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How Can I File 2011 Taxes

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How Can I File 2011 Taxes

How can i file 2011 taxes 34. How can i file 2011 taxes   Crédito Tributario por Hijos Table of Contents Introduction Useful Items - You may want to see: Hijo Calificado Cantidad de CréditoLímites del Crédito Cómo Reclamar el Crédito Crédito Tributario Adicional por Hijos Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040)Parte I Partes II a IV Introduction El crédito tributario por hijos es un crédito que puede reducir su impuesto hasta $1,000 por cada uno de sus hijos calificados. How can i file 2011 taxes El crédito tributario adicional por hijos es un crédito que podría tomar en el caso de que no pueda reclamar la cantidad completa del crédito tributario por hijos. How can i file 2011 taxes Este capítulo le explica lo siguiente: Quién es un hijo calificado. How can i file 2011 taxes La cantidad del crédito. How can i file 2011 taxes Cómo se puede reclamar el crédito. How can i file 2011 taxes El crédito tributario por hijos y el crédito tributario adicional por hijos no deben confundirse con el crédito por gastos del cuidado de menores y dependientes, el cual se explica en el capítulo 32. How can i file 2011 taxes Si no está sujeto al pago de impuestos. How can i file 2011 taxes   Algunos créditos, tales como el crédito tributario por hijos o el crédito por gastos del cuidado de menores y dependientes, se usan para reducir el impuesto. How can i file 2011 taxes Si la cantidad del impuesto en la línea 46 del Formulario 1040 o en la línea 28 del Formulario 1040A es cero, no calcule el crédito tributario por hijos ya que no hay impuesto que se pueda reducir. How can i file 2011 taxes Sin embargo, podría reunir los requisitos para el crédito tributario adicional por hijos en la línea 65 (Formulario 1040) o en la línea 39 (Formulario 1040A). How can i file 2011 taxes Useful Items - You may want to see: Publicación 972 Child Tax Credit (Crédito tributario por hijos), en inglés Formulario (e Instrucciones) Anexo 8812   (Formulario 1040A o 1040) Child Tax Credit (Crédito tributario por hijos), en inglés W-4(SP) Certificado de Exención de Retenciones del Empleado W-4 Employee's Withholding Allowance Certificate (Certificado de exención de retenciones del empleado), en inglés Hijo Calificado Un hijo calificado, para propósitos del crédito tributario por hijos, es aquél que: Es su hijo o hija, hijastro o hijastra, hijo de crianza, hermano o hermana, hermanastro o hermanastra o descendiente de cualquiera de ellos (por ejemplo, su nieto, nieta, sobrina o sobrino), Tenía menos de 17 años de edad al finalizar el año 2013, No proveyó más de la mitad de su propia manutención durante el año 2013, Vivió con usted durante más de la mitad del año 2013 (vea Excepciones al tiempo vivido con usted , más adelante), Fue reclamado como dependiente en la declaración de usted, No presenta una declaración conjunta para el año (o la presenta solamente para reclamar un reembolso), y Era ciudadano, nacional o residente de los Estados Unidos. How can i file 2011 taxes Si el hijo fue adoptado, vea Hijo adoptivo , más adelante. How can i file 2011 taxes Para cada hijo calificado, tiene que marcar el recuadro que aparece en la línea 6c del Formulario 1040 o del Formulario 1040A. How can i file 2011 taxes Ejemplo 1. How can i file 2011 taxes Su hijo cumplió 17 años de edad el día 30 de diciembre del año 2013. How can i file 2011 taxes Él es ciudadano de los Estados Unidos y usted lo declara como dependiente en la declaración de impuestos. How can i file 2011 taxes Su hijo no es hijo calificado para el crédito tributario por hijos porque no tenía menos de 17 años de edad al finalizar el año 2013. How can i file 2011 taxes Ejemplo 2. How can i file 2011 taxes Su hija cumplió 8 años en el año 2013. How can i file 2011 taxes Ella no es ciudadana de los Estados Unidos, tiene un ITIN y vivió en México durante todo el año 2013. How can i file 2011 taxes Ella no es un hijo calificado para el crédito tributario por hijos debido a que no fue residente de los Estados Unidos en 2013. How can i file 2011 taxes Contribuyentes que tienen determinados hijos dependientes con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés). How can i file 2011 taxes   Si está reclamando un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un hijo que identificó en su declaración de impuestos con un número de identificación personal del contribuyente (ITIN, por sus siglas en inglés), en lugar de un número de Seguro Social (SSN, por sus siglas en inglés), tiene que completar la Parte I del Anexo 8812 (Formulario 1040A o 1040). How can i file 2011 taxes   Aun si su hijo es dependiente suyo, sólo puede reclamar un crédito tributario por hijos o un crédito tributario adicional por hijos basándose en un dependiente que sea ciudadano, nacional o residente de los Estados Unidos. How can i file 2011 taxes Para ser tratado como residente de los Estados Unidos, un hijo normalmente tiene que cumplir el requisito de presencia sustancial. How can i file 2011 taxes Para más información sobre el requisito de presencia sustancial, vea la Publicación 519, U. How can i file 2011 taxes S. How can i file 2011 taxes Tax Guide for Aliens (Guía sobre los impuestos federales estadounidenses para extranjeros), en inglés. How can i file 2011 taxes Hijo adoptivo. How can i file 2011 taxes   A un hijo adoptivo siempre se le trata como si fuera su hijo. How can i file 2011 taxes Un hijo adoptivo incluye un niño colocado en su hogar por una agencia autorizada, con la intención de que sea legalmente adoptado. How can i file 2011 taxes   Si usted es ciudadano o nacional de los EE. How can i file 2011 taxes UU. How can i file 2011 taxes y su hijo adoptivo vivió con usted como integrante de su unidad familiar durante todo el año en 2013, dicho hijo cumple el requisito (7), anteriormente, para ser un hijo calificado para propósitos del crédito tributario por hijos. How can i file 2011 taxes Excepciones al tiempo vivido con usted. How can i file 2011 taxes   Se considera que un hijo vivió con usted más de la mitad del año 2013 si nació o murió en el año 2013, y su hogar (el de usted) fue el hogar del hijo más de la mitad del tiempo en el cual estuvo vivo. How can i file 2011 taxes Las ausencias temporales por usted o su hijo debidas a circunstancias especiales, tales como las ausencias por educación, vacaciones, negocios, atención médica, servicio militar o estancia en un centro de detención para delincuentes juveniles cuentan como tiempo que el hijo vivió con usted. How can i file 2011 taxes   También hay excepciones para hijos secuestrados e hijos de padres divorciados o separados. How can i file 2011 taxes Para detalles, vea Requisito de Residencia , en el capítulo 3. How can i file 2011 taxes Hijo calificado de más de una persona. How can i file 2011 taxes   Se aplica una regla especial si su hijo calificado es el hijo calificado de más de una persona. How can i file 2011 taxes Para detalles, vea Requisito Especial para el Hijo Calificado de Más de una Persona , en el capítulo 3. How can i file 2011 taxes Cantidad de Crédito La cantidad máxima de crédito que puede reclamar es $1,000 por cada hijo calificado. How can i file 2011 taxes Límites del Crédito Usted tiene que reducir su crédito tributario por hijos si la condición (1) o la condición (2) le corresponde: La cantidad de la línea 46 (Formulario 1040) o de la línea 28 (Formulario 1040A) es menor que el crédito. How can i file 2011 taxes Si esta cantidad es cero, no puede reclamar este crédito porque no hay impuesto que se pueda reducir. How can i file 2011 taxes Sin embargo, es posible que pueda tomar el crédito tributario adicional por hijos. How can i file 2011 taxes Vea Crédito Tributario Adicional por Hijos , más adelante. How can i file 2011 taxes Su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es mayor que la cantidad que se indica a continuación para su estado civil para efectos de la declaración. How can i file 2011 taxes Casados que presentan una declaración conjunta: $110,000. How can i file 2011 taxes Soltero, cabeza de familia o viudo que reúne los requisitos: $75,000. How can i file 2011 taxes Casados que presentan la declaración por separado: $55,000. How can i file 2011 taxes Ingresos brutos ajustados modificados. How can i file 2011 taxes   Para propósitos del crédito tributario por hijos, su ingreso bruto ajustado (AGI, por sus siglas en inglés) modificado es su ingreso bruto ajustado más las cantidades siguientes que puedan ser aplicables en su caso: Toda cantidad excluida del ingreso debido a la exclusión de ingresos de fuentes de  Puerto Rico. How can i file 2011 taxes En la línea de puntos directamente al lado de la línea 38 del Formulario 1040, anote la cantidad excluida e indentifíquela como “ EPRI. How can i file 2011 taxes ” Además, adjunte una copia de todo Formulario 499R-2/W-2PR a su declaración. How can i file 2011 taxes Toda cantidad de las líneas 45 ó 50 del Formulario 2555, Foreign Earned Income (Ingreso devengado en el extranjero), en inglés. How can i file 2011 taxes Toda cantidad de la línea 18 del Formulario 2555-EZ, Foreign Earned Income Exclusion (Exclusión de ingreso devengado en el extranjero), en inglés. How can i file 2011 taxes Toda cantidad de la línea 15 del Formulario 4563, Exclusion of Income for Bona Fide Residents of American Samoa (Exclusión del ingreso para residentes bona fide de la Samoa Estadounidense), en inglés. How can i file 2011 taxes   Si no tiene ninguna de las cantidades mencionadas anteriormente, su ingreso bruto ajustado modificado es igual a su ingreso bruto ajustado. How can i file 2011 taxes Ingreso bruto ajustado. How can i file 2011 taxes   El ingreso bruto ajustado (AGI, por sus siglas en inglés) es la cantidad de la línea 38 del Formulario 1040 o de la línea 22 del Formulario 1040A. How can i file 2011 taxes Cómo Reclamar el Crédito Para reclamar el crédito tributario por hijos, tiene que presentar el Formulario 1040 o el Formulario 1040A. How can i file 2011 taxes No puede reclamar el crédito tributario por hijos en el Formulario 1040EZ. How can i file 2011 taxes Tiene que proveer el nombre y número de identificación (normalmente el número de Seguro Social) de cada hijo calificado en su declaración de impuestos. How can i file 2011 taxes Si reclama el crédito tributario por hijos con un hijo identificado por un ITIN, usted también tiene que presentar el Anexo 8812. How can i file 2011 taxes Para calcular el crédito, primero revise la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos), en las Instrucciones para el Formulario 1040 o el Formulario 1040A. How can i file 2011 taxes Si se le indica que consulte la Publicación 972, Child Tax Credit (Crédito tributario por hijos), en inglés, no puede utilizar la Hoja de trabajo de las instrucciones en la declaración de impuestos; en su lugar, usted tiene que utilizar la Publicación 972, en inglés, para calcular el crédito. How can i file 2011 taxes Si no se le indica que utilice la Publicación 972, puede usar la Hoja de trabajo del crédito tributario por hijos, que se encuentra en las Instrucciones para el Formulario 1040 o las Instrucciones para el Formulario 1040A o la Publicación 972, todas en inglés, para calcular el crédito. How can i file 2011 taxes Crédito Tributario Adicional por Hijos Este crédito es para determinadas personas que reciban menos de la cantidad total del crédito tributario por hijos. How can i file 2011 taxes El crédito tributario adicional por hijos puede darle un reembolso aunque no adeude ningún impuesto. How can i file 2011 taxes Cómo se reclama el crédito tributario adicional por hijos. How can i file 2011 taxes   Para reclamar el crédito tributario adicional por hijos, siga los pasos que aparecen a continuación: Asegúrese de haber calculado la cantidad, si existe, de su crédito tributario por hijos. How can i file 2011 taxes Vea anteriormente el tema titulado Cómo Reclamar el Crédito . How can i file 2011 taxes Use las Partes II a la IV del Anexo 8812 para determinar si puede reclamar el crédito tributario adicional por hijos si usted contestó “Yes” (Sí) en la línea 9 ó 10 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en las Instrucciones para el Formulario 1040 o en las Instrucciones para el Formulario 1040A, o en la línea 13 de la Child Tax Credit Worksheet (Hoja de trabajo del crédito tributario por hijos) en la Publicación 972, todas en inglés. How can i file 2011 taxes Si tiene un crédito tributario adicional por hijos en la línea 13 del Anexo 8812, anótelo en la línea 65 del Formulario 1040 o en la línea 39 del Formulario 1040A. How can i file 2011 taxes Cómo Completar el Anexo 8812 (Formulario 1040A o Formulario 1040) El Anexo 8812 tiene cuatro partes, pero se puede considerar como que consta de dos secciones. How can i file 2011 taxes La Parte I es independiente de las Partes II a la IV. How can i file 2011 taxes Si todos sus hijos tienen números de Seguro Social o números de identificación del contribuyente para adopción del IRS(ATIN, por sus siglas en inglés),y usted no reclama el crédito tributario adicional por hijos, no necesita completar ni adjuntar el Anexo 8812 a su declaración de impuestos. How can i file 2011 taxes Parte I Usted sólo necesitará completar la Parte I si está reclamando el crédito tributario por hijos para un hijo que aparece identificado con un número de identificación personal del contribuyente del IRS (ITIN, por sus siglas en inglés). How can i file 2011 taxes Si todos los hijos por los cuales usted marcó la casilla en la columna 4 de la línea 6c de su Formulario 1040 o Formulario 1040A tienen números de Seguro Social (SSN, por sus siglas en inglés) o números de identificación del contribuyente para adopción del IRS (ATIN, por sus siglas en inglés), no tiene que completar la Parte I del Anexo 8812. How can i file 2011 taxes Partes II a IV Las Partes II a la IV le ayudan a calcular el crédito adicional por hijos que le corresponde a usted. How can i file 2011 taxes Por lo general, deberá completar las Partes II a la IV únicamente si se le indica luego de que completa la Hoja de trabajo del crédito tributario por hijos que aparece en las instrucciones de su declaración de impuestos o en la Publicación 972. How can i file 2011 taxes Vea Cómo se reclama el crédito tributario adicional por hijos , anteriormente. How can i file 2011 taxes Prev  Up  Next   Home   More Online Publications
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The How Can I File 2011 Taxes

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