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Aarp Tax Help Locations

Aarp tax help locations Publication 946 - Additional Material Table of Contents Appendix B — Table of Class Lives and Recovery PeriodsHow To Use the Tables This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Appendix A Please click here for the text description of the image. Aarp tax help locations Table A-1 and A-2 Please click here for the text description of the image. Aarp tax help locations Table A-3 and A-4 Please click here for the text description of the image. Aarp tax help locations Table A-5 and A-6 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-7 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-8 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-8 (continued) This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-9 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-9 (continued) This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-10 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A–10 (continued) This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-11 Please click here for the text description of the image. Aarp tax help locations Table A-11 (continued) This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-12 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-12 (continued) This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-13, A-14 and A-14 (continued. Aarp tax help locations 1) Please click here for the text description of the image. Aarp tax help locations Table A-14 (continued. Aarp tax help locations 2) Please click here for the text description of the image. Aarp tax help locations Table A-15 Please click here for the text description of the image. Aarp tax help locations Table A-15 (continued) Please click here for the text description of the image. Aarp tax help locations Table A-16 Please click here for the text description of the image. Aarp tax help locations Table A-16 (continued) This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-17 Please click here for the text description of the image. Aarp tax help locations Table A-17 (continued) Please click here for the text description of the image. Aarp tax help locations Table A-18 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-18 (continued) This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table A-19 and Table A-20 Please click here for the text description of the image. Aarp tax help locations Quality Indian Reservation Property Tables Please click here for the text description of the image. Aarp tax help locations Qualified Indian Reservation Property Tables 2 Appendix B — Table of Class Lives and Recovery Periods The Table of Class Lives and Recovery Periods has two sections. Aarp tax help locations The first section, Specific Depreciable Assets Used In All Business Activities, Except As Noted, generally lists assets used in all business activities. Aarp tax help locations It is shown as Table B-1. Aarp tax help locations The second section, Depreciable Assets Used In The Following Activities, describes assets used only in certain activities. Aarp tax help locations It is shown as Table B-2. Aarp tax help locations How To Use the Tables You will need to look at both Table B-1 and B-2 to find the correct recovery period. Aarp tax help locations Generally, if the property is listed in Table B-1 you use the recovery period shown in that table. Aarp tax help locations However, if the property is specifically listed in Table B-2 under the type of activity in which it is used, you use the recovery period listed under the activity in that table. Aarp tax help locations Use the tables in the order shown below to determine the recovery period of your depreciable property. Aarp tax help locations Table B-1. Aarp tax help locations   Check Table B-1 for a description of the property. Aarp tax help locations If it is described in Table B-1, also check Table B-2 to find the activity in which the property is being used. Aarp tax help locations If the activity is described in Table B-2, read the text (if any) under the title to determine if the property is specifically included in that asset class. Aarp tax help locations If it is, use the recovery period shown in the appropriate column of Table B-2 following the description of the activity. Aarp tax help locations If the activity is not described in Table B-2 or if the activity is described but the property either is not specifically included in or is specifically excluded from that asset class, then use the recovery period shown in the appropriate column following the description of the property in Table B-1. Aarp tax help locations Tax-exempt use property subject to a lease. Aarp tax help locations   The recovery period for ADS cannot be less than 125 percent of the lease term for any property leased under a leasing arrangement to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership). Aarp tax help locations Table B-2. Aarp tax help locations   If the property is not listed in Table B-1, check Table B-2 to find the activity in which the property is being used and use the recovery period shown in the appropriate column following the description. Aarp tax help locations Property not in either table. Aarp tax help locations   If the activity or the property is not included in either table, check the end of Table B-2 to find Certain Property for Which Recovery Periods Assigned. Aarp tax help locations This property generally has a recovery period of 7 years for GDS or 12 years for ADS. Aarp tax help locations See Which Property Class Applies Under GDS and Which Recovery Period Applies in chapter 4 for the class lives or the recovery periods for GDS and ADS for the following. Aarp tax help locations Residential rental property and nonresidential real property (also see Appendix A, Chart 2). Aarp tax help locations Qualified rent-to-own property. Aarp tax help locations A motorsport entertainment complex placed in service before January 1, 2014. Aarp tax help locations Any retail motor fuels outlet. Aarp tax help locations Any qualified leasehold improvement property placed in service before January 1, 2014. Aarp tax help locations Any qualified restaurant property placed in service before January 1, 2014. Aarp tax help locations Initial clearing and grading land improvements for gas utility property and electric utility transmission and distribution plants. Aarp tax help locations Any water utility property. Aarp tax help locations Certain electric transmission property used in the transmission at 69 or more kilovolts of electricity for sale and placed in service after April 11, 2005. Aarp tax help locations Natural gas gathering and distribution lines placed in service after April 11, 2005. Aarp tax help locations Example 1. Aarp tax help locations Richard Green is a paper manufacturer. Aarp tax help locations During the year, he made substantial improvements to the land on which his paper plant is located. Aarp tax help locations He checks Table B-1 and finds land improvements under asset class 00. Aarp tax help locations 3. Aarp tax help locations He then checks Table B-2 and finds his activity, paper manufacturing, under asset class 26. Aarp tax help locations 1, Manufacture of Pulp and Paper. Aarp tax help locations He uses the recovery period under this asset class because it specifically includes land improvements. Aarp tax help locations The land improvements have a 13-year class life and a 7-year recovery period for GDS. Aarp tax help locations If he elects to use ADS, the recovery period is 13 years. Aarp tax help locations If Richard only looked at Table B-1, he would select asset class 00. Aarp tax help locations 3, Land Improvements, and incorrectly use a recovery period of 15 years for GDS or 20 years for ADS. Aarp tax help locations Example 2. Aarp tax help locations Sam Plower produces rubber products. Aarp tax help locations During the year, he made substantial improvements to the land on which his rubber plant is located. Aarp tax help locations He checks Table B-1 and finds land improvements under asset class 00. Aarp tax help locations 3. Aarp tax help locations He then checks Table B-2 and finds his activity, producing rubber products, under asset class 30. Aarp tax help locations 1, Manufacture of Rubber Products. Aarp tax help locations Reading the headings and descriptions under asset class 30. Aarp tax help locations 1, Sam finds that it does not include land improvements. Aarp tax help locations Therefore, Sam uses the recovery period under asset class 00. Aarp tax help locations 3. Aarp tax help locations The land improvements have a 20-year class life and a 15-year recovery period for GDS. Aarp tax help locations If he elects to use ADS, the recovery period is 20 years. Aarp tax help locations Example 3. Aarp tax help locations Pam Martin owns a retail clothing store. Aarp tax help locations During the year, she purchased a desk and a cash register for use in her business. Aarp tax help locations She checks Table B-1 and finds office furniture under asset class 00. Aarp tax help locations 11. Aarp tax help locations Cash registers are not listed in any of the asset classes in Table B-1. Aarp tax help locations She then checks Table B-2 and finds her activity, retail store, under asset class 57. Aarp tax help locations 0, Distributive Trades and Services, which includes assets used in wholesale and retail trade. Aarp tax help locations This asset class does not specifically list office furniture or a cash register. Aarp tax help locations She looks back at Table B-1 and uses asset class 00. Aarp tax help locations 11 for the desk. Aarp tax help locations The desk has a 10-year class life and a 7-year recovery period for GDS. Aarp tax help locations If she elects to use ADS, the recovery period is 10 years. Aarp tax help locations For the cash register, she uses asset class 57. Aarp tax help locations 0 because cash registers are not listed in Table B-1 but it is an asset used in her retail business. Aarp tax help locations The cash register has a 9-year class life and a 5-year recovery period for GDS. Aarp tax help locations If she elects to use the ADS method, the recovery period is 9 years. Aarp tax help locations This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-1 Please click here for the text description of the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. Aarp tax help locations Please click the link to view the image. Aarp tax help locations Table B-2 This image is too large to be displayed in the current screen. 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Understanding Your CP210/CP220 Notice

We made change(s) for the tax year specified on the notice.


What you need to do

  • Read your notice carefully - it explains the changes we made to your tax account.
  • If you agree, make your payment (if you have a balance) by your due date. Go to the payments page to find out more about your payment options.
  • If you disagree, contact us at the toll-free number on the top right corner of your notice.
  • Correct the copy of your tax return that you kept for your records.

You may want to


Answers to Common Questions

Q. The notice says "Based on the information you provided, we changed your 200X Form XXXX to correct your...", but I don't remember sending any change to IRS. How can I find out what IRS received to initiate this change?

A. Please contact us at the number listed on the top right corner of your notice for specific information about your tax return. 

Q. What do I say when I call the IRS?

A. Mention that you received a CP210 or CP 220 notice and you need to review your account with a customer service representative. Be sure to have a copy of your notice and your tax return before you call. 

Q. What should I do if I disagree with the changes you made?

A. If you disagree, contact us at the toll-free number listed on the top right corner of your notice. 

Q. What happens if I can't pay the full amount I owe?

A. See if you may be able to set up a payment plan through our Online Payment Agreement Application

Q. Am I charged interest on the money I owe?

A. If you don't full pay the amount you owe by the date on your notice, interest will accrue on the unpaid balance after that date. 

Q. Will I receive a penalty if I can't pay the full amount?

A. Yes, you'll receive a late payment penalty if you did not pay the tax in full. You can contact us at the number listed on your notice if you’re unable to pay the full amount shown in your specific notice because of circumstances beyond your control. Contact us by the due date of your payment and, depending on your situation, we may be able to remove the penalty. 

Q. What if I'm due a refund and haven't received it within 2-3 weeks?

A. If you don't owe other taxes or debts we're required to collect, such as child support, and 3 weeks have lapsed, call us at the toll-free number listed on the top right corner of your notice. 

Q. Will I receive information about the interest that I need to report on my next tax return?

A. If you were paid $10 or more in interest, you'll receive a Form 1099-INT from IRS by January 31st of next year. Please note, even if the interest amount paid to you is less than $10, you must report this amount on your tax return. 

Q. What if I need to make another correction to my account?

A. You'll need to file an amended return. 

Q. What if I have tried to get answers and after contacting IRS several times have not been successful?

A. Call Taxpayer Advocate at 1-877-777-4778 or for TTY/TDD 1-800-829-4059. 

Q. What if I think I’m a victim of identity theft?

A. Please contact us at the number listed on the top right corner of your notice. Refer to the IRS Identity Theft resource page for more information.


Tips for next year

  • Consider filing your taxes electronically in the future if you did not file this return electronically. Filing online can help you avoid mistakes. Learn more about e-file.

 

 

Page Last Reviewed or Updated: 27-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The Aarp Tax Help Locations

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