalties, such as parking tickets. Filing an amended tax return for 2012 Health spa expenses. Filing an amended tax return for 2012 Hobby losses—but see Hobby Expenses, earlier. Filing an amended tax return for 2012 Home repairs, insurance, and rent. Filing an amended tax return for 2012 Home security system. Filing an amended tax return for 2012 Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. Filing an amended tax return for 2012 Investment-related seminars. Filing an amended tax return for 2012 Life insurance premiums paid by the insured. Filing an amended tax return for 2012 Lobbying expenses. Filing an amended tax return for 2012 Losses from the sale of your home, furniture, personal car, etc. Filing an amended tax return for 2012 Lost or misplaced cash or property. Filing an amended tax return for 2012 Lunches with co-workers. Filing an amended tax return for 2012 Meals while working late. Filing an amended tax return for 2012 Medical expenses as business expenses other than medical examinations required by your employer. Filing an amended tax return for 2012 Personal disability insurance premiums. Filing an amended tax return for 2012 Personal legal expenses. Filing an amended tax return for 2012 Personal, living, or family expenses. Filing an amended tax return for 2012 Political contributions. Filing an amended tax return for 2012 Professional accreditation fees. Filing an amended tax return for 2012 Professional reputation, expenses to improve. Filing an amended tax return for 2012 Relief fund contributions. Filing an amended tax return for 2012 Residential telephone line. Filing an amended tax return for 2012 Stockholders' meeting, expenses of attending. Filing an amended tax return for 2012 Tax-exempt income, expenses of earning or collecting. Filing an amended tax return for 2012 The value of wages never received or lost vacation time. Filing an amended tax return for 2012 Travel expenses for another individual. Filing an amended tax return for 2012 Voluntary unemployment benefit fund contributions. Filing an amended tax return for 2012 Wristwatches. Filing an amended tax return for 2012 Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. Filing an amended tax return for 2012 For details, see Form 8839, Qualified Adoption Expenses. Filing an amended tax return for 2012 Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. Filing an amended tax return for 2012 Instead, these fees must be added to the taxpayer's cost of the securities. Filing an amended tax return for 2012 Commissions paid on the sale are deductible as business expenses only by dealers. Filing an amended tax return for 2012 Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Filing an amended tax return for 2012 These include qualification and registration fees for primary elections. Filing an amended tax return for 2012 Legal fees. Filing an amended tax return for 2012   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Filing an amended tax return for 2012 Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. Filing an amended tax return for 2012 If you use such property in your work, you may be able to take a depreciation deduction. Filing an amended tax return for 2012 See Publication 946. Filing an amended tax return for 2012 If the property is a car used in your work, also see Publication 463. Filing an amended tax return for 2012 Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Filing an amended tax return for 2012 Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Filing an amended tax return for 2012 This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Filing an amended tax return for 2012 You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Filing an amended tax return for 2012 Dues paid to airline, hotel, and luncheon clubs are not deductible. Filing an amended tax return for 2012 Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Filing an amended tax return for 2012 If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. Filing an amended tax return for 2012 Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Filing an amended tax return for 2012 This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Filing an amended tax return for 2012 Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Filing an amended tax return for 2012 Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Filing an amended tax return for 2012 Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Filing an amended tax return for 2012 However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Filing an amended tax return for 2012 See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. Filing an amended tax return for 2012 Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Filing an amended tax return for 2012 Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Filing an amended tax return for 2012 You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Filing an amended tax return for 2012 See Publication 504, Divorced or Separated Individuals, for information on alimony. Filing an amended tax return for 2012 Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Filing an amended tax return for 2012 These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Filing an amended tax return for 2012 Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Filing an amended tax return for 2012 Covered executive branch official. Filing an amended tax return for 2012   A covered executive branch official, for the purpose of (4) above, is any of the following officials. Filing an amended tax return for 2012 The President. Filing an amended tax return for 2012 The Vice President. Filing an amended tax return for 2012 Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. Filing an amended tax return for 2012 Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. Filing an amended tax return for 2012 Dues used for lobbying. Filing an amended tax return for 2012   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Filing an amended tax return for 2012 Exceptions. Filing an amended tax return for 2012   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. Filing an amended tax return for 2012 You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). Filing an amended tax return for 2012 An Indian tribal government is considered a local council or similar governing body. Filing an amended tax return for 2012 You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). Filing an amended tax return for 2012 If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Filing an amended tax return for 2012 Payments by the other person to you for lobbying activities cannot be deducted. Filing an amended tax return for 2012 Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Filing an amended tax return for 2012 However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Filing an amended tax return for 2012 See Publication 547. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Filing an amended tax return for 2012 The diamond falls from the ring and is never found. Filing an amended tax return for 2012 The loss of the diamond is a casualty. Filing an amended tax return for 2012 Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Filing an amended tax return for 2012 See Publication 463 for information on deductible expenses while traveling away from home. Filing an amended tax return for 2012 Meals While Working Late You cannot deduct the cost of meals while working late. Filing an amended tax return for 2012 However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. Filing an amended tax return for 2012 See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. Filing an amended tax return for 2012 Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Filing an amended tax return for 2012 Custody of children. Filing an amended tax return for 2012 Breach of promise to marry suit. Filing an amended tax return for 2012 Civil or criminal charges resulting from a personal relationship. Filing an amended tax return for 2012 Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). Filing an amended tax return for 2012 For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. Filing an amended tax return for 2012 Preparation of a title (or defense or perfection of a title). Filing an amended tax return for 2012 Preparation of a will. Filing an amended tax return for 2012 Property claims or property settlement in a divorce. Filing an amended tax return for 2012 You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Filing an amended tax return for 2012 Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Filing an amended tax return for 2012 Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Filing an amended tax return for 2012 Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Filing an amended tax return for 2012 Accounting certificate fees paid for the initial right to practice accounting. Filing an amended tax return for 2012 Bar exam fees and incidental expenses in securing initial admission to the bar. Filing an amended tax return for 2012 Medical and dental license fees paid to get initial licensing. Filing an amended tax return for 2012 Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Filing an amended tax return for 2012 Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Filing an amended tax return for 2012 Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Filing an amended tax return for 2012 Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Filing an amended tax return for 2012 You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Filing an amended tax return for 2012 Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Filing an amended tax return for 2012 You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. Filing an amended tax return for 2012 If you have expenses to p
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Appeals

About the Office of Appeals

Every year, the Office of Appeals helps over 100,000 taxpayers resolve their tax disputes without going to Tax Court. We are an independent organization from the IRS whose mission is to help taxpayers and the government resolve tax disagreements. Appeals DOES NOT take sides in a dispute; rather we offer an objective point of view on each individual case. See the Treasury Inspector General for Tax Administration’s report (PDF) on their audit of Appeals’ independence.
 

Appeals also offers mediation services through Fast Track Settlement, Early Referral, and other mediation programs. These mediation programs are designed to help you resolve your dispute at the earliest possible stage in the audit or collection process.

Getting Started with Appeals

If you’ve received an IRS letter stating that your case qualifies to be reviewed with Appeals then the following topics will help you get started.

 

Page Last Reviewed or Updated: 23-Jan-2014

The Filing An Amended Tax Return For 2012

Filing an amended tax return for 2012 4. Filing an amended tax return for 2012   Filing U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Tax Returns Table of Contents Who Must FileFiling Requirement if Possession Income Is Excluded When To FileExtension of Time To File Where To File Special Rules for Completing Your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Tax ReturnU. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Armed Forces. Filing an amended tax return for 2012 Deductions if Possession Income Is Excluded Foreign Tax Credit if Possession Income Is Excluded Self-Employment Tax Additional Medicare Tax Net Investment Income Tax Paying Your TaxesEstimated Tax Double TaxationCompetent Authority Assistance The information in chapter 3 will tell you if a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return is required for your situation. Filing an amended tax return for 2012 If a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 return is required, your next step is to see if you meet the filing requirements. Filing an amended tax return for 2012 If you do meet the filing requirements, the information presented in this chapter will help you understand the special procedures involved. Filing an amended tax return for 2012 This chapter discusses: Filing requirements, When to file your return, Where to send your return, How to adjust your deductions and credits if you are excluding income from American Samoa or Puerto Rico, How to make estimated tax payments and pay self-employment tax, and How to request assistance in resolving instances of double taxation. Filing an amended tax return for 2012 Who Must File If you are not required to file a possession tax return that includes your worldwide income, you must generally file a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return if your gross income is at least the amount shown in Table 4-1, later, for your filing status and age. Filing an amended tax return for 2012 If you were a bona fide resident of American Samoa or Puerto Rico and are able to exclude your possession income from your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return, your filing requirement may be less than the amount in Table 4-1. Filing an amended tax return for 2012 For details, see the information under Filing Requirement if Possession Income Is Excluded , later. Filing an amended tax return for 2012 Some individuals (such as those who can be claimed as a dependent on another person's return or who owe certain taxes, such as self-employment tax) must file a tax return even though the gross income is less than the amount shown in Table 4-1 for their filing status and age. Filing an amended tax return for 2012 For more information, see the Form 1040 instructions. Filing an amended tax return for 2012 Filing Requirement if Possession Income Is Excluded If you were a bona fide resident of American Samoa or Puerto Rico and qualify to exclude possession income on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return, you must determine your adjusted filing requirement. Filing an amended tax return for 2012 Generally, your filing requirement is based on the total of your (and your spouse's if filing a joint return) personal exemption(s) plus your standard deduction. Filing an amended tax return for 2012 Personal exemption. Filing an amended tax return for 2012   When figuring your filing requirement, your personal exemption is allowed in full. Filing an amended tax return for 2012 Do not reduce it for this purpose. Filing an amended tax return for 2012 Do not include exemptions for your dependents. Filing an amended tax return for 2012 Allowable standard deduction. Filing an amended tax return for 2012   Unless your filing status is married filing separately, the minimum income level at which you must file a return is based, in part, on the standard deduction for your filing status and age. Filing an amended tax return for 2012 Because the standard deduction applies to all types of income, it must be divided between your excluded income and income from other sources. Filing an amended tax return for 2012 Multiply the regular standard deduction for your filing status and age (this is zero if you are married filing a separate return; all others, see Form 1040 instructions) by the following fraction:      Gross income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax     Gross income from all sources (including excluded possession income)   Example. Filing an amended tax return for 2012 Barbara Spruce, a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 citizen, is single, under 65, and a bona fide resident of American Samoa. Filing an amended tax return for 2012 During 2013, she received $20,000 of income from American Samoa sources (qualifies for exclusion) and $8,000 of income from sources outside the possession (subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax). Filing an amended tax return for 2012 Her allowable standard deduction for 2013 is figured as follows:   $8,000 $28,000 × $6,100 (regular standard deduction) = $1,743   Adjusted filing requirement. Filing an amended tax return for 2012   Figure your adjusted filing requirement by adding the amount of your allowable standard deduction to the amount of your personal exemption. Filing an amended tax return for 2012 You must file a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return if your gross income is at least the amount shown on line 3 of the following worksheet. Filing an amended tax return for 2012    1. Filing an amended tax return for 2012 Enter the allowable standard deduction you figured earlier under Allowable standard deduction . Filing an amended tax return for 2012 If your filing status is married filing separately, enter -0-   2. Filing an amended tax return for 2012 Personal exemption. Filing an amended tax return for 2012 If your filing status is married filing jointly, enter $7,800; if someone can claim you as a dependent, enter -0-; otherwise, enter $3,900   3. Filing an amended tax return for 2012 Add lines 1 and 2. Filing an amended tax return for 2012 You must file a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return if your gross income from sources outside the relevant possession is at least this amount   Table 4-1. Filing an amended tax return for 2012 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. Filing an amended tax return for 2012 . Filing an amended tax return for 2012 . Filing an amended tax return for 2012 AND at the end of 2013 you were*. Filing an amended tax return for 2012 . Filing an amended tax return for 2012 . Filing an amended tax return for 2012 THEN file a return if your gross income** was at least. Filing an amended tax return for 2012 . Filing an amended tax return for 2012 . Filing an amended tax return for 2012 single under 65 $10,000 65 or older $11,500 married filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married filing separately any age $3,900 head of household under 65 $12,850 65 or older $14,350 qualifying widow(er)  with dependent child under 65 $16,100 65 or older $17,300 * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Filing an amended tax return for 2012 ** Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it). Filing an amended tax return for 2012 Do not include social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013, or (b) one-half of your social security benefits plus your other gross income is more than $25,000 ($32,000 if married filing jointly). Filing an amended tax return for 2012 If (a) or (b) applies, see the instructions for Form 1040 or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the taxable part of social security benefits you must include in gross income. Filing an amended tax return for 2012 *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900 you must file a return regardless of your age. Filing an amended tax return for 2012 Example 1. Filing an amended tax return for 2012 James and Joan Thompson, one over 65, are U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 citizens and bona fide residents of Puerto Rico during the entire tax year. Filing an amended tax return for 2012 They file a joint income tax return. Filing an amended tax return for 2012 During 2013, they received $35,000 of income from Puerto Rico sources (qualifies for exclusion) and $6,000 of income from sources outside Puerto Rico (subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax). Filing an amended tax return for 2012 Their allowable standard deduction for 2013 is figured as follows:   $6,000 $41,000 × $13,400 ( standard deduction for 65 or older (one spouse) ) = $1,961   The Thompsons do not have to file a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return because their gross income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax ($6,000) is less than their allowable standard deduction plus their personal exemptions ($1,961+ $7,800= $9,761). Filing an amended tax return for 2012 Example 2. Filing an amended tax return for 2012 Barbara Spruce (see Example under Allowable standard deduction, earlier), however, must file a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return because her gross income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax ($8,000) is more than her allowable standard deduction plus her personal exemption ($1,743 + $3,900 = $5,643). Filing an amended tax return for 2012 If you must file a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return, you may be able to file a paperless return using IRS e-file. Filing an amended tax return for 2012 See your form instructions or visit our website at IRS. Filing an amended tax return for 2012 gov. Filing an amended tax return for 2012 When To File If you file on a calendar year basis, the due date for filing your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return is April 15 following the end of your tax year. Filing an amended tax return for 2012 If you use a fiscal year (a year ending on the last day of a month other than December), the due date is the 15th day of the 4th month after the end of your fiscal year. Filing an amended tax return for 2012 If any due date falls on a Saturday, Sunday, or legal holiday, your tax return is due on the next business day. Filing an amended tax return for 2012 For your 2013 tax return, the due date is April 15, 2014. Filing an amended tax return for 2012 If you mail your federal tax return, it is considered timely if it bears an official postmark dated on or before the due date, including any extensions. Filing an amended tax return for 2012 If you use a private delivery service designated by the IRS, generally the postmark date is the date the private delivery service records in its database or marks on the mailing label. Filing an amended tax return for 2012 See your form instructions for a list of designated private delivery services. Filing an amended tax return for 2012 Extension of Time To File You can get an extension of time to file your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return. Filing an amended tax return for 2012 Special rules apply for those living outside the United States. Filing an amended tax return for 2012 Automatic 6-Month Extension If you cannot file your 2013 return by the due date, you can get an automatic 6-month extension of time to file. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 If your return must be filed by April 15, 2014, you will have until October 15, 2014, to file. Filing an amended tax return for 2012 Although you are not required to make a payment of the tax you estimate as due, Form 4868 does not extend the time to pay taxes. Filing an amended tax return for 2012 If you do not pay the amount due by the regular due date (generally April 15), you will owe interest on any unpaid tax from the original due date to the date you pay the tax. Filing an amended tax return for 2012 You may also be charged penalties (see the Instructions for Form 4868). Filing an amended tax return for 2012 How to get the automatic extension. Filing an amended tax return for 2012   You can get the automatic 6-month extension if you do one of the following by the due date for filing your return. Filing an amended tax return for 2012 E-file Form 4868 using your personal computer or a tax professional. Filing an amended tax return for 2012 E-file and pay by credit or debit card. Filing an amended tax return for 2012 Your payment must be at least $1. Filing an amended tax return for 2012 You may pay by phone or over the Internet. Filing an amended tax return for 2012 Do not file Form 4868. Filing an amended tax return for 2012 File a paper Form 4868. Filing an amended tax return for 2012 If you are a fiscal year taxpayer, you must file a paper Form 4868. Filing an amended tax return for 2012 See Form 4868 for information on getting an extension using these options. Filing an amended tax return for 2012 When to file. Filing an amended tax return for 2012   You must request the automatic extension by the due date for your return. Filing an amended tax return for 2012 You can file your return any time before the 6-month extension period ends. Filing an amended tax return for 2012 When you file your return. Filing an amended tax return for 2012   Enter any payment you made related to the extension of time to file on Form 1040, line 68. Filing an amended tax return for 2012 If you file Form 1040A, U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Individual Income Tax Return, or Form 1040EZ, Income Tax Return for Single and Joint Filers With No Dependents, include that payment in your total payments on Form 1040A, line 41, or Form 1040EZ, line 9. Filing an amended tax return for 2012 Also enter “Form 4868” and the amount paid in the space to the left of the entry space for line 41 or line 9. Filing an amended tax return for 2012 You cannot ask the Internal Revenue Service to figure your tax if you use the extension of time to file. Filing an amended tax return for 2012 Individuals Outside the United States and Puerto Rico You are allowed an automatic 2-month extension (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 citizen or resident, and On the due date of your return: You are living outside of the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. Filing an amended tax return for 2012 However, if you pay the tax due after the regular due date (generally April 15), interest will be charged from April 15 until the date the tax is paid. Filing an amended tax return for 2012 If you serve in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. Filing an amended tax return for 2012 For more information, see Publication 3, Armed Forces' Tax Guide. Filing an amended tax return for 2012 Married taxpayers. Filing an amended tax return for 2012   If you file a joint return, only one spouse has to qualify for this automatic extension. Filing an amended tax return for 2012 However, if you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. Filing an amended tax return for 2012 How to get the extension. Filing an amended tax return for 2012   To use this special automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. Filing an amended tax return for 2012 (See the situations listed under (2), earlier. Filing an amended tax return for 2012 ) Extension beyond 2 months. Filing an amended tax return for 2012   If you cannot file your 2013 return within the automatic 2-month extension period, you can get an additional 4-month extension, for a total of 6 months. Filing an amended tax return for 2012 File Form 4868 by the end of the automatic extension period (June 16, 2014 for calendar year taxpayers). Filing an amended tax return for 2012 Be sure to check the box on Form 4868, line 8, if appropriate. Filing an amended tax return for 2012   In addition to this 6-month extension, taxpayers who are out of the country (as defined under (2) earlier) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Filing an amended tax return for 2012   To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Filing an amended tax return for 2012 Send the letter by the extended due date (October 15 for calendar year taxpayers) to:  Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA   You will not receive any notification from the IRS unless your request is denied for being untimely. Filing an amended tax return for 2012 Where To File Use the addresses listed below if you have to file Form 1040 with the United States and you are excluding possession income from American Samoa or Puerto Rico. Filing an amended tax return for 2012 If you are not including a check or a money order, send your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return and all attachments to:   Department of the Treasury Internal Revenue Service Austin, TX 73301-0215 USA If you are including a check or a money order, send your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return and all attachments to:  Internal Revenue Service P. Filing an amended tax return for 2012 O. Filing an amended tax return for 2012 Box 1303 Charlotte, NC 28201-1303 USA Also send your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 return to these addresses if you are attaching Form 5074 or Form 8689. Filing an amended tax return for 2012 If you are not in either of the above categories, send your return to the address shown in the Form 1040 instructions for the possession or state in which you reside. Filing an amended tax return for 2012 Special Rules for Completing Your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Tax Return If you are not excluding possession income from your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return, follow the instructions for the specific forms you file. Filing an amended tax return for 2012 However, you may not qualify to claim the earned income credit (EIC). Filing an amended tax return for 2012 Earned income credit. Filing an amended tax return for 2012   Even if you maintain a household in one of the possessions discussed in this publication that is your main home and the home of your qualifying child, you cannot claim the earned income credit on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return. Filing an amended tax return for 2012 This credit is available only if you maintain the household in the United States or you are serving on extended active duty in the U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Armed Forces. Filing an amended tax return for 2012 U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Armed Forces. Filing an amended tax return for 2012   U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 military personnel stationed outside the United States on extended active duty are considered to live in the United States during that duty period for purposes of the EIC. Filing an amended tax return for 2012 Extended active duty means you are called or ordered to duty for an indefinite period or for a period of more than 90 days. Filing an amended tax return for 2012 Once you begin serving your extended active duty, you are still considered to have been on extended active duty even if you do not serve more than 90 days. Filing an amended tax return for 2012 Income from American Samoa or Puerto Rico excluded. Filing an amended tax return for 2012   You will not be allowed to take deductions and credits that apply to the excluded income. Filing an amended tax return for 2012 The additional information you need follows. Filing an amended tax return for 2012 Deductions if Possession Income Is Excluded Deductions that specifically apply to your excluded possession income, such as employee business expenses, are not allowable on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return. Filing an amended tax return for 2012 Deductions that do not specifically apply to any particular type of income must be divided between your excluded income from sources in the relevant possession and income from all other sources to find the part that you can deduct on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return. Filing an amended tax return for 2012 Examples of such deductions are alimony payments, the standard deduction, and certain itemized deductions (such as medical expenses, charitable contributions, real estate taxes, and mortgage interest on your home). Filing an amended tax return for 2012 Figuring the deduction. Filing an amended tax return for 2012   To find the part of a deduction that is allowable, multiply the deduction by the following fraction. Filing an amended tax return for 2012   Gross income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax     Gross income from all sources (including excluded possession income)   Adjustments to Income Your adjusted gross income equals your gross income minus certain deductions (adjustments). Filing an amended tax return for 2012 Moving expense deduction. Filing an amended tax return for 2012   Generally, expenses of a move to a possession are directly attributable to wages, salaries, and other earned income from that possession. Filing an amended tax return for 2012 Likewise, the expenses of a move back to the United States are generally attributable to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 earned income. Filing an amended tax return for 2012   If you are claiming expenses for a move to a relevant possession, how and where you will deduct the expenses depends on your status as a bona fide resident and if any of your possession income is excluded on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return. Filing an amended tax return for 2012 For more information, see Moving expense deduction in chapter 3 under the name of the relevant possession. Filing an amended tax return for 2012   If you are claiming expenses for a move from a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 possession to the United States, use Form 3903 to figure your deductible expenses and enter the amount on Form 1040, line 26. Filing an amended tax return for 2012 For purposes of deducting moving expenses, the possessions are considered part of the United States. Filing an amended tax return for 2012 See Publication 521, Moving Expenses, for information about what expenses are deductible. Filing an amended tax return for 2012 Self-employment tax deduction. Filing an amended tax return for 2012   Generally, if you are reporting self-employment income on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 return, you can include the deductible part of your self-employment tax on Form 1040, line 27. Filing an amended tax return for 2012 This is an income tax deduction only; it is not a deduction in figuring net earnings from self-employment (for self-employment tax). Filing an amended tax return for 2012   However, if you are a bona fide resident of American Samoa or Puerto Rico and you exclude all of your self-employment income from gross income, you cannot take the deduction on Form 1040, line 27, because the deduction is related to excluded income. Filing an amended tax return for 2012   If only part of your self-employment income is excluded, the part of the deduction that is based on the nonexcluded income is allowed. Filing an amended tax return for 2012 This would happen if, for instance, you have two businesses and only the income from one of them is excludable. Filing an amended tax return for 2012   For purposes of the deduction only, figure the self-employment tax on the nonexcluded income by multiplying your total self-employment tax (from Schedule SE (Form 1040)), Self-Employment Tax) by the following fraction. Filing an amended tax return for 2012   Self-employment income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax     Total self-employment income (including excluded possession income)   The result is your self-employment tax on nonexcluded income. Filing an amended tax return for 2012 Include the deductible part of this amount on Form 1040, line 27. Filing an amended tax return for 2012 Individual retirement arrangement (IRA) deduction. Filing an amended tax return for 2012   Do not take excluded income into account when figuring your deductible IRA contribution. Filing an amended tax return for 2012 Standard Deduction The standard deduction is composed of the regular standard deduction amount and the additional standard deduction for taxpayers who are blind or age 65 or over. Filing an amended tax return for 2012 To find the amount you can claim on Form 1040, line 40, first figure your full standard deduction according to the Instructions for Form 1040. Filing an amended tax return for 2012 Then multiply your full standard deduction by the following fraction. Filing an amended tax return for 2012   Gross income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax     Gross income from all sources (including excluded possession income)   In the space above line 40, enter “Standard deduction modified due to income excluded under section 931 (if American Samoa) or section 933 (if Puerto Rico). Filing an amended tax return for 2012 ” This calculation may not be the same as the one you used to determine if you need to file a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return. Filing an amended tax return for 2012 Itemized Deductions Most itemized deductions do not apply to a particular type of income. Filing an amended tax return for 2012 However, itemized deductions can be divided into three categories. Filing an amended tax return for 2012 Those that apply specifically to excluded income, such as employee business expenses, are not deductible. Filing an amended tax return for 2012 Those that apply specifically to income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax, which might also be employee business expenses, are fully allowable under the Instructions for Schedule A (Form 1040), Itemized Deductions. Filing an amended tax return for 2012 Those that do not apply to specific income must be allocated between your gross income subject to U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax and your total gross income from all sources. Filing an amended tax return for 2012 The example given later shows how to figure the deductible part of each type of expense that is not related to specific income. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 In 2013, you and your spouse are both under 65 and U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 citizens who are bona fide residents of Puerto Rico during the entire tax year. Filing an amended tax return for 2012 You file a joint income tax return. Filing an amended tax return for 2012 During 2013, you earned $20,000 from Puerto Rican sources (excluded from U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 gross income) and your spouse earned $60,000 from the U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Government. Filing an amended tax return for 2012 You have $16,000 of itemized deductions that do not apply to any specific type of income. Filing an amended tax return for 2012 These are medical expenses of $4,000, real estate taxes of $5,000, home mortgage interest of $6,000, and charitable contributions of $1,000 (cash contributions). Filing an amended tax return for 2012 You determine the amount of each deduction that you can claim on your Schedule A (Form 1040), Itemized Deductions, by multiplying the deduction by the fraction shown under Figuring the deduction , earlier under Deductions if Possession Income is Excluded. Filing an amended tax return for 2012   Medical Expenses   $60,000$80,000 × $4,000 = $3,000  (enter on line 1  of Schedule A)     Real Estate Taxes   $60,000$80,000 × $5,000 = $3,750  (enter on line 6  of Schedule A)     Home Mortgage Interest   $60,000$80,000 × $6,000 = $4,500  (enter on line 10 or 11 of  Schedule A)     Charitable Contributions (cash contributions)   $60,000$80,000 × $1,000 = $750  (enter on line 16 of Schedule A)   Enter on Schedule A (Form 1040) only the allowable portion of each deduction. Filing an amended tax return for 2012 Overall limitation on itemized deductions. Filing an amended tax return for 2012   If your adjusted gross income (discussed earlier) is over $300,000 if married filing jointly or qualifying widow(er); $275,000 if head of household; $250,000 if single; or $150,000 if married filing separately; see the Itemized Deductions Worksheet in the Instructions for Schedule A (Form 1040), to figure your itemized deductions. Filing an amended tax return for 2012 Personal Exemptions Personal exemptions are allowed in full even if excluding possession income. Filing an amended tax return for 2012 However, depending upon your adjusted gross income and filing status, the amount you can deduct may be reduced. Filing an amended tax return for 2012 See the Deduction for Exemptions Worksheet—Line 42 in the instructions for Form 1040. Filing an amended tax return for 2012 Foreign Tax Credit if Possession Income Is Excluded If you must report American Samoa or Puerto Rico source income on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return, you can claim a foreign tax credit for income taxes paid to the possession on that income. Filing an amended tax return for 2012 However, you cannot claim a foreign tax credit for taxes paid on possession income that is excluded on your U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax return. Filing an amended tax return for 2012 The foreign tax credit is generally figured on Form 1116. Filing an amended tax return for 2012 If you have income, such as U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Government wages, that is not excludable, and you also have possession source income that is excludable, you must figure the credit by reducing your foreign taxes paid or accrued by the taxes based on the excluded income. Filing an amended tax return for 2012 You make this reduction for each separate income category. Filing an amended tax return for 2012 To find the amount of this reduction, use the following formula for each income category. Filing an amended tax return for 2012 Excluded income from possession sources less deductible expenses based on that income x Tax paid or accrued to the possession = Reduction in foreign taxes Total income subject to possession tax less deductible expenses based on that income Enter the amount of the reduction on Form 1116, line 12. Filing an amended tax return for 2012 For more information on the foreign tax credit, see Publication 514. Filing an amended tax return for 2012 Example. Filing an amended tax return for 2012 Jason and Lynn Reddy are U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 citizens who were bona fide residents of Puerto Rico during all of 2013. Filing an amended tax return for 2012 They file a joint tax return. Filing an amended tax return for 2012 The following table shows their excludable and taxable income for U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 federal income tax purposes. Filing an amended tax return for 2012   Taxable   Excludable Jason's wages from  U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Government $25,000     Lynn's wages from Puerto Rico  corp. Filing an amended tax return for 2012     $15,000 Dividend from Puerto Rico corp. Filing an amended tax return for 2012 doing business in Puerto Rico     200 Dividend from U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012  corp. Filing an amended tax return for 2012 doing business  in U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 * 1,000     Totals $26,000   $15,200 * Income from sources outside Puerto Rico is taxable. Filing an amended tax return for 2012   Jason and Lynn must file 2013 income tax returns with both Puerto Rico and the United States. Filing an amended tax return for 2012 They have gross income of $26,000 for U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax purposes. Filing an amended tax return for 2012 They paid taxes to Puerto Rico of $4,000 ($3,980 on their wages and $20 on the dividend from the Puerto Rico corporation). Filing an amended tax return for 2012 They figure their foreign tax credit on two Forms 1116, which they must attach to their U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 return. Filing an amended tax return for 2012 They fill out one Form 1116 for wages and one Form 1116 for the dividend. Filing an amended tax return for 2012 Jason and Lynn figure the Puerto Rico taxes on excluded income as follows. Filing an amended tax return for 2012   Wages: ($15,000 ÷ $40,000) × $3,980 = $1,493   Dividend: ($200 ÷ $200) × $20 = $20 They enter $1,493 on Form 1116, line 12, for wages and $20 on the second Form 1116, line 12, for the dividend. Filing an amended tax return for 2012 Self-Employment Tax Self-employment tax includes both social security and Medicare taxes for individuals who are self-employed. Filing an amended tax return for 2012 A U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 citizen or resident alien who is self-employed must pay self-employment tax on net self-employment earnings of $400 or more. Filing an amended tax return for 2012 This rule applies whether or not the earnings are excludable from gross income (or whether or not a U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 income tax return must otherwise be filed). Filing an amended tax return for 2012 Bona fide residents of the possessions discussed in this publication are considered U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 residents for this purpose and are subject to the self-employment tax. Filing an amended tax return for 2012 Forms to file. Filing an amended tax return for 2012   If you have net self-employment income and are subject to self-employment tax, file one of the following with the United States. Filing an amended tax return for 2012 If you are required to file Form 1040 with the United States, complete Schedule SE (Form 1040) and attach it to your Form 1040. Filing an amended tax return for 2012 If you are not required to file Form 1040 with the United States and you are a bona fide resident of American Samoa, the CNMI, Guam, Puerto Rico, or the USVI, file Form 1040-SS. Filing an amended tax return for 2012 If you are a resident of Puerto Rico, you can file the Spanish-language Form 1040-PR instead. Filing an amended tax return for 2012 Do not file forms 1040-SS or 1040-PR with Form 1040. Filing an amended tax return for 2012 If you are required to pay Additional Medicare Tax (discussed later) on your self-employment income, attach Form 8959, Additional Medicare Tax to Form 1040, Form 1040-SS, or Form 1040-PR, as applicable. Filing an amended tax return for 2012 Chapter 11 Bankruptcy cases. Filing an amended tax return for 2012   While you are a debtor in a chapter 11 bankruptcy case, your net profit or loss from self-employment will be included on the income tax return (Form 1041, U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Income Tax Return for Estates and Trusts) of the bankruptcy estate. Filing an amended tax return for 2012 However, you—not the bankruptcy estate—are responsible for paying self-employment tax on your net earnings from self-employment. Filing an amended tax return for 2012   Use Schedule SE (Form 1040), Form 1040-SS, or Form 1040-PR, as determined above, to figure your correct amount of self-employment tax. Filing an amended tax return for 2012   For other reporting requirements, see Chapter 11 Bankruptcy Cases in the Instructions for Form 1040. Filing an amended tax return for 2012 Additional Medicare Tax Beginning in 2013, a 0. Filing an amended tax return for 2012 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er). Filing an amended tax return for 2012 Medicare wages and self-employment income are combined to determine if income exceeds the threshold. Filing an amended tax return for 2012 A self-employment loss should not be considered for purposes of this tax. Filing an amended tax return for 2012 RRTA compensation should be separately compared to the threshold. Filing an amended tax return for 2012 Your employer is responsible for withholding the 0. Filing an amended tax return for 2012 9% Additional Medicare Tax on Medicare wages or RRTA compensation it pays to you in excess of $200,000. Filing an amended tax return for 2012 You should consider this withholding, if applicable, in determining whether you need to make estimated tax payments. Filing an amended tax return for 2012 There are no special rules for U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 citizens and nonresident aliens living abroad for purposes of this provision. Filing an amended tax return for 2012 Wages, RRTA compensation, and self-employment income that are subject to Medicare tax will also be subject to Additional Medicare Tax if in excess of the applicable threshold. Filing an amended tax return for 2012 For more information, see Form 8959, Additional Medicare Tax, and its instructions or visit www. Filing an amended tax return for 2012 irs. Filing an amended tax return for 2012 gov and enter the following words in the search box: Additional Medicare Tax. Filing an amended tax return for 2012 You cannot include the Additional Medicare Tax as a deductible part of your self-employment tax. Filing an amended tax return for 2012 Net Investment Income Tax Beginning in 2013, the Net Investment Income Tax (NIIT) imposes a 3. Filing an amended tax return for 2012 8% tax on the lesser of an individual’s net investment income or the excess of the individual’s modified adjusted gross income over a specified threshold amount. Filing an amended tax return for 2012 Bona fide residents of Puerto Rico and American Samoa who may have a federal income tax return filing obligation may be liable for the NIIT if the taxpayer’s modified adjusted gross income from non-territory sources exceeds a specified threshold amount. Filing an amended tax return for 2012 The NIIT does not apply to any individual who is a nonresident alien with respect to the United States. Filing an amended tax return for 2012 Bona fide residents must take into account any additional tax liability associated with the NIIT when calculating your estimated tax payments. Filing an amended tax return for 2012 Forms to file. Filing an amended tax return for 2012   If you are a bona fide resident of American Samoa and Puerto Rico and you are required to pay the NIIT, you must file Form 1040 with the United States and attach Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts. Filing an amended tax return for 2012 For more information, see Form 8960 and its instructions. Filing an amended tax return for 2012 Paying Your Taxes You may find that not all of your income tax has been paid through withholding by either the United States or the possession. Filing an amended tax return for 2012 This is often true if you have income that is not subject to withholding, such as self-employment, interest, or rental income. Filing an amended tax return for 2012 In this situation, you may need to make estimated tax payments. Filing an amended tax return for 2012 Estimated Tax If your estimated income tax obligation is to the United States, use the worksheet in the Form 1040-ES package to figure your estimated tax, including self-employment tax. Filing an amended tax return for 2012 Include the Additional Medicare Tax and Net Investment Income Tax if applicable. Filing an amended tax return for 2012 If you are paying by check or money order, use the payment vouchers in the Form 1040-ES package. Filing an amended tax return for 2012 Or, you can make your payments electronically and not have to file any paper forms. Filing an amended tax return for 2012 See the Form 1040-ES instructions for information on making payments. Filing an amended tax return for 2012 Double Taxation Mutual agreement procedures exist to settle issues where there is inconsistent tax treatment between the IRS and the taxing authorities of the following possessions. Filing an amended tax return for 2012 American Samoa. Filing an amended tax return for 2012 The Commonwealth of Puerto Rico. Filing an amended tax return for 2012 The Commonwealth of the Northern Mariana Islands. Filing an amended tax return for 2012 Guam. Filing an amended tax return for 2012 The U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Virgin Islands. Filing an amended tax return for 2012 These issues usually involve allocations of income, deductions, credits, or allowances between related persons; determinations of residency; and determinations of the source of income and related expenses. Filing an amended tax return for 2012 Competent Authority Assistance The tax coordination agreements between the United States and the possession tax departments contain provisions allowing the competent authorities of the United States and the relevant possession to resolve, by mutual agreement, inconsistent tax treatment by the two jurisdictions. Filing an amended tax return for 2012 How to make your request. Filing an amended tax return for 2012   Your request for competent authority assistance must include all the information listed in Revenue Procedure 2006-23, 2006-20 I. Filing an amended tax return for 2012 R. Filing an amended tax return for 2012 B. Filing an amended tax return for 2012 900 available at www. Filing an amended tax return for 2012 irs. Filing an amended tax return for 2012 gov/pub/irs-irbs/irb06-49. Filing an amended tax return for 2012 pdf. Filing an amended tax return for 2012    Also, see Notice 2013-78, which provides proposed updates to the procedures for requesting U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 competent authority assistance under tax treaties. Filing an amended tax return for 2012 As noted, an update to Revenue Procedure 2006-23 will be published in the future. Filing an amended tax return for 2012   Your request must be in the form of a letter addressed to the Deputy Commissioner (International) LB&I. Filing an amended tax return for 2012 It must contain a statement that competent authority assistance is requested under the mutual agreement procedure with the possession. Filing an amended tax return for 2012 You (or a person having authority to sign your federal return) must sign and date the request. Filing an amended tax return for 2012    Send your written request for U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 assistance under this procedure to:   Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N. Filing an amended tax return for 2012 W. Filing an amended tax return for 2012  Routing: M4-365 Washington, DC 20224 (Attention: TAIT) Nonresident aliens generally must present their initial request for assistance to the relevant possession tax agency. Filing an amended tax return for 2012 Credit or Refund In addition to the tax assistance request, if you seek a credit or refund of any overpayment of U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 tax paid on the income in question, you should file a claim on Form 1040X, Amended U. Filing an amended tax return for 2012 S. Filing an amended tax return for 2012 Individual Income Tax Return. Filing an amended tax return for 2012 Indicate on the form that a request for assistance under the mutual agreement procedure with the possession has been filed. Filing an amended tax return for 2012 Attach a copy of the request to the form. Filing an amended tax return for 2012 Also, you should take whatever steps must be taken under the possession tax code to prevent the expiration of the statutory period for filing a claim for credit or refund of a possession tax. Filing an amended tax return for 2012 See Revenue Procedure 2006-54 (or its successor), section 9, for complete information. Filing an amended tax return for 2012 Prev  Up  Next   Home   More Online Publications