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Irs 1040ez Form Online

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Irs 1040ez Form Online

Irs 1040ez form online Internal Revenue Bulletin:  2013-7  February 11, 2013  Rev. Irs 1040ez form online Proc. Irs 1040ez form online 2013-16 Table of Contents SECTION 1. Irs 1040ez form online PURPOSE SECTION 2. Irs 1040ez form online BACKGROUND—HAMP AND THE HAMP PRINCIPAL REDUCTION ALTERNATIVE SECTION 3. Irs 1040ez form online BACKGROUND—APPLICABLE PROVISIONS OF LAW SECTION 4. Irs 1040ez form online FEDERAL INCOME TAX TREATMENT SECTION 5. Irs 1040ez form online INFORMATION-REPORTING OBLIGATIONS SECTION 6. Irs 1040ez form online HAMP-PRA BORROWERS’ REPORTING OF DISCHARGES OF INDEBTEDNESS UNDER HAMP-PRA SECTION 7. Irs 1040ez form online PENALTY RELIEF FOR 2012 SECTION 8. Irs 1040ez form online SCOPE AND EFFECTIVE DATE SECTION 9. Irs 1040ez form online DRAFTING INFORMATION SECTION 1. Irs 1040ez form online PURPOSE This revenue procedure provides guidance to mortgage loan holders, loan servicers, and borrowers who are participating in the Department of the Treasury’s (Treasury) and Department of Housing and Urban Development’s (HUD) Home Affordable Modification Program® (HAMP®). Irs 1040ez form online Under HAMP, a borrower may be eligible for principal reduction of the outstanding balance of a qualifying mortgage pursuant to the program’s Principal Reduction AlternativeSM (PRA). Irs 1040ez form online In appropriate cases, HAMP has been offering the PRA as part of a HAMP loan modification since the last quarter of 2010. Irs 1040ez form online Current plans call for HAMP to continue accepting new borrowers through the end of 2013. Irs 1040ez form online The Internal Revenue Service (Service) is providing this guidance to address the tax consequences for borrowers (HAMP-PRA borrowers) who are participating in the PRA and the reporting obligations for participating mortgage loan holders and servicers. Irs 1040ez form online SECTION 2. Irs 1040ez form online BACKGROUND—HAMP AND THE HAMP PRINCIPAL REDUCTION ALTERNATIVE . Irs 1040ez form online 01 To help distressed borrowers lower their monthly mortgage payments, Treasury and HUD established HAMP for mortgage loans that are not owned or guaranteed by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac). Irs 1040ez form online A description of the program can be found at www. Irs 1040ez form online makinghomeaffordable. Irs 1040ez form online gov. Irs 1040ez form online . Irs 1040ez form online 02 Under HAMP, a participating loan servicer, acting on behalf of the mortgage loan holder, must consider a sequence of modification steps for each eligible borrower’s mortgage loan until the borrower’s monthly payment is reduced to a monthly payment amount determined under the HAMP guidelines. Irs 1040ez form online These steps include a reduction in the mortgage loan’s interest rate, an extension of the mortgage loan’s term, and a reduction in the mortgage loan’s principal balance. Irs 1040ez form online . Irs 1040ez form online 03 In some cases, the unpaid principal balance of the modified mortgage loan is divided into (1) an amount that bears stated interest and that is used to calculate the borrower’s new monthly mortgage payment (the “Non-forbearance Portion”), and (2) a forbearance amount, which does not bear stated interest and on which periodic payments of stated principal are not required. Irs 1040ez form online The stated principal of the forbearance amount is due upon the earliest of the borrower’s transfer of the property, payoff of the balance on the Non-forbearance Portion of the mortgage loan, or maturity of the mortgage loan. Irs 1040ez form online However, as noted in section 2. Irs 1040ez form online 06 of this revenue procedure, a HAMP-PRA borrower sometimes may not have to pay all or a portion of the forbearance amount. Irs 1040ez form online (The forbearance amount associated with a HAMP-PRA principal reduction is called the “PRA Forbearance Amount. Irs 1040ez form online ”) . Irs 1040ez form online 04 If a mortgage loan is being considered for a HAMP modification and the amount owed on the mortgage loan is greater than 115 percent of the value of the property, then the servicer must consider whether principal reduction under PRA should be used as part of the HAMP modification. Irs 1040ez form online . Irs 1040ez form online 05 The first step toward a HAMP modification is a trial period plan, in which the borrower’s monthly mortgage payment is set at a monthly payment amount determined under the HAMP guidelines. Irs 1040ez form online The trial period plan effective date is the due date for the first of the reduced payments that are to be made under the trial period plan. Irs 1040ez form online (It is the first day of either the first or the second month after the servicer transmits the trial period notice to the borrower. Irs 1040ez form online ) In general, the trial period is three months, and, during this period, the borrower must satisfy certain conditions before the changes to the terms of the mortgage loan become permanent (the “Trial Period Conditions”). Irs 1040ez form online Specifically, depending on the borrower’s trial period payment history, the borrower’s compliance with HAMP and servicer guidelines, and his or her satisfaction of all other Trial Period Conditions, the borrower will be offered a permanent modification of the terms of the mortgage loan, including monthly mortgage payments that are lower than those under the old mortgage loan. Irs 1040ez form online Until the effective date of a permanent modification, the terms of the existing mortgage loan continue to apply. Irs 1040ez form online . Irs 1040ez form online 06 After the mortgage loan is permanently modified under HAMP, if the modified mortgage loan is in good standing on the first, second, or third annual anniversary of the trial period plan effective date (the “Three-year Period”), the servicer must reduce the unpaid principal balance of the mortgage loan on the respective anniversary date by one-third of the initial PRA Forbearance Amount. Irs 1040ez form online (The servicer allocates the entire reduction to the remaining PRA Forbearance Amount. Irs 1040ez form online ) In general, if a HAMP-PRA borrower’s mortgage loan is in good standing and if the HAMP-PRA borrower pays in full the Non-forbearance Portion of the mortgage loan prior to the reduction of the entire PRA Forbearance Amount, the servicer must reduce the remaining outstanding principal balance of the mortgage loan by the remaining PRA Forbearance Amount. Irs 1040ez form online . Irs 1040ez form online 07 In connection with every HAMP loan modification, the HAMP program administrator (acting on behalf of the federal government) provides incentives to the borrower, the servicer, and the investor (that is, the holder of the mortgage loan). Irs 1040ez form online If a HAMP loan modification includes a PRA principal reduction, the HAMP program administrator makes additional incentive payments to the investor. Irs 1040ez form online These additional incentives are called “PRA Investor Incentive Payments” and are generally spread over three years. Irs 1040ez form online The size of the PRA Investor Incentive Payments depends on the amount of principal reduced, the loan-to-value ratio at the time of the HAMP modification, and the loan’s payment history before the modification. Irs 1040ez form online The PRA Investor Incentive Payments range from 18 to 63 percent of the principal amounts reduced. Irs 1040ez form online For purposes of this revenue procedure, the excess of the initial PRA Forbearance Amount of a mortgage loan over the aggregate PRA Investor Incentive Payments scheduled to be paid with respect to that loan is called the “PRA Adjusted Forbearance Amount. Irs 1040ez form online ” . Irs 1040ez form online 08 A PRA Investor Incentive Payment is earned by the investor on each date on which the servicer reduces the unpaid principal balance of the mortgage loan by a portion of the PRA Forbearance Amount (generally, on the first three annual anniversaries of the trial period plan effective date). Irs 1040ez form online . Irs 1040ez form online 09 If a HAMP-PRA borrower’s early payment in full of the Non-forbearance Portion of the mortgage loan accelerates the reduction of the remaining PRA Forbearance Amount (described above in section 2. Irs 1040ez form online 06 of this revenue procedure), the remaining PRA Investor Incentive Payments from the HAMP program administrator are also accelerated. Irs 1040ez form online . Irs 1040ez form online 10 If, prior to completion of the Three-year Period, a mortgage loan ceases to be in good standing because of the HAMP-PRA borrower’s payment history, then the remaining PRA Forbearance Amount is not further reduced and is due when the HAMP-PRA borrower transfers the property, the HAMP-PRA borrower refinances, or otherwise pays off the Non-forbearance Portion of the mortgage loan, or the mortgage loan matures. Irs 1040ez form online SECTION 3. Irs 1040ez form online BACKGROUND—APPLICABLE PROVISIONS OF LAW . Irs 1040ez form online 01 Under § 61 of the Internal Revenue Code, except as otherwise provided in subtitle A, gross income means all income from whatever source derived, including income from discharge of indebtedness. Irs 1040ez form online See § 61(a)(12). Irs 1040ez form online . Irs 1040ez form online 02 Under § 1. Irs 1040ez form online 1001-3 of the Income Tax Regulations, if a debt instrument undergoes a significant modification, then the modification results in an exchange of the original debt instrument for the modified debt instrument. Irs 1040ez form online In general, an agreement to change a term of a debt instrument is a modification at the time the borrower and holder enter into the agreement, even if the change in term is not immediately effective. Irs 1040ez form online However, if the change is conditioned on reasonable closing conditions, a modification occurs on the closing date of the agreement. Irs 1040ez form online See § 1. Irs 1040ez form online 1001-3(c)(6). Irs 1040ez form online . Irs 1040ez form online 03 Under § 108(e)(10), in the case of a debt-for-debt exchange (including a deemed exchange under § 1. Irs 1040ez form online 1001-3), the borrower is treated as having satisfied the original debt instrument with an amount of money equal to the issue price of the new debt instrument. Irs 1040ez form online If the amount of debt satisfied in this manner exceeds that issue price, the borrower realizes discharge of indebtedness income on the exchange. Irs 1040ez form online See also § 1. Irs 1040ez form online 61-12(c). Irs 1040ez form online . Irs 1040ez form online 04 The issue price of a non-publicly traded debt instrument issued for non-publicly traded property generally reflects the amount of principal that the borrower is required to pay to the holder of the instrument. Irs 1040ez form online If a borrower has the ability to avoid paying certain amounts (including principal) without violating the terms of the instrument, the payment schedule for the instrument is generally determined based on an assumption that the borrower will avoid any requirement to make those payments. Irs 1040ez form online See, e. Irs 1040ez form online g. Irs 1040ez form online , §§ 1. Irs 1040ez form online 1272-1(c)(5) and 1. Irs 1040ez form online 1274-2(d). Irs 1040ez form online . Irs 1040ez form online 05 Under § 108(a), gross income does not include any amount that but for § 108(a) would be includible in gross income by reason of the discharge (in whole or in part) of a taxpayer’s indebtedness if (1) the indebtedness discharged is qualified principal residence indebtedness that is discharged before January 1, 2014, or (2) the discharge occurs when the taxpayer is insolvent. Irs 1040ez form online Section 108(a)(1)(E) and 108(a)(1)(B). Irs 1040ez form online (Although § 108 contains other exclusions as well, this revenue procedure focuses on these two exclusions because they are the most likely to apply to the greatest number of HAMP-PRA borrowers. Irs 1040ez form online ) . Irs 1040ez form online 06 Under §§ 108(h) and 163(h)(3)(B), qualified principal residence indebtedness is any indebtedness that is incurred by a borrower to buy, build, or substantially improve the borrower’s principal residence and is secured by that residence. Irs 1040ez form online . Irs 1040ez form online 07 Qualified principal residence indebtedness also includes a loan secured by the borrower’s principal residence that refinances qualified principal residence indebtedness, but only to the extent of the amount of the refinanced indebtedness. Irs 1040ez form online See §§ 108(h) and 163(h)(3)(B)(i). Irs 1040ez form online . Irs 1040ez form online 08 The maximum amount of discharged indebtedness that a borrower may exclude from gross income under the qualified principal residence indebtedness exclusion is $2,000,000 ($1,000,000 for a married individual filing a separate return). Irs 1040ez form online Under § 108(h)(4), if only part of the discharged indebtedness is qualified principal residence indebtedness, then the exclusion applies only to the amount of the discharged indebtedness that exceeds the amount of the loan (determined immediately before the discharge) that is not qualified principal residence indebtedness. Irs 1040ez form online . Irs 1040ez form online 09 Under § 108(a)(3), the insolvency exclusion applies to the lesser of the amount of the debt discharged or the amount by which the taxpayer is insolvent immediately before the discharge. Irs 1040ez form online . Irs 1040ez form online 10 Section 108(d)(3) provides that, for purposes of the insolvency exclusion, a taxpayer is insolvent to the extent that the taxpayer’s total liabilities exceed the fair market value of all of the taxpayer’s assets immediately before the discharge of indebtedness. Irs 1040ez form online Under § 108(a)(2)(C), the qualified principal residence indebtedness exclusion takes precedence over the insolvency exclusion when both exclusions apply to discharged indebtedness, unless the taxpayer elects to apply the insolvency exclusion. Irs 1040ez form online . Irs 1040ez form online 11 If an amount is excluded from gross income as a discharge of qualified principal residence indebtedness, the taxpayer must reduce the basis of the taxpayer’s principal residence. Irs 1040ez form online See § 108(h)(1). Irs 1040ez form online If a discharged amount is excluded from gross income because the taxpayer was insolvent when the discharge occurred, the taxpayer must reduce certain tax attributes (possibly including basis). Irs 1040ez form online See § 108(b). Irs 1040ez form online For further discussion of income from the discharge of indebtedness, the qualified principal residence indebtedness exclusion, the insolvency exclusion, and other exclusions from gross income that may apply, see Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments (for Individuals). Irs 1040ez form online . Irs 1040ez form online 12 Taxpayers who exclude any discharged amounts from gross income report both the exclusion and the resulting reduction in basis or other tax attributes on Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment). Irs 1040ez form online See Form 982 instructions and Publication 4681. Irs 1040ez form online This form is to be filed with the tax return for the taxable year in which the amount is discharged but is excluded from gross income. Irs 1040ez form online . Irs 1040ez form online 13 Governmental payments made to or on behalf of individuals or other persons are included within the broad definition of gross income under § 61 unless an exception applies. Irs 1040ez form online See Notice 2003-18, 2003-1 C. Irs 1040ez form online B. Irs 1040ez form online 699, and Rev. Irs 1040ez form online Rul. Irs 1040ez form online 79-356, 1979-2 C. Irs 1040ez form online B. Irs 1040ez form online 28. Irs 1040ez form online However, if disbursements are made by a governmental unit to individuals in the interest of the general welfare (that is, are generally based on individual or family need) and the disbursements do not represent compensation for services, then the amounts disbursed are excluded from the income of the recipient (general welfare exclusion). Irs 1040ez form online See Rev. Irs 1040ez form online Rul. Irs 1040ez form online 2005-46, 2005-2 C. Irs 1040ez form online B. Irs 1040ez form online 120, and Rev. Irs 1040ez form online Rul. Irs 1040ez form online 75-246, 1975-1 C. Irs 1040ez form online B. Irs 1040ez form online 24. Irs 1040ez form online . Irs 1040ez form online 14 Under § 451 and § 1. Irs 1040ez form online 451-1(a), a taxpayer that uses the cash receipts and disbursements method of accounting includes income in gross income when the taxpayer actually or constructively receives the income. Irs 1040ez form online . Irs 1040ez form online 15 Section 6041 requires every person engaged in a trade or business (including the United States and its agencies) to (1) file an information return (Form 1099-MISC, Miscellaneous Income, is used for this purpose) for each calendar year in which the person makes, in the course of its trade or business, payments to another person of fixed or determinable income aggregating $600 or more, and (2) furnish a copy of the information return to that other person. Irs 1040ez form online See § 6041(a) and (d) and § 1. Irs 1040ez form online 6041-1(a)(1) and (b). Irs 1040ez form online . Irs 1040ez form online 16 Section 6050P requires applicable entities (including the United States and its agencies, financial entities, and any organization a significant trade or business of which is the lending of money) to (1) file an information return (Form 1099-C, Cancellation of Debt, is used for this purpose) for each calendar year in which it discharges indebtedness of another person of $600 or more, and (2) furnish a copy of the information return to that other person. Irs 1040ez form online See § 6050P(a)-(c) and §§ 1. Irs 1040ez form online 6050P-1(a) and 1. Irs 1040ez form online 6050P-2(a) and (d). Irs 1040ez form online . Irs 1040ez form online 17 Section 6721 imposes penalties with respect to information returns required to be filed with the Service. Irs 1040ez form online These penalties apply in the case of a failure to timely file an information return, a failure to include all required information on the return, or the inclusion of incorrect information on the return. Irs 1040ez form online Section 6724(d)(1) includes Forms 1099-MISC and 1099-C in the term “information return. Irs 1040ez form online ” . Irs 1040ez form online 18 Section 6722 imposes penalties with respect to payee statements required to be furnished to payees. Irs 1040ez form online These penalties apply in the case of a failure to timely furnish a payee statement, a failure to include all required information on the statement, or the inclusion of incorrect information on the payee statement. Irs 1040ez form online Section 6724(d)(2) includes in the term “payee statement” copies of Forms 1099-MISC and 1099-C that are required to be furnished to taxpayers. Irs 1040ez form online SECTION 4. Irs 1040ez form online FEDERAL INCOME TAX TREATMENT . Irs 1040ez form online 01 Because a HAMP modification with a PRA principal reduction is a significant modification, it results in a deemed debt-for-debt exchange in which the HAMP-PRA borrower satisfies the old mortgage loan by issuing a new one. Irs 1040ez form online See § 1. Irs 1040ez form online 1001-3. Irs 1040ez form online At the time of the modification, therefore, under § 108 and this revenue procedure, the HAMP-PRA borrower realizes discharge of indebtedness income equal to any excess of the adjusted issue price of the old mortgage loan (which was satisfied in the deemed exchange) over the issue price of the new (post-modification) mortgage loan. Irs 1040ez form online See also § 61(a)(12) and § 1. Irs 1040ez form online 61-12(c). Irs 1040ez form online . Irs 1040ez form online 02 A HAMP-PRA borrower has the ability to avoid payment of the PRA Adjusted Forbearance Amount. Irs 1040ez form online Because the HAMP-PRA borrower has this ability, that amount should not be taken into account in determining the issue price of the new mortgage loan. Irs 1040ez form online Because the issue price of the new mortgage loan does not include the PRA Adjusted Forbearance Amount, the PRA Adjusted Forbearance Amount contributes to the excess of the adjusted issue price of the old mortgage loan (which was satisfied in the deemed exchange) over the issue price of the new mortgage loan. Irs 1040ez form online . Irs 1040ez form online 03 On the other hand, the investor has not given up its right to receive the remainder of the PRA Forbearance Amount, because the HAMP program administrator is expected to make those payments on the HAMP-PRA borrower’s behalf by making the PRA Investor Incentive Payments. Irs 1040ez form online Because the remainder of the PRA Forbearance Amount is payable in this manner, that remainder is included in the issue price of the new mortgage loan. Irs 1040ez form online . Irs 1040ez form online 04 The Trial Period Conditions are reasonable closing conditions that must be satisfied before the changes to the terms of the mortgage loan become permanent. Irs 1040ez form online Therefore, for purposes of § 1. Irs 1040ez form online 1001-3, the date of the modification is the date of the permanent modification. Irs 1040ez form online . Irs 1040ez form online 05 Unless an exclusion applies, the HAMP-PRA borrower includes in gross income the discharge of indebtedness income described in section 4. Irs 1040ez form online 01 of this revenue procedure for the taxable year in which the permanent modification occurs. Irs 1040ez form online Under certain conditions, however, section 6 of this revenue procedure permits a borrower to report the discharge of indebtedness under HAMP-PRA over the Three-year Period. Irs 1040ez form online The qualified principal residence indebtedness exclusion under § 108(a)(1)(E) and the insolvency exclusion under § 108(a)(1)(B) are two exclusions that may apply to the discharge. Irs 1040ez form online . Irs 1040ez form online 06 The PRA Investor Incentive Payment is treated as a payment on the mortgage loan by the HAMP program administrator on behalf of the HAMP-PRA borrower. Irs 1040ez form online . Irs 1040ez form online 07 To the extent that the HAMP-PRA borrower uses the property as the HAMP-PRA borrower’s principal residence or the property is occupied by the HAMP-PRA borrower’s legal dependent, parent, or grandparent without rent being charged or collected, the HAMP-PRA borrower excludes from his or her gross income under the general welfare exclusion the PRA Investor Incentive Payments that the HAMP program administrator makes to the investor in the mortgage loan. Irs 1040ez form online This is consistent with Rev. Irs 1040ez form online Rul. Irs 1040ez form online 2009-19, 2009-28 I. Irs 1040ez form online R. Irs 1040ez form online B. Irs 1040ez form online 111, which addressed the treatment of Pay-for-Performance Success Payments. Irs 1040ez form online . Irs 1040ez form online 08 To the extent that the HAMP-PRA borrower uses the property as a rental property or holds the property vacant and available for rent, the HAMP-PRA borrower includes PRA Investor Incentive Payments in gross income. Irs 1040ez form online If the HAMP-PRA borrower uses the cash receipts and disbursements method of accounting, then the HAMP-PRA borrower includes a PRA Investor Incentive Payment in gross income in the taxable year in which it is applied as a payment on the HAMP-PRA borrower’s mortgage loan. Irs 1040ez form online . Irs 1040ez form online 09 As described in section 2. Irs 1040ez form online 09 of this revenue procedure, if a HAMP-PRA borrower pays in full the Non-forbearance Portion of the mortgage loan while the loan is in good standing and prior to completion of the Three-year Period, that payment accelerates both the reduction in the remaining PRA Forbearance Amount and the PRA Investor Incentive Payments from the HAMP program administrator. Irs 1040ez form online To the extent that the HAMP-PRA borrower is described in section 4. Irs 1040ez form online 07 of this revenue procedure, the HAMP-PRA borrower excludes from his or her gross income under the general welfare exclusion the accelerated PRA Investor Incentive Payments. Irs 1040ez form online To the extent that the HAMP-PRA borrower is described in section 4. Irs 1040ez form online 08 of this revenue procedure, the HAMP-PRA borrower includes in income in the year of the acceleration the remaining amount of the PRA Investor Incentive Payment. Irs 1040ez form online SECTION 5. Irs 1040ez form online INFORMATION-REPORTING OBLIGATIONS . Irs 1040ez form online 01 Under § 6050P, the investor is required to file a Form 1099-C with respect to a borrower who realizes discharge of indebtedness of $600 or more. Irs 1040ez form online A copy of this form is required to be furnished to the borrower. Irs 1040ez form online . Irs 1040ez form online 02 As stated in sections 4. Irs 1040ez form online 01 and 4. Irs 1040ez form online 04 of this revenue procedure, the HAMP-PRA discharge of indebtedness is realized at the time of the permanent modification of the mortgage loan. Irs 1040ez form online . Irs 1040ez form online 03 An investor is an applicable entity that is required under § 1. Irs 1040ez form online 6050P-1 and this revenue procedure to issue a Form 1099-C for discharge of indebtedness. Irs 1040ez form online Under § 1. Irs 1040ez form online 6050P-1(b)(2)(F), the permanent modification of a mortgage loan is an identifiable event. Irs 1040ez form online Identifiable events determine when Forms 1099-C have to be issued. Irs 1040ez form online Thus, the Form 1099-C is issued for the calendar year in which the permanent mortgage loan modification occurs. Irs 1040ez form online This rule under § 1. Irs 1040ez form online 6050P-1(b)(2)(F) applies even if, under section 6 of this revenue procedure, the HAMP-PRA borrower chooses to treat the HAMP-PRA discharge as being realized at the times when the unpaid principal balance of the new mortgage loan is reduced. Irs 1040ez form online . Irs 1040ez form online 04 The investor (or the loan servicer acting on behalf of the investor) reports the full amount of the discharge on the Form 1099-C regardless of whether some or all of the amount is excludible from income under the qualified principal residence indebtedness exclusion, the insolvency exclusion, or any other exclusion that may apply. Irs 1040ez form online That discharged amount will generally be the PRA Adjusted Forbearance Amount (which does not include the amounts expected to be satisfied by PRA Investor Incentive Payments). Irs 1040ez form online . Irs 1040ez form online 05 To the extent that PRA Investor Incentive Payments are made on behalf of a HAMP-PRA borrower who is described in section 4. Irs 1040ez form online 07 of this revenue procedure, the PRA Investor Incentive Payments are excluded from the gross income of the HAMP-PRA borrower, and thus they are not fixed or determinable income to the HAMP-PRA borrower. Irs 1040ez form online Under § 6041, these payments are not subject to information reporting. Irs 1040ez form online See Notice 2011-14, 2011-11 I. Irs 1040ez form online R. Irs 1040ez form online B. Irs 1040ez form online 544, 546. Irs 1040ez form online . Irs 1040ez form online 06 To the extent that PRA Investor Incentive Payments are made on behalf of a HAMP-PRA borrower who is described in section 4. Irs 1040ez form online 08 of this revenue procedure, the PRA Investor Incentive Payments are includible in gross income as fixed or determinable income in the taxable year required by the HAMP-PRA borrower’s method of accounting. Irs 1040ez form online The payment is subject to the information reporting requirements of § 6041, as described in section 3. Irs 1040ez form online 15 of this revenue procedure. Irs 1040ez form online Accordingly, the HAMP program administrator is required to issue a Form 1099-MISC reporting the PRA Investor Incentive Payment. Irs 1040ez form online SECTION 6. Irs 1040ez form online HAMP-PRA BORROWERS’ REPORTING OF DISCHARGES OF INDEBTEDNESS UNDER HAMP-PRA . Irs 1040ez form online 01 In general. Irs 1040ez form online The HAMP-PRA program began in the last quarter of 2010, and since that time there has been uncertainty about whether the amount of the discharge of indebtedness should be reported in the year of the permanent modification or over the Three-year Period (when the unpaid principal balance on the new mortgage loan is reduced). Irs 1040ez form online As a result, some HAMP-PRA borrowers have been reporting the discharge of indebtedness under HAMP-PRA over the Three-year Period. Irs 1040ez form online Given the temporary nature of the program and the issuance of this guidance after participation in the program has begun, in the interests of equitable and sound tax administration, HAMP-PRA borrowers may report discharges of indebtedness under HAMP-PRA under the rules in this section 6. Irs 1040ez form online A HAMP-PRA borrower may choose to report discharges of indebtedness under HAMP-PRA pursuant to the rules in this section 6 only if the borrower applies the same borrower option under section 6. Irs 1040ez form online 02 of this revenue procedure consistently to the taxable year of the permanent modification and to all subsequent taxable years. Irs 1040ez form online Thus, a HAMP-PRA borrower may not choose a borrower option under section 6. Irs 1040ez form online 02 of this revenue procedure if a statute of limitations has expired for any of the taxable years that are necessary for consistent application of that option. Irs 1040ez form online . Irs 1040ez form online 02 HAMP-PRA borrower options. Irs 1040ez form online A HAMP-PRA borrower may treat the HAMP-PRA discharge as being realized in either of the following ways— (1) One hundred percent of the PRA Adjusted Forbearance Amount at the time of the permanent modification; or (2) One third of the PRA Adjusted Forbearance Amount on each of the first three annual anniversaries of the trial period plan effective date (described in section 2. Irs 1040ez form online 06 of this revenue procedure), when, as required by the terms of the new mortgage loan, the servicer reduces the unpaid principal balance of the new mortgage loan. Irs 1040ez form online If some or all of the reduction in the unpaid principal balance is accelerated (as described in section 2. Irs 1040ez form online 06 of this revenue procedure) because the HAMP-PRA borrower prepays the Non-forbearance Portion of the mortgage loan, then the HAMP-PRA discharge represented by the amount of the reduction that was accelerated is treated as being realized at the time of the accelerated reduction. Irs 1040ez form online . Irs 1040ez form online 03 HAMP-PRA borrowers who choose to realize the HAMP-PRA discharge at the time of the permanent modification. Irs 1040ez form online (1) If a HAMP-PRA borrower chooses to treat the HAMP-PRA discharge as being realized at the time of the permanent modification, then for the taxable year in which the permanent modification occurs, the HAMP-PRA borrower reports on Form 982 the amount, if any, of the discharge that is excluded from gross income and includes in gross income any remaining discharge. Irs 1040ez form online (2) If a HAMP-PRA borrower’s mortgage loan was permanently modified under HAMP in 2010 or 2011, and if the borrower was reporting the discharge of indebtedness using the method described in section 6. Irs 1040ez form online 02(2) of this revenue procedure, then the borrower may change to reporting the discharge of indebtedness using the method described in section 6. Irs 1040ez form online 02(1) of this revenue procedure by filing a 2012 Form 982 with the borrower’s timely filed (with extensions) 2012 income tax return. Irs 1040ez form online This section 6. Irs 1040ez form online 03(2) applies only if the change to reporting the discharge using the method described in section 6. Irs 1040ez form online 02(1) of this revenue procedure does not change the borrower’s federal income tax liability (including any change in federal income tax liability due to a change in basis or tax attributes (under § 108(h)(1) or § 108(b))) for any taxable year prior to the borrower’s 2012 taxable year. Irs 1040ez form online To make this change, the borrower must— (i) Compute the amount of discharge of indebtedness that would be included in income under § 61(a)(12) or excluded from gross income under § 108, basing the computation of the discharge on the facts as of the year of the permanent modification; and (ii) Report on a 2012 Form 982 the reduction in basis or tax attributes (under § 108(h)(1) or § 108(b)) due to the permanent modification that the borrower would have reported on the Form 982 for the taxable year of the permanent modification, minus any reductions due to the permanent modification that the borrower actually reported on Forms 982 for taxable years prior to 2012. Irs 1040ez form online (3) Example. Irs 1040ez form online The following example illustrates the application of section 6. Irs 1040ez form online 03(2) of this revenue procedure. Irs 1040ez form online In 2010, B’s basis in B’s principal residence was $330,000. Irs 1040ez form online In 2010, B’s mortgage loan on the principal residence is permanently modified under HAMP-PRA. Irs 1040ez form online B realized $30,000 of cancellation of indebtedness from the permanent modification, all of which qualifies for the exclusion from income for qualified principal residence indebtedness under § 108(a)(1)(E). Irs 1040ez form online The trial period plan effective date also fell in 2010. Irs 1040ez form online B’s federal income tax return for 2010 was consistent with B’s reporting this discharge of indebtedness using the method described in section 6. Irs 1040ez form online 02(2) of this revenue procedure. Irs 1040ez form online That is, B’s 2010 return did not include income from discharge of indebtedness under HAMP-PRA, nor did the return contain a Form 982 reporting exclusion of any such discharge of indebtedness. Irs 1040ez form online The next year, B reported on line 10(b) of the 2011 Form 982 that B filed with B’s 2011 federal income tax return a $10,000 reduction in basis in the principal residence. Irs 1040ez form online For 2012, B chooses to change to reporting the discharge of indebtedness using the method described in section 6. Irs 1040ez form online 02(1) of this revenue procedure. Irs 1040ez form online Thus, B files a 2012 Form 982 with B’s timely filed (including extensions) 2012 federal income tax return, and on line 10(b) of that form, B reports a $20,000 basis reduction in the principal residence ($30,000 basis reduction that B would have excluded from income in 2010 using the method described in section 6. Irs 1040ez form online 02(1) of this revenue procedure, minus the $10,000 basis reduction that B reported on B’s 2011 Form 982). Irs 1040ez form online (4) If a HAMP-PRA borrower reports the entire HAMP-PRA discharge using the method described in section 6. Irs 1040ez form online 02(1) of this revenue procedure, and if that HAMP-PRA borrower’s mortgage loan ceases to be in good standing during the Three-year Period as described in section 2. Irs 1040ez form online 10 of this revenue procedure, then some or all of the anticipated reductions in the PRA Adjusted Forbearance Amount will not take place. Irs 1040ez form online Because the amount of these anticipated reductions was not included in determining the issue price of the new mortgage loan that, pursuant to § 1. Irs 1040ez form online 1001-3, the HAMP-PRA borrower is deemed to issue in satisfaction of the old mortgage loan, the issue price of the new mortgage loan was understated. Irs 1040ez form online Under these circumstances, the discharge of indebtedness income determined as of the date of the permanent modification will have been overstated. Irs 1040ez form online (5) The Service will not challenge a HAMP-PRA borrower who is described in section 6. Irs 1040ez form online 03(4) of this revenue procedure and who takes the following corrective measures: (i) If a HAMP-PRA borrower included any of the discharge of indebtedness in gross income, the HAMP-PRA borrower may file an amended return that does not include the amount of the discharge of indebtedness that was previously reported as gross income but that, because of the HAMP-PRA borrower’s failure to keep the new mortgage loan in good standing, was not ultimately discharged. Irs 1040ez form online The amended return should be for the taxable year in which the income was included (that is, the year of the permanent modification), provided the applicable statute of limitations remains open for that taxable year. Irs 1040ez form online (ii) If the HAMP-PRA borrower did not include any of the discharge of indebtedness in gross income (that is, if the HAMP-PRA borrower excluded all of it), the HAMP-PRA borrower may file a new Form 982 that the Service will treat as superseding the earlier Form 982. Irs 1040ez form online The new Form 982 will reflect the revised reduction in basis or in tax attributes (under § 108(h)(1) or § 108(b)). Irs 1040ez form online The new Form 982 should be the Form 982 for the year of the permanent modification and should be filed with the return for the taxable year in which the HAMP-PRA borrower’s mortgage loan ceased to be in good standing. Irs 1040ez form online . Irs 1040ez form online 04 HAMP-PRA borrowers who choose to treat the HAMP-PRA discharge as being realized on the dates on which the unpaid principal balance of the mortgage loan is reduced. Irs 1040ez form online (1) If a HAMP-PRA borrower chooses to realize the HAMP-PRA discharge at the times that the unpaid principal balance on the new mortgage loan is reduced, instead of at the time of the permanent modification, then the HAMP-PRA borrower’s federal income tax returns for the taxable year that contains the permanent modification and for the subsequent taxable years must not treat any of the discharge as being realized at the time of the permanent modification and must treat the entire HAMP-PRA discharge as being realized in the amounts—and at the times—of the reductions in the unpaid principal balance. Irs 1040ez form online Except as described in the last sentence of this paragraph, therefore, the income tax return for the year of the permanent modification must include no gross income from—nor report on Form 982 an exclusion of—any amount of the HAMP-PRA discharge. Irs 1040ez form online Instead, the HAMP-PRA discharge is included in gross income (or is reported on Form 982 as excluded from gross income) in the subsequent years in which the unpaid principal balance is reduced. Irs 1040ez form online If the first such reduction occurs in the year of the permanent modification, however, then the amount of any such reduction is reflected as an inclusion or exclusion on the federal income tax return for that year. Irs 1040ez form online (2) A HAMP-PRA borrower who has been using the method described in section 6. Irs 1040ez form online 02(1) of this revenue procedure may change to the method described in section 6. Irs 1040ez form online 02(2) but must comply with the consistency and open-year requirements described in section 6. Irs 1040ez form online 01 of this revenue procedure. Irs 1040ez form online SECTION 7. Irs 1040ez form online PENALTY RELIEF FOR 2012 . Irs 1040ez form online 01 The Service will not assert penalties under § 6721 or § 6722 against an investor for failing to timely file and furnish a 2012 Form 1099-C as required by section 5. Irs 1040ez form online 03 through 5. Irs 1040ez form online 04 and section 8. Irs 1040ez form online 02 of this revenue procedure with respect to discharge of indebtedness resulting from HAMP-PRA permanent modifications that take place during calendar year 2012 if the following requirements are satisfied: (1) Not later than February 28, 2013, a statement is sent to the HAMP-PRA borrower containing the following: (a) The HAMP-PRA borrower’s name, address, and taxpayer identification number; and (b) The date and amount of the discharge of indebtedness (as described in sections 4. Irs 1040ez form online 01 through 4. Irs 1040ez form online 04 of this revenue procedure) that is required to be reported for 2012. Irs 1040ez form online (2) Not later than March 28, 2013, a statement is sent to the Service. Irs 1040ez form online It must be in the form of a single statement that separately lists for each HAMP-PRA borrower the information specified in section 7. Irs 1040ez form online 01(1) of this revenue procedure. Irs 1040ez form online The statement should be sent to the Service at the following address: Internal Revenue Service Center Stop 6728AUSC Austin, TX 73301 . Irs 1040ez form online 02 The Service will not assert penalties under § 6721 or § 6722 with respect to any Forms 1099-MISC for 2012 that sections 5. Irs 1040ez form online 06 and 8. Irs 1040ez form online 02 of this revenue procedure require to be filed with the Service and furnished to taxpayers. Irs 1040ez form online . Irs 1040ez form online 03 Section 8. Irs 1040ez form online 03 and 8. Irs 1040ez form online 04 of this revenue procedure, below, describes penalty relief regarding Forms 1099-C and 1099-MISC for 2010 and 2011. Irs 1040ez form online SECTION 8. Irs 1040ez form online SCOPE AND EFFECTIVE DATE . Irs 1040ez form online 01 This revenue procedure applies to all borrowers, investors, and servicers who participate, or have participated, in the HAMP-PRA, regardless of when the permanent modification occurs. Irs 1040ez form online . Irs 1040ez form online 02 Section 5 of this revenue procedure is effective for Forms 1099-C and 1099-MISC due or filed after January 24, 2013. Irs 1040ez form online . Irs 1040ez form online 03 Because of the effective date in section 8. Irs 1040ez form online 02 of this revenue procedure, an investor is not subject to penalties under § 6721 or § 6722 on the grounds that the investor failed to timely file and furnish a 2010 or 2011 Form 1099-C as described in section 5. Irs 1040ez form online 03 through 5. Irs 1040ez form online 04 of this revenue procedure (or on the grounds that the investor filed or furnished a 2010 or 2011 Form 1099-C that is inconsistent with section 5. Irs 1040ez form online 03 through 5. Irs 1040ez form online 04 of this revenue procedure), provided that the investor demonstrates a good faith attempt to comply with the requirements of § 6050P and that the failure was not due to willful neglect. Irs 1040ez form online . Irs 1040ez form online 04 Because of the effective date in section 8. Irs 1040ez form online 02 of this revenue procedure, the Service will not assert penalties under § 6721 or § 6722 on the grounds of a failure to timely file and furnish a 2010 or 2011 Form 1099-MISC, as described in section 5. Irs 1040ez form online 06 of this revenue procedure. Irs 1040ez form online SECTION 9. Irs 1040ez form online DRAFTING INFORMATION The principal authors of this revenue procedure are Ronald J. Irs 1040ez form online Goldstein of the Office of Chief Counsel (Procedure and Administration); Shareen S. Irs 1040ez form online Pflanz and Sheldon A. Irs 1040ez form online Iskow of the Office of Chief Counsel (Income Tax and Accounting); and Andrea M. Irs 1040ez form online Hoffenson of the Office of Chief Counsel (Financial Institutions and Products). Irs 1040ez form online For further information regarding this revenue procedure, contact Procedure and Administration branch 1 at (202) 622-4910, Income Tax and Accounting branch 4 at (202) 622-4920, or Financial Institutions and Products branch 1 at (202) 622-3920 (not toll-free calls). Irs 1040ez form online Prev  Up  Next   Home   More Internal Revenue Bulletins
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The Irs 1040ez Form Online

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