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File 2011 Tax Returns

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File 2011 Tax Returns

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

Are you moving? Report your change of address to continue receiving mail and government benefits. We list the change of address forms online, so you can find everything you need in one place, including the USPS (U.S. Postal Service) form.


U.S. Postal Service: Forward Your Mail

  • Change Your Address Online  – Change your address online for a $1 fee if you have a credit card and valid e-mail address. You can also print the form and then mail or deliver it to your local post office to change your address for free. After changing your address, the U.S. Postal Service will forward your mail to your new address for up to one year.
  • Locate a Post Office  – Find your local post office to pick up or drop off a change of address form.

Other Federal Agencies

  • Internal Revenue Service (PDF)  – Change your address with the IRS if you are expecting a tax refund or other mail. You can also change your address with the IRS by writing your new address in the appropriate boxes on your tax return when you file.
  • Social Security Administration  – If you receive benefits or have Medicare, you can use your mySocialSecurity account to report a change of address. If you don't receive benefits, contact Social Security at 1-800-772-1213 (TTY 1-800-325-0778).
  • Department of Veterans Affairs (PDF)  – Change your address if you are a veteran who receives benefit payments or you wish to update your records.
  • U.S. Citizenship and Immigration Services  – If you are a non-U.S. citizen who is required to register with USCIS, then you need to let them know if you move.

State Agencies

  • Driver's License  – Contact your state if you need to change your address on your driver's license or motor vehicle registration.
  • Voter Registration  – Contact your state's election office if you want to change your address on your voter registration record.

The File 2011 Tax Returns

File 2011 tax returns 6. File 2011 tax returns   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. File 2011 tax returns  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). File 2011 tax returns For more information, see the retiree drug subsidy frequently asked questions on IRS. File 2011 tax returns gov. File 2011 tax returns Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. File 2011 tax returns However, you may have to capitalize certain insurance costs under the uniform capitalization rules. File 2011 tax returns For more information, see Capitalized Premiums , later. File 2011 tax returns Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. File 2011 tax returns S. File 2011 tax returns Individual Income Tax Return See chapter 12 for information about getting publications and forms. File 2011 tax returns Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. File 2011 tax returns Insurance that covers fire, storm, theft, accident, or similar losses. File 2011 tax returns Credit insurance that covers losses from business bad debts. File 2011 tax returns Group hospitalization and medical insurance for employees, including long-term care insurance. File 2011 tax returns If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. File 2011 tax returns If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. File 2011 tax returns See Publication 15-B. File 2011 tax returns Liability insurance. File 2011 tax returns Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. File 2011 tax returns Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. File 2011 tax returns If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. File 2011 tax returns If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. File 2011 tax returns Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. File 2011 tax returns Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. File 2011 tax returns Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. File 2011 tax returns If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. File 2011 tax returns If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. File 2011 tax returns Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. File 2011 tax returns Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. File 2011 tax returns Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. File 2011 tax returns The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. File 2011 tax returns A child includes your son, daughter, stepchild, adopted child, or foster child. File 2011 tax returns A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. File 2011 tax returns One of the following statements must be true. File 2011 tax returns You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. File 2011 tax returns You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. File 2011 tax returns , box 14, code A. File 2011 tax returns You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. File 2011 tax returns You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. File 2011 tax returns Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. File 2011 tax returns The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. File 2011 tax returns For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. File 2011 tax returns For partners, a policy can be either in the name of the partnership or in the name of the partner. File 2011 tax returns You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. File 2011 tax returns However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. File 2011 tax returns Otherwise, the insurance plan will not be considered to be established under your business. File 2011 tax returns For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. File 2011 tax returns You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. File 2011 tax returns However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. File 2011 tax returns Otherwise, the insurance plan will not be considered to be established under your business. File 2011 tax returns Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. File 2011 tax returns If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. File 2011 tax returns For more information, see Form 1040X, Amended U. File 2011 tax returns S. File 2011 tax returns Individual Income Tax Return. File 2011 tax returns Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. File 2011 tax returns Take the deduction on Form 1040, line 29. File 2011 tax returns Qualified long-term care insurance. File 2011 tax returns   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. File 2011 tax returns But, for each person covered, you can include only the smaller of the following amounts. File 2011 tax returns The amount paid for that person. File 2011 tax returns The amount shown below. File 2011 tax returns Use the person's age at the end of the tax year. File 2011 tax returns Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. File 2011 tax returns   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. File 2011 tax returns The contract must meet all the following requirements. File 2011 tax returns It must be guaranteed renewable. File 2011 tax returns It must provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits. File 2011 tax returns It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. File 2011 tax returns It generally must not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. File 2011 tax returns Qualified long-term care services. File 2011 tax returns   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. File 2011 tax returns The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. File 2011 tax returns Worksheet 6-A. File 2011 tax returns Self-Employed Health Insurance Deduction Worksheet Note. File 2011 tax returns Use a separate worksheet for each trade or business under which an insurance plan is established. File 2011 tax returns 1. File 2011 tax returns Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. File 2011 tax returns Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. File 2011 tax returns But do not include the following. File 2011 tax returns   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. File 2011 tax returns Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. File 2011 tax returns Any amounts you included on Form 8885, line 4. File 2011 tax returns Any qualified health insurance premiums you paid to “U. File 2011 tax returns S. File 2011 tax returns Treasury-HCTC. File 2011 tax returns ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. File 2011 tax returns Any payments for qualified long-term care insurance (see line 2) 1. File 2011 tax returns   2. File 2011 tax returns For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. File 2011 tax returns       a) Total payments made for that person during the year. File 2011 tax returns       b) The amount shown below. File 2011 tax returns Use the person's age at the end of the tax year. File 2011 tax returns         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. File 2011 tax returns If more than one person is covered, figure separately the amount to enter for each person. File 2011 tax returns Then enter the total of those amounts 2. File 2011 tax returns   3. File 2011 tax returns Add lines 1 and 2 3. File 2011 tax returns   4. File 2011 tax returns Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. File 2011 tax returns Do not include Conservation Reserve Program payments exempt from self-employment tax. File 2011 tax returns If the business is an S corporation, skip to line 11 4. File 2011 tax returns   5. File 2011 tax returns Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. File 2011 tax returns Do not include Conservation Reserve Program payments exempt from self-employment tax. File 2011 tax returns See the Instructions for Schedule SE (Form 1040). File 2011 tax returns Do not include any net losses shown on these schedules. File 2011 tax returns 5. File 2011 tax returns   6. File 2011 tax returns Divide line 4 by line 5 6. File 2011 tax returns   7. File 2011 tax returns Multiply Form 1040, line 27, by the percentage on line 6 7. File 2011 tax returns   8. File 2011 tax returns Subtract line 7 from line 4 8. File 2011 tax returns   9. File 2011 tax returns Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. File 2011 tax returns   10. File 2011 tax returns Subtract line 9 from line 8 10. File 2011 tax returns   11. File 2011 tax returns Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. File 2011 tax returns   12. File 2011 tax returns Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. File 2011 tax returns   13. File 2011 tax returns Subtract line 12 from line 10 or 11, whichever applies 13. File 2011 tax returns   14. File 2011 tax returns Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. File 2011 tax returns Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). File 2011 tax returns 14. File 2011 tax returns   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. File 2011 tax returns Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. File 2011 tax returns * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. File 2011 tax returns However, it does not include capital gain income. File 2011 tax returns Chronically ill individual. File 2011 tax returns   A chronically ill individual is a person who has been certified as one of the following. File 2011 tax returns An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. File 2011 tax returns Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. File 2011 tax returns An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. File 2011 tax returns The certification must have been made by a licensed health care practitioner within the previous 12 months. File 2011 tax returns Benefits received. File 2011 tax returns   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. File 2011 tax returns Other coverage. File 2011 tax returns   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. File 2011 tax returns In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. File 2011 tax returns   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. File 2011 tax returns However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. File 2011 tax returns Effect on itemized deductions. File 2011 tax returns   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. File 2011 tax returns Effect on self-employment tax. File 2011 tax returns   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. File 2011 tax returns For more information, see Schedule SE (Form 1040). File 2011 tax returns How to figure the deduction. File 2011 tax returns   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. File 2011 tax returns However, if any of the following apply, you must use Worksheet 6-A in this chapter. File 2011 tax returns You had more than one source of income subject to self-employment tax. File 2011 tax returns You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. File 2011 tax returns You are using amounts paid for qualified long-term care insurance to figure the deduction. File 2011 tax returns If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. File 2011 tax returns Health coverage tax credit. File 2011 tax returns   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. File 2011 tax returns Use Form 8885 to figure the amount, if any, of this credit. File 2011 tax returns   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. File 2011 tax returns Any amounts you included on Form 8885, line 4. File 2011 tax returns Any qualified health insurance premiums you paid to “U. File 2011 tax returns S. File 2011 tax returns Treasury-HCTC. File 2011 tax returns ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. File 2011 tax returns More than one health plan and business. File 2011 tax returns   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. File 2011 tax returns Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). File 2011 tax returns For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. File 2011 tax returns Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. File 2011 tax returns Self-insurance reserve funds. File 2011 tax returns You cannot deduct amounts credited to a reserve set up for self-insurance. File 2011 tax returns This applies even if you cannot get business insurance coverage for certain business risks. File 2011 tax returns However, your actual losses may be deductible. File 2011 tax returns See Publication 547. File 2011 tax returns Loss of earnings. File 2011 tax returns You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. File 2011 tax returns However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. File 2011 tax returns Certain life insurance and annuities. File 2011 tax returns For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. File 2011 tax returns You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. File 2011 tax returns A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. File 2011 tax returns For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. File 2011 tax returns The disallowance applies without regard to whom the policy covers. File 2011 tax returns Partners. File 2011 tax returns If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. File 2011 tax returns You cannot deduct the insurance premiums. File 2011 tax returns Insurance to secure a loan. File 2011 tax returns If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. File 2011 tax returns Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. File 2011 tax returns In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. File 2011 tax returns Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. File 2011 tax returns Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. File 2011 tax returns You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. File 2011 tax returns Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. File 2011 tax returns Uniform capitalization rules. File 2011 tax returns   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. File 2011 tax returns Produce real property or tangible personal property. File 2011 tax returns For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. File 2011 tax returns Acquire property for resale. File 2011 tax returns However, these rules do not apply to the following property. File 2011 tax returns Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. File 2011 tax returns Property you produce if you meet either of the following conditions. File 2011 tax returns Your indirect costs of producing the property are $200,000 or less. File 2011 tax returns You use the cash method of accounting and do not account for inventories. File 2011 tax returns More information. File 2011 tax returns   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. File 2011 tax returns When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. File 2011 tax returns Cash method. File 2011 tax returns   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. File 2011 tax returns However, see Prepayment , later. File 2011 tax returns Accrual method. File 2011 tax returns   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. File 2011 tax returns In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). File 2011 tax returns For more information about the accrual method of accounting, see chapter 1. File 2011 tax returns For information about the exception for recurring items, see Publication 538. File 2011 tax returns Prepayment. File 2011 tax returns   You cannot deduct expenses in advance, even if you pay them in advance. File 2011 tax returns This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. File 2011 tax returns   Expenses such as insurance are generally allocable to a period of time. File 2011 tax returns You can deduct insurance expenses for the year to which they are allocable. File 2011 tax returns Example. File 2011 tax returns In 2013, you signed a 3-year insurance contract. File 2011 tax returns Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. File 2011 tax returns You can deduct in 2014 and 2015 the premium allocable to those years. File 2011 tax returns Dividends received. File 2011 tax returns   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. File 2011 tax returns For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. File 2011 tax returns Prev  Up  Next   Home   More Online Publications