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140ez 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. 140ez Computer used in a home office. 140ez 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). 140ez You can claim the amount of expenses that is more than 2% of your adjusted gross income. 140ez You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. 140ez Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. 140ez Generally, you apply the 2% limit after you apply any other deduction limit. 140ez 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. 140ez Deductions subject to the 2% limit are discussed in the following three categories. 140ez Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). 140ez Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). 140ez Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). 140ez Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. 140ez 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. 140ez An expense is ordinary if it is common and accepted in your trade, business, or profession. 140ez An expense is necessary if it is appropriate and helpful to your business. 140ez An expense does not have to be required to be considered necessary. 140ez You may be able to deduct the following items as unreimbursed employee expenses. 140ez Business bad debt of an employee. 140ez Business liability insurance premiums. 140ez Damages paid to a former employer for breach of an employment contract. 140ez Depreciation on a computer your employer requires you to use in your work. 140ez Dues to a chamber of commerce if membership helps you do your job. 140ez Dues to professional societies. 140ez Educator expenses. 140ez Home office or part of your home used regularly and exclusively in your work. 140ez Job search expenses in your present occupation. 140ez Laboratory breakage fees. 140ez Legal fees related to your job. 140ez Licenses and regulatory fees. 140ez Malpractice insurance premiums. 140ez Medical examinations required by an employer. 140ez Occupational taxes. 140ez Passport for a business trip. 140ez Repayment of an income aid payment received under an employer's plan. 140ez Research expenses of a college professor. 140ez Rural mail carriers' vehicle expenses. 140ez Subscriptions to professional journals and trade magazines related to your work. 140ez Tools and supplies used in your work. 140ez Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. 140ez Union dues and expenses. 140ez Work clothes and uniforms if required and not suitable for everyday use. 140ez Work-related education. 140ez Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. 140ez 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. 140ez 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. 140ez Example. 140ez You make a bona fide loan to the corporation you work for. 140ez It fails to pay you back. 140ez You had to make the loan in order to keep your job. 140ez You have a business bad debt as an employee. 140ez More information. 140ez   For more information on business bad debts, see chapter 10 in Publication 535. 140ez For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. 140ez Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. 140ez 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. 140ez 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. 140ez For the convenience of your employer. 140ez   This means that your use of the computer is for a substantial business reason of your employer. 140ez You must consider all facts in making this determination. 140ez Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. 140ez Required as a condition of your employment. 140ez   This means that you cannot properly perform your duties without the computer. 140ez Whether you can properly perform your duties without it depends on all the facts and circumstances. 140ez It is not necessary that your employer explicitly requires you to use your computer. 140ez But neither is it enough that your employer merely states that your use of the item is a condition of your employment. 140ez Example. 140ez You are an engineer with an engineering firm. 140ez You occasionally take work home at night rather than work late at the office. 140ez You own and use a computer that is similar to the one you use at the office to complete your work at home. 140ez 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. 140ez Which depreciation method to use. 140ez   The depreciation method you use depends on whether you meet the more-than-50%-use test. 140ez More-than-50%-use test met. 140ez   You meet this test if you use the computer more than 50% in your work. 140ez If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). 140ez In addition, you may be able to take the section 179 deduction for the year you place the item in service. 140ez More-than-50%-use test not met. 140ez   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). 140ez You also cannot claim the section 179 deduction. 140ez (But if you use your computer in a home office, see the exception below. 140ez ) Investment use. 140ez   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. 140ez However, you can combine your investment use with your work use in figuring your depreciation deduction. 140ez Exception for computer used in a home office. 140ez   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 . 140ez 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. 140ez You also may be able to take a section 179 deduction for the year you place the computer in service. 140ez See Computer used in a home office under How To Report, later. 140ez More information. 140ez   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. 140ez Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. 140ez Reporting your depreciation deduction. 140ez    See How To Report, later, for information about reporting a deduction for depreciation. 140ez You must keep records to prove your percentage of business and investment use. 140ez 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. 140ez Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. 140ez Lobbying and political activities. 140ez    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. 140ez See Lobbying Expenses under Nondeductible Expenses, later. 140ez 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. 140ez If you file Form 1040A, you can deduct these expenses on line 16. 140ez If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. 140ez However, neither spouse can deduct more than $250 of his or her qualified expenses. 140ez Eligible educator. 140ez   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. 140ez Qualified expenses. 140ez   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. 140ez An ordinary expense is one that is common and accepted in your educational field. 140ez A necessary expense is one that is helpful and appropriate for your profession as an educator. 140ez An expense does not have to be required to be considered necessary. 140ez   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. 140ez You must reduce your qualified expenses by the following amounts. 140ez Excludable U. 140ez S. 140ez series EE and I savings bond interest from Form 8815. 140ez Nontaxable qualified state tuition program earnings. 140ez Nontaxable earnings from Coverdell education savings accounts. 140ez Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. 140ez Educator expenses over limit. 140ez   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. 140ez 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. 140ez 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. 140ez The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. 140ez Principal place of business. 140ez   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. 140ez   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. 140ez You should keep records that will give the information needed to figure the deduction according to these rules. 140ez Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. 140ez More information. 140ez   See Publication 587 for more detailed information and a worksheet for figuring the deduction. 140ez 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. 140ez 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. 140ez Employment and outplacement agency fees. 140ez    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. 140ez Employer pays you back. 140ez   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. 140ez See Recoveries in Publication 525. 140ez Employer pays the employment agency. 140ez   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. 140ez Résumé. 140ez   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. 140ez Travel and transportation expenses. 140ez   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. 140ez You can deduct the travel expenses if the trip is primarily to look for a new job. 140ez 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. 140ez   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. 140ez    You can choose to use the standard mileage rate to figure your car expenses. 140ez The 2013 rate for business use of a vehicle is 56½ cents per mile. 140ez See Publication 463 for more information on travel and car expenses. 140ez Legal Fees You can deduct legal fees related to doing or keeping your job. 140ez 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. 140ez 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. 140ez 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. 140ez 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. 140ez 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. 140ez 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. 140ez 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. 140ez However, you cannot deduct the cost of travel as a form of education. 140ez 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. 140ez See chapter 4 of Publication 463 for more information. 140ez 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. 140ez You can depreciate the cost of tools that have a useful life substantially beyond the tax year. 140ez For more information about depreciation, see Publication 946. 140ez 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. 140ez Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. 140ez Travel expenses. 140ez   Travel expenses are those incurred while traveling away from home for your employer. 140ez You can deduct travel expenses paid or incurred in connection with a temporary work assignment. 140ez Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. 140ez   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. 140ez ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. 140ez   Travel expenses are discussed more fully in chapter 1 of Publication 463. 140ez Temporary work assignment. 140ez    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. 140ez Indefinite work assignment. 140ez   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. 140ez 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. 140ez Federal crime investigation and prosecution. 140ez   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. 140ez 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. 140ez   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. 140ez Armed Forces reservists traveling more than 100 miles from home. 140ez   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. 140ez 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. 140ez The balance, if any, is reported on Schedule A. 140ez   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. 140ez   For more information on travel expenses, see Publication 463. 140ez Local transportation expenses. 140ez   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. 140ez They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. 140ez   You can choose to use the standard mileage rate to figure your car expenses. 140ez The 2013 rate for business use of a vehicle is 56½ cents per mile. 140ez    In general, the costs of commuting between your residence and your place of business are nondeductible. 140ez Work at two places in a day. 140ez   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. 140ez Temporary work location. 140ez   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. 140ez The work location is outside the metropolitan area where you live and normally work. 140ez You have at least one regular work location (other than your home) for the same trade or business. 140ez (If this applies, the distance between your home and the temporary work location does not matter. 140ez )   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. 140ez 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. 140ez 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. 140ez For more information, see chapter 1 of Publication 463. 140ez Home office. 140ez   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. 140ez (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. 140ez ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. 140ez Meals and entertainment. 140ez   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. 140ez 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. 140ez   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. 140ez You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. 140ez Meals when subject to “hours of service” limits. 140ez   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. 140ez You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. 140ez Gift expenses. 140ez   You can generally deduct up to $25 of business gifts you give to any one individual during the year. 140ez The following items do not count toward the $25 limit. 140ez Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. 140ez Signs, racks, and promotional materials to be displayed on the business premises of the recipient. 140ez Local lodging. 140ez   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. 140ez   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. 140ez Additional information. 140ez    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. 140ez Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. 140ez You can also deduct assessments for benefit payments to unemployed union members. 140ez However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. 140ez Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. 140ez You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. 140ez See Lobbying Expenses under Nondeductible Expenses, later. 140ez Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. 140ez You must wear them as a condition of your employment. 140ez The clothes are not suitable for everyday wear. 140ez It is not enough that you wear distinctive clothing. 140ez The clothing must be specifically required by your employer. 140ez Nor is it enough that you do not, in fact, wear your work clothes away from work. 140ez The clothing must not be suitable for taking the place of your regular clothing. 140ez 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. 140ez ). 140ez Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. 140ez 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. 140ez Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. 140ez Protective clothing. 140ez   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. 140ez   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. 140ez Military uniforms. 140ez   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. 140ez 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. 140ez In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. 140ez   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. 140ez   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. 140ez However, you can deduct the cost of insignia, shoulder boards, and related items. 140ez    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. 140ez 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. 140ez It maintains or improves skills required in your present work. 140ez 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. 140ez 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. 140ez If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. 140ez 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. 140ez Travel as education. 140ez   You cannot deduct the cost of travel that in itself constitutes a form of education. 140ez 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. 140ez More information. 140ez    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. 140ez 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. 140ez Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. 140ez Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. 140ez Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. 140ez These fees include the cost of tax preparation software programs and tax publications. 140ez They also include any fee you paid for electronic filing of your return. 140ez See Tax preparation fees under How To Report, later. 140ez Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. 140ez 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. 140ez 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. 140ez These other expenses include the following items. 140ez Appraisal fees for a casualty loss or charitable contribution. 140ez Casualty and theft losses from property used in performing services as an employee. 140ez Clerical help and office rent in caring for investments. 140ez Depreciation on home computers used for investments. 140ez Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. 140ez Fees to collect interest and dividends. 140ez Hobby expenses, but generally not more than hobby income. 140ez Indirect miscellaneous deductions from pass-through entities. 140ez Investment fees and expenses. 140ez Legal fees related to producing or collecting taxable income or getting tax advice. 140ez Loss on deposits in an insolvent or bankrupt financial institution. 140ez Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. 140ez Repayments of income. 140ez Repayments of social security benefits. 140ez Safe deposit box rental, except for storing jewelry and other personal effects. 140ez Service charges on dividend reinvestment plans. 140ez Tax advice fees. 140ez Trustee's fees for your IRA, if separately billed and paid. 140ez If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. 140ez Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. 140ez 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. 140ez First report the loss in Section B of Form 4684, Casualties and Thefts. 140ez You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. 140ez 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. 140ez For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. 140ez 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. 140ez 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. 140ez The fees are deductible on the return for the year in which you paid them. 140ez For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. 140ez 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). 140ez You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. 140ez But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. 140ez For more information on depreciation, see Publication 946. 140ez 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. 140ez Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. 140ez 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. 140ez For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. 140ez 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. 140ez But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. 140ez You must add the fee to the cost of the property. 140ez You cannot deduct the fee you pay to a broker to sell securities. 140ez You can use the fee only to figure gain or loss from the sale. 140ez See the instructions for Schedule D (Form 1040) for information on how to report the fee. 140ez Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. 140ez A hobby is not a business because it is not carried on to make a profit. 140ez See Not-for-Profit Activities in chapter 1 of Publication 535. 140ez Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. 140ez Deductions of pass-through entities are passed through to the partners or shareholders. 140ez The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. 140ez Example. 140ez You are a member of an investment club that is formed solely to invest in securities. 140ez The club is treated as a partnership. 140ez The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. 140ez In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. 140ez 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. 140ez Publicly offered mutual funds. 140ez   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. 140ez 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. 140ez   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). 140ez This net figure is the amount you report on your return as income. 140ez You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. 140ez Information returns. 140ez   You should receive information returns from pass-through entities. 140ez Partnerships and S corporations. 140ez   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. 140ez Nonpublicly offered mutual funds. 140ez   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. 140ez You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. 140ez 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. 140ez 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. 140ez 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. 140ez 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. 140ez You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). 140ez See Tax Preparation Fees, earlier. 140ez Unlawful discrimination claims. 140ez   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. 140ez S. 140ez Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. 140ez 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. 140ez See Publication 525 for more information. 140ez Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. 140ez 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. 140ez If elected, the casualty loss is subject to certain deduction limitations. 140ez The election is made on Form 4684. 140ez Once you make this choice, you cannot change it without IRS approval. 140ez If none of the deposit is federally insured, you can deduct the loss in either of the following ways. 140ez As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). 140ez 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. 140ez 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. 140ez As a casualty loss. 140ez Report it on Form 4684 first and then on Schedule A (Form 1040). 140ez See Publication 547 for details. 140ez As a nonbusiness bad debt. 140ez Report it on Schedule D (Form 1040). 140ez If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. 140ez Exception. 140ez   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. 140ez For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. 140ez Actual loss different from estimated loss. 140ez   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. 140ez See Recoveries in Publication 525. 140ez If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. 140ez Choice not made. 140ez   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. 140ez See Nonbusiness Bad Debts in chapter 4 of Publication 550. 140ez 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. 140ez For more information, see Publication 590, Individual Retirement Arrangements (IRAs). 140ez 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. 140ez If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. 140ez If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. 140ez 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. 140ez 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. 140ez The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. 140ez 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). 140ez If the deduction is more than $3,000, you will have to use a special computation to figure your tax. 140ez See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. 140ez 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. 140ez You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. 140ez Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. 140ez 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. 140ez 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. 140ez Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. 140ez They are not subject to the 2% limit. 140ez Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. 140ez List of Deductions Amortizable premium on taxable bonds. 140ez Casualty and theft losses from income-producing property. 140ez Federal estate tax on income in respect of a decedent. 140ez Gambling losses up to the amount of gambling winnings. 140ez Impairment-related work expenses of persons with disabilities. 140ez Loss from other activities from Schedule K-1 (Form 1065-B), box 2. 140ez Losses from Ponzi-type investment schemes. 140ez Repayments of more than $3,000 under a claim of right. 140ez Unrecovered investment in an annuity. 140ez 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. 140ez You can elect to amortize the premium on taxable bonds. 140ez The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. 140ez Pre-1998 election to amortize bond premium. 140ez   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. 140ez Bonds acquired after October 22, 1986, and before 1988. 140ez   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. 140ez Bonds acquired before October 23, 1986. 140ez   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. 140ez Deduction for excess premium. 140ez   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. 140ez If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. 140ez 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. 140ez 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. 140ez    Pre-1998 choice to amortize bond premium. 140ez 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. 140ez More information. 140ez    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. 140ez 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). 140ez First report the loss in Section B of Form 4684. 140ez You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. 140ez 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. 140ez For more information on casualty and theft losses, see Publication 547. 140ez 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. 140ez 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. 140ez See Publication 559 for information about figuring the amount of this deduction. 140ez 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. 140ez You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. 140ez You cannot deduct gambling losses that are more than your winnings. 140ez Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). 140ez You cannot reduce your gambling winnings by your gambling losses and report the difference. 140ez 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. 140ez Therefore, your records should show your winnings separately from your losses. 140ez Diary of winnings and losses. 140ez You must keep an accurate diary or similar record of your losses and winnings. 140ez Your diary should contain at least the following information. 140ez The date and type of your specific wager or wagering activity. 140ez The name and address or location of the gambling establishment. 140ez The names of other persons present with you at the gambling establishment. 140ez The amount(s) you won or lost. 140ez Proof of winnings and losses. 140ez   In addition to your diary, you should also have other documentation. 140ez 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. 140ez   For specific wagering transactions, you can use the following items to support your winnings and losses. 140ez    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. 140ez They are not all-inclusive. 140ez Your tax liability depends on your particular facts and circumstances. 140ez Keno. 140ez   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. 140ez Slot machines. 140ez   A record of the machine number and all winnings by date and time the machine was played. 140ez Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. 140ez ). 140ez   The number of the table at which you were playing. 140ez Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. 140ez Bingo. 140ez   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. 140ez Supplemental records include any receipts from the casino, parlor, etc. 140ez Racing (horse, harness, dog, etc. 140ez ). 140ez   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. 140ez Supplemental records include unredeemed tickets and payment records from the racetrack. 140ez Lotteries. 140ez   A record of ticket purchases, dates, winnings, and losses. 140ez Supplemental records include unredeemed tickets, payment slips, and winnings statements. 140ez 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. 140ez 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. 140ez Example. 140ez You are blind. 140ez You must use a reader to do your work. 140ez 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. 140ez The reader's services are only for your work. 140ez You can deduct your expenses for the reader as impairment-related work expenses. 140ez Self-employed. 140ez   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. 140ez See Impairment-related work expenses. 140ez , later under How To Report. 140ez 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. 140ez S. 140ez trade or business). 140ez It is not subject to the passive activity limitations. 140ez 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. 140ez See Publication 463 for more information. 140ez 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. 140ez If you are an employee, complete Form 2106 or Form 2106-EZ. 140ez See Publication 463 for more information. 140ez 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. 140ez You figure the deductible loss in Section B of Form 4684. 140ez 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. 140ez Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. 140ez You do not need to complete Appendix A. 140ez See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. 140ez 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. 140ez See Repayments in Publication 525 for more information. 140ez 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. 140ez 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. 140ez See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. 140ez Nondeductible Expenses You cannot deduct the following expenses. 140ez List of Nondeductible Expenses Adoption expenses. 140ez Broker's commissions. 140ez Burial or funeral expenses, including the cost of a cemetery lot. 140ez Campaign expenses. 140ez Capital expenses. 140ez Check-writing fees. 140ez Club dues. 140ez Commuting expenses. 140ez Fees and licenses, such as car licenses, marriage licenses, and dog tags. 140ez Fines and penalties, such as parking tickets. 140ez Health spa expenses. 140ez Hobby losses—but see Hobby Expenses, earlier. 140ez Home repairs, insurance, and rent. 140ez Home security system. 140ez Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. 140ez Investment-related seminars. 140ez Life insurance premiums paid by the insured. 140ez Lobbying expenses. 140ez Losses from the sale of your home, furniture, personal car, etc. 140ez Lost or misplaced cash or property. 140ez Lunches with co-workers. 140ez Meals while working late. 140ez Medical expenses as business expenses other than medical examinations required by your employer. 140ez Personal disability insurance premiums. 140ez Personal legal expenses. 140ez Personal, living, or family expenses. 140ez Political contributions. 140ez Professional accreditation fees. 140ez Professional reputation, expenses to improve. 140ez Relief fund contributions. 140ez Residential telephone line. 140ez Stockholders' meeting, expenses of attending. 140ez Tax-exempt income, expenses of earning or collecting. 140ez The value of wages never received or lost vacation time. 140ez Travel expenses for another individual. 140ez Voluntary unemployment benefit fund contributions. 140ez Wristwatches. 140ez Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. 140ez For details, see Form 8839, Qualified Adoption Expenses. 140ez Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. 140ez Instead, these fees must be added to the taxpayer's cost of the securities. 140ez Commissions paid on the sale are deductible as business expenses only by dealers. 140ez Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. 140ez These include qualification and registration fees for primary elections. 140ez Legal fees. 140ez   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. 140ez 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. 140ez If you use such property in your work, you may be able to take a depreciation deduction. 140ez See Publication 946. 140ez If the property is a car used in your work, also see Publication 463. 140ez 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. 140ez Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. 140ez This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. 140ez 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. 140ez Dues paid to airline, hotel, and luncheon clubs are not deductible. 140ez Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). 140ez 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. 140ez Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. 140ez This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). 140ez Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. 140ez 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. 140ez Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. 140ez However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. 140ez See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. 140ez Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. 140ez Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. 140ez You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. 140ez See Publication 504, Divorced or Separated Individuals, for information on alimony. 140ez Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. 140ez 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. 140ez Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. 140ez Covered executive branch official. 140ez   A covered executive branch official, for the purpose of (4) above, is any of the following officials. 140ez The President. 140ez The Vice President. 140ez 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. 140ez 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. 140ez Dues used for lobbying. 140ez   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. 140ez Exceptions. 140ez   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. 140ez You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). 140ez An Indian tribal government is considered a local council or similar governing body. 140ez 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). 140ez 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. 140ez Payments by the other person to you for lobbying activities cannot be deducted. 140ez Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. 140ez 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. 140ez See Publication 547. 140ez Example. 140ez A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. 140ez The diamond falls from the ring and is never found. 140ez The loss of the diamond is a casualty. 140ez Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. 140ez See Publication 463 for information on deductible expenses while traveling away from home. 140ez Meals While Working Late You cannot deduct the cost of meals while working late. 140ez 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. 140ez See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. 140ez Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. 140ez Custody of children. 140ez Breach of promise to marry suit. 140ez Civil or criminal charges resulting from a personal relationship. 140ez Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). 140ez For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. 140ez Preparation of a title (or defense or perfection of a title). 140ez Preparation of a will. 140ez Property claims or property settlement in a divorce. 140ez You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. 140ez Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. 140ez Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. 140ez Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. 140ez Accounting certificate fees paid for the initial right to practice accounting. 140ez Bar exam fees and incidental expenses in securing initial admission to the bar. 140ez Medical and dental license fees paid to get initial licensing. 140ez Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. 140ez 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. 140ez 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. 140ez 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. 140ez You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. 140ez Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. 140ez You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. 140ez If you have expenses to p

The 140ez

140ez 5. 140ez   How To Get Tax Help Table of Contents Low Income Taxpayer Clinics Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. 140ez Free help with your tax return. 140ez   You can get free help preparing your return nationwide from IRS-certified volunteers. 140ez The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. 140ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 140ez Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. 140ez In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. 140ez To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. 140ez gov, download the IRS2Go app, or call 1-800-906-9887. 140ez   As part of the TCE program, AARP offers the Tax-Aide counseling program. 140ez To find the nearest AARP Tax-Aide site, visit AARP's website at www. 140ez aarp. 140ez org/money/taxaide or call 1-888-227-7669. 140ez For more information on these programs, go to IRS. 140ez gov and enter “VITA” in the search box. 140ez Internet. 140ez    IRS. 140ez gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. 140ez Download the free IRS2Go app from the iTunes app store or from Google Play. 140ez Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. 140ez Check the status of your 2013 refund with the Where's My Refund? application on IRS. 140ez gov or download the IRS2Go app and select the Refund Status option. 140ez The IRS issues more than 9 out of 10 refunds in less than 21 days. 140ez Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. 140ez You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. 140ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 140ez Use the Interactive Tax Assistant (ITA) to research your tax questions. 140ez No need to wait on the phone or stand in line. 140ez The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. 140ez When you reach the response screen, you can print the entire interview and the final response for your records. 140ez New subject areas are added on a regular basis. 140ez  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. 140ez gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. 140ez You can use the IRS Tax Map, to search publications and instructions by topic or keyword. 140ez The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. 140ez When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. 140ez Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. 140ez You can also ask the IRS to mail a return or an account transcript to you. 140ez Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. 140ez gov or by calling 1-800-908-9946. 140ez Tax return and tax account transcripts are generally available for the current year and the past three years. 140ez Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. 140ez Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. 140ez If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. 140ez Check the status of your amended return using Where's My Amended Return? Go to IRS. 140ez gov and enter Where's My Amended Return? in the search box. 140ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 140ez It can take up to 3 weeks from the date you mailed it to show up in our system. 140ez Make a payment using one of several safe and convenient electronic payment options available on IRS. 140ez gov. 140ez Select the Payment tab on the front page of IRS. 140ez gov for more information. 140ez Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. 140ez Figure your income tax withholding with the IRS Withholding Calculator on IRS. 140ez gov. 140ez Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. 140ez Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. 140ez gov. 140ez Request an Electronic Filing PIN by going to IRS. 140ez gov and entering Electronic Filing PIN in the search box. 140ez Download forms, instructions and publications, including accessible versions for people with disabilities. 140ez Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. 140ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. 140ez An employee can answer questions about your tax account or help you set up a payment plan. 140ez Before you visit, check the Office Locator on IRS. 140ez gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. 140ez If you have a special need, such as a disability, you can request an appointment. 140ez Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. 140ez Apply for an Employer Identification Number (EIN). 140ez Go to IRS. 140ez gov and enter Apply for an EIN in the search box. 140ez Read the Internal Revenue Code, regulations, or other official guidance. 140ez Read Internal Revenue Bulletins. 140ez Sign up to receive local and national tax news and more by email. 140ez Just click on “subscriptions” above the search box on IRS. 140ez gov and choose from a variety of options. 140ez Phone. 140ez    You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. 140ez Download the free IRS2Go app from the iTunes app store or from Google Play. 140ez Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. 140ez gov, or download the IRS2Go app. 140ez Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. 140ez The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. 140ez Most VITA and TCE sites offer free electronic filing. 140ez Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. 140ez Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. 140ez Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. 140ez If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. 140ez The IRS issues more than 9 out of 10 refunds in less than 21 days. 140ez Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. 140ez Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. 140ez The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. 140ez Note, the above information is for our automated hotline. 140ez Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. 140ez Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. 140ez You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. 140ez It can take up to 3 weeks from the date you mailed it to show up in our system. 140ez Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). 140ez You should receive your order within 10 business days. 140ez Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. 140ez If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. 140ez Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. 140ez The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. 140ez These individuals can also contact the IRS through relay services such as the Federal Relay Service. 140ez Walk-in. 140ez   You can find a selection of forms, publications and services — in-person. 140ez Products. 140ez You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. 140ez Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. 140ez Services. 140ez You can walk in to your local TAC for face-to-face tax help. 140ez An employee can answer questions about your tax account or help you set up a payment plan. 140ez Before visiting, use the Office Locator tool on IRS. 140ez gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. 140ez Mail. 140ez   You can send your order for forms, instructions, and publications to the address below. 140ez You should receive a response within 10 business days after your request is received. 140ez Internal Revenue Service 1201 N. 140ez Mitsubishi Motorway Bloomington, IL 61705-6613    The Taxpayer Advocate Service Is Here to Help You. 140ez The Taxpayer Advocate Service (TAS) is your voice at the IRS. 140ez Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. 140ez   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. 140ez We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. 140ez You face (or your business is facing) an immediate threat of adverse action. 140ez You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. 140ez   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. 140ez Here's why we can help: TAS is an independent organization within the IRS. 140ez Our advocates know how to work with the IRS. 140ez Our services are free and tailored to meet your needs. 140ez We have offices in every state, the District of Columbia, and Puerto Rico. 140ez   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at Taxpayer Advocate, or call us toll-free at 1-877-777-4778. 140ez   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. 140ez If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System. 140ez Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. 140ez Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. 140ez Visit Taxpayer Advocate or see IRS Publication 4134, Low Income Taxpayer Clinic List. 140ez Prev  Up  Next   Home   More Online Publications