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Add 1098 T Information 1040x Form

Add 1098 t information 1040x form 9. Add 1098 t information 1040x form   Obligations Not in Registered Form Tax is imposed on any person who issues a registration-required obligation not in registered form. Add 1098 t information 1040x form The tax is: 1% of the principal of the obligation, multiplied by The number of calendar years (or portions of calendar years) during the period starting on the date the obligation was issued and ending on the date it matures. Add 1098 t information 1040x form A registration-required obligation is any obligation other than one that meets any of the following conditions. Add 1098 t information 1040x form It is issued by a natural person. Add 1098 t information 1040x form It is not of a type offered to the public. Add 1098 t information 1040x form It has a maturity (at issue) of not more than 1 year. Add 1098 t information 1040x form It can only be issued to a foreign person. Add 1098 t information 1040x form For item (4), if the obligation is not in registered form, the interest on the obligation must be payable only outside the United States and its possessions. Add 1098 t information 1040x form Also, the obligation must state on its face that any U. Add 1098 t information 1040x form S. Add 1098 t information 1040x form person who holds it shall be subject to limits under the U. Add 1098 t information 1040x form S. Add 1098 t information 1040x form income tax laws. Add 1098 t information 1040x form Prev  Up  Next   Home   More Online Publications
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IRS Releases the Dirty Dozen Tax Scams for 2013

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Dirty Dozen: English | Spanish | ASL

IR-2013-33, March 26, 2013

WASHINGTON — The Internal Revenue Service today issued its annual “Dirty Dozen” list of tax scams, reminding taxpayers to use caution during tax season to protect themselves against a wide range of schemes ranging from identity theft to return preparer fraud.

The Dirty Dozen listing, compiled by the IRS each year, lists a variety of common scams taxpayers can encounter at any point during the year. But many of these schemes peak during filing season as people prepare their tax returns.

"This tax season, the IRS has stepped up its efforts to protect taxpayers from a wide range of schemes, including moving aggressively to combat identity theft and refund fraud," said IRS Acting Commissioner Steven T. Miller. "The Dirty Dozen list shows that scams come in many forms during filing season. Don't let a scam artist steal from you or talk you into doing something you will regret later."

Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shutdown scams and prosecute the criminals behind them.

The following are the Dirty Dozen tax scams for 2013:

Identity Theft

Tax fraud through the use of identity theft tops this year’s Dirty Dozen list. Identity theft occurs when someone uses your personal information such as your name, Social Security number (SSN) or other identifying information, without your permission, to commit fraud or other crimes. In many cases, an identity thief uses a legitimate taxpayer’s identity to fraudulently file a tax return and claim a refund.

Combating identity theft and refund fraud is a top priority for the IRS, and we are taking special steps to assist victims. For the 2013 tax season, the IRS has put in place a number of additional steps to prevent identity theft and detect refund fraud before it occurs. We have dramatically enhanced our systems, and we are committed to continuing to improve our prevention, detection and assistance efforts.

The IRS has a comprehensive and aggressive identity theft strategy employing a three-pronged effort focusing on fraud prevention, early detection and victim assistance. We are continually reviewing our processes and policies to ensure that we are doing everything possible to minimize identity theft incidents, to help those victimized by it and to investigate those who are committing the crimes.

The IRS continues to increase its efforts against refund fraud, which includes identity theft. During 2012, the IRS prevented the issuance of $20 billion of fraudulent refunds, including those related to identity theft, compared with $14 billion in 2011.

This January, the IRS also conducted a coordinated and highly successful identity theft enforcement sweep. The coast-to-coast effort against identity theft suspects led to 734 enforcement actions in January, including 298 indictments, informations, complaints and arrests. The effort comes on top of a growing identity theft effort that led to 2,400 other enforcement actions against identity thieves during fiscal year 2012. The Criminal Investigation unit has devoted more than 500,000 staff-hours to fighting this issue.

We know identity theft is a frustrating and complex process for victims. The IRS has 3,000 people working on identity theft related cases — more than double the number in late 2011. And we have trained 35,000 employees who work with taxpayers to help with identity theft situations.

The IRS has a special section on IRS.gov dedicated to identity theft issues, including YouTube videos, tips for taxpayers and an assistance guide. For victims, the information includes how to contact the IRS Identity Protection Specialized Unit. For other taxpayers, there are tips on how taxpayers can protect themselves against identity theft.

Taxpayers who believe they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. Taxpayers can call the IRS Identity Protection Specialized Unit at 800-908-4490. More information can be found on the special identity protection page.

Phishing

Phishing is a scam typically carried out with the help of unsolicited email or a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and financial information. Armed with this information, a criminal can commit identity theft or financial theft.

If you receive an unsolicited email that appears to be from either the IRS or an organization closely linked to the IRS, such as the Electronic Federal Tax Payment System (EFTPS), report it by sending it to phishing@irs.gov.

It is important to keep in mind the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. The IRS has information that can help you protect yourself from email scams.

Return Preparer Fraud

About 60 percent of taxpayers will use tax professionals this year to prepare their tax returns. Most return preparers provide honest service to their clients. But some unscrupulous preparers prey on unsuspecting taxpayers, and the result can be refund fraud or identity theft.

It is important to choose carefully when hiring an individual or firm to prepare your return. This year, the IRS wants to remind all taxpayers that they should use only preparers who sign the returns they prepare and enter their IRS Preparer Tax Identification Numbers (PTINs).

The IRS also has created a new web page to assist taxpayers. For tips about choosing a preparer, red flags, details on preparer qualifications and information on how and when to make a complaint, visit www.irs.gov/chooseataxpro.

Remember: Taxpayers are legally responsible for what’s on their tax return even if it is prepared by someone else. Make sure the preparer you hire is up to the task.

IRS.gov has general information on reporting tax fraud. More specifically, report abusive tax preparers to the IRS on Form 14157, Complaint: Tax Return Preparer. Download Form 14157 and fill it out or order by mail at 800-TAX FORM (800-829-3676). The form includes a return address.

Hiding Income Offshore

Over the years, numerous individuals have been identified as evading U.S. taxes by hiding income in offshore banks, brokerage accounts or nominee entities, using debit cards, credit cards or wire transfers to access the funds. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.

The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as the banks and bankers suspected of helping clients hide their assets overseas. The IRS works closely with the Department of Justice (DOJ) to prosecute tax evasion cases.

While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting and disclosure requirements are breaking the law and risk significant penalties and fines, as well as the possibility of criminal prosecution.

Since 2009, 38,000 individuals have come forward voluntarily to disclose their foreign financial accounts, taking advantage of special opportunities to comply with the U.S. tax system and resolve their tax obligations. And, with new foreign account reporting requirements being phased in over the next few years, hiding income offshore will become increasingly more difficult.

At the beginning of 2012, the IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The IRS continues working on a wide range of international tax issues and follows ongoing efforts with DOJ to pursue criminal prosecution of international tax evasion. This program will be open for an indefinite period until otherwise announced.

The IRS has collected $5.5 billion so far from people who participated in offshore voluntary disclosure programs since 2009.

“Free Money” from the IRS & Tax Scams Involving Social Security

Flyers and advertisements for free money from the IRS, suggesting that the taxpayer can file a tax return with little or no documentation, have been appearing in community churches around the country. These schemes promise refunds to people who have little or no income and normally don’t have a tax filing requirement – and are also often spread by word of mouth as unsuspecting and well-intentioned people tell their friends and relatives.

Scammers prey on low income individuals and the elderly and members of church congregations with bogus promises of free money. They build false hopes and charge people good money for bad advice including encouraging taxpayers to make fictitious claims for refunds or rebates based on false statements of entitlement to tax credits. For example, some promoters claim they can obtain for their victims, often senior citizens, a tax refund or nonexistent stimulus payment based on the American Opportunity Tax Credit, even if the victim was not enrolled in or paying for college. Con artists also falsely claim that refunds are available even if the victim went to school decades ago. In the end, the victims discover their claims are rejected. Meanwhile, the promoters are long gone. The IRS warns all taxpayers to remain vigilant.

There are also a number of tax scams involving Social Security. For example, scammers have been known to lure the unsuspecting with promises of non-existent Social Security refunds or rebates. In another situation, a taxpayer may really be due a credit or refund but uses inflated information to complete the return.

Beware: Intentional mistakes of this kind can result in a $5,000 penalty.

Impersonation of Charitable Organizations

Another long-standing type of abuse or fraud is scams that occur in the wake of significant natural disasters.

Following major disasters, it’s common for scam artists to impersonate charities to get money or private information from well-intentioned taxpayers. Scam artists can use a variety of tactics. Some scammers operating bogus charities may contact people by telephone or email to solicit money or financial information. They may even directly contact disaster victims and claim to be working for or on behalf of the IRS to help the victims file casualty loss claims and get tax refunds.

They may attempt to get personal financial information or Social Security numbers that can be used to steal the victims’ identities or financial resources. Bogus websites may solicit funds for disaster victims. As in the case of a recent disaster, Hurricane Sandy, the IRS cautions both victims of natural disasters and people wishing to make charitable donations to avoid scam artists by following these tips:

  • To help disaster victims, donate to recognized charities.
  • Be wary of charities with names that are similar to familiar or nationally known organizations. Some phony charities use names or websites that sound or look like those of respected, legitimate organizations. IRS.gov has a search feature, Exempt Organizations Select Check, which allows people to find legitimate, qualified charities to which donations may be tax-deductible.
  • Don’t give out personal financial information, such as Social Security numbers or credit card and bank account numbers and passwords, to anyone who solicits  a contribution from you. Scam artists may use this information to steal your identity and money.
  • Don’t give or send cash. For security and tax record purposes, contribute by check or credit card or another way that provides documentation of the gift.

Call the IRS toll-free disaster assistance telephone number (1-866-562-5227) if you are a disaster victim with specific questions about tax relief or disaster related tax issues.

False/Inflated Income and Expenses

Including income that was never earned, either as wages or as self-employment income in order to maximize refundable credits, is another popular scam. Claiming income you did not earn or expenses you did not pay in order to secure larger refundable credits such as the Earned Income Tax Credit could have serious repercussions. This could result in repaying the erroneous refunds, including interest and penalties, and in some cases, even prosecution.

Additionally, some taxpayers are filing excessive claims for the fuel tax credit. Farmers and other taxpayers who use fuel for off-highway business purposes may be eligible for the fuel tax credit. But other individuals have claimed the tax credit although they were not eligible. Fraud involving the fuel tax credit is considered a frivolous tax claim and can result in a penalty of $5,000.

False Form 1099 Refund Claims

In some cases, individuals have made refund claims based on the bogus theory that the federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS. In this ongoing scam, the perpetrator files a fake information return, such as a Form 1099 Original Issue Discount (OID), to justify a false refund claim on a corresponding tax return.

Don’t fall prey to people who encourage you to claim deductions or credits to which you are not entitled or willingly allow others to use your information to file false returns. If you are a party to such schemes, you could be liable for financial penalties or even face criminal prosecution.

Frivolous Arguments

Promoters of frivolous schemes encourage taxpayers to make unreasonable and outlandish claims to avoid paying the taxes they owe. The IRS has a list of frivolous tax arguments that taxpayers should avoid. These arguments are false and have been thrown out of court. While taxpayers have the right to contest their tax liabilities in court, no one has the right to disobey the law.

Falsely Claiming Zero Wages

Filing a phony information return is an illegal way to lower the amount of taxes an individual owes. Typically, a Form 4852 (Substitute Form W-2) or a “corrected” Form 1099 is used as a way to improperly reduce taxable income to zero. The taxpayer may also submit a statement rebutting wages and taxes reported by a payer to the IRS.

Sometimes, fraudsters even include an explanation on their Form 4852 that cites statutory language on the definition of wages or may include some reference to a paying company that refuses to issue a corrected Form W-2 for fear of IRS retaliation. Taxpayers should resist any temptation to participate in any variations of this scheme. Filing this type of return may result in a $5,000 penalty.

Disguised Corporate Ownership

Third parties are improperly used to request employer identification numbers and form corporations that obscure the true ownership of the business.

These entities can be used to underreport income, claim fictitious deductions, avoid filing tax returns, participate in listed transactions and facilitate money laundering and financial crimes. The IRS is working with state authorities to identify these entities and bring the owners into compliance with the law.

Misuse of Trusts

For years, unscrupulous promoters have urged taxpayers to transfer assets into trusts. While there are legitimate uses of trusts in tax and estate planning, some highly questionable transactions promise reduction of income subject to tax, deductions for personal expenses and reduced estate or gift taxes. Such trusts rarely deliver the tax benefits promised and are used primarily as a means of avoiding income tax liability and hiding assets from creditors, including the IRS.

IRS personnel have seen an increase in the improper use of private annuity trusts and foreign trusts to shift income and deduct personal expenses. As with other arrangements, taxpayers should seek the advice of a trusted professional before entering a trust arrangement.
 

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Page Last Reviewed or Updated: 07-Mar-2014

The Add 1098 T Information 1040x Form

Add 1098 t information 1040x form 27. Add 1098 t information 1040x form   Tax Benefits for Work-Related Education Table of Contents What's New Introduction Useful Items - You may want to see: Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. Add 1098 t information 1040x form Transportation Expenses Travel Expenses No Double Benefit Allowed Reimbursements Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping What's New Standard mileage rate. Add 1098 t information 1040x form  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013, through December 31, 2013, is 56½ cents per mile. Add 1098 t information 1040x form For more information, see Transportation Expenses under What Expenses Can Be Deducted. Add 1098 t information 1040x form Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Add 1098 t information 1040x form To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040) if you are an employee, File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education . Add 1098 t information 1040x form If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Add 1098 t information 1040x form Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. Add 1098 t information 1040x form See chapter 28. Add 1098 t information 1040x form If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Add 1098 t information 1040x form Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits (see chapter 35). Add 1098 t information 1040x form You may qualify for these other benefits even if you do not meet the requirements listed earlier. Add 1098 t information 1040x form Also, keep in mind that your work-related education expenses may qualify you to claim more than one tax benefit. Add 1098 t information 1040x form Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Add 1098 t information 1040x form When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that give you the lowest tax liability. Add 1098 t information 1040x form Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 970 Tax Benefits for Education Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Schedule A (Form 1040) Itemized Deductions Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Add 1098 t information 1040x form This is education that meets at least one of the following two tests. Add 1098 t information 1040x form The education is required by your employer or the law to keep your present salary, status, or job. Add 1098 t information 1040x form The required education must serve a bona fide business purpose of your employer. Add 1098 t information 1040x form The education maintains or improves skills needed in your present work. Add 1098 t information 1040x form However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Add 1098 t information 1040x form You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Add 1098 t information 1040x form Use Figure 27-A, later, as a quick check to see if your education qualifies. Add 1098 t information 1040x form Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. Add 1098 t information 1040x form This additional education is qualifying work-related education if all three of the following requirements are met. Add 1098 t information 1040x form It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. Add 1098 t information 1040x form When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. Add 1098 t information 1040x form See Education To Maintain or Improve Skills , later. Add 1098 t information 1040x form Example. Add 1098 t information 1040x form You are a teacher who has satisfied the minimum requirements for teaching. Add 1098 t information 1040x form Your employer requires you to take an additional college course each year to keep your teaching job. Add 1098 t information 1040x form If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. Add 1098 t information 1040x form Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. Add 1098 t information 1040x form This could include refresher courses, courses on current developments, and academic or vocational courses. Add 1098 t information 1040x form Example. Add 1098 t information 1040x form You repair televisions, radios, and stereo systems for XYZ Store. Add 1098 t information 1040x form To keep up with the latest changes, you take special courses in radio and stereo service. Add 1098 t information 1040x form These courses maintain and improve skills required in your work. Add 1098 t information 1040x form Maintaining skills vs. Add 1098 t information 1040x form qualifying for new job. Add 1098 t information 1040x form   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. Add 1098 t information 1040x form Education during temporary absence. Add 1098 t information 1040x form   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Add 1098 t information 1040x form Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Add 1098 t information 1040x form Example. Add 1098 t information 1040x form You quit your biology research job to become a full-time biology graduate student for one year. Add 1098 t information 1040x form If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. Add 1098 t information 1040x form Education during indefinite absence. Add 1098 t information 1040x form   If you stop work for more than a year, your absence from your job is considered indefinite. Add 1098 t information 1040x form Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. Add 1098 t information 1040x form Therefore, it is not qualifying work-related education. Add 1098 t information 1040x form Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. Add 1098 t information 1040x form The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Add 1098 t information 1040x form Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. Add 1098 t information 1040x form This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. Add 1098 t information 1040x form You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Add 1098 t information 1040x form Example 1. Add 1098 t information 1040x form You are a full-time engineering student. Add 1098 t information 1040x form Although you have not received your degree or certification, you work part-time as an engineer for a firm that will employ you as a full-time engineer after you finish college. Add 1098 t information 1040x form Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. Add 1098 t information 1040x form The education is not qualifying work-related education. Add 1098 t information 1040x form Example 2. Add 1098 t information 1040x form You are an accountant and you have met the minimum educational requirements of your employer. Add 1098 t information 1040x form Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Add 1098 t information 1040x form These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. Add 1098 t information 1040x form Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Add 1098 t information 1040x form The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Add 1098 t information 1040x form If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Add 1098 t information 1040x form The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. Add 1098 t information 1040x form You generally will be considered a faculty member when one or more of the following occurs. Add 1098 t information 1040x form You have tenure. Add 1098 t information 1040x form Your years of service count toward obtaining tenure. Add 1098 t information 1040x form You have a vote in faculty decisions. Add 1098 t information 1040x form Your school makes contributions for you to a retirement plan other than social security or a similar program. Add 1098 t information 1040x form Example 1. Add 1098 t information 1040x form The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Add 1098 t information 1040x form In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Add 1098 t information 1040x form If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. Add 1098 t information 1040x form However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Add 1098 t information 1040x form Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. Add 1098 t information 1040x form If you have all the required education except the fifth year, you have met the minimum educational requirements. Add 1098 t information 1040x form The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. Add 1098 t information 1040x form Figure 27-A Does Your Work-Related Education Qualify? Please click here for the text description of the image. Add 1098 t information 1040x form Figure 27-A. Add 1098 t information 1040x form Does Your Work-Related Education Qualify?" Example 2. Add 1098 t information 1040x form Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Add 1098 t information 1040x form The additional four education courses can be qualifying work-related education. Add 1098 t information 1040x form Although you do not have all the required courses, you have already met the minimum educational requirements. Add 1098 t information 1040x form Example 3. Add 1098 t information 1040x form Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Add 1098 t information 1040x form The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Add 1098 t information 1040x form They are needed to meet the minimum educational requirements for employment as a teacher. Add 1098 t information 1040x form Example 4. Add 1098 t information 1040x form You have a bachelor's degree and you work as a temporary instructor at a university. Add 1098 t information 1040x form At the same time, you take graduate courses toward an advanced degree. Add 1098 t information 1040x form The rules of the university state that you can become a faculty member only if you get a graduate degree. Add 1098 t information 1040x form Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Add 1098 t information 1040x form You have not met the minimum educational requirements to qualify you as a faculty member. Add 1098 t information 1040x form The graduate courses are not qualifying work-related education. Add 1098 t information 1040x form Certification in a new state. Add 1098 t information 1040x form   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. Add 1098 t information 1040x form This is true even if you must get additional education to be certified in another state. Add 1098 t information 1040x form Any additional education you need is qualifying work-related education. Add 1098 t information 1040x form You have already met the minimum requirements for teaching. Add 1098 t information 1040x form Teaching in another state is not a new trade or business. Add 1098 t information 1040x form Example. Add 1098 t information 1040x form You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Add 1098 t information 1040x form You move to State B and are promptly hired as a teacher. Add 1098 t information 1040x form You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Add 1098 t information 1040x form These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. Add 1098 t information 1040x form Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. Add 1098 t information 1040x form This is true even if you do not plan to enter that trade or business. Add 1098 t information 1040x form If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Add 1098 t information 1040x form Example 1. Add 1098 t information 1040x form You are an accountant. Add 1098 t information 1040x form Your employer requires you to get a law degree at your own expense. Add 1098 t information 1040x form You register at a law school for the regular curriculum that leads to a law degree. Add 1098 t information 1040x form Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. Add 1098 t information 1040x form Example 2. Add 1098 t information 1040x form You are a general practitioner of medicine. Add 1098 t information 1040x form You take a 2-week course to review developments in several specialized fields of medicine. Add 1098 t information 1040x form The course does not qualify you for a new profession. Add 1098 t information 1040x form It is qualifying work-related education because it maintains or improves skills required in your present profession. Add 1098 t information 1040x form Example 3. Add 1098 t information 1040x form While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Add 1098 t information 1040x form The program will lead to qualifying you to practice psychoanalysis. Add 1098 t information 1040x form The psychoanalytic training does not qualify you for a new profession. Add 1098 t information 1040x form It is qualifying work-related education because it maintains or improves skills required in your present profession. Add 1098 t information 1040x form Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. Add 1098 t information 1040x form They are part of a program of study that can qualify you for a new profession. Add 1098 t information 1040x form Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Add 1098 t information 1040x form A change in duties in any of the following ways is not considered a change to a new business. Add 1098 t information 1040x form Elementary school teacher to secondary school teacher. Add 1098 t information 1040x form Teacher of one subject, such as biology, to teacher of another subject, such as art. Add 1098 t information 1040x form Classroom teacher to guidance counselor. Add 1098 t information 1040x form Classroom teacher to school administrator. Add 1098 t information 1040x form What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education , you can generally deduct your education expenses as business expenses. Add 1098 t information 1040x form If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Add 1098 t information 1040x form You cannot deduct expenses related to tax-exempt and excluded income. Add 1098 t information 1040x form Deductible expenses. Add 1098 t information 1040x form   The following education expenses can be deducted. Add 1098 t information 1040x form Tuition, books, supplies, lab fees, and similar items. Add 1098 t information 1040x form Certain transportation and travel costs. Add 1098 t information 1040x form Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Add 1098 t information 1040x form Nondeductible expenses. Add 1098 t information 1040x form   You cannot deduct personal or capital expenses. Add 1098 t information 1040x form For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Add 1098 t information 1040x form This amount is a personal expense. Add 1098 t information 1040x form Unclaimed reimbursement. Add 1098 t information 1040x form   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. Add 1098 t information 1040x form Example. Add 1098 t information 1040x form Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Add 1098 t information 1040x form You do not file a voucher, and you do not get reimbursed. Add 1098 t information 1040x form Because you did not file a voucher, you cannot deduct the expenses on your tax return. Add 1098 t information 1040x form Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Add 1098 t information 1040x form If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. Add 1098 t information 1040x form Temporary basis. Add 1098 t information 1040x form   You go to school on a temporary basis if either of the following situations applies to you. Add 1098 t information 1040x form Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Add 1098 t information 1040x form Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Add 1098 t information 1040x form Your attendance is temporary up to the date you determine it will last more than 1 year. Add 1098 t information 1040x form Note. Add 1098 t information 1040x form If you are in either situation (1) or (2), your attendance is not temporary if facts and circumstances indicate otherwise. Add 1098 t information 1040x form Attendance not on a temporary basis. Add 1098 t information 1040x form   You do not go to school on a temporary basis if either of the following situations apply to you. Add 1098 t information 1040x form Your attendance at school is realistically expected to last more than 1 year. Add 1098 t information 1040x form It does not matter how long you actually attend. Add 1098 t information 1040x form Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Add 1098 t information 1040x form Your attendance is not temporary after the date you determine it will last more than 1 year. Add 1098 t information 1040x form Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. Add 1098 t information 1040x form This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Add 1098 t information 1040x form Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Add 1098 t information 1040x form Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Add 1098 t information 1040x form Example 1. Add 1098 t information 1040x form You regularly work in a nearby town, and go directly from work to home. Add 1098 t information 1040x form You also attend school every work night for 3 months to take a course that improves your job skills. Add 1098 t information 1040x form Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Add 1098 t information 1040x form This is true regardless of the distance traveled. Add 1098 t information 1040x form Example 2. Add 1098 t information 1040x form Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Add 1098 t information 1040x form You can deduct your transportation expenses from your regular work site to school and then home. Add 1098 t information 1040x form Example 3. Add 1098 t information 1040x form Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Add 1098 t information 1040x form Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Add 1098 t information 1040x form Example 4. Add 1098 t information 1040x form Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Add 1098 t information 1040x form Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Add 1098 t information 1040x form If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Add 1098 t information 1040x form If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. Add 1098 t information 1040x form Using your car. Add 1098 t information 1040x form   If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. Add 1098 t information 1040x form The standard mileage rate for miles driven from January 1, 2013, through December 31, 2013 is 56½ cents per mile. Add 1098 t information 1040x form Whichever method you use, you can also deduct parking fees and tolls. Add 1098 t information 1040x form See chapter 26 for information on deducting your actual expenses of using a car. Add 1098 t information 1040x form Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. Add 1098 t information 1040x form Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Add 1098 t information 1040x form For more information, see chapter 26. Add 1098 t information 1040x form You cannot deduct expenses for personal activities, such as sightseeing, visiting, or entertaining. Add 1098 t information 1040x form Mainly personal travel. Add 1098 t information 1040x form   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Add 1098 t information 1040x form You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Add 1098 t information 1040x form   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Add 1098 t information 1040x form An important factor is the comparison of time spent on personal activities with time spent on educational activities. Add 1098 t information 1040x form If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. Add 1098 t information 1040x form Example 1. Add 1098 t information 1040x form John works in Newark, New Jersey. Add 1098 t information 1040x form He traveled to Chicago to take a deductible 1-week course at the request of his employer. Add 1098 t information 1040x form His main reason for going to Chicago was to take the course. Add 1098 t information 1040x form While there, he took a sight-seeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Add 1098 t information 1040x form Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Add 1098 t information 1040x form He cannot deduct his transportation expenses of going to Pleasantville. Add 1098 t information 1040x form He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Add 1098 t information 1040x form Example 2. Add 1098 t information 1040x form Sue works in Boston. Add 1098 t information 1040x form She went to a university in Michigan to take a course for work. Add 1098 t information 1040x form The course is qualifying work-related education. Add 1098 t information 1040x form She took one course, which is one-fourth of a full course load of study. Add 1098 t information 1040x form She spent the rest of the time on personal activities. Add 1098 t information 1040x form Her reasons for taking the course in Michigan were all personal. Add 1098 t information 1040x form Sue's trip is mainly personal because three-fourths of her time is considered personal time. Add 1098 t information 1040x form She cannot deduct the cost of her round-trip train ticket to Michigan. Add 1098 t information 1040x form She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Add 1098 t information 1040x form Example 3. Add 1098 t information 1040x form Dave works in Nashville and recently traveled to California to take a 2-week seminar. Add 1098 t information 1040x form The seminar is qualifying work-related education. Add 1098 t information 1040x form While there, he spent an extra 8 weeks on personal activities. Add 1098 t information 1040x form The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Add 1098 t information 1040x form Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Add 1098 t information 1040x form He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Add 1098 t information 1040x form Cruises and conventions. Add 1098 t information 1040x form   Certain cruises and conventions offer seminars or courses as part of their itinerary. Add 1098 t information 1040x form Even if the seminars or courses are work-related, your deduction for travel may be limited. Add 1098 t information 1040x form This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Add 1098 t information 1040x form   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. Add 1098 t information 1040x form 50% limit on meals. Add 1098 t information 1040x form   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Add 1098 t information 1040x form You cannot have been reimbursed for the meals. Add 1098 t information 1040x form   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Add 1098 t information 1040x form Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. Add 1098 t information 1040x form Example. Add 1098 t information 1040x form You are a French language teacher. Add 1098 t information 1040x form While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Add 1098 t information 1040x form You chose your itinerary and most of your activities to improve your French language skills. Add 1098 t information 1040x form You cannot deduct your travel expenses as education expenses. Add 1098 t information 1040x form This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. Add 1098 t information 1040x form No Double Benefit Allowed You cannot do either of the following. Add 1098 t information 1040x form Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, the tuition and fees deduction (see chapter 35). Add 1098 t information 1040x form Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Add 1098 t information 1040x form See Adjustments to Qualifying Work-Related Education Expenses , next. Add 1098 t information 1040x form Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. Add 1098 t information 1040x form You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Add 1098 t information 1040x form For more information, see chapter 12 of Publication 970. Add 1098 t information 1040x form Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see chapter 1 of Publication 970), The tax-free part of Pell grants (see chapter 1 of Publication 970), The tax-free part of employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received for education assistance. Add 1098 t information 1040x form Amounts that do not reduce qualifying work-related education expenses. Add 1098 t information 1040x form   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Add 1098 t information 1040x form   Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. Add 1098 t information 1040x form Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Add 1098 t information 1040x form There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Add 1098 t information 1040x form You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Add 1098 t information 1040x form For information on how to treat reimbursements under both accountable and nonaccountable plans, see Reimbursements in chapter 26. Add 1098 t information 1040x form Deducting Business Expenses Self-employed persons and employees report business expenses differently. Add 1098 t information 1040x form The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Add 1098 t information 1040x form Self-Employed Persons If you are self-employed, report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C, C-EZ, or F). Add 1098 t information 1040x form If your educational expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. Add 1098 t information 1040x form See the instructions for the form you file for information on how to complete it. Add 1098 t information 1040x form Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. Add 1098 t information 1040x form If either (1) or (2) applies, you can deduct the total qualifying cost. Add 1098 t information 1040x form If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Add 1098 t information 1040x form In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21. Add 1098 t information 1040x form (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Add 1098 t information 1040x form ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Add 1098 t information 1040x form See chapter 28. Add 1098 t information 1040x form Form 2106 or 2106-EZ. Add 1098 t information 1040x form   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or Form 2106-EZ. Add 1098 t information 1040x form Form not required. Add 1098 t information 1040x form   Do not complete either Form 2106 or Form 2106-EZ if: If amounts included in box 1 of your Form W-2, are not considered reimbursements, and You are not claiming travel, transportation, meal, or entertainment expenses. Add 1098 t information 1040x form   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21. Add 1098 t information 1040x form (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Add 1098 t information 1040x form ) Using Form 2106-EZ. Add 1098 t information 1040x form   This form is shorter and easier to use than Form 2106. Add 1098 t information 1040x form Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. Add 1098 t information 1040x form   If you do not meet both of these requirements, use Form 2106. Add 1098 t information 1040x form Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. Add 1098 t information 1040x form Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24. Add 1098 t information 1040x form You do not have to itemize your deductions on Schedule A (Form 1040), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Add 1098 t information 1040x form You must complete Form 2106 or 2106-EZ to figure your deduction, even if you meet the requirements described earlier under Form not required . Add 1098 t information 1040x form For more information on qualified performing artists, see chapter 6 of Publication 463. Add 1098 t information 1040x form Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28. Add 1098 t information 1040x form They are not subject to the 2%-of-adjusted-gross-income limit. Add 1098 t information 1040x form To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Add 1098 t information 1040x form For more information on impairment-related work expenses, see chapter 6 of Publication 463. Add 1098 t information 1040x form Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Add 1098 t information 1040x form Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Add 1098 t information 1040x form For specific information about keeping records of business expenses, see Recordkeeping in chapter 26. Add 1098 t information 1040x form Prev  Up  Next   Home   More Online Publications