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

TurboTax Federal Free Edition - File Taxes Online

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

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


© 2012 - 2018 All rights reserved.

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

Free Tax Filing State

If Unemployed Do I File TaxesEz 40 Tax FormHow To Fill Out A 1040x Tax Amendment FormTurbotax File 2010 Tax Return1040nr Free SoftwareIrs Forms And PublicationsTax Filing ExtensionSearch Irs1040nr Form2012 1040ez Tax FormE File State Tax For FreeFederal Tax Amendment FormState Tax ReturnsTax Forms 2014Www Taxcut Com1040 Short FormTaxact 2010 Free VersionFree Federal Tax Filing 2012Filing Back Taxes On TurbotaxHow To File 2009 Taxes In 2013Elderly Filing Income TaxIrsCan You File Your State Taxes For FreeHow To Amend A Tax Return OnlinePrint Free 1040ez Tax FormStatetaxesFile Free 2012 Tax ReturnTurbotax For Military Members FreeHandr Block Com1040a FormFree Federal Tax PreparationFill Out 1040ezFree 2007 Tax Software DownloadState Tax Return FormsIrs 1040ez Instructions1040 Ez Form2010 Federal Tax FormsFile State Tax OnlyHow Can I File My 2012 Tax ReturnAmended Tax Return Form

Free Tax Filing State

Free tax filing state Index A Adoption Child tax credit, Adopted child. Free tax filing state (see also Child tax credit) Afghanistan, Afghanistan area. Free tax filing state Aliens, Alien Status Amount of exclusion, Amount of Exclusion Arabian peninsula, Arabian peninsula. Free tax filing state Assistance (see Tax help) C Child tax credit, Child Tax Credit Limits Modified adjusted gross income, Modified AGI. Free tax filing state Qualifying child, Qualifying Child Child, qualifying, Qualifying child. Free tax filing state Claims for tax forgiveness, Claims for Tax Forgiveness Codes, W-2, Form W-2 Codes Combat zone Election to include pay for earned income credit, Nontaxable combat pay election. Free tax filing state Exclusion, Combat Zone Exclusion Extension of deadlines, Service That Qualifies for an Extension of Deadline Related forgiveness, Combat Zone Related Forgiveness Community property, Community Property, Residents of community property states. Free tax filing state Contingency operation, Service That Qualifies for an Extension of Deadline Credits Child tax, Child Tax Credit Earned income, Earned Income Credit Excess social security tax withheld, Credit for Excess Social Security Tax Withheld First-time homebuyer, First-Time Homebuyer Credit D Decedents, Forgiveness of Decedent's Tax Liability Deductions, itemized, Itemized Deductions Domicile, Domicile. Free tax filing state Dual-status aliens, Dual-Status Aliens E Earned income credit, Earned Income Credit Social security card, Social security number. Free tax filing state Social security number, Social security number. Free tax filing state Educational expenses, Educational Expenses Employee business expenses, Employee Business Expenses Excess social security tax withholding credit, Credit for Excess Social Security Tax Withheld Excess withholding credit How to take, How to take the credit. Free tax filing state Expenses Employee business, Employee Business Expenses Moving, Moving Expenses Extension of deadlines, Extension of Deadlines Extension of time to file, Extensions F Family, Adopted child. Free tax filing state (see also Child tax credit) Filing returns, Filing Returns First-time homebuyer credit, First-Time Homebuyer Credit Foreclosures Mortgage settlement payouts, Foreclosures Foreign income, Foreign Source Income Foreign moves, Foreign Moves Forms 1040, Foreign Moves, Itemized Deductions, Where To File 1040A, Where To File 1040EZ, Where To File 1040NR, Nonresident Aliens 2106, Employee Business Expenses, Reimbursement. Free tax filing state 2106-EZ, Employee Business Expenses 2848, Signing Returns, Spouse overseas. Free tax filing state 3903, Moving Expenses 4868, Extensions W-2, Form W-2 Codes, Form W-2. Free tax filing state , Nontaxable combat pay election. Free tax filing state Foster care Child tax credit, Qualifying Child Free tax services, Free help with your tax return. Free tax filing state G Gross income, Gross Income H Help (see Tax help) Home Away from, Away from home. Free tax filing state Definition of, Away from home. Free tax filing state Sale of, Sale of Home Homebuyer credit, First-Time Homebuyer Credit Hospitalization, Hospitalized While Serving in a Combat Zone, Hospitalized After Leaving a Combat Zone, Qualified hospitalization. Free tax filing state I Income Foreign source, Foreign Source Income Gross, Gross Income Individual retirement arrangements, Individual Retirement Arrangements Installment agreement Payment deferment, Request for deferment. Free tax filing state Interest rate (maximum), Maximum Rate of Interest Iraq, Arabian peninsula. Free tax filing state Itemized deductions, Itemized Deductions J Joint returns, Joint returns. Free tax filing state , Joint returns. Free tax filing state , Joint returns. Free tax filing state K Kosovo, The Kosovo area. Free tax filing state M Military action related forgiveness, Terrorist or Military Action Related Forgiveness Military Spouses Residency Relief Act Domicile, Military Spouses Residency Relief Act (MSRRA) Miscellaneous itemized deductions, Employee Business Expenses Missing status, Missing status. Free tax filing state , Spouse in missing status. Free tax filing state , Missing status. Free tax filing state Modified adjusted gross income (MAGI) Child tax credit limits, Modified AGI. Free tax filing state Moving expenses, Moving Expenses N Nonresident aliens, Nonresident Aliens P Permanent change of station, Permanent change of station. Free tax filing state Personal representative, Forgiveness of Decedent's Tax Liability Power of attorney, Signing Returns Professional dues, Professional Dues Publications (see Tax help) Q Qualifying child, Qualifying child. Free tax filing state R Reimbursements Employee business expenses, Reimbursement. Free tax filing state Moving and storage, Services or reimbursements provided by the government. Free tax filing state Uniforms, Uniforms Reservists, Armed Forces reservists. Free tax filing state Travel, Armed Forces Reservists Uniforms, Uniforms Resident aliens, Resident Aliens Returns Filing, Filing Returns Signing, Signing Returns S Sale of home, Sale of Home Same-sex marriage, Same-Sex Marriage SCRA violation payouts, Foreclosures Separate returns, Separate returns. Free tax filing state Servicemembers Civil Relief Act, Maximum Rate of Interest Serving in a combat zone, Serving in a Combat Zone Social security numbers (SSNs) Earned income credit, Residency test. Free tax filing state Spouse Deadline extension, Spouses. Free tax filing state Died, Spouse died during the year. Free tax filing state Incapacitated, Spouse incapacitated. Free tax filing state Missing, Spouse in missing status. Free tax filing state Nonresident alien, Treating nonresident alien spouse as resident alien. Free tax filing state Overseas, Spouse overseas. Free tax filing state State bonus payments, State bonus payments. Free tax filing state T Tax forgiven, Combat Zone Related Forgiveness Tax help, How To Get Tax Help Temporary work location, Temporary work location. Free tax filing state Terrorist related forgiveness, Terrorist or Military Action Related Forgiveness Transportation, Armed Forces reservists. Free tax filing state Transportation expenses, Transportation Expenses Travel expenses, Travel Expenses TTY/TDD information, How To Get Tax Help U Uniforms, Uniforms W When to file, When To File Where to file, Where To File Y Yugoslavia, The Kosovo area. Free tax filing state Prev  Up     Home   More Online Publications
Español

About USA.gov

As the U.S. government's official web portal, USA.gov makes it easy for the public to get U.S. government information and services on the web.

Our Mission

We provide trusted, timely, valuable government information and services when and where you want them.

Our History

Many people and organizations have had a hand in creating our comprehensive, award-winning portal to government.

USA.gov is an interagency initiative administered by the Federal Citizen Information Center, a division of the U.S. General Services Administration's Office of Citizen Services and Innovative Technologies. It got its start when Internet entrepreneur Eric Brewer, whose early research was funded by the Department of Defense, offered to donate a powerful search engine to government. That gift helped accelerate the government's earlier work to create a government-wide portal.

In June 2000, President Clinton announced the gift from the Federal Search Foundation, a nonprofit organization established by Brewer, and instructed that an official U.S. web portal be launched within 90 days. USA.gov went online on September 22, 2000 under the name FirstGov.gov. The GSA and 22 federal agencies funded the initiative in 2001 and 2002.

USA.gov was legislatively mandated through Section 204 of the E-Government Act of 2002. Since 2002, USA.gov has received an annual appropriation from the U.S. Congress. In January 2007, FirstGov.gov officially changed its name to USA.gov.

Back to Top

Social Media

We believe in delivering information and services in ways that are convenient for you. Connect with us through Facebook, Twitter, YouTube, our blog, RSS feeds, and StumbleUpon.

Back to Top

Popular Topics on USA.gov

If you want to know what's on Americans' minds regarding the government, we publish USA.gov's most popular pages, links, and search terms. See what's trending now.

Back to Top

News and Media

Learn more about the information and services USA.gov offers to the public through our media resources, public service announcements for TV, radio and print, e-mail alerts, and RSS feeds.

Back to Top

USA.gov links to websites that provide useful, timely, citizen-centered government information and services consistent with our linking policy.

USA.gov searches across all federal, state, local, tribal, and territorial government websites. Most government websites end in .gov or .mil, but many end in .com, .org, .edu, or other top-level domains. Learn more about the non-.gov and .mil URLs that we search.

Back to Top

Important Notices

USA.gov provides more details on its policies and guidelines with regard to disclaimers of endorsements, web accessibility, free commercial downloads, and privacy and security matters on our Important Notices page.

Back to Top

Customer Satisfaction

USA.gov is an Internet portal designed for you. We want to make your experience at our website productive, informative, and satisfying. Customer feedback is the driving force for how we organize and present government information, services, and transactions.
If you would like to provide us with comments, suggestions, and personal experiences while visiting USA.gov, please contact us.

Back to Top

The Free Tax Filing State

Free tax filing state 28. Free tax filing state   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. Free tax filing state  The 2013 rate for business use of a vehicle is 56½ cents per mile. Free tax filing state Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). Free tax filing state You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Free tax filing state This chapter covers the following topics. Free tax filing state Deductions subject to the 2% limit. Free tax filing state Deductions not subject to the 2% limit. Free tax filing state Expenses you cannot deduct. Free tax filing state You must keep records to verify your deductions. Free tax filing state You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. Free tax filing state For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. Free tax filing state Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). Free tax filing state You can claim the amount of expenses that is more than 2% of your adjusted gross income. Free tax filing state You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Free tax filing state Your adjusted gross income is the amount on Form 1040, line 38. Free tax filing state Generally, you apply the 2% limit after you apply any other deduction limit. Free tax filing state For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. Free tax filing state Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). Free tax filing state Unreimbursed employee expenses (line 21). Free tax filing state Tax preparation fees (line 22). Free tax filing state Other expenses (line 23). Free tax filing state Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Free tax filing state An expense is ordinary if it is common and accepted in your trade, business, or profession. Free tax filing state An expense is necessary if it is appropriate and helpful to your business. Free tax filing state An expense does not have to be required to be considered necessary. Free tax filing state Examples of unreimbursed employee expenses are listed next. Free tax filing state The list is followed by discussions of additional unreimbursed employee expenses. Free tax filing state Business bad debt of an employee. Free tax filing state Education that is work related. Free tax filing state (See chapter 27. Free tax filing state ) Legal fees related to your job. Free tax filing state Licenses and regulatory fees. Free tax filing state Malpractice insurance premiums. Free tax filing state Medical examinations required by an employer. Free tax filing state Occupational taxes. Free tax filing state Passport for a business trip. Free tax filing state Subscriptions to professional journals and trade magazines related to your work. Free tax filing state Travel, transportation, entertainment, and gifts related to your work. Free tax filing state (See chapter 26. Free tax filing state ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Free tax filing state Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. Free tax filing state 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. Free tax filing state For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. Free tax filing state 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. Free tax filing state Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Free tax filing state Lobbying and political activities. Free tax filing state   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Free tax filing state See Dues used for lobbying under Nondeductible Expenses, later. Free tax filing state 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. Free tax filing state If you file Form 1040A, you can deduct these expenses on line 16. Free tax filing state If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Free tax filing state However, neither spouse can deduct more than $250 of his or her qualified expenses. Free tax filing state 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. Free tax filing state 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. Free tax filing state The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Free tax filing state See Publication 587 for more detailed information and a worksheet. Free tax filing state 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. Free tax filing state 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. Free tax filing state Employment and outplacement agency fees. Free tax filing state   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Free tax filing state Employer pays you back. Free tax filing state   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. Free tax filing state (See Recoveries in chapter 12. Free tax filing state ) Employer pays the employment agency. Free tax filing state   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. Free tax filing state Résumé. Free tax filing state   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. Free tax filing state Travel and transportation expenses. Free tax filing state   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. Free tax filing state You can deduct the travel expenses if the trip is primarily to look for a new job. Free tax filing state 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. Free tax filing state   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. Free tax filing state   You can choose to use the standard mileage rate to figure your car expenses. Free tax filing state The 2013 rate for business use of a vehicle is 56½ cents per mile. Free tax filing state See chapter 26 for more information. Free tax filing state 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. Free tax filing state 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. Free tax filing state 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. Free tax filing state 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. Free tax filing state 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. Free tax filing state Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Free tax filing state 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. Free tax filing state However, you cannot deduct the cost of travel as a form of education. Free tax filing state 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. Free tax filing state You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Free tax filing state For more information about depreciation, see Publication 946. Free tax filing state Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Free tax filing state You can also deduct assessments for benefit payments to unemployed union members. Free tax filing state However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Free tax filing state Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. Free tax filing state You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Free tax filing state See Lobbying Expenses under Nondeductible Expenses, later. Free tax filing state Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Free tax filing state You must wear them as a condition of your employment. Free tax filing state The clothes are not suitable for everyday wear. Free tax filing state It is not enough that you wear distinctive clothing. Free tax filing state The clothing must be specifically required by your employer. Free tax filing state Nor is it enough that you do not, in fact, wear your work clothes away from work. Free tax filing state The clothing must not be suitable for taking the place of your regular clothing. Free tax filing state 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. Free tax filing state ). Free tax filing state Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Free tax filing state 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. Free tax filing state Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Free tax filing state Protective clothing. Free tax filing state   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. Free tax filing state   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. Free tax filing state Military uniforms. Free tax filing state   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Free tax filing state 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. Free tax filing state In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Free tax filing state   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. Free tax filing state   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Free tax filing state Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. Free tax filing state Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Free tax filing state These fees include the cost of tax preparation software programs and tax publications. Free tax filing state They also include any fee you paid for electronic filing of your return. Free tax filing state Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. Free tax filing state On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Free tax filing state You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. Free tax filing state Some of these other expenses are explained in the following discussions. Free tax filing state If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. Free tax filing state Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Free tax filing state 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. Free tax filing state First report the loss in Section B of Form 4684, Casualties and Thefts. Free tax filing state You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Free tax filing state 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. Free tax filing state For other casualty and theft losses, see chapter 25. Free tax filing state 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. Free tax filing state 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. Free tax filing state The fees are deductible in the year paid. Free tax filing state 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). Free tax filing state You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Free tax filing state But if you work as an employee and also use the computer in that work, see Publication 946. Free tax filing state 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. Free tax filing state Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Free tax filing state 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. Free tax filing state For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Free tax filing state 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. Free tax filing state But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Free tax filing state You must add the fee to the cost of the property. Free tax filing state You cannot deduct the fee you pay to a broker to sell securities. Free tax filing state You can use the fee only to figure gain or loss from the sale. Free tax filing state See the Instructions for Form 8949 for information on how to report the fee. Free tax filing state Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Free tax filing state A hobby is not a business because it is not carried on to make a profit. Free tax filing state See Activity not for profit in chapter 12 under Other Income. Free tax filing state Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Free tax filing state Deductions of pass-through entities are passed through to the partners or shareholders. Free tax filing state The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Free tax filing state Example. Free tax filing state You are a member of an investment club that is formed solely to invest in securities. Free tax filing state The club is treated as a partnership. Free tax filing state The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Free tax filing state In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Free tax filing state 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. Free tax filing state Publicly offered mutual funds. Free tax filing state   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Free tax filing state 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. Free tax filing state   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). Free tax filing state This net figure is the amount you report on your return as income. Free tax filing state You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Free tax filing state Information returns. Free tax filing state   You should receive information returns from pass-through entities. Free tax filing state Partnerships and S corporations. Free tax filing state   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. Free tax filing state Nonpublicly offered mutual funds. Free tax filing state   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. Free tax filing state You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Free tax filing state 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. Free tax filing state 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. Free tax filing state 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. Free tax filing state 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. Free tax filing state You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). Free tax filing state See Tax Preparation Fees , earlier. Free tax filing state Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. Free tax filing state 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. Free tax filing state If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Free tax filing state If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Free tax filing state Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. Free tax filing state 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. Free tax filing state You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Free tax filing state Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Free tax filing state 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. Free tax filing state Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Free tax filing state For more information about IRAs, see chapter 17. Free tax filing state Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Free tax filing state They are not subject to the 2% limit. Free tax filing state Report these items on Schedule A (Form 1040), line 28. Free tax filing state List of Deductions Each of the following items is discussed in detail after the list (except where indicated). Free tax filing state Amortizable premium on taxable bonds. Free tax filing state Casualty and theft losses from income- producing property. Free tax filing state Federal estate tax on income in respect of a decedent. Free tax filing state Gambling losses up to the amount of gambling winnings. Free tax filing state Impairment-related work expenses of persons with disabilities. Free tax filing state Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Free tax filing state Losses from Ponzi-type investment schemes. Free tax filing state See Losses from Ponzi-type investment schemes under Theft in chapter 25. Free tax filing state Repayments of more than $3,000 under a claim of right. Free tax filing state Unrecovered investment in an annuity. Free tax filing state 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. Free tax filing state You can elect to amortize the premium on taxable bonds. Free tax filing state The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Free tax filing state Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. Free tax filing state For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. Free tax filing state 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). Free tax filing state First, report the loss in Form 4684, Section B. Free tax filing state You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. Free tax filing state 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. Free tax filing state For more information on casualty and theft losses, see chapter 25. Free tax filing state 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. Free tax filing state 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. Free tax filing state See Publication 559 for more information. Free tax filing state 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. Free tax filing state You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Free tax filing state You cannot deduct gambling losses that are more than your winnings. Free tax filing state You cannot reduce your gambling winnings by your gambling losses and report the difference. Free tax filing state 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. Free tax filing state Therefore, your records should show your winnings separately from your losses. Free tax filing state Diary of winnings and losses. Free tax filing state You must keep an accurate diary or similar record of your losses and winnings. Free tax filing state Your diary should contain at least the following information. Free tax filing state The date and type of your specific wager or wagering activity. Free tax filing state The name and address or location of the gambling establishment. Free tax filing state The names of other persons present with you at the gambling establishment. Free tax filing state The amount(s) you won or lost. Free tax filing state See Publication 529 for more information. Free tax filing state 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. Free tax filing state Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. Free tax filing state Self-employed. Free tax filing state   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. Free tax filing state 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. Free tax filing state It is not subject to the passive activity limitations. Free tax filing state 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. Free tax filing state See Repayments in chapter 12 for more information. Free tax filing state 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. Free tax filing state 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. Free tax filing state See chapter 10 for more information about the tax treatment of pensions and annuities. Free tax filing state Nondeductible Expenses Examples of nondeductible expenses are listed next. Free tax filing state The list is followed by discussions of additional nondeductible expenses. Free tax filing state List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. Free tax filing state Burial or funeral expenses, including the cost of a cemetery lot. Free tax filing state Capital expenses. Free tax filing state Fees and licenses, such as car licenses, marriage licenses, and dog tags. Free tax filing state Hobby losses, but see Hobby Expenses , earlier. Free tax filing state Home repairs, insurance, and rent. Free tax filing state Illegal bribes and kickbacks. Free tax filing state See Bribes and kickbacks in chapter 11 of Publication 535. Free tax filing state Losses from the sale of your home, furniture, personal car, etc. Free tax filing state Personal disability insurance premiums. Free tax filing state Personal, living, or family expenses. Free tax filing state The value of wages never received or lost vacation time. Free tax filing state Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. Free tax filing state See chapter 37. Free tax filing state Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Free tax filing state These include qualification and registration fees for primary elections. Free tax filing state Legal fees. Free tax filing state   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Free tax filing state 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. Free tax filing state Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Free tax filing state This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Free tax filing state 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. Free tax filing state Dues paid to airline, hotel, and luncheon clubs are not deductible. Free tax filing state Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Free tax filing state 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. Free tax filing state Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Free tax filing state This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Free tax filing state Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Free tax filing state 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. Free tax filing state Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Free tax filing state However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Free tax filing state See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. Free tax filing state Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Free tax filing state Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Free tax filing state You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Free tax filing state See chapter 18 for information on alimony. Free tax filing state Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Free tax filing state 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. Free tax filing state Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Free tax filing state Dues used for lobbying. Free tax filing state   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. Free tax filing state See Lobbying Expenses in Publication 529 for information on exceptions. Free tax filing state Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Free tax filing state 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. Free tax filing state See chapter 25. Free tax filing state Example. Free tax filing state A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Free tax filing state The diamond falls from the ring and is never found. Free tax filing state The loss of the diamond is a casualty. Free tax filing state Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Free tax filing state See chapter 26 for information on deductible expenses while traveling away from home. Free tax filing state Meals While Working Late You cannot deduct the cost of meals while working late. Free tax filing state However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. Free tax filing state See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. Free tax filing state Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Free tax filing state Custody of children. Free tax filing state Breach of promise to marry suit. Free tax filing state Civil or criminal charges resulting from a personal relationship. Free tax filing state Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. Free tax filing state Preparation of a title (or defense or perfection of a title). Free tax filing state Preparation of a will. Free tax filing state Property claims or property settlement in a divorce. Free tax filing state You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Free tax filing state Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Free tax filing state Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Free tax filing state Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Free tax filing state Accounting certificate fees paid for the initial right to practice accounting. Free tax filing state Bar exam fees and incidental expenses in securing initial admission to the bar. Free tax filing state Medical and dental license fees paid to get initial licensing. Free tax filing state Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Free tax filing state 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. Free tax filing state 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. Free tax filing state 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. Free tax filing state You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Free tax filing state Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Free tax filing state You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. Free tax filing state If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. Free tax filing state Example. Free tax filing state During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. Free tax filing state In earning this income, you had total expenses of $500 during the year. Free tax filing state You cannot identify the amount of each expense item that is for each income item. Free tax filing state Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. Free tax filing state You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). Free tax filing state Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. Free tax filing state See chapter 26 for more information on deductible travel expenses. Free tax filing state Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. Free tax filing state However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. Free tax filing state Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. Free tax filing state Prev  Up  Next   Home   More Online Publications