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Tax Forms Federal And State

2011 Income Tax ReturnsH&r Block Online TaxPreparing Form 1040xAmended 1040ezFile 1040x ElectronicallyFree H&r Block Tax Software 2011Http Www Irs Gov EfileTurbo Tax Free FileForm 1040x 2012Irs Where Mail 1040ezE File Form 1040x1040ez For 2010Ammend 2010 TaxesIrs 1040nr1040ez Forms 2014Amendment 1040xState Income Tax ReturnAmendment FormWhere Can I Get 2012 Tax FormsIrs Form 1040ez Tax TablesFree Federal And State Tax FilingCan You E File 2010 TaxesMy Turbotax1040a 2011 Tax FormHelp Back TaxesE File State Tax FreeFree Tax Filing For Federal And StateFree Turbo Tax 2009Filing 2011 Taxes LateH & R BlockWww H&r Block At HomeTax Act 2012 OnlineDoes H&r Block Do Taxes For FreeFile Form 1040ezHelp With 1040xIrsH And R TaxDoes Military Pay TaxesForm 1040nr EzFreestatetaxreturn

Tax Forms Federal And State

Tax forms federal and state Publication 929 - Introductory Material Table of Contents Future Developments Reminders IntroductionOrdering forms and publications. Tax forms federal and state Tax questions. Tax forms federal and state Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 929, such as legislation enacted after this publication was published, go to www. Tax forms federal and state irs. Tax forms federal and state gov/pub929. Tax forms federal and state Reminders Social security number (SSN). Tax forms federal and state  Dependents who are required to file a tax return must have an SSN. Tax forms federal and state To apply for an SSN, file Form SS-5 with the Social Security Administration. Tax forms federal and state You can go to the website www. Tax forms federal and state socialsecurity. Tax forms federal and state gov for more information. Tax forms federal and state Individual taxpayer identification number (ITIN). Tax forms federal and state  The IRS will issue an ITIN to a nonresident or resident alien who does not have and is not eligible to get an SSN. Tax forms federal and state To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Tax forms federal and state It takes 6-10 weeks to get an ITIN. Tax forms federal and state The ITIN is entered wherever an SSN is requested on a tax return. Tax forms federal and state If you are a nonresident alien applying for an ITIN to file a tax return, you generally must attach your original, completed return to Form W-7 to get an ITIN. Tax forms federal and state See the Form W-7 instructions for more information. Tax forms federal and state An ITIN is for tax use only. Tax forms federal and state It does not entitle you to social security benefits or change your employment or immigration status under U. Tax forms federal and state S. Tax forms federal and state law. Tax forms federal and state Effective January 1, 2013, ITINs will expire after 5 years. Tax forms federal and state Taxpayers who still need an ITIN after the end of the expiration period must reapply for a number. Tax forms federal and state Photographs of missing children. Tax forms federal and state  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Tax forms federal and state Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax forms federal and state You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Tax forms federal and state Introduction Part 1 of this publication explains the filing requirements and other tax information for individuals who can be claimed as a dependent on another person's tax return. Tax forms federal and state  Part 2 explains how to report and figure the tax on unearned income of certain children (whether or not they can be claimed as dependents). Tax forms federal and state Definitions. Tax forms federal and state   Many of the terms used in this publication, such as “dependent,” “earned income,” and “unearned income,” are defined in the Glossary at the back of this publication. Tax forms federal and state Comments and suggestions. Tax forms federal and state   We welcome your comments about this publication and your suggestions for future editions. Tax forms federal and state   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Tax forms federal and state NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax forms federal and state Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax forms federal and state   You can send your comments from www. Tax forms federal and state irs. Tax forms federal and state gov/formspubs/. Tax forms federal and state Click on “More Information” and then on “Comment on Tax Forms and Publications. Tax forms federal and state ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Tax forms federal and state Ordering forms and publications. Tax forms federal and state   Visit www. Tax forms federal and state irs. Tax forms federal and state gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Tax forms federal and state Internal Revenue Service 1201 N. Tax forms federal and state Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Tax forms federal and state   If you have a tax question, check the information available on IRS. Tax forms federal and state gov or call 1-800-829-1040. Tax forms federal and state We cannot answer tax questions sent to either of the above addresses. Tax forms federal and state Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 550 Investment Income and Expenses Form (and Instructions) W-4 Employee's Withholding Allowance Certificate 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends See How To Get Tax Help near the end of this publication for information about getting these publications and forms. Tax forms federal and state Prev  Up  Next   Home   More Online Publications
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Understanding your CP523 Notice

This notice informs you of our intent to terminate your installment agreement and seize (levy) your assets. You have defaulted on your agreement.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the 1-800 number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).

Or you may qualify for help from a Low Income Taxpayer Clinic.
 


What you need to do

  • Make your payment before your termination date to prevent your installment agreement from being terminated. Go to the payments page to make your payment or find out more about your payment options.
  • Contact the IRS right away to see if you can reinstate your agreement. You may have to pay a fee to reinstate it or you may have to pay any new tax liability in full.
  • Read your notice carefully — it explains what to do now that you have defaulted on your installment agreement.
  • If you don't respond, we will terminate your installment agreement and begin taking collection action, which can include filing a federal tax lien or seizing (levying) your wages and/or bank accounts

You may want to...


Answers to Common Questions

What is the notice telling me?
This notice is telling you that we intend to terminate your installment agreement and seize (levy) your wages and/or bank accounts if you take no action. The notice tells you why we are taking this action.

What do I have to do?
Contact us immediately at the toll-free number listed at the top right corner of the notice. We will discuss what you need to do to resolve this issue.

How much time do I have?
You should contact us as soon as possible but no later than 30 days from the date of the notice.

Who should I contact?
If you have any questions about the notice, call us at the number printed at the top of the notice. A customer service representative will assist you.

What if I don't agree with your action or have already taken corrective action?
If you don't agree with our reason for terminating your installment agreement, contact us at the number printed at the top of the notice. If after talking with us you still do not agree, you have the right to file an appeal and can request a hearing with the IRS Office of Appeals.

If you have already taken corrective action, you should still call us to make sure we have a record of your action so that we can reinstate your installment agreement.

Page Last Reviewed or Updated: 05-Mar-2014

The Tax Forms Federal And State

Tax forms federal and state 12. Tax forms federal and state   Business Deduction for Work-Related Education Table of Contents What's New Introduction Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. Tax forms federal and state Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. Tax forms federal and state  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013, is 56. Tax forms federal and state 5 cents per mile. Tax forms federal and state For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. Tax forms federal and state Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Tax forms federal and state To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. Tax forms federal and state What is the tax benefit of taking a business deduction for work-related education. Tax forms federal and state   If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Tax forms federal and state Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. Tax forms federal and state An itemized deduction reduces the amount of your income subject to tax. Tax forms federal and state   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Tax forms federal and state This reduces the amount of your income subject to both income tax and self-employment tax. Tax forms federal and state   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. Tax forms federal and state You may qualify for these other benefits even if you do not meet the requirements listed above. Tax forms federal and state   Also, your work-related education expenses may qualify you to claim more than one tax benefit. Tax forms federal and state Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Tax forms federal and state Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Tax forms federal and state This is education that meets at least one of the following two tests. Tax forms federal and state The education is required by your employer or the law to keep your present salary, status, or job. Tax forms federal and state The required education must serve a bona fide business purpose of your employer. Tax forms federal and state The education maintains or improves skills needed in your present work. Tax forms federal and state However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Tax forms federal and state You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Tax forms federal and state Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. Tax forms federal and state Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. Tax forms federal and state This additional education is qualifying work-related education if all three of the following requirements are met. Tax forms federal and state It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. Tax forms federal and state When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. Tax forms federal and state See Education To Maintain or Improve Skills , later. Tax forms federal and state Example. Tax forms federal and state You are a teacher who has satisfied the minimum requirements for teaching. Tax forms federal and state Your employer requires you to take an additional college course each year to keep your teaching job. Tax forms federal and state If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. Tax forms federal and state This image is too large to be displayed in the current screen. Tax forms federal and state Please click the link to view the image. Tax forms federal and state Figure 12-1 Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. Tax forms federal and state This could include refresher courses, courses on current developments, and academic or vocational courses. Tax forms federal and state Example. Tax forms federal and state You repair televisions, radios, and stereo systems for XYZ Store. Tax forms federal and state To keep up with the latest changes, you take special courses in radio and stereo service. Tax forms federal and state These courses maintain and improve skills required in your work. Tax forms federal and state Maintaining skills vs. Tax forms federal and state qualifying for new job. Tax forms federal and state   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. Tax forms federal and state Education during temporary absence. Tax forms federal and state   If you stop working for a year or less in order to get education 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. Tax forms federal and state Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Tax forms federal and state Example. Tax forms federal and state You quit your biology research job to become a full-time biology graduate student for 1 year. Tax forms federal and state If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. Tax forms federal and state Education during indefinite absence. Tax forms federal and state   If you stop work for more than a year, your absence from your job is considered indefinite. Tax forms federal and state Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. Tax forms federal and state Therefore, it is not qualifying work-related education. Tax forms federal and state Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. Tax forms federal and state The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Tax forms federal and state Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. Tax forms federal and state This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. Tax forms federal and state You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Tax forms federal and state Example 1. Tax forms federal and state You are a full-time engineering student. Tax forms federal and state Although you have not received your degree or certification, you work part time as an engineer for a firm that will employ you as a full-time engineer after you finish college. Tax forms federal and state Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. Tax forms federal and state The education is not qualifying work-related education. Tax forms federal and state Example 2. Tax forms federal and state You are an accountant and you have met the minimum educational requirements of your employer. Tax forms federal and state Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Tax forms federal and state These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. Tax forms federal and state Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Tax forms federal and state The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Tax forms federal and state If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Tax forms federal and state The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. Tax forms federal and state You generally will be considered a faculty member when one or more of the following occurs. Tax forms federal and state You have tenure. Tax forms federal and state Your years of service count toward obtaining tenure. Tax forms federal and state You have a vote in faculty decisions. Tax forms federal and state Your school makes contributions for you to a retirement plan other than social security or a similar program. Tax forms federal and state Example 1. Tax forms federal and state The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Tax forms federal and state In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Tax forms federal and state If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. Tax forms federal and state However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Tax forms federal and state Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. Tax forms federal and state If you have all the required education except the fifth year, you have met the minimum educational requirements. Tax forms federal and state The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. Tax forms federal and state Example 2. Tax forms federal and state Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Tax forms federal and state The additional four education courses can be qualifying work-related education. Tax forms federal and state Although you do not have all the required courses, you have already met the minimum educational requirements. Tax forms federal and state Example 3. Tax forms federal and state Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Tax forms federal and state The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Tax forms federal and state They are needed to meet the minimum educational requirements for employment as a teacher. Tax forms federal and state Example 4. Tax forms federal and state You have a bachelor's degree and you work as a temporary instructor at a university. Tax forms federal and state At the same time, you take graduate courses toward an advanced degree. Tax forms federal and state The rules of the university state that you can become a faculty member only if you get a graduate degree. Tax forms federal and state Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Tax forms federal and state You have not met the minimum educational requirements to qualify you as a faculty member. Tax forms federal and state The graduate courses are not qualifying work-related education. Tax forms federal and state Certification in a new state. Tax forms federal and state   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. Tax forms federal and state This is true even if you must get additional education to be certified in another state. Tax forms federal and state Any additional education you need is qualifying work-related education. Tax forms federal and state You have already met the minimum requirements for teaching. Tax forms federal and state Teaching in another state is not a new trade or business. Tax forms federal and state Example. Tax forms federal and state You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Tax forms federal and state You move to State B and are promptly hired as a teacher. Tax forms federal and state You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Tax forms federal and state These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. Tax forms federal and state Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. Tax forms federal and state This is true even if you do not plan to enter that trade or business. Tax forms federal and state If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Tax forms federal and state Example 1. Tax forms federal and state You are an accountant. Tax forms federal and state Your employer requires you to get a law degree at your own expense. Tax forms federal and state You register at a law school for the regular curriculum that leads to a law degree. Tax forms federal and state Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. Tax forms federal and state Example 2. Tax forms federal and state You are a general practitioner of medicine. Tax forms federal and state You take a 2-week course to review developments in several specialized fields of medicine. Tax forms federal and state The course does not qualify you for a new profession. Tax forms federal and state It is qualifying work- related education because it maintains or improves skills required in your present profession. Tax forms federal and state Example 3. Tax forms federal and state While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Tax forms federal and state The program will lead to qualifying you to practice psychoanalysis. Tax forms federal and state The psychoanalytic training does not qualify you for a new profession. Tax forms federal and state It is qualifying work-related education because it maintains or improves skills required in your present profession. Tax forms federal and state Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. Tax forms federal and state They are part of a program of study that can qualify you for a new profession. Tax forms federal and state Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Tax forms federal and state A change in duties in any of the following ways is not considered a change to a new business. Tax forms federal and state Elementary school teacher to secondary school teacher. Tax forms federal and state Teacher of one subject, such as biology, to teacher of another subject, such as art. Tax forms federal and state Classroom teacher to guidance counselor. Tax forms federal and state Classroom teacher to school administrator. Tax forms federal and state What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education you can generally deduct your education expenses as business expenses. Tax forms federal and state If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Tax forms federal and state You cannot deduct expenses related to tax-exempt and excluded income. Tax forms federal and state Deductible expenses. Tax forms federal and state   The following education expenses can be deducted. Tax forms federal and state Tuition, books, supplies, lab fees, and similar items. Tax forms federal and state Certain transportation and travel costs. Tax forms federal and state Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Tax forms federal and state Nondeductible expenses. Tax forms federal and state   You cannot deduct personal or capital expenses. Tax forms federal and state For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Tax forms federal and state This amount is a personal expense. Tax forms federal and state Unclaimed reimbursement. Tax forms federal and state   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. Tax forms federal and state Example. Tax forms federal and state Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Tax forms federal and state You do not file a voucher and you do not get reimbursed. Tax forms federal and state Because you did not file a voucher, you cannot deduct the expenses on your tax return. Tax forms federal and state Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Tax forms federal and state If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. Tax forms federal and state Temporary basis. Tax forms federal and state   You go to school on a temporary basis if either of the following situations applies to you. Tax forms federal and state Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Tax forms federal and state Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Tax forms federal and state Your attendance is temporary up to the date you determine it will last more than 1 year. Tax forms federal and state If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. Tax forms federal and state Attendance not on a temporary basis. Tax forms federal and state   You do not go to school on a temporary basis if either of the following situations apply to you. Tax forms federal and state Your attendance at school is realistically expected to last more than 1 year. Tax forms federal and state It does not matter how long you actually attend. Tax forms federal and state Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Tax forms federal and state Your attendance is not temporary after the date you determine it will last more than 1 year. Tax forms federal and state Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. Tax forms federal and state This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Tax forms federal and state Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Tax forms federal and state Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Tax forms federal and state Example 1. Tax forms federal and state You regularly work in a nearby town, and go directly from work to home. Tax forms federal and state You also attend school every work night for 3 months to take a course that improves your job skills. Tax forms federal and state Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Tax forms federal and state This is true regardless of the distance traveled. Tax forms federal and state Example 2. Tax forms federal and state Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Tax forms federal and state You can deduct your transportation expenses from your regular work site to school and then home. Tax forms federal and state Example 3. Tax forms federal and state Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Tax forms federal and state Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Tax forms federal and state Example 4. Tax forms federal and state Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Tax forms federal and state Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Tax forms federal and state If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Tax forms federal and state If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. Tax forms federal and state Using your car. Tax forms federal and state    If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. Tax forms federal and state The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. Tax forms federal and state 5 cents per mile. Tax forms federal and state Whichever method you use, you can also deduct parking fees and tolls. Tax forms federal and state See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. Tax forms federal and state Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. Tax forms federal and state Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Tax forms federal and state For more information, see chapter 1 of Publication 463. Tax forms federal and state You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. Tax forms federal and state Mainly personal travel. Tax forms federal and state   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Tax forms federal and state You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Tax forms federal and state   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Tax forms federal and state An important factor is the comparison of time spent on personal activities with time spent on educational activities. Tax forms federal and state If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. Tax forms federal and state Example 1. Tax forms federal and state John works in Newark, New Jersey. Tax forms federal and state He traveled to Chicago to take a deductible 1-week course at the request of his employer. Tax forms federal and state His main reason for going to Chicago was to take the course. Tax forms federal and state While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Tax forms federal and state Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Tax forms federal and state He cannot deduct his transportation expenses of going to Pleasantville. Tax forms federal and state He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Tax forms federal and state Example 2. Tax forms federal and state Sue works in Boston. Tax forms federal and state She went to a university in Michigan to take a course for work. Tax forms federal and state The course is qualifying work-related education. Tax forms federal and state She took one course, which is one-fourth of a full course load of study. Tax forms federal and state She spent the rest of the time on personal activities. Tax forms federal and state Her reasons for taking the course in Michigan were all personal. Tax forms federal and state Sue's trip is mainly personal because three-fourths of her time is considered personal time. Tax forms federal and state She cannot deduct the cost of her round-trip train ticket to Michigan. Tax forms federal and state She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Tax forms federal and state Example 3. Tax forms federal and state Dave works in Nashville and recently traveled to California to take a 2-week seminar. Tax forms federal and state The seminar is qualifying work-related education. Tax forms federal and state While there, he spent an extra 8 weeks on personal activities. Tax forms federal and state The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Tax forms federal and state Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Tax forms federal and state He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Tax forms federal and state Cruises and conventions. Tax forms federal and state   Certain cruises and conventions offer seminars or courses as part of their itinerary. Tax forms federal and state Even if the seminars or courses are work related, your deduction for travel may be limited. Tax forms federal and state This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Tax forms federal and state   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. Tax forms federal and state 50% limit on meals. Tax forms federal and state   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Tax forms federal and state If you were reimbursed for the meals, see How To Treat Reimbursements , later. Tax forms federal and state   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Tax forms federal and state Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. Tax forms federal and state Example. Tax forms federal and state You are a French language teacher. Tax forms federal and state While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Tax forms federal and state You chose your itinerary and most of your activities to improve your French language skills. Tax forms federal and state You cannot deduct your travel expenses as education expenses. Tax forms federal and state This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. Tax forms federal and state No Double Benefit Allowed You cannot do either of the following. Tax forms federal and state Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. Tax forms federal and state Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Tax forms federal and state See Adjustments to Qualifying Work-Related Education Expenses, next. Tax forms federal and state Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. Tax forms federal and state You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Tax forms federal and state Tax-free educational assistance. Tax forms federal and state   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Tax forms federal and state Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Tax forms federal and state Amounts that do not reduce qualifying work-related education expenses. Tax forms federal and state   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Tax forms federal and state Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. Tax forms federal and state How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Tax forms federal and state There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Tax forms federal and state You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Tax forms federal and state Note. Tax forms federal and state The following rules about reimbursement arrangements also apply to expense allowances received from your employer. Tax forms federal and state Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Tax forms federal and state Your expenses must have a business connection. Tax forms federal and state This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. Tax forms federal and state You must adequately account to your employer for your expenses within a reasonable period of time. Tax forms federal and state You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. Tax forms federal and state If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. Tax forms federal and state If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. Tax forms federal and state Accountable plan rules not met. Tax forms federal and state   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. Tax forms federal and state Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). Tax forms federal and state Expenses equal reimbursement. Tax forms federal and state   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. Tax forms federal and state Because your expenses and reimbursements are equal, you do not have a deduction. Tax forms federal and state Excess expenses. Tax forms federal and state   If your expenses are more than your reimbursement, you can deduct your excess expenses. Tax forms federal and state This is discussed later, under Deducting Business Expenses . Tax forms federal and state Allocating your reimbursements for meals. Tax forms federal and state   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. Tax forms federal and state If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. Tax forms federal and state Make the allocation as follows. Tax forms federal and state Divide your meal expenses by your total expenses. Tax forms federal and state Multiply your total reimbursement by the result from (1). Tax forms federal and state This is the allocated reimbursement for your meal expenses. Tax forms federal and state Subtract the amount figured in (2) from your total reimbursement. Tax forms federal and state The difference is the allocated reimbursement for your other expenses of qualifying work-related education. Tax forms federal and state Example. Tax forms federal and state Your employer paid you an expense allowance of $2,000 under an accountable plan. Tax forms federal and state The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. Tax forms federal and state There was no indication of how much of the reimbursement was for each type of expense. Tax forms federal and state Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). Tax forms federal and state Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. Tax forms federal and state   1. Tax forms federal and state $425 meal expenses  $2,500 total expenses = . Tax forms federal and state 17   2. Tax forms federal and state $2,000 (reimbursement)×. Tax forms federal and state 17     =$340 (allocated reimbursement for meal expenses)   3. Tax forms federal and state $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). Tax forms federal and state After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). Tax forms federal and state Nonaccountable Plans Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2. Tax forms federal and state You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. Tax forms federal and state This is discussed later under Deducting Business Expenses . Tax forms federal and state An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. Tax forms federal and state Reimbursements for nondeductible expenses. Tax forms federal and state   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. Tax forms federal and state You must include them in your income. Tax forms federal and state For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. Tax forms federal and state   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. Tax forms federal and state Deducting Business Expenses Self-employed persons and employees report their business expenses differently. Tax forms federal and state The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Tax forms federal and state Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). Tax forms federal and state If your education expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. Tax forms federal and state See the instructions for the form you file for information on how to complete it. Tax forms federal and state Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. Tax forms federal and state If either (1) or (2) applies, you can deduct the total qualifying cost. Tax forms federal and state If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Tax forms federal and state In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Tax forms federal and state (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Tax forms federal and state ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Tax forms federal and state Form 2106 or 2106-EZ. Tax forms federal and state   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. Tax forms federal and state Form not required. Tax forms federal and state   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. Tax forms federal and state   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Tax forms federal and state (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. Tax forms federal and state ) Using Form 2106-EZ. Tax forms federal and state   This form is shorter and easier to use than Form 2106. Tax forms federal and state Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. Tax forms federal and state   If you do not meet both of these requirements, use Form 2106. Tax forms federal and state Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. Tax forms federal and state Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. Tax forms federal and state You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Tax forms federal and state You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . Tax forms federal and state For more information on qualified performing artists, see chapter 6 of Publication 463. Tax forms federal and state Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Tax forms federal and state They are not subject to the 2%-of-adjusted-gross-income limit. Tax forms federal and state To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Tax forms federal and state For more information on impairment-related work expenses, see chapter 6 of Publication 463. Tax forms federal and state Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Tax forms federal and state Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Tax forms federal and state If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. Tax forms federal and state However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. Tax forms federal and state Examples of records to keep. Tax forms federal and state   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. Tax forms federal and state You should keep adequate records or have sufficient evidence that will support your expenses. Tax forms federal and state Estimates or approximations do not qualify as proof of an expense. Tax forms federal and state Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. Tax forms federal and state , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. Tax forms federal and state Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. Tax forms federal and state Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. Tax forms federal and state Complete information about any scholarship or fellowship grants, including amounts you received during the year. Tax forms federal and state Illustrated Example Victor Jones teaches math at a private high school in North Carolina. Tax forms federal and state He was selected to attend a 3-week math seminar at a university in California. Tax forms federal and state The seminar will improve his skills in his current job and is qualifying work-related education. Tax forms federal and state He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. Tax forms federal and state Victor will file Form 1040. Tax forms federal and state His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. Tax forms federal and state He shows his expenses for the seminar in Part I of the form. Tax forms federal and state He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. Tax forms federal and state He enters $400 on line 4 for his tuition and books. Tax forms federal and state On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. Tax forms federal and state He multiplies that amount by 50% and enters the result, $263, on line 5. Tax forms federal and state On line 6, Victor totals the amounts from lines 3 through 5. Tax forms federal and state He carries the total, $2,313, to Schedule A (Form 1040), line 21. Tax forms federal and state Since he does not claim any vehicle expenses, Victor leaves Part II blank. Tax forms federal and state His filled-in form is shown on the next page. Tax forms federal and state This image is too large to be displayed in the current screen. Tax forms federal and state Please click the link to view the image. Tax forms federal and state Form 2106-EZ for V. Tax forms federal and state Jones Prev  Up  Next   Home   More Online Publications