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Filing Your State Taxes For Free

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Filing Your State Taxes For Free

Filing your state taxes for free 1. Filing your state taxes for free   Fuel Taxes Table of Contents Definitions Information Returns Registration RequirementsAdditional information. Filing your state taxes for free Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. Filing your state taxes for free Reseller statement. Filing your state taxes for free Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. Filing your state taxes for free Deep-draft ocean-going vessels. Filing your state taxes for free Passenger vessels. Filing your state taxes for free Ocean-going barges. Filing your state taxes for free State or local governments. Filing your state taxes for free Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel Definitions Excise taxes are imposed on all the following fuels. Filing your state taxes for free Gasoline, including aviation gasoline and gasoline blendstocks. Filing your state taxes for free Diesel fuel, including dyed diesel fuel. Filing your state taxes for free Diesel-water fuel emulsion. Filing your state taxes for free Kerosene, including dyed kerosene and kerosene used in aviation. Filing your state taxes for free Other Fuels (including alternative fuels). Filing your state taxes for free Compressed natural gas (CNG). Filing your state taxes for free Fuels used in commercial transportation on inland waterways. Filing your state taxes for free Any liquid used in a fractional ownership program aircraft as fuel. Filing your state taxes for free The following terms are used throughout the discussion of fuel taxes. Filing your state taxes for free Other terms are defined in the discussion of the specific fuels to which they pertain. Filing your state taxes for free Agri-biodiesel. Filing your state taxes for free   Agri-biodiesel means biodiesel derived solely from virgin oils, including esters derived from virgin vegetable oils from corn, soybeans, sunflower seeds, cottonseeds, canola, crambe, rapeseeds, safflowers, flaxseeds, rice bran, mustard seeds, and camelina, and from animal fats. Filing your state taxes for free Approved terminal or refinery. Filing your state taxes for free   This is a terminal operated by a registrant that is a terminal operator or a refinery operated by a registrant that is a refiner. Filing your state taxes for free Biodiesel. Filing your state taxes for free   Biodiesel means the monoalkyl esters of long chain fatty acids derived from plant or animal matter that meet the registration requirements for fuels and fuel additives established by the Environmental Protection Agency (EPA) under section 211 of the Clean Air Act, and the requirements of the American Society of Testing Materials (ASTM) D6751. Filing your state taxes for free Blended taxable fuel. Filing your state taxes for free   This means any taxable fuel produced outside the bulk transfer/terminal system by mixing taxable fuel on which excise tax has been imposed and any other liquid on which excise tax has not been imposed. Filing your state taxes for free This does not include a mixture removed or sold during the calendar quarter if all such mixtures removed or sold by the blender contain less than 400 gallons of a liquid on which the tax has not been imposed. Filing your state taxes for free Blender. Filing your state taxes for free   This is the person that produces blended taxable fuel. Filing your state taxes for free Bulk transfer. Filing your state taxes for free   This is the transfer of taxable fuel by pipeline or vessel. Filing your state taxes for free Bulk transfer/terminal system. Filing your state taxes for free   This is the taxable fuel distribution system consisting of refineries, pipelines, vessels, and terminals. Filing your state taxes for free Fuel in the supply tank of any engine, or in any tank car, railcar, trailer, truck, or other equipment suitable for ground transportation is not in the bulk transfer/terminal system. Filing your state taxes for free Cellulosic biofuel. Filing your state taxes for free   Cellulosic biofuel means any liquid fuel produced from any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis that meets the registration requirements for fuels and fuel additives established by the EPA under section 211 of the Clean Air Act. Filing your state taxes for free Cellulosic biofuel does not include any alcohol with a proof of less than 150 (without regard to denaturants). Filing your state taxes for free For fuels sold or used after December 31, 2009, cellulosic biofuel does not include fuel of which more than 4% (determined by weight) is any combination of water and sediment, fuel of which the ash content is more than 1%, or fuel that has an acid number greater than 25. Filing your state taxes for free Also see Second generation biofuel below. Filing your state taxes for free Diesel-water fuel emulsion. Filing your state taxes for free   A diesel-water fuel emulsion means an emulsion at least 14% of which is water. Filing your state taxes for free The emulsion additive used to produce the fuel must be registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. Filing your state taxes for free Dry lease aircraft exchange. Filing your state taxes for free   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Filing your state taxes for free Enterer. Filing your state taxes for free   This is the importer of record (under customs law) for the taxable fuel. Filing your state taxes for free However, if the importer of record is acting as an agent, such as a customs broker, the person for whom the agent is acting is the enterer. Filing your state taxes for free If there is no importer of record, the owner at the time of entry into the United States is the enterer. Filing your state taxes for free Entry. Filing your state taxes for free   Taxable fuel is entered into the United States when it is brought into the United States and applicable customs law requires that it be entered for consumption, use, or warehousing. Filing your state taxes for free This does not apply to fuel brought into Puerto Rico (which is part of the U. Filing your state taxes for free S. Filing your state taxes for free customs territory), but does apply to fuel brought into the United States from Puerto Rico. Filing your state taxes for free Fractional ownership aircraft program and fractional program aircraft. Filing your state taxes for free   See later, under Surtax on any liquid used in a fractional ownership program aircraft as fuel. Filing your state taxes for free Measurement of taxable fuel. Filing your state taxes for free   Volumes of taxable fuel can be measured on the basis of actual volumetric gallons or gallons adjusted to 60 degrees Fahrenheit. Filing your state taxes for free Other fuels. Filing your state taxes for free   See Other Fuels (Including Alternative Fuels), later, and Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2. Filing your state taxes for free Pipeline operator. Filing your state taxes for free   This is the person that operates a pipeline within the bulk transfer/terminal system. Filing your state taxes for free Position holder. Filing your state taxes for free   This is the person that holds the inventory position in the taxable fuel in the terminal, as reflected in the records of the terminal operator. Filing your state taxes for free You hold the inventory position when you have a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the taxable fuel. Filing your state taxes for free A terminal operator that owns taxable fuel in its terminal is a position holder. Filing your state taxes for free Rack. Filing your state taxes for free   This is a mechanism capable of delivering fuel into a means of transport other than a pipeline or vessel. Filing your state taxes for free Refiner. Filing your state taxes for free   This is any person that owns, operates, or otherwise controls a refinery. Filing your state taxes for free Refinery. Filing your state taxes for free   This is a facility used to produce taxable fuel and from which taxable fuel may be removed by pipeline, by vessel, or at a rack. Filing your state taxes for free However, this term does not include a facility where only blended fuel, and no other type of fuel, is produced. Filing your state taxes for free For this purpose, blended fuel is any mixture that would be blended taxable fuel if produced outside the bulk transfer/terminal system. Filing your state taxes for free Registrant. Filing your state taxes for free   This is a taxable fuel registrant (see Registration Requirements, later). Filing your state taxes for free Removal. Filing your state taxes for free   This is any physical transfer of taxable fuel. Filing your state taxes for free It also means any use of taxable fuel other than as a material in the production of taxable fuel or Other Fuels. Filing your state taxes for free However, taxable fuel is not removed when it evaporates or is otherwise lost or destroyed. Filing your state taxes for free Renewable diesel. Filing your state taxes for free   See Renewable Diesel Credits in chapter 2. Filing your state taxes for free Sale. Filing your state taxes for free   For taxable fuel not in a terminal, this is the transfer of title to, or substantial incidents of ownership in, taxable fuel to the buyer for money, services, or other property. Filing your state taxes for free For taxable fuel in a terminal, this is the transfer of the inventory position if the transferee becomes the position holder for that taxable fuel. Filing your state taxes for free Second generation biofuel. Filing your state taxes for free   This is any liquid fuel derived by, or from, qualified feedstocks, and meets the registration requirements for fuels and fuel additives established by the Environmental Protection Agency under section 211 of the Clean Air Act (42 U. Filing your state taxes for free S. Filing your state taxes for free C. Filing your state taxes for free 7545). Filing your state taxes for free It also includes certain liquid fuel which is derived by, or from, any cultivated algae, cyanobacteria, or lemna. Filing your state taxes for free It is not alcohol of less than 150 proof (disregard any added denaturants). Filing your state taxes for free See Form 6478 for more information. Filing your state taxes for free State. Filing your state taxes for free   This includes any state, any of its political subdivisions, the District of Columbia, and the American Red Cross. Filing your state taxes for free An Indian tribal government is treated as a state only if transactions involve the exercise of an essential tribal government function. Filing your state taxes for free Taxable fuel. Filing your state taxes for free   This means gasoline, diesel fuel, and kerosene. Filing your state taxes for free Terminal. Filing your state taxes for free   This is a storage and distribution facility supplied by pipeline or vessel, and from which taxable fuel may be removed at a rack. Filing your state taxes for free It does not include a facility at which gasoline blendstocks are used in the manufacture of products other than finished gasoline if no gasoline is removed from the facility. Filing your state taxes for free A terminal does not include any facility where finished gasoline, diesel fuel, or kerosene is stored if the facility is operated by a registrant and all such taxable fuel stored at the facility has been previously taxed upon removal from a refinery or terminal. Filing your state taxes for free Terminal operator. Filing your state taxes for free   This is any person that owns, operates, or otherwise controls a terminal. Filing your state taxes for free Throughputter. Filing your state taxes for free   This is any person that is a position holder or that owns taxable fuel within the bulk transfer/terminal system (other than in a terminal). Filing your state taxes for free Vessel operator. Filing your state taxes for free   This is the person that operates a vessel within the bulk transfer/terminal system. Filing your state taxes for free However, vessel does not include a deep draft ocean-going vessel. Filing your state taxes for free Information Returns Form 720-TO and Form 720-CS are information returns used to report monthly receipts and disbursements of liquid products. Filing your state taxes for free A liquid product is any liquid transported into storage at a terminal or delivered out of a terminal. Filing your state taxes for free For a list of products, see the product code table in the Instructions for Forms 720-TO and 720-CS. Filing your state taxes for free The returns are due the last day of the month following the month in which the transaction occurs. Filing your state taxes for free Generally, these returns can be filed on paper or electronically. Filing your state taxes for free For information on filing electronically, see Publication 3536, Motor Fuel Excise Tax EDI Guide. Filing your state taxes for free Publication 3536 is only available on the IRS website. Filing your state taxes for free Form 720-TO. Filing your state taxes for free   This information return is used by terminal operators to report receipts and disbursements of all liquid products to and from all approved terminals. Filing your state taxes for free Each terminal operator must file a separate form for each approved terminal. Filing your state taxes for free Form 720-CS. Filing your state taxes for free   This information return must be filed by bulk transport carriers (barges, vessels, and pipelines) who receive liquid product from an approved terminal or deliver liquid product to an approved terminal. Filing your state taxes for free Registration Requirements The following discussion applies to excise tax registration requirements for activities relating to fuels only. Filing your state taxes for free See Form 637 for other persons who must register and for more information about registration. Filing your state taxes for free Persons that are required to be registered. Filing your state taxes for free   You are required to be registered if you are a: Blender; Enterer; Pipeline operator; Position holder; Refiner; Terminal operator; Vessel operator; Producer or importer of alcohol, biodiesel, agri-biodiesel, and renewable diesel; or Producer of cellulosic or second generation biofuel. Filing your state taxes for free Persons that may register. Filing your state taxes for free   You may, but are not required to, register if you are a: Feedstock user, Industrial user, Throughputter that is not a position holder, Ultimate vendor, Diesel-water fuel emulsion producer, Credit card issuer, or Alternative fuel claimant. Filing your state taxes for free Ultimate vendors, credit card issuers, and alternative fuel claimants do not need to be registered to buy or sell fuel. Filing your state taxes for free However, they must be registered to file claims for certain sales and uses of fuel. Filing your state taxes for free See Form 637 for more information. Filing your state taxes for free Taxable fuel registrant. Filing your state taxes for free   This is an enterer, an industrial user, a refiner, a terminal operator, or a throughputter who received a Letter of Registration under the excise tax registration provisions and whose registration has not been revoked or suspended. Filing your state taxes for free The term registrant as used in the discussions of these fuels means a taxable fuel registrant. Filing your state taxes for free Additional information. Filing your state taxes for free   See the Form 637 instructions for the information you must submit when you apply for registration. Filing your state taxes for free Failure to register. Filing your state taxes for free   The penalty for failure to register if you must register, unless due to reasonable cause, is $10,000 for the initial failure, and then $1,000 each day thereafter you fail to register. Filing your state taxes for free Gasoline and Aviation Gasoline Gasoline. Filing your state taxes for free   Gasoline means all products commonly or commercially known or sold as gasoline with an octane rating of 75 or more that are suitable for use as a motor fuel. Filing your state taxes for free Gasoline includes any gasoline blend other than: Qualified ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from coal, including peat), Partially exempt ethanol and methanol fuel (at least 85 percent of the blend consists of alcohol produced from natural gas), or Denatured alcohol. Filing your state taxes for free Gasoline also includes gasoline blendstocks, discussed later. Filing your state taxes for free Aviation gasoline. Filing your state taxes for free   This means all special grades of gasoline suitable for use in aviation reciprocating engines and covered by ASTM specification D910 or military specification MIL-G-5572. Filing your state taxes for free Taxable Events The tax on gasoline is $. Filing your state taxes for free 184 per gallon. Filing your state taxes for free The tax on aviation gasoline is $. Filing your state taxes for free 194 per gallon. Filing your state taxes for free When used in a fractional ownership program aircraft, gasoline also is subject to a surtax of $. Filing your state taxes for free 141 per gallon. Filing your state taxes for free See Surtax on any liquid used in a fractional ownership program aircraft as fuel, later. Filing your state taxes for free Tax is imposed on the removal, entry, or sale of gasoline. Filing your state taxes for free Each of these events is discussed later. Filing your state taxes for free Also, see the special rules that apply to gasoline blendstocks, later. Filing your state taxes for free If the tax is paid on the gasoline in more than one event, a refund may be allowed for the “second” tax paid. Filing your state taxes for free See Refunds of Second Tax in chapter 2. Filing your state taxes for free Removal from terminal. Filing your state taxes for free   All removals of gasoline at a terminal rack are taxable. Filing your state taxes for free The position holder for that gasoline is liable for the tax. Filing your state taxes for free Two-party exchanges. Filing your state taxes for free   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. Filing your state taxes for free A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. Filing your state taxes for free The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. Filing your state taxes for free The exchange transaction occurs before or at the same time as removal across the rack by the receiving person. Filing your state taxes for free The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. Filing your state taxes for free The transaction is subject to a written contract. Filing your state taxes for free Terminal operator's liability. Filing your state taxes for free   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. Filing your state taxes for free   However, a terminal operator meeting all the following conditions at the time of the removal will not be liable for the tax. Filing your state taxes for free The terminal operator is a registrant. Filing your state taxes for free The terminal operator has an unexpired notification certificate (discussed later) from the position holder. Filing your state taxes for free The terminal operator has no reason to believe any information on the certificate is false. Filing your state taxes for free Removal from refinery. Filing your state taxes for free   The removal of gasoline from a refinery is taxable if the removal meets either of the following conditions. Filing your state taxes for free It is made by bulk transfer and the refiner, the owner of the gasoline immediately before the removal, or the operator of the pipeline or vessel is not a registrant. Filing your state taxes for free It is made at the refinery rack. Filing your state taxes for free The refiner is liable for the tax. Filing your state taxes for free Exception. Filing your state taxes for free   The tax does not apply to a removal of gasoline at the refinery rack if all the following requirements are met. Filing your state taxes for free The gasoline is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Filing your state taxes for free The gasoline is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Filing your state taxes for free The removal from the refinery is by railcar. Filing your state taxes for free The same person operates the refinery and the facility at which the gasoline is received. Filing your state taxes for free Entry into the United States. Filing your state taxes for free   The entry of gasoline into the United States is taxable if the entry meets either of the following conditions. Filing your state taxes for free It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Filing your state taxes for free It is not made by bulk transfer. Filing your state taxes for free The enterer is liable for the tax. Filing your state taxes for free Importer of record's liability. Filing your state taxes for free   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. Filing your state taxes for free   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Filing your state taxes for free The importer of record has an unexpired notification certificate (discussed later) from the enterer. Filing your state taxes for free The importer of record has no reason to believe any information in the certificate is false. Filing your state taxes for free Customs bond. Filing your state taxes for free   The customs bond will not be charged for the tax imposed on the entry of the gasoline if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. Filing your state taxes for free Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Filing your state taxes for free   The removal by bulk transfer of gasoline from a terminal is taxable if the position holder for the gasoline or the operator of the pipeline or vessel is not a registrant. Filing your state taxes for free The position holder is liable for the tax. Filing your state taxes for free The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Filing your state taxes for free However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Filing your state taxes for free Bulk transfers not received at approved terminal or refinery. Filing your state taxes for free   The removal by bulk transfer of gasoline from a terminal or refinery, or the entry of gasoline by bulk transfer into the United States, is taxable if the following conditions apply. Filing your state taxes for free No tax was previously imposed (as discussed earlier) on any of the following events. Filing your state taxes for free The removal from the refinery. Filing your state taxes for free The entry into the United States. Filing your state taxes for free The removal from a terminal by an unregistered position holder. Filing your state taxes for free Upon removal from the pipeline or vessel, the gasoline is not received at an approved terminal or refinery (or at another pipeline or vessel). Filing your state taxes for free   The owner of the gasoline when it is removed from the pipeline or vessel is liable for the tax. Filing your state taxes for free However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Filing your state taxes for free The owner is a registrant. Filing your state taxes for free The owner has an unexpired notification certificate (discussed later) from the operator of the terminal or refinery where the gasoline is received. Filing your state taxes for free The owner has no reason to believe any information on the certificate is false. Filing your state taxes for free The operator of the facility where the gasoline is received is liable for the tax if the owner meets these conditions. Filing your state taxes for free The operator is jointly and severally liable if the owner does not meet these conditions. Filing your state taxes for free Sales to unregistered person. Filing your state taxes for free   The sale of gasoline located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. Filing your state taxes for free   The seller is liable for the tax. Filing your state taxes for free However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Filing your state taxes for free   The seller is a registrant. Filing your state taxes for free The seller has an unexpired notification certificate (discussed later) from the buyer. Filing your state taxes for free The seller has no reason to believe any information on the certificate is false. Filing your state taxes for free The buyer of the gasoline is liable for the tax if the seller meets these conditions. Filing your state taxes for free The buyer is jointly and severally liable if the seller does not meet these conditions. Filing your state taxes for free Exception. Filing your state taxes for free   The tax does not apply to a sale if all of the following apply. Filing your state taxes for free The buyer's principal place of business is not in the United States. Filing your state taxes for free The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Filing your state taxes for free The seller is a registrant and the exporter of record. Filing your state taxes for free The fuel was exported. Filing your state taxes for free Removal or sale of blended gasoline. Filing your state taxes for free   The removal or sale of blended gasoline by the blender is taxable. Filing your state taxes for free See Blended taxable fuel under Definitions, earlier. Filing your state taxes for free   The blender is liable for the tax. Filing your state taxes for free The tax is figured on the number of gallons not previously subject to the tax on gasoline. Filing your state taxes for free   Persons who blend alcohol with gasoline to produce an alcohol fuel mixture outside the bulk transfer/terminal system must pay the gasoline tax on the volume of alcohol in the mixture. Filing your state taxes for free See Form 720 to report this tax. Filing your state taxes for free You also must be registered with the IRS as a blender. Filing your state taxes for free See Form 637. Filing your state taxes for free   However, if an untaxed liquid is sold as taxed taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. Filing your state taxes for free Notification certificate. Filing your state taxes for free   The notification certificate is used to notify a person of the registration status of the registrant. Filing your state taxes for free A copy of the registrant's letter of registration cannot be used as a notification certificate. Filing your state taxes for free A model notification certificate is shown in the Appendix as Model Certificate C. Filing your state taxes for free A notification certificate must contain all information necessary to complete the model. Filing your state taxes for free   The certificate may be included as part of any business records normally used for a sale. Filing your state taxes for free A certificate expires on the earlier of the date the registrant provides a new certificate, or the date the recipient of the certificate is notified that the registrant's registration has been revoked or suspended. Filing your state taxes for free The registrant must provide a new certificate if any information on a certificate has changed. Filing your state taxes for free Additional persons liable. Filing your state taxes for free   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax is imposed on: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty, or Anyone who willfully causes the person to fail to pay the tax. Filing your state taxes for free Gasoline Blendstocks Gasoline blendstocks may be subject to $. Filing your state taxes for free 001 per gallon LUST tax as discussed below. Filing your state taxes for free Gasoline includes gasoline blendstocks. Filing your state taxes for free The previous discussions apply to these blendstocks. Filing your state taxes for free However, if certain conditions are met, the removal, entry, or sale of gasoline blendstocks are taxed at $. Filing your state taxes for free 001 per gallon or are not subject to the excise tax. Filing your state taxes for free Blendstocks. Filing your state taxes for free   Gasoline blendstocks are: Alkylate, Butane, Butene, Catalytically cracked gasoline, Coker gasoline, Ethyl tertiary butyl ether (ETBE), Hexane, Hydrocrackate, Isomerate, Methyl tertiary butyl ether (MTBE), Mixed xylene (not including any separated isomer of xylene), Natural gasoline, Pentane, Pentane mixture, Polymer gasoline, Raffinate, Reformate, Straight-run gasoline, Straight-run naphtha, Tertiary amyl methyl ether (TAME), Tertiary butyl alcohol (gasoline grade) (TBA), Thermally cracked gasoline, and Toluene. Filing your state taxes for free   However, gasoline blendstocks do not include any product that cannot be used without further processing in the production of finished gasoline. Filing your state taxes for free Not used to produce finished gasoline. Filing your state taxes for free   Gasoline blendstocks not used to produce finished gasoline are not taxable (other than LUST) if the following conditions are met. Filing your state taxes for free Removals and entries not connected to sale. Filing your state taxes for free   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant. Filing your state taxes for free Removals and entries connected to sale. Filing your state taxes for free   Nonbulk removals and entries are not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) is a registrant, and at the time of the sale, meets the following requirements. Filing your state taxes for free The person has an unexpired certificate (discussed later) from the buyer. Filing your state taxes for free The person has no reason to believe any information in the certificate is false. Filing your state taxes for free Sales after removal or entry. Filing your state taxes for free   The sale of a gasoline blendstock that was not subject to tax on its nonbulk removal or entry, as discussed earlier, is taxable. Filing your state taxes for free The seller is liable for the tax. Filing your state taxes for free However, the sale is not taxable if, at the time of the sale, the seller meets the following requirements. Filing your state taxes for free The seller has an unexpired certificate (discussed next) from the buyer. Filing your state taxes for free The seller has no reason to believe any information in the certificate is false. Filing your state taxes for free Certificate of buyer. Filing your state taxes for free   The certificate from the buyer certifies the gasoline blendstocks will not be used to produce finished gasoline. Filing your state taxes for free The certificate may be included as part of any business records normally used for a sale. Filing your state taxes for free A model certificate is shown in the Appendix as Model Certificate D. Filing your state taxes for free The certificate must contain all information necessary to complete the model. Filing your state taxes for free   A certificate expires on the earliest of the following dates. Filing your state taxes for free The date 1 year after the effective date (not earlier than the date signed) of the certificate. Filing your state taxes for free The date a new certificate is provided to the seller. Filing your state taxes for free The date the seller is notified that the buyer's right to provide a certificate has been withdrawn. Filing your state taxes for free The buyer must provide a new certificate if any information on a certificate has changed. Filing your state taxes for free   The IRS may withdraw the buyer's right to provide a certificate if that buyer uses the gasoline blendstocks in the production of finished gasoline or resells the blendstocks without getting a certificate from its buyer. Filing your state taxes for free Received at approved terminal or refinery. Filing your state taxes for free   The nonbulk removal or entry of gasoline blendstocks received at an approved terminal or refinery is not taxable if the person otherwise liable for the tax (position holder, refiner, or enterer) meets all the following requirements. Filing your state taxes for free The person is a registrant. Filing your state taxes for free The person has an unexpired notification certificate (discussed earlier) from the operator of the terminal or refinery where the gasoline blendstocks are received. Filing your state taxes for free The person has no reason to believe any information on the certificate is false. Filing your state taxes for free Bulk transfers to registered industrial user. Filing your state taxes for free   The removal of gasoline blendstocks from a pipeline or vessel is not taxable (other than LUST) if the blendstocks are received by a registrant that is an industrial user. Filing your state taxes for free An industrial user is any person that receives gasoline blendstocks by bulk transfer for its own use in the manufacture of any product other than finished gasoline. Filing your state taxes for free Credits or Refunds. Filing your state taxes for free   A credit or refund of the gasoline tax may be allowable if gasoline is used for a nontaxable purpose or exempt use. Filing your state taxes for free For more information, see chapter 2. Filing your state taxes for free Diesel Fuel and Kerosene Generally, diesel fuel and kerosene are taxed in the same manner as gasoline (discussed earlier). Filing your state taxes for free However, special rules (discussed later) apply to dyed diesel fuel and dyed kerosene, and to undyed diesel fuel and undyed kerosene sold or used in Alaska for certain nontaxable uses and undyed kerosene used for a feedstock purpose. Filing your state taxes for free Diesel fuel means: Any liquid that without further processing or blending is suitable for use as a fuel in a diesel-powered highway vehicle or train, and Transmix. Filing your state taxes for free A liquid is suitable for this use if the liquid has practical and commercial fitness for use in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. Filing your state taxes for free A liquid may possess this practical and commercial fitness even though the specified use is not the predominant use of the liquid. Filing your state taxes for free However, a liquid does not possess this practical and commercial fitness solely by reason of its possible or rare use as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train. Filing your state taxes for free Diesel fuel does not include gasoline, kerosene, excluded liquid, No. Filing your state taxes for free 5 and No. Filing your state taxes for free 6 fuel oils covered by ASTM specification D396, or F-76 (Fuel Naval Distillate) covered by military specification MIL-F-16884. Filing your state taxes for free An excluded liquid is either of the following. Filing your state taxes for free A liquid that contains less than 4% normal paraffins. Filing your state taxes for free A liquid with all the following properties. Filing your state taxes for free Distillation range of 125 degrees Fahrenheit or less. Filing your state taxes for free Sulfur content of 10 ppm or less. Filing your state taxes for free Minimum color of +27 Saybolt. Filing your state taxes for free Transmix means a by-product of refined products created by the mixing of different specification products during pipeline transportation. Filing your state taxes for free Kerosene. Filing your state taxes for free   This means any of the following liquids. Filing your state taxes for free One of the two grades of kerosene (No. Filing your state taxes for free 1-K and No. Filing your state taxes for free 2-K) covered by ASTM specification D3699. Filing your state taxes for free Kerosene-type jet fuel covered by ASTM specification D1655 or military specification MIL-DTL-5624T (Grade JP-5) or MIL-DTL-83133E (Grade JP-8). Filing your state taxes for free See Kerosene for Use in Aviation, later. Filing your state taxes for free   However, kerosene does not include excluded liquid, discussed earlier. Filing your state taxes for free   Kerosene also includes any liquid that would be described above but for the presence of a dye of the type used to dye kerosene for a nontaxable use. Filing your state taxes for free Diesel-powered highway vehicle. Filing your state taxes for free   This is any self-propelled vehicle designed to carry a load over public highways (whether or not also designed to perform other functions) and propelled by a diesel-powered engine. Filing your state taxes for free Specially designed mobile machinery for nontransportation functions and vehicles specially designed for off-highway transportation are generally not considered diesel-powered highway vehicles. Filing your state taxes for free For more information about these vehicles and for information about vehicles not considered highway vehicles, see Off-Highway Business Use (No. Filing your state taxes for free 2) in chapter 2. Filing your state taxes for free Diesel-powered train. Filing your state taxes for free   This is any diesel-powered equipment or machinery that rides on rails. Filing your state taxes for free The term includes a locomotive, work train, switching engine, and track maintenance machine. Filing your state taxes for free Taxable Events The tax on diesel fuel and kerosene is $. Filing your state taxes for free 244 per gallon. Filing your state taxes for free It is imposed on the removal, entry, or sale of diesel fuel and kerosene. Filing your state taxes for free Each of these events is discussed later. Filing your state taxes for free Only the $. Filing your state taxes for free 001 LUST tax applies to dyed diesel fuel and dyed kerosene, discussed later. Filing your state taxes for free If the tax is paid on the diesel fuel or kerosene in more than one event, a refund may be allowed for the “second” tax paid. Filing your state taxes for free See Refunds of Second Tax in chapter 2. Filing your state taxes for free Use in certain intercity and local buses. Filing your state taxes for free   Dyed diesel fuel and dyed kerosene cannot be used in certain intercity and local buses. Filing your state taxes for free A claim for $. Filing your state taxes for free 17 per gallon may be made by the registered ultimate vendor (under certain conditions) or the ultimate purchaser for undyed diesel fuel or undyed kerosene sold for use in certain intercity or local buses. Filing your state taxes for free An intercity or local bus is a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Filing your state taxes for free The bus must be engaged in one of the following activities. Filing your state taxes for free Scheduled transportation along regular routes regardless of the size of the bus. Filing your state taxes for free Nonscheduled transportation if the seating capacity of the bus is at least 20 adults (not including the driver). Filing your state taxes for free A bus is available to the general public if the bus is available for hire to more than a limited number of persons, groups, or organizations. Filing your state taxes for free Removal from terminal. Filing your state taxes for free   All removals of diesel fuel and kerosene at a terminal rack are taxable. Filing your state taxes for free The position holder for that fuel is liable for the tax. Filing your state taxes for free Two-party exchanges. Filing your state taxes for free   In a two-party exchange, the receiving person, not the delivering person, is liable for the tax imposed on the removal of taxable fuel from the terminal at the terminal rack. Filing your state taxes for free A two-party exchange means a transaction (other than a sale) where the delivering person and receiving person are both taxable fuel registrants and all of the following apply. Filing your state taxes for free The transaction includes a transfer from the delivering person, who holds the inventory position for the taxable fuel in the terminal as reflected in the records of the terminal operator. Filing your state taxes for free The exchange transaction occurs before or at the same time as completion of removal across the rack by the receiving person. Filing your state taxes for free The terminal operator in its records treats the receiving person as the person that removes the product across the terminal rack for purposes of reporting the transaction on Form 720-TO. Filing your state taxes for free The transaction is subject to a written contract. Filing your state taxes for free Terminal operator's liability. Filing your state taxes for free   The terminal operator is jointly and severally liable for the tax if the terminal operator provides any person with any bill of lading, shipping paper, or similar document indicating that diesel fuel or kerosene is dyed (discussed later). Filing your state taxes for free   The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator and is not a registrant. Filing your state taxes for free However, a terminal operator will not be liable for the tax in this situation if, at the time of the removal, the following conditions are met. Filing your state taxes for free The terminal operator is a registrant. Filing your state taxes for free The terminal operator has an unexpired notification certificate (discussed under Gasoline) from the position holder. Filing your state taxes for free The terminal operator has no reason to believe any information on the certificate is false. Filing your state taxes for free Removal from refinery. Filing your state taxes for free   The removal of diesel fuel or kerosene from a refinery is taxable if the removal meets either of the following conditions. Filing your state taxes for free It is made by bulk transfer and the refiner, the owner of the fuel immediately before the removal, or the operator of the pipeline or vessel is not a registrant. Filing your state taxes for free It is made at the refinery rack. Filing your state taxes for free The refiner is liable for the tax. Filing your state taxes for free Exception. Filing your state taxes for free   The tax does not apply to a removal of diesel fuel or kerosene at the refinery rack if all the following conditions are met. Filing your state taxes for free The diesel fuel or kerosene is removed from an approved refinery not served by pipeline (other than for receiving crude oil) or vessel. Filing your state taxes for free The diesel fuel or kerosene is received at a facility operated by a registrant and located within the bulk transfer/terminal system. Filing your state taxes for free The removal from the refinery is by: Railcar and the same person operates the refinery and the facility at which the diesel fuel or kerosene is received, or For diesel fuel only, a trailer or semi-trailer used exclusively to transport the diesel fuel from a refinery (described in (1)) to a facility (described in (2)) less than 20 miles from the refinery. Filing your state taxes for free Entry into the United States. Filing your state taxes for free   The entry of diesel fuel or kerosene into the United States is taxable if the entry meets either of the following conditions. Filing your state taxes for free It is made by bulk transfer and the enterer or the operator of the pipeline or vessel is not a registrant. Filing your state taxes for free It is not made by bulk transfer. Filing your state taxes for free The enterer is liable for the tax. Filing your state taxes for free Importer of record's liability. Filing your state taxes for free   The importer of record is jointly and severally liable for the tax with the enterer if the importer of record is not the enterer of the taxable fuel and the enterer is not a taxable fuel registrant. Filing your state taxes for free   However, an importer of record meeting both of the following conditions at the time of the entry will not be liable for the tax. Filing your state taxes for free The importer of record has an unexpired notification certificate (discussed under Gasoline) from the enterer. Filing your state taxes for free The importer of record has no reason to believe any information in the certificate is false. Filing your state taxes for free Customs bond. Filing your state taxes for free   The customs bond will not be charged for the tax imposed on the entry of the diesel fuel or kerosene if at the time of entry the surety has an unexpired notification certificate from the enterer and has no reason to believe any information in the certificate is false. Filing your state taxes for free Removal from a terminal by unregistered position holder or unregistered pipeline or vessel operator. Filing your state taxes for free   The removal by bulk transfer of diesel fuel or kerosene from a terminal is taxable if the position holder for that fuel or the operator of the pipeline or vessel is not a registrant. Filing your state taxes for free The position holder is liable for the tax. Filing your state taxes for free The terminal operator is jointly and severally liable for the tax if the position holder is a person other than the terminal operator. Filing your state taxes for free However, see Terminal operator's liability under Removal from terminal, earlier, for an exception. Filing your state taxes for free Bulk transfers not received at approved terminal or refinery. Filing your state taxes for free   The removal by bulk transfer of diesel fuel or kerosene from a terminal or refinery or the entry of diesel fuel or kerosene by bulk transfer into the United States is taxable if the following conditions apply. Filing your state taxes for free No tax was previously imposed (as discussed earlier) on any of the following events. Filing your state taxes for free The removal from the refinery. Filing your state taxes for free The entry into the United States. Filing your state taxes for free The removal from a terminal by an unregistered position holder. Filing your state taxes for free Upon removal from the pipeline or vessel, the diesel fuel or kerosene is not received at an approved terminal or refinery (or at another pipeline or vessel). Filing your state taxes for free   The owner of the diesel fuel or kerosene when it is removed from the pipeline or vessel is liable for the tax. Filing your state taxes for free However, an owner meeting all the following conditions at the time of the removal will not be liable for the tax. Filing your state taxes for free The owner is a registrant. Filing your state taxes for free The owner has an unexpired notification certificate (discussed under Gasoline) from the operator of the terminal or refinery where the diesel fuel or kerosene is received. Filing your state taxes for free The owner has no reason to believe any information on the certificate is false. Filing your state taxes for free The operator of the facility where the diesel fuel or kerosene is received is liable for the tax if the owner meets these conditions. Filing your state taxes for free The operator is jointly and severally liable if the owner does not meet these conditions. Filing your state taxes for free Sales to unregistered person. Filing your state taxes for free   The sale of diesel fuel or kerosene located within the bulk transfer/terminal system to a person that is not a registrant is taxable if tax was not previously imposed under any of the events discussed earlier. Filing your state taxes for free   The seller is liable for the tax. Filing your state taxes for free However, a seller meeting all the following conditions at the time of the sale will not be liable for the tax. Filing your state taxes for free The seller is a registrant. Filing your state taxes for free The seller has an unexpired notification certificate (discussed under Gasoline) from the buyer. Filing your state taxes for free The seller has no reason to believe any information on the certificate is false. Filing your state taxes for free The buyer of the diesel fuel or kerosene is liable for the tax if the seller meets these conditions. Filing your state taxes for free The buyer is jointly and severally liable if the seller does not meet these conditions. Filing your state taxes for free Exception. Filing your state taxes for free   The tax does not apply to a sale if all of the following apply. Filing your state taxes for free The buyer's principal place of business is not in the United States. Filing your state taxes for free The sale occurs as the fuel is delivered into a transport vessel with a capacity of at least 20,000 barrels of fuel. Filing your state taxes for free The seller is a registrant and the exporter of record. Filing your state taxes for free The fuel was exported. Filing your state taxes for free Removal or sale of blended diesel fuel or kerosene. Filing your state taxes for free   The removal or sale of blended diesel fuel or blended kerosene by the blender is taxable. Filing your state taxes for free Blended taxable fuel produced using biodiesel is subject to the tax. Filing your state taxes for free See Blended taxable fuel under Definitions, earlier. Filing your state taxes for free   The blender is liable for the tax. Filing your state taxes for free The tax is figured on the number of gallons not previously subject to the tax. Filing your state taxes for free   Persons who blend biodiesel with undyed diesel fuel to produce and sell or use a biodiesel mixture outside the bulk transfer/terminal system must pay the diesel fuel tax on the volume of biodiesel in the mixture. Filing your state taxes for free Generally, the biodiesel mixture must be diesel fuel (defined earlier). Filing your state taxes for free See Form 720 to report this tax. Filing your state taxes for free You also must be registered by the IRS as a blender. Filing your state taxes for free See Form 637 for more information. Filing your state taxes for free   However, if an untaxed liquid is sold as taxable fuel and that untaxed liquid is used to produce blended taxable fuel, the person that sold the untaxed liquid is jointly and severally liable for the tax imposed on the blender's sale or removal of the blended taxable fuel. Filing your state taxes for free Additional persons liable. Filing your state taxes for free   When the person liable for the tax willfully fails to pay the tax, joint and several liability for the tax applies to: Any officer, employee, or agent of the person who is under a duty to ensure the payment of the tax and who willfully fails to perform that duty; or Anyone who willfully causes the person to fail to pay the tax. Filing your state taxes for free Credits or Refunds. Filing your state taxes for free   A credit or refund is allowable for the tax on undyed diesel fuel or undyed kerosene used for a nontaxable use. Filing your state taxes for free For more information, see chapter 2. Filing your state taxes for free Dyed Diesel Fuel and Dyed Kerosene Dyed diesel fuel and dyed kerosene are subject to $. Filing your state taxes for free 001 per gallon LUST tax as discussed below, unless the fuel is for export. Filing your state taxes for free The excise tax is not imposed on the removal, entry, or sale of diesel fuel or kerosene (other than the LUST tax) if all the following tests are met. Filing your state taxes for free The person otherwise liable for tax (for example, the position holder) is a registrant. Filing your state taxes for free In the case of a removal from a terminal, the terminal is an approved terminal. Filing your state taxes for free The diesel fuel or kerosene satisfies the dyeing requirements (described next). Filing your state taxes for free Dyeing requirements. Filing your state taxes for free   Diesel fuel or kerosene satisfies the dyeing requirements only if it satisfies the following requirements. Filing your state taxes for free It contains the dye Solvent Red 164 (and no other dye) at a concentration spectrally equivalent to at least 3. Filing your state taxes for free 9 pounds of the solid dye standard Solvent Red 26 per thousand barrels of fuel or any dye of a type and in a concentration that has been approved by the Commissioner. Filing your state taxes for free Is indelibly dyed by mechanical injection. Filing your state taxes for free See section 6 of Notice 2005-80 for transition rules that apply until final regulations are issued by the IRS. Filing your state taxes for free Notice required. Filing your state taxes for free   A legible and conspicuous notice stating either: DYED DIESEL FUEL, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE or DYED KEROSENE, NONTAXABLE USE ONLY, PENALTY FOR TAXABLE USE must be: Provided by the terminal operator to any person that receives dyed diesel fuel or dyed kerosene at a terminal rack of that operator, and Posted by a seller on any retail pump or other delivery facility where it sells dyed diesel fuel or dyed kerosene for use by its buyer. Filing your state taxes for free   The notice under item (1) must be provided by the time of the removal and must appear on all shipping papers, bills of lading, and similar documents accompanying the removal of the fuel. Filing your state taxes for free   Any seller that fails to post the required notice under item (2) is presumed to know that the fuel will be used for a taxable use (a use other than a nontaxable use listed later). Filing your state taxes for free That seller is subject to the penalty described next. Filing your state taxes for free Penalty. Filing your state taxes for free   A penalty is imposed on a person if any of the following situations apply. Filing your state taxes for free Any dyed fuel is sold or held for sale by the person for a use the person knows or has reason to know is not a nontaxable use of the fuel. Filing your state taxes for free Any dyed fuel is held for use or used by the person for a use other than a nontaxable use and the person knew, or had reason to know, that the fuel was dyed. Filing your state taxes for free The person willfully alters, chemically or otherwise, or attempts to so alter, the strength or composition of any dye in dyed fuel. Filing your state taxes for free The person has knowledge that a dyed fuel that has been altered, as described in (3) above, sells or holds for sale such fuel for any use for which the person knows or has reason to know is not a nontaxable use of the fuel. Filing your state taxes for free   The penalty is the greater of $1,000 or $10 per gallon of the dyed diesel fuel or dyed kerosene involved. Filing your state taxes for free After the first violation, the $1,000 portion of the penalty increases depending on the number of violations. Filing your state taxes for free   This penalty is in addition to any tax imposed on the fuel. Filing your state taxes for free   If the penalty is imposed, each officer, employee, or agent of a business entity who willfully participated in any act giving rise to the penalty is jointly and severally liable with that entity for the penalty. Filing your state taxes for free   There is no administrative appeal or review allowed for the third and subsequent penalty imposed by section 6715 on any person except for: Fraud or a mistake in the chemical analysis, or Mathematical calculation of the penalty. Filing your state taxes for free   If you are liable for the penalty, you may also be liable for the back-up tax, discussed later. Filing your state taxes for free However, the penalty applies only to dyed diesel fuel and dyed kerosene, while the back-up tax may apply to other fuels. Filing your state taxes for free The penalty may apply if the fuel is held for sale or use for a taxable use while the back-up tax does not apply unless the fuel is delivered into a fuel supply tank. Filing your state taxes for free Exception to penalty. Filing your state taxes for free   The penalty under item (3) will not apply in any of the following situations. Filing your state taxes for free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any undyed liquid and the resulting product meets the dyeing requirements. Filing your state taxes for free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with any other liquid (other than diesel fuel or kerosene) that contains the type and amount of dye required to meet the dyeing requirements. Filing your state taxes for free The alteration or attempted alteration occurs in an exempt area of Alaska. Filing your state taxes for free See Removal for sale or use in Alaska, later. Filing your state taxes for free Diesel fuel or kerosene meeting the dyeing requirements (described earlier) is blended with diesel fuel or kerosene not meeting the dyeing requirements and the blending occurs as part of a nontaxable use (other than export), discussed later. Filing your state taxes for free Alaska and Feedstocks Tax of $. Filing your state taxes for free 001 per gallon is imposed on: Undyed diesel fuel or undyed kerosene sold or used in Alaska for certain nontaxable uses (see Later sales on page 10). Filing your state taxes for free Undyed kerosene used for feedstock purposes. Filing your state taxes for free Removal for sale or use in Alaska. Filing your state taxes for free   No tax is imposed on the removal, entry, or sale of diesel fuel or kerosene in Alaska for ultimate sale or use in certain areas of Alaska for certain nontaxable uses. Filing your state taxes for free The removal or entry of any diesel fuel or kerosene is not taxed if all the following requirements are satisfied. Filing your state taxes for free The person otherwise liable for the tax (position holder, refiner, or enterer): Is a registrant, Can show satisfactory evidence of the nontaxable nature of the transaction, and Has no reason to believe the evidence is false. Filing your state taxes for free In the case of a removal from a terminal, the terminal is an approved terminal. Filing your state taxes for free The owner of the fuel immediately after the removal or entry holds the fuel for its own use in a nontaxable use (discussed later) or is a qualified dealer. Filing your state taxes for free   If all three of the requirements above are not met, then tax is imposed at $. Filing your state taxes for free 244 per gallon. Filing your state taxes for free   A qualified dealer is any person that holds a qualified dealer license from the state of Alaska or has been registered by the IRS as a qualified retailer. Filing your state taxes for free Satisfactory evidence may include copies of qualified dealer licenses or exemption certificates obtained for state tax purposes. Filing your state taxes for free Later sales. Filing your state taxes for free   The excise tax applies to diesel fuel or kerosene sold by a qualified dealer after the removal or entry. Filing your state taxes for free The tax is imposed at the time of the sale and the qualified dealer is liable for the tax. Filing your state taxes for free However, the sale is not taxable (other than the LUST tax at $. Filing your state taxes for free 001 per gallon) if all the following requirements are met. Filing your state taxes for free The fuel is sold in Alaska for certain nontaxable uses. Filing your state taxes for free The buyer buys the fuel for its own use in a nontaxable use or is a qualified dealer. Filing your state taxes for free The seller can show satisfactory evidence of the nontaxable nature of the transaction and has no reason to believe the evidence is false. Filing your state taxes for free Feedstock purposes. Filing your state taxes for free   The $. Filing your state taxes for free 001 per gallon LUST tax is imposed on the removal or entry of undyed kerosene if all the following conditions are met. Filing your state taxes for free The person otherwise liable for tax (position holder, refiner, or enterer) is a registrant. Filing your state taxes for free In the case of a removal from a terminal, the terminal is an approved terminal. Filing your state taxes for free Either: The person otherwise liable for tax uses the kerosene for a feedstock purpose, or The kerosene is sold for use by the buyer for a feedstock purpose and, at the time of the sale, the person otherwise liable for tax has an unexpired certificate (described later) from the buyer and has no reason to believe any information on the certificate is false. Filing your state taxes for free   If all of the requirements above are not met, then tax is imposed at $. Filing your state taxes for free 244 per gallon. Filing your state taxes for free   Kerosene is used for a feedstock purpose when it is used for nonfuel purposes in the manufacture or production of any substance other than gasoline, diesel fuel, or Other Fuels. Filing your state taxes for free For example, kerosene is used for a feedstock purpose when it is used as an ingredient in the production of paint, but is not used for a feedstock purpose when it is used to power machinery at a factory where paint is produced. Filing your state taxes for free A feedstock user is a person that uses kerosene for a feedstock purpose. Filing your state taxes for free A registered feedstock user is a person that has been registered by the IRS as a feedstock user. Filing your state taxes for free See Registration Requirements, earlier. Filing your state taxes for free Later sales. Filing your state taxes for free   The excise tax ($. Filing your state taxes for free 244 per gallon) applies to kerosene sold for use by the buyer for a feedstock purpose (item (3)(b) above) if the buyer in that sale later sells the kerosene. Filing your state taxes for free The tax is imposed at the time of the later sale and that seller is liable for the tax. Filing your state taxes for free Certificate. Filing your state taxes for free   The certificate from the buyer certifies the buyer is a registered feedstock user and the kerosene will be used by the buyer for a feedstock purpose. Filing your state taxes for free The certificate may be included as part of any business records normally used for a sale. Filing your state taxes for free A model certificate is shown in the Appendix as Model Certificate G. Filing your state taxes for free Your certificate must contain all information necessary to complete the model. Filing your state taxes for free   A certificate expires on the earliest of the following dates. Filing your state taxes for free The date 1 year after the effective date (not earlier than the date signed) of the certificate. Filing your state taxes for free The date the seller is provided a new certificate or notice that the current certificate is invalid. Filing your state taxes for free The date the seller is notified the buyer's registration has been revoked or suspended. Filing your state taxes for free   The buyer must provide a new certificate if any information on a certificate has changed. Filing your state taxes for free Back-up Tax Tax is imposed on the delivery of any of the following into the fuel supply tank of a diesel-powered highway vehicle. Filing your state taxes for free Any dyed diesel fuel or dyed kerosene for other than a nontaxable use. Filing your state taxes for free Any undyed diesel fuel or undyed kerosene on which a credit or refund (for fuel used for a nontaxable purpose) has been allowed. Filing your state taxes for free Any liquid other than gasoline, diesel fuel, or kerosene. Filing your state taxes for free Generally, this back-up tax is imposed at a rate of $. Filing your state taxes for free 244 per gallon. Filing your state taxes for free Liability for tax. Filing your state taxes for free   Generally, the operator of the vehicle into which the fuel is delivered is liable for the tax. Filing your state taxes for free In addition, the seller of the diesel fuel or kerosene is jointly and severally liable for the tax if the seller knows or has reason to know that the fuel will be used for other than a nontaxable use. Filing your state taxes for free Exemptions from the back-up tax. Filing your state taxes for free   The back-up tax does not apply to a delivery of diesel fuel or kerosene for uses 1, 2, 6, 7, 12, 13, 14, and 15 listed under Definitions of Nontaxable Uses in chapter 2. Filing your state taxes for free   In addition, since the back-up tax is imposed only on the delivery into the fuel supply tank of a diesel-powered vehicle or train, the tax does not apply to diesel fuel or kerosene used as heating oil or in stationary engines. Filing your state taxes for free Diesel-Water Fuel Emulsion Diesel-water fuel emulsion means diesel fuel at least 14% of which is water and for which the emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003. Filing your state taxes for free A reduced tax rate of $. Filing your state taxes for free 198 per gallon is imposed on a diesel-water fuel emulsion. Filing your state taxes for free To be eligible for the reduced rate, the person who sells, removes, or uses the diesel-water fuel emulsion must be registered by the IRS. Filing your state taxes for free If the diesel-water fuel emulsion does not meet the requirements above, or if the person who sells, removes, or uses the fuel is not registered, the diesel-water fuel emulsion is taxed at $. Filing your state taxes for free 244 per gallon. Filing your state taxes for free Credits or refunds. Filing your state taxes for free   The allowance for a credit or refund on a diesel-water fuel emulsion is discussed in chapter 2. Filing your state taxes for free Kerosene for Use in Aviation Taxable Events Generally, kerosene is taxed at $. Filing your state taxes for free 244 per gallon unless a reduced rate applies (see Diesel Fuel and Kerosene, earlier). Filing your state taxes for free For kerosene removed directly from a terminal into the fuel tank of an aircraft for use in noncommercial aviation, the tax rate is $. Filing your state taxes for free 219. Filing your state taxes for free The rate of $. Filing your state taxes for free 219 also applies if kerosene is removed into any aircraft from a qualified refueler truck, tanker, or tank wagon that is loaded with the kerosene from a terminal that is located within an airport. Filing your state taxes for free The airport terminal does not need to be a secured airport terminal for this rate to apply. Filing your state taxes for free However, the refueler truck, tanker, or tank wagon must meet the requirements discussed under Certain refueler trucks, tankers, and tank wagons, treated as terminals, later. Filing your state taxes for free For kerosene removed directly into the fuel tank of an aircraft for use in commercial aviation, the rate of tax is $. Filing your state taxes for free 044 per gallon. Filing your state taxes for free For kerosene removed into an aircraft from a qualified refueler truck, tanker, or tank wagon, the $. Filing your state taxes for free 044 rate applies only if the truck, tanker, or tank wagon is loaded at a terminal that is located in a secured area of the airport. Filing your state taxes for free See Terminal located within a secured area of an airport, later. Filing your state taxes for free In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Filing your state taxes for free For kerosene removed directly into the fuel tank of an aircraft for a use exempt from tax under section 4041(c) (such as use in an aircraft for the exclusive use of a state or local government), the rate of tax is $. Filing your state taxes for free 001. Filing your state taxes for free There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Filing your state taxes for free The kerosene must be removed from a qualifying refueler truck, tanker, or tank wagon loaded at a terminal located within a secured area of an airport. Filing your state taxes for free See Terminal located within a secured area of an airport, later. Filing your state taxes for free In addition, the operator must provide the position holder with a certificate similar to Model Certificate K in the Appendix. Filing your state taxes for free The position holder is liable for the $. Filing your state taxes for free 001 per gallon tax. Filing your state taxes for free For kerosene removed directly from a terminal into the fuel tank of an fractional ownership program aircraft after March 31, 2012, a surtax of $. Filing your state taxes for free 141 per gallon applies. Filing your state taxes for free Certain refueler trucks, tankers, and tank wagons treated as terminals. Filing your state taxes for free   For purposes of the tax imposed on kerosene for use in aviation removed directly into the fuel tank of an aircraft for use in commercial aviation, certain refueler trucks, tankers, and tank wagons are treated as part of a terminal if the following conditions are met. Filing your state taxes for free Such terminal is located within an area of an airport. Filing your state taxes for free Any kerosene for use in aviation that is loaded in a refueler truck, tanker, or tank wagon at a terminal is for delivery into aircraft at the airport in which the terminal is located. Filing your state taxes for free Except in exigent circumstances, such as those identified in Notice 2005-80, no vehicle registered for highway use is loaded with kerosene for use in aviation at the terminal. Filing your state taxes for free The refueler truck, tanker, or tank wagon meets the following requirements: Has storage tanks, hose, and coupling equipment designed and used for fueling aircraft, Is not registered for highway use, and Is operated by the terminal operator or a person that makes a daily accounting to the terminal operator of each delivery of fuel from the refueler truck, tanker, or tank wagon. Filing your state taxes for free Information reporting will be required by terminal operators regarding this provision. Filing your state taxes for free Until the format of this information reporting is issued, taxpayers are required to retain records regarding the daily accounting, but are not required to report such information. Filing your state taxes for free Terminal located within a secured area of an airport. Filing your state taxes for free   See Notice 2005-4 and Notice 2005-80 for the list of terminals located within a secured area of an airport. Filing your state taxes for free This list refers to fueling operations at airport terminals as it applies to the federal excise tax on kerosene for use in aviation, and has nothing to do with the general security of airports either included or not included in the list. Filing your state taxes for free Liability For Tax If the kerosene is removed directly into the fuel tank of an aircraft for use in commercial aviation, the operator of the aircraft in commercial aviation is liable for the tax on the removal at the rate of $. Filing your state taxes for free 044 per gallon. Filing your state taxes for free However, the position holder is liable for the LUST tax for kerosene for use in aviation removed directly into the fuel tank of an aircraft for use exempt from tax under section 4041(c) (except foreign trade). Filing your state taxes for free For example, for kerosene removed directly into the aircraft for use in military aircraft, the position holder is liable for the tax. Filing your state taxes for free For the aircraft operator to be liable for the tax $. Filing your state taxes for free 044 rate, the position holder must meet the following requirements: Is a taxable fuel registrant, Has an unexpired certificate (a model certificate is shown in the Appendix as Model Certificate K) from the operator of the aircraft, and Has no reason to believe any of the information in the certificate is false. Filing your state taxes for free Commercial aviation. Filing your state taxes for free   Commercial aviation is any use of an aircraft in the business of transporting persons or property by air for pay. Filing your state taxes for free However, commercial aviation does not include any of the following uses. Filing your state taxes for free Any use exclusively for the purpose of skydiving. Filing your state taxes for free Certain air transportation by seaplane. Filing your state taxes for free See Seaplanes under Transportation of Persons by Air in chapter 4. Filing your state taxes for free Any use of an aircraft owned or leased by a member of an affiliated group and unavailable for hire by nonmembers. Filing your state taxes for free For more information, see Aircraft used by affiliated corporations under Special Rules on Transportation Taxes in chapter 4. Filing your state taxes for free Any use of an aircraft that has a maximum certificated takeoff weight of 6,000 pounds or less, unless the aircraft is operated on an established line. Filing your state taxes for free For more information, see Small aircraft under Special Rules on Transportation Taxes in chapter 4. Filing your state taxes for free Any use where the surtax on fuel used in a fractional ownership program aircraft is imposed. Filing your state taxes for free See Surtax on any liquid used in a fractional ownership program aircraft as fuel below. Filing your state taxes for free Surtax on any liquid used in a fractional ownership program aircraft as fuel Fuel used in a fractional ownership program aircraft (as defined below) after March 31, 2012, is subject to a surtax of $. Filing your state taxes for free 141 per gallon. Filing your state taxes for free The fractional ownership program manager is liable for the tax. Filing your state taxes for free The surtax applies in addition to any other taxes imposed on the removal, entry, use, or sale of the fuel. Filing your state taxes for free If the surtax is imposed, the following air transportation taxes do not apply. Filing your state taxes for free Transportation of persons by air. Filing your state taxes for free Transportation of property by air. Filing your state taxes for free Use of international air travel facilities. Filing your state taxes for free These taxes are described under Air Transportation Taxes, later. Filing your state taxes for free A fractional ownership program aircraft flight is considered noncommercial aviation, for the rules for kerosene used in noncommercial aviation, see Kerosene for Use in Aviation above. Filing your state taxes for free Fractional ownership aircraft program    is a program under which:  A single fractional ownership program manager provides fractional ownership program management services on behalf of the fractional owners; There are one or more fractional owners per fractional program aircraft, with at least one fractional program aircraft having more than one owner; For at least two fractional program aircraft, none of the ownership interests in the aircraft are less than the minimum fractional ownership interest or held by the program manager; There exists a dry-lease aircraft exchange arrangement among all of the fractional owners; and There are multi-year program agreements covering the fractional ownership, fractional ownership program management services, and dry-lease aircraft exchange aspects of the program. Filing your state taxes for free Fractional program aircraft. Filing your state taxes for free   Any aircraft that, in any fractional ownership aircraft program, is listed as a fractional program aircraft in the management specifications issued to the manager of such program by Federal Aviation Administration under subpart K of part 91 title 14, Code of Federal Regulations, and is registered in the U. Filing your state taxes for free S. Filing your state taxes for free   Fractional program aircraft are not considered used for transportation of a qualified fractional owner, or on account of such qualified fractional owner when they are used for flight demonstration, maintenance or crew training. Filing your state taxes for free In such situations, the flight is not commercial aviation. Filing your state taxes for free Instead, the tax on the fuel used in the flight is imposed at the non-commercial aviation rate. Filing your state taxes for free Fractional owner. Filing your state taxes for free   Any person owning any interest (including the entire interest) in a fractional program aircraft. Filing your state taxes for free Dry lease aircraft exchange. Filing your state taxes for free   An agreement, documented by the written program agreements, under which the fractional program aircraft are available, on an as-needed basis without crew, to each fractional owner. Filing your state taxes for free Special rule relating to deadhead service. Filing your state taxes for free   A fractional program aircraft will not be considered to be used on account of a qualified fractional owner when it is used in deadhead service and a person other than a qualified fractional owner is separately charged for such service. Filing your state taxes for free More information. Filing your state taxes for free   See section 4043 for more information on the surtax. Filing your state taxes for free Certificate for Commercial Aviation and Exempt Uses A certificate is required from the aircraft operator: To support aircraft operator liability for tax on removal of kerosene for use in aviation directly into the fuel tank of an aircraft in commercial aviation, or For exempt uses. Filing your state taxes for free Certificate. Filing your state taxes for free   The certificate may be included as part of any business records normally used for a sale. Filing your state taxes for free See Model Certificate K in the Appendix. Filing your state taxes for free   A certificate expires on the earliest of the following dates. Filing your state taxes for free The date 1 year after the effective date (not earlier than the date signed) of the certificate. Filing your state taxes for free The date the buyer provides the seller a new certificate or notice that the current certificate is invalid. Filing your state taxes for free The date the IRS or the buyer notifies the seller that the buyer's right to provide a certificate has been withdrawn. Filing your state taxes for free   The buyer must provide a new certificate if any information on a certificate has changed. Filing your state taxes for free   The IRS may withdraw the buyer's right to provide a certificate if the buyer uses the kerosene for use in aviation to which a certificate relates other than as stated in the certificate. Filing your state taxes for free Exempt use. Filing your state taxes for free   The rate on kerosene for use in aviation is $. Filing your state taxes for free 001 (LUST tax) if it is removed from any refinery or terminal directly into the fuel tank of an aircraft for an exempt use. Filing your state taxes for free An exempt use includes kerosene for the exclusive use of a state or local government. Filing your state taxes for free There is no tax on kerosene removed directly into the fuel tank of an aircraft for use in foreign trade. Filing your state taxes for free Flash title transaction. Filing your state taxes for free   A position holder is not liable for tax if, among other conditions, it obtains a certificate (described above) from the operator of the aircraft into which the kerosene is delivered. Filing your state taxes for free In a “flash title transaction” the position holder sells the kerosene to a wholesale distributor (reseller) that in turn sells the kerosene to the aircraft operator as the kerosene is being removed from a terminal into the fuel tank of an aircraft. Filing your state taxes for free In this case, the position holder will be treated as having a certificate from the operator of the aircraft if: The aircraft operator puts the reseller's name, address, and EIN on the certificate in place of the position holder's information; and The reseller provides the position holder with a statement of the kerosene reseller. Filing your state taxes for free Reseller statement. Filing your state taxes for free   This is a statement that is signed under penalties of perjury by a person with authority to bind the reseller; is provided at the bottom or on the back of the certificate (or in an attached document); and contains: The reseller's name, address, and EIN; The position holder's name, address, and EIN; and A statement that the reseller has no reason to believe that any information in the accompanying aircraft operator's certificate is false. Filing your state taxes for free Credits or Refunds. Filing your state taxes for free   A claim may be made by the ultimate purchaser (the operator) for taxed kerosene for use in aviation used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia). Filing your state taxes for free A claim may be made by a registered ultimate vendor for certain sales. Filing your state taxes for free For more information, see chapter 2. Filing your state taxes for free Other Fuels (Including Alternative Fuels) Other Fuels means any liquid except gas oil, fuel oil, or any product taxable under section 4081. Filing your state taxes for free Other Fuels include alternative fuels. Filing your state taxes for free Alternative fuels are: Liquefied petroleum gas (LPG), “P Series” fuels, Compressed natural gas (CNG) (discussed later), Liquefied hydrogen, Any liquid fuel derived from coal (including peat) through the Fischer-Tropsch process, Liquid fuel derived from biomass, Liquefied natural gas (LNG), and Liquefied gas derived from biomass. Filing your state taxes for free Liquefied petroleum gas includes propane, butane, pentane, or mixtures of those products. Filing your state taxes for free Qualified methanol and ethanol fuels. Filing your state taxes for free   Qualified ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from coal, including peat. Filing your state taxes for free The tax rates are listed in the Instructions for Form 720. Filing your state taxes for free Partially exempt methanol and ethanol fuels. Filing your state taxes for free   A reduced tax rate applies to these fuels. Filing your state taxes for free Partially exempt ethanol and methanol means any liquid at least 85 percent of which consists of alcohol produced from natural gas. Filing your state taxes for free The tax rates are listed in the Instructions for Form 720. Filing your state taxes for free Motor vehicles. Filing your state taxes for free   Motor vehicles include all types of vehicles, whether or not registered (or required to be registered) for highway use, that have both the following characteristics. Filing your state taxes for free They are propelled by a motor. Filing your state taxes for free They are designed for carrying or towing loads from one place to another, regardless of the type of material or load carried or t
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People get jobs in the federal government in the same way that they get most jobs in the private industry: by finding job openings and submitting a resume or job application. You can research and apply for government jobs online with a resume. However, while the process is now very similar to that in private industry, there are still significant differences due to the many laws, executive orders, and regulations that govern federal and state employment.

USAJOBS.gov can help you find out how federal jobs are filled; learn more about the hiring reform; find tips for your resume, application, and interview; and how to apply for federal jobs. Most federal jobs are listed on USAJOBS; however, some excepted service agencies, such U. S. Department of State for Foreign Service Officers, post jobs independently on their own website or elsewhere. If you’d like to work for a specific agency, do a targeted search of their job sections and employment information pages.

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The Filing Your State Taxes For Free

Filing your state taxes for free 1. Filing your state taxes for free   Travel Table of Contents Traveling Away From HomeTax Home Tax Home Different From Family Home Temporary Assignment or Job What Travel Expenses Are Deductible?Employee. Filing your state taxes for free Business associate. Filing your state taxes for free Bona fide business purpose. Filing your state taxes for free Meals Travel in the United States Travel Outside the United States Luxury Water Travel Conventions If you temporarily travel away from your tax home, you can use this chapter to determine if you have deductible travel expenses. Filing your state taxes for free This chapter discusses: Traveling away from home, Temporary assignment or job, and What travel expenses are deductible. Filing your state taxes for free It also discusses the standard meal allowance, rules for travel inside and outside the United States, luxury water travel, and deductible convention expenses. Filing your state taxes for free Travel expenses defined. Filing your state taxes for free   For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. Filing your state taxes for free   An ordinary expense is one that is common and accepted in your trade or business. Filing your state taxes for free A necessary expense is one that is helpful and appropriate for your business. Filing your state taxes for free An expense does not have to be required to be considered necessary. Filing your state taxes for free   You will find examples of deductible travel expenses in Table 1-1 , later. Filing your state taxes for free Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. Filing your state taxes for free This rest requirement is not satisfied by merely napping in your car. Filing your state taxes for free You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. Filing your state taxes for free Example 1. Filing your state taxes for free You are a railroad conductor. Filing your state taxes for free You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Filing your state taxes for free During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. Filing your state taxes for free You are considered to be away from home. Filing your state taxes for free Example 2. Filing your state taxes for free You are a truck driver. Filing your state taxes for free You leave your terminal and return to it later the same day. Filing your state taxes for free You get an hour off at your turnaround point to eat. Filing your state taxes for free Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. Filing your state taxes for free Members of the Armed Forces. Filing your state taxes for free   If you are a member of the U. Filing your state taxes for free S. Filing your state taxes for free Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Filing your state taxes for free You cannot deduct your expenses for meals and lodging. Filing your state taxes for free You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. Filing your state taxes for free If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. Filing your state taxes for free   A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home (explained next) aboard the ship for travel expense purposes. Filing your state taxes for free Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Filing your state taxes for free Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Filing your state taxes for free It includes the entire city or general area in which your business or work is located. Filing your state taxes for free If you have more than one regular place of business, your tax home is your main place of business. Filing your state taxes for free See Main place of business or work , later. Filing your state taxes for free If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. Filing your state taxes for free See No main place of business or work , later. Filing your state taxes for free If you do not have a regular or main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. Filing your state taxes for free As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Filing your state taxes for free Main place of business or work. Filing your state taxes for free   If you have more than one place of work, consider the following when determining which one is your main place of business or work. Filing your state taxes for free The total time you ordinarily spend in each place. Filing your state taxes for free The level of your business activity in each place. Filing your state taxes for free Whether your income from each place is significant or insignificant. Filing your state taxes for free Example. Filing your state taxes for free You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Filing your state taxes for free You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Filing your state taxes for free Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Filing your state taxes for free No main place of business or work. Filing your state taxes for free   You may have a tax home even if you do not have a regular or main place of work. Filing your state taxes for free Your tax home may be the home where you regularly live. Filing your state taxes for free Factors used to determine tax home. Filing your state taxes for free   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. Filing your state taxes for free You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. Filing your state taxes for free You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Filing your state taxes for free You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. Filing your state taxes for free   If you satisfy all three factors, your tax home is the home where you regularly live. Filing your state taxes for free If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Filing your state taxes for free If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Filing your state taxes for free Example 1. Filing your state taxes for free You are single and live in Boston in an apartment you rent. Filing your state taxes for free You have worked for your employer in Boston for a number of years. Filing your state taxes for free Your employer enrolls you in a 12-month executive training program. Filing your state taxes for free You do not expect to return to work in Boston after you complete your training. Filing your state taxes for free During your training, you do not do any work in Boston. Filing your state taxes for free Instead, you receive classroom and on-the-job training throughout the United States. Filing your state taxes for free You keep your apartment in Boston and return to it frequently. Filing your state taxes for free You use your apartment to conduct your personal business. Filing your state taxes for free You also keep up your community contacts in Boston. Filing your state taxes for free When you complete your training, you are transferred to Los Angeles. Filing your state taxes for free You do not satisfy factor (1) because you did not work in Boston. Filing your state taxes for free You satisfy factor (2) because you had duplicate living expenses. Filing your state taxes for free You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. Filing your state taxes for free Therefore, you have a tax home in Boston. Filing your state taxes for free Example 2. Filing your state taxes for free You are an outside salesperson with a sales territory covering several states. Filing your state taxes for free Your employer's main office is in Newark, but you do not conduct any business there. Filing your state taxes for free Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. Filing your state taxes for free You have a room in your married sister's house in Dayton. Filing your state taxes for free You stay there for one or two weekends a year, but you do no work in the area. Filing your state taxes for free You do not pay your sister for the use of the room. Filing your state taxes for free You do not satisfy any of the three factors listed earlier. Filing your state taxes for free You are an itinerant and have no tax home. Filing your state taxes for free Tax Home Different From Family Home If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. Filing your state taxes for free You also cannot deduct the cost of meals and lodging while at your tax home. Filing your state taxes for free See Example 1 , later. Filing your state taxes for free If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Filing your state taxes for free See Example 2 , later. Filing your state taxes for free Example 1. Filing your state taxes for free You are a truck driver and you and your family live in Tucson. Filing your state taxes for free You are employed by a trucking firm that has its terminal in Phoenix. Filing your state taxes for free At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Filing your state taxes for free You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Filing your state taxes for free This is because Phoenix is your tax home. Filing your state taxes for free Example 2. Filing your state taxes for free Your family home is in Pittsburgh, where you work 12 weeks a year. Filing your state taxes for free The rest of the year you work for the same employer in Baltimore. Filing your state taxes for free In Baltimore, you eat in restaurants and sleep in a rooming house. Filing your state taxes for free Your salary is the same whether you are in Pittsburgh or Baltimore. Filing your state taxes for free Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Filing your state taxes for free You cannot deduct any expenses you have for meals and lodging there. Filing your state taxes for free However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Filing your state taxes for free You can deduct the cost of your round trip between Baltimore and Pittsburgh. Filing your state taxes for free You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Filing your state taxes for free Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Filing your state taxes for free It may not be practical to return to your tax home from this other location at the end of each work day. Filing your state taxes for free Temporary assignment vs. Filing your state taxes for free indefinite assignment. Filing your state taxes for free   If your assignment or job away from your main place of work is temporary, your tax home does not change. Filing your state taxes for free You are considered to be away from home for the whole period you are away from your main place of work. Filing your state taxes for free You can deduct your travel expenses if they otherwise qualify for deduction. Filing your state taxes for free Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. Filing your state taxes for free    However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. Filing your state taxes for free An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. Filing your state taxes for free   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. Filing your state taxes for free You may be able to deduct the cost of relocating to your new tax home as a moving expense. Filing your state taxes for free See Publication 521 for more information. Filing your state taxes for free Exception for federal crime investigations or prosecutions. Filing your state taxes for free   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Filing your state taxes for free This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year provided you meet the other requirements for deductibility. Filing your state taxes for free   For you to qualify, the Attorney General (or his or her designee) 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. Filing your state taxes for free Determining temporary or indefinite. Filing your state taxes for free   You must determine whether your assignment is temporary or indefinite when you start work. Filing your state taxes for free If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. Filing your state taxes for free An assignment or job that is initially temporary may become indefinite due to changed circumstances. Filing your state taxes for free A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. Filing your state taxes for free   The following examples illustrate whether an assignment or job is temporary or indefinite. Filing your state taxes for free Example 1. Filing your state taxes for free You are a construction worker. Filing your state taxes for free You live and regularly work in Los Angeles. Filing your state taxes for free You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. Filing your state taxes for free Your tax home is Los Angeles. Filing your state taxes for free Because of a shortage of work, you took a job on a construction project in Fresno. Filing your state taxes for free Your job was scheduled to end in 8 months. Filing your state taxes for free The job actually lasted 10 months. Filing your state taxes for free You realistically expected the job in Fresno to last 8 months. Filing your state taxes for free The job actually did last less than 1 year. Filing your state taxes for free The job is temporary and your tax home is still in Los Angeles. Filing your state taxes for free Example 2. Filing your state taxes for free The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 18 months. Filing your state taxes for free The job actually was completed in 10 months. Filing your state taxes for free Your job in Fresno is indefinite because you realistically expected the work to last longer than 1 year, even though it actually lasted less than 1 year. Filing your state taxes for free You cannot deduct any travel expenses you had in Fresno because Fresno became your tax home. Filing your state taxes for free Example 3. Filing your state taxes for free The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 9 months. Filing your state taxes for free After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months). Filing your state taxes for free Initially, you realistically expected the job in Fresno to last for only 9 months. Filing your state taxes for free However, due to changed circumstances occurring after 8 months, it was no longer realistic for you to expect that the job in Fresno would last for 1 year or less. Filing your state taxes for free You can only deduct your travel expenses for the first 8 months. Filing your state taxes for free You cannot deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite. Filing your state taxes for free Going home on days off. Filing your state taxes for free   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. Filing your state taxes for free You cannot deduct the cost of your meals and lodging there. Filing your state taxes for free However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Filing your state taxes for free You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Filing your state taxes for free   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Filing your state taxes for free In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. Filing your state taxes for free Probationary work period. Filing your state taxes for free   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. Filing your state taxes for free You cannot deduct any of your expenses for meals and lodging during the probationary period. Filing your state taxes for free What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. Filing your state taxes for free You can deduct ordinary and necessary expenses you have when you travel away from home on business. Filing your state taxes for free The type of expense you can deduct depends on the facts and your circumstances. Filing your state taxes for free Table 1-1 summarizes travel expenses you may be able to deduct. Filing your state taxes for free You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Filing your state taxes for free When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. Filing your state taxes for free You can use a log, diary, notebook, or any other written record to keep track of your expenses. Filing your state taxes for free The types of expenses you need to record, along with supporting documentation, are described in Table 5-1 (see chapter 5). Filing your state taxes for free Separating costs. Filing your state taxes for free   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. Filing your state taxes for free You must have a reasonable basis for making this allocation. Filing your state taxes for free For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Filing your state taxes for free Travel expenses for another individual. Filing your state taxes for free    If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. Filing your state taxes for free Employee. Filing your state taxes for free   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. Filing your state taxes for free Business associate. Filing your state taxes for free   If a business associate travels with you and meets the conditions in (2) and (3), earlier, you can deduct the travel expenses you have for that person. Filing your state taxes for free A business associate is someone with whom you could reasonably expect to actively conduct business. Filing your state taxes for free A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Filing your state taxes for free Bona fide business purpose. Filing your state taxes for free   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Filing your state taxes for free Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Filing your state taxes for free Table 1-1. Filing your state taxes for free Travel Expenses You Can Deduct   This chart summarizes expenses you can deduct when you travel away from home for business purposes. Filing your state taxes for free IF you have expenses for. Filing your state taxes for free . Filing your state taxes for free . Filing your state taxes for free THEN you can deduct the cost of. Filing your state taxes for free . Filing your state taxes for free . Filing your state taxes for free transportation travel by airplane, train, bus, or car between your home and your business destination. Filing your state taxes for free If you were provided with a free ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. Filing your state taxes for free If you travel by ship, see Luxury Water Travel and Cruise Ships (under Conventions) for additional rules and limits. Filing your state taxes for free taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. Filing your state taxes for free baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Filing your state taxes for free car operating and maintaining your car when traveling away from home on business. Filing your state taxes for free You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking. Filing your state taxes for free If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Filing your state taxes for free lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Filing your state taxes for free Meals include amounts spent for food, beverages, taxes, and related tips. Filing your state taxes for free See Meals for additional rules and limits. Filing your state taxes for free cleaning dry cleaning and laundry. Filing your state taxes for free telephone business calls while on your business trip. Filing your state taxes for free This includes business communication by fax machine or other communication devices. Filing your state taxes for free tips tips you pay for any expenses in this chart. Filing your state taxes for free other other similar ordinary and necessary expenses related to your business travel. Filing your state taxes for free These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. Filing your state taxes for free Example. Filing your state taxes for free Jerry drives to Chicago on business and takes his wife, Linda, with him. Filing your state taxes for free Linda is not Jerry's employee. Filing your state taxes for free Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Filing your state taxes for free The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Filing your state taxes for free Her expenses are not deductible. Filing your state taxes for free Jerry pays $199 a day for a double room. Filing your state taxes for free A single room costs $149 a day. Filing your state taxes for free He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Filing your state taxes for free If he uses public transportation, he can deduct only his fare. Filing your state taxes for free Meals You can deduct the cost of meals in either of the following situations. Filing your state taxes for free It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Filing your state taxes for free The meal is business-related entertainment. Filing your state taxes for free Business-related entertainment is discussed in chapter 2 . Filing your state taxes for free The following discussion deals only with meals that are not business-related entertainment. Filing your state taxes for free Lavish or extravagant. Filing your state taxes for free   You cannot deduct expenses for meals that are lavish or extravagant. Filing your state taxes for free An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Filing your state taxes for free Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. Filing your state taxes for free 50% limit on meals. Filing your state taxes for free   You can figure your meals expense using either of the following methods. Filing your state taxes for free Actual cost. Filing your state taxes for free The standard meal allowance. Filing your state taxes for free Both of these methods are explained below. Filing your state taxes for free But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Filing your state taxes for free   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. Filing your state taxes for free If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Filing your state taxes for free Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans. Filing your state taxes for free Actual Cost You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. Filing your state taxes for free If you use this method, you must keep records of your actual cost. Filing your state taxes for free Standard Meal Allowance Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Filing your state taxes for free It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. Filing your state taxes for free The set amount varies depending on where and when you travel. Filing your state taxes for free In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Filing your state taxes for free If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Filing your state taxes for free See the recordkeeping rules for travel in chapter 5 . Filing your state taxes for free Incidental expenses. Filing your state taxes for free   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Filing your state taxes for free   Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. Filing your state taxes for free Incidental-expenses-only method. Filing your state taxes for free   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Filing your state taxes for free The amount of the deduction is $5 a day. Filing your state taxes for free You can use this method only if you did not pay or incur any meal expenses. Filing your state taxes for free You cannot use this method on any day that you use the standard meal allowance. Filing your state taxes for free This method is subject to the proration rules for partial days. Filing your state taxes for free See Travel for days you depart and return , later in this chapter. Filing your state taxes for free Note. Filing your state taxes for free The incidental-expenses-only method is not subject to the 50% limit discussed below. Filing your state taxes for free Federal employees should refer to the Federal Travel Regulations at www. Filing your state taxes for free gsa. Filing your state taxes for free gov. Filing your state taxes for free Find the “Most Requested Links” on the upper left and click on “Regulations: FAR, FMR, FTR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. Filing your state taxes for free 50% limit may apply. Filing your state taxes for free   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. Filing your state taxes for free If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. Filing your state taxes for free The 50% limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6. Filing your state taxes for free There is no optional standard lodging amount similar to the standard meal allowance. Filing your state taxes for free Your allowable lodging expense deduction is your actual cost. Filing your state taxes for free Who can use the standard meal allowance. Filing your state taxes for free   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. Filing your state taxes for free Use of the standard meal allowance for other travel. Filing your state taxes for free   You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Filing your state taxes for free You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Filing your state taxes for free You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Filing your state taxes for free Amount of standard meal allowance. Filing your state taxes for free   The standard meal allowance is the federal M&IE rate. Filing your state taxes for free For travel in 2013, the rate for most small localities in the United States is $46 a day. Filing your state taxes for free    Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Filing your state taxes for free    You can find this information (organized by state) on the Internet at www. Filing your state taxes for free gsa. Filing your state taxes for free gov/perdiem. Filing your state taxes for free Enter a zip code or select a city and state for the per diem rates for the current fiscal year. Filing your state taxes for free Per diem rates for prior fiscal years are available by using the drop down menu under “Search by State. Filing your state taxes for free ”   Per diem rates are listed by the Federal government's fiscal year which runs from October 1 to September 30. Filing your state taxes for free You can choose to use the rates from the 2013 fiscal year per diem tables or the rates from the 2014 fiscal year tables, but you must consistently use the same tables for all travel you are reporting on your income tax return for the year. Filing your state taxes for free   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. Filing your state taxes for free If you work in the transportation industry, however, see Special rate for transportation workers , later. Filing your state taxes for free Standard meal allowance for areas outside the continental United States. Filing your state taxes for free   The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Filing your state taxes for free The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Filing your state taxes for free S. Filing your state taxes for free Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Filing your state taxes for free The Department of State establishes per diem rates for all other foreign areas. Filing your state taxes for free    You can access per diem rates for non-foreign areas outside the continental United States at: www. Filing your state taxes for free defensetravel. Filing your state taxes for free dod. Filing your state taxes for free mil/site/perdiemCalc. Filing your state taxes for free cfm. Filing your state taxes for free You can access all other foreign per diem rates at: www. Filing your state taxes for free state. Filing your state taxes for free gov/travel/. Filing your state taxes for free Click on “Travel Per Diem Allowances for Foreign Areas,” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates. Filing your state taxes for free Special rate for transportation workers. Filing your state taxes for free   You can use a special standard meal allowance if you work in the transportation industry. Filing your state taxes for free You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. Filing your state taxes for free If this applies to you, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). Filing your state taxes for free   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. Filing your state taxes for free If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. Filing your state taxes for free Travel for days you depart and return. Filing your state taxes for free   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). Filing your state taxes for free You can do so by one of two methods. Filing your state taxes for free Method 1: You can claim 3/4 of the standard meal allowance. Filing your state taxes for free Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Filing your state taxes for free Example. Filing your state taxes for free Jen is employed in New Orleans as a convention planner. Filing your state taxes for free In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Filing your state taxes for free She left her home in New Orleans at 10 a. Filing your state taxes for free m. Filing your state taxes for free on Wednesday and arrived in Washington, DC, at 5:30 p. Filing your state taxes for free m. Filing your state taxes for free After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Filing your state taxes for free m. Filing your state taxes for free Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Filing your state taxes for free Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. Filing your state taxes for free Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Filing your state taxes for free For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. Filing your state taxes for free Travel in the United States The following discussion applies to travel in the United States. Filing your state taxes for free For this purpose, the United States includes the 50 states and the District of Columbia. Filing your state taxes for free The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. Filing your state taxes for free See Part of Trip Outside the United States , later. Filing your state taxes for free Trip Primarily for Business You can deduct all of your travel expenses if your trip was entirely business related. Filing your state taxes for free If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. Filing your state taxes for free These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Filing your state taxes for free Example. Filing your state taxes for free You work in Atlanta and take a business trip to New Orleans in May. Filing your state taxes for free Your business travel totals 850 miles round trip. Filing your state taxes for free On your way, you stop in Mobile to visit your parents. Filing your state taxes for free You spend $2,120 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Filing your state taxes for free If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,820. Filing your state taxes for free You can deduct $1,820 for your trip, including the cost of round-trip transportation to and from New Orleans. Filing your state taxes for free The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Filing your state taxes for free Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. Filing your state taxes for free However, you can deduct any expenses you have while at your destination that are directly related to your business. Filing your state taxes for free A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. Filing your state taxes for free The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. Filing your state taxes for free Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later in this chapter under Travel Outside the United States for that part of the trip. Filing your state taxes for free For the part of your trip that is inside the United States, use the rules for travel in the United States. Filing your state taxes for free Travel outside the United States does not include travel from one point in the United States to another point in the United States. Filing your state taxes for free The following discussion can help you determine whether your trip was entirely within the United States. Filing your state taxes for free Public transportation. Filing your state taxes for free   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. Filing your state taxes for free Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . Filing your state taxes for free Example. Filing your state taxes for free You fly from New York to Puerto Rico with a scheduled stop in Miami. Filing your state taxes for free You return to New York nonstop. Filing your state taxes for free The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. Filing your state taxes for free Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Filing your state taxes for free Private car. Filing your state taxes for free   Travel by private car in the United States is travel between points in the United States, even though you are on your way to a destination outside the United States. Filing your state taxes for free Example. Filing your state taxes for free You travel by car from Denver to Mexico City and return. Filing your state taxes for free Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. Filing your state taxes for free The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Filing your state taxes for free Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. Filing your state taxes for free For this purpose, the United States includes the 50 states and the District of Columbia. Filing your state taxes for free How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. Filing your state taxes for free Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. Filing your state taxes for free Travel entirely for business. Filing your state taxes for free   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Filing your state taxes for free Travel considered entirely for business. Filing your state taxes for free   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. Filing your state taxes for free Exception 1 - No substantial control. Filing your state taxes for free   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Filing your state taxes for free The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Filing your state taxes for free   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, and Are not related to your employer, or Are not a managing executive. Filing your state taxes for free    “Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances . Filing your state taxes for free   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. Filing your state taxes for free   A self-employed person generally has substantial control over arranging business trips. Filing your state taxes for free Exception 2 - Outside United States no more than a week. Filing your state taxes for free   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Filing your state taxes for free One week means 7 consecutive days. Filing your state taxes for free In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. Filing your state taxes for free Example. Filing your state taxes for free You traveled to Brussels primarily for business. Filing your state taxes for free You left Denver on Tuesday and flew to New York. Filing your state taxes for free On Wednesday, you flew from New York to Brussels, arriving the next morning. Filing your state taxes for free On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. Filing your state taxes for free You flew back to New York, arriving Wednesday afternoon. Filing your state taxes for free On Thursday, you flew back to Denver. Filing your state taxes for free Although you were away from your home in Denver for more than a week, you were not outside the United States for more than a week. Filing your state taxes for free This is because the day you depart does not count as a day outside the United States. Filing your state taxes for free You can deduct your cost of the round-trip flight between Denver and Brussels. Filing your state taxes for free You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. Filing your state taxes for free However, you cannot deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities. Filing your state taxes for free Exception 3 - Less than 25% of time on personal activities. Filing your state taxes for free   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. Filing your state taxes for free For this purpose, count both the day your trip began and the day it ended. Filing your state taxes for free Example. Filing your state taxes for free You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. Filing your state taxes for free You then flew back to Seattle. Filing your state taxes for free You spent 1 day flying in each direction. Filing your state taxes for free Because only 5/21 (less than 25%) of your total time abroad was for nonbusiness activities, you can deduct as travel expenses what it would have cost you to make the trip if you had not engaged in any nonbusiness activity. Filing your state taxes for free The amount you can deduct is the cost of the round-trip plane fare and 16 days of meals (subject to the 50% limit), lodging, and other related expenses. Filing your state taxes for free Exception 4 - Vacation not a major consideration. Filing your state taxes for free   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. Filing your state taxes for free Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on other activities, you generally cannot deduct all of your travel expenses. Filing your state taxes for free You can only deduct the business portion of your cost of getting to and from your destination. Filing your state taxes for free You must allocate the costs between your business and other activities to determine your deductible amount. Filing your state taxes for free See Travel allocation rules , later. Filing your state taxes for free You do not have to allocate your travel expenses if you meet one of the four exceptions listed earlier under Travel considered entirely for business . Filing your state taxes for free In those cases, you can deduct the total cost of getting to and from your destination. Filing your state taxes for free Travel allocation rules. Filing your state taxes for free   If your trip outside the United States was primarily for business, you must allocate your travel time on a day-to-day basis between business days and nonbusiness days. Filing your state taxes for free The days you depart from and return to the United States are both counted as days outside the United States. Filing your state taxes for free   To figure the deductible amount of your round-trip travel expenses, use the following fraction. Filing your state taxes for free The numerator (top number) is the total number of business days outside the United States. Filing your state taxes for free The denominator (bottom number) is the total number of business and nonbusiness days of travel. Filing your state taxes for free Counting business days. Filing your state taxes for free   Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays. Filing your state taxes for free Transportation day. Filing your state taxes for free   Count as a business day any day you spend traveling to or from a business destination. Filing your state taxes for free However, if because of a nonbusiness activity you do not travel by a direct route, your business days are the days it would take you to travel a reasonably direct route to your business destination. Filing your state taxes for free Extra days for side trips or nonbusiness activities cannot be counted as business days. Filing your state taxes for free Presence required. Filing your state taxes for free   Count as a business day any day your presence is required at a particular place for a specific business purpose. Filing your state taxes for free Count it as a business day even if you spend most of the day on nonbusiness activities. Filing your state taxes for free Day spent on business. Filing your state taxes for free   If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. Filing your state taxes for free Also, count as a business day any day you are prevented from working because of circumstances beyond your control. Filing your state taxes for free Certain weekends and holidays. Filing your state taxes for free   Count weekends, holidays, and other necessary standby days as business days if they fall between business days. Filing your state taxes for free But if they follow your business meetings or activity and you remain at your business destination for nonbusiness or personal reasons, do not count them as business days. Filing your state taxes for free Example 1. Filing your state taxes for free Your tax home is New York City. Filing your state taxes for free You travel to Quebec, where you have a business appointment on Friday. Filing your state taxes for free You have another appointment on the following Monday. Filing your state taxes for free Because your presence was required on both Friday and Monday, they are business days. Filing your state taxes for free Because the weekend is between business days, Saturday and Sunday are counted as business days. Filing your state taxes for free This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity. Filing your state taxes for free Example 2. Filing your state taxes for free If, in Example 1, you had no business in Quebec after Friday, but stayed until Monday before starting home, Saturday and Sunday would be nonbusiness days. Filing your state taxes for free Nonbusiness activity on the way to or from your business destination. Filing your state taxes for free   If you stopped for a vacation or other nonbusiness activity either on the way from the United States to your business destination, or on the way back to the United States from your business destination, you must allocate part of your travel expenses to the nonbusiness activity. Filing your state taxes for free   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your nonbusiness destination and a return to the point where travel outside the United States ends. Filing your state taxes for free   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Filing your state taxes for free The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. Filing your state taxes for free Example. Filing your state taxes for free You live in New York. Filing your state taxes for free On May 4 you flew to Paris to attend a business conference that began on May 5. Filing your state taxes for free The conference ended at noon on May 14. Filing your state taxes for free That evening you flew to Dublin where you visited with friends until the afternoon of May 21, when you flew directly home to New York. Filing your state taxes for free The primary purpose for the trip was to attend the conference. Filing your state taxes for free If you had not stopped in Dublin, you would have arrived home the evening of May 14. Filing your state taxes for free You do not meet any of the exceptions that would allow you to consider your travel entirely for business. Filing your state taxes for free May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days. Filing your state taxes for free You can deduct the cost of your meals (subject to the 50% limit), lodging, and other business-related travel expenses while in Paris. Filing your state taxes for free You cannot deduct your expenses while in Dublin. Filing your state taxes for free You also cannot deduct 7/18 of what it would have cost you to travel round-trip between New York and Dublin. Filing your state taxes for free You paid $750 to fly from New York to Paris, $400 to fly from Paris to Dublin, and $700 to fly from Dublin back to New York. Filing your state taxes for free Round-trip airfare from New York to Dublin would have been $1,250. Filing your state taxes for free You figure the deductible part of your air travel expenses by subtracting 7/18 of the round-trip fare and other expenses you would have had in traveling directly between New York and Dublin ($1,250 × 7/18 = $486) from your total expenses in traveling from New York to Paris to Dublin and back to New York ($750 + $400 + $700 = $1,850). Filing your state taxes for free Your deductible air travel expense is $1,364 ($1,850 − $486). Filing your state taxes for free Nonbusiness activity at, near, or beyond business destination. Filing your state taxes for free   If you had a vacation or other nonbusiness activity at, near, or beyond your business destination, you must allocate part of your travel expenses to the nonbusiness activity. Filing your state taxes for free   The part you must allocate is the amount it would have cost you to travel between the point where travel outside the United States begins and your business destination and a return to the point where travel outside the United States ends. Filing your state taxes for free   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Filing your state taxes for free The numerator (top number) of the fraction is the number of nonbusiness days during your travel outside the United States and the denominator (bottom number) is the total number of days you spend outside the United States. Filing your state taxes for free   None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible. Filing your state taxes for free Example. Filing your state taxes for free Assume that the dates are the same as in the previous example but that instead of going to Dublin for your vacation, you fly to Venice, Italy, for a vacation. Filing your state taxes for free You cannot deduct any part of the cost of your trip from Paris to Venice and return to Paris. Filing your state taxes for free In addition, you cannot deduct 7/18 of the airfare and other expenses from New York to Paris and back to New York. Filing your state taxes for free You can deduct 11/18 of the round-trip plane fare and other travel expenses from New York to Paris, plus your meals (subject to the 50% limit), lodging, and any other business expenses you had in Paris. Filing your state taxes for free (Assume these expenses total $4,939. Filing your state taxes for free ) If the round-trip plane fare and other travel-related expenses (such as food during the trip) are $1,750, you can deduct travel costs of $1,069 (11/18 × $1,750), plus the full $4,939 for the expenses you had in Paris. Filing your state taxes for free Other methods. Filing your state taxes for free   You can use another method of counting business days if you establish that it more clearly reflects the time spent on other than business activities outside the United States. Filing your state taxes for free Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. Filing your state taxes for free However, if you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. Filing your state taxes for free Example. Filing your state taxes for free The university from which you graduated has a continuing education program for members of its alumni association. Filing your state taxes for free This program consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. Filing your state taxes for free However, none of the conferences are directed toward specific occupations or professions. Filing your state taxes for free It is up to each participant to seek out specialists and organizational settings appropriate to his or her occupational interests. Filing your state taxes for free Three-hour sessions are held each day over a 5-day period at each of the selected overseas facilities where participants can meet with individual practitioners. Filing your state taxes for free These sessions are composed of a variety of activities including workshops, mini-lectures, role playing, skill development, and exercises. Filing your state taxes for free Professional conference directors schedule and conduct the sessions. Filing your state taxes for free Participants can choose those sessions they wish to attend. Filing your state taxes for free You can participate in this program since you are a member of the alumni association. Filing your state taxes for free You and your family take one of the trips. Filing your state taxes for free You spend about 2 hours at each of the planned sessions. Filing your state taxes for free The rest of the time you go touring and sightseeing with your family. Filing your state taxes for free The trip lasts less than 1 week. Filing your state taxes for free Your travel expenses for the trip are not deductible since the trip was primarily a vacation. Filing your state taxes for free However, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. Filing your state taxes for free These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses. Filing your state taxes for free Luxury Water Travel If you travel by ocean liner, cruise ship, or other form of luxury water transportation for business purposes, there is a daily limit on the amount you can deduct. Filing your state taxes for free The limit is twice the highest federal per diem rate allowable at the time of your travel. Filing your state taxes for free (Generally, the federal per diem is the amount paid to federal government employees for daily living expenses when they travel away from home, but in the United States, for business purposes. Filing your state taxes for free ) Daily limit on luxury water travel. Filing your state taxes for free   The highest federal per diem rate allowed and the daily limit for luxury water travel in 2013 is shown in the following table. Filing your state taxes for free   2013 Dates Highest Federal Per Diem Daily Limit on Luxury Water Travel   Jan. Filing your state taxes for free 1 – Mar. Filing your state taxes for free 31 $367 $734   Apr. Filing your state taxes for free 1 – June 30 312 624   July 1 – Aug. Filing your state taxes for free 31 310 620   Sept. Filing your state taxes for free 1 – Sept. Filing your state taxes for free 30 366 732   Oct. Filing your state taxes for free 1 – Dec. Filing your state taxes for free 31 374 748 Example. Filing your state taxes for free Caroline, a travel agent, traveled by ocean liner from New York to London, England, on business in May. Filing your state taxes for free Her expense for the 6-day cruise was $5,200. Filing your state taxes for free Caroline's deduction for the cruise cannot exceed $3,744 (6 days × $624 daily limit). Filing your state taxes for free Meals and entertainment. Filing your state taxes for free   If your expenses for luxury water travel include separately stated amounts for meals or entertainment, those amounts are subject to the 50% limit on meals and entertainment before you apply the daily limit. Filing your state taxes for free For a discussion of the 50% Limit , see chapter 2. Filing your state taxes for free Example. Filing your state taxes for free In the previous example, Caroline's luxury water travel had a total cost of $5,200. Filing your state taxes for free Of that amount, $3,700 was separately stated as meals and entertainment. Filing your state taxes for free Caroline, who is self-employed, is not reimbursed for any of her travel expenses. Filing your state taxes for free Caroline figures her deductible travel expenses as follows. Filing your state taxes for free Meals and entertainment $3,700   50% limit × . Filing your state taxes for free 50   Allowable meals &     entertainment $1,850   Other travel expenses + 1,800   Allowable cost before the daily limit $3,650 Daily limit for May 2013 $624   Times number of days × 6   Maximum luxury water travel     deduction $3,744 Amount of allowable deduction $3,650 Caroline's deduction for her cruise is limited to $3,650, even though the limit on luxury water travel is slightly higher. Filing your state taxes for free Not separately stated. Filing your state taxes for free   If your meal or entertainment charges are not separately stated or are not clearly identifiable, you do not have to allocate any portion of the total charge to meals or entertainment. Filing your state taxes for free Exceptions The daily limit on luxury water travel (discussed earlier) does not apply to expenses you have to attend a convention, seminar, or meeting on board a cruise ship. Filing your state taxes for free See Cruise Ships under Conventions. Filing your state taxes for free Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Filing your state taxes for free You cannot deduct the travel expenses for your family. Filing your state taxes for free If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Filing your state taxes for free Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Filing your state taxes for free You can deduct your travel expenses only if your attendance is connected to your own trade or business. Filing your state taxes for free Convention agenda. Filing your state taxes for free   The convention agenda or program generally shows the purpose of the convention. Filing your state taxes for free You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. Filing your state taxes for free The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. Filing your state taxes for free Conventions Held Outside the North American Area You cannot deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless: The meeting is directly related to your trade or business, and It is reasonable to hold the meeting outside the North American area. Filing your state taxes for free See Reasonableness test , later. Filing your state taxes for free If the meeting meets these requirements, you also must satisfy the rules for deducting expenses for business trips in general, discussed earlier under Travel Outside the United States . Filing your state taxes for free North American area. Filing your state taxes for free   The North American area includes the following locations. Filing your state taxes for free American Samoa Johnston Island Antigua and Barbuda Kingman Reef Aruba Marshall Islands Bahamas Mexico Baker Island Micronesia Barbados Midway Islands Bermuda Netherlands Antilles Canada Northern Mariana Costa Rica Islands Dominica Palau Dominican Republic Palmyra Atoll Grenada Panama Guam Puerto Rico Guyana Trinidad and Tobago Honduras USA Howland Island U. Filing your state taxes for free S. Filing your state taxes for free Virgin Islands Jamaica Wake Island Jarvis Island   The North American area also includes U. Filing your state taxes for free S. Filing your state taxes for free islands, cays, and reefs that are possessions of the United States and not part of the fifty states or the District of Columbia. Filing your state taxes for free Reasonableness test. Filing your state taxes for free   The following factors are taken into account to determine if it was reasonable to hold the meeting outside the North American area. Filing your state taxes for free The purpose of the meeting and the activities taking place at the meeting. Filing your state taxes for free The purposes and activities of the sponsoring organizations or groups. Filing your state taxes for free The homes of the active members of the sponsoring organizations and the places at which other meetings of the sponsoring organizations or groups have been or will be held. Filing your state taxes for free Other relevant factors you may present. Filing your state taxes for free Cruise Ships You can deduct up to $2,000 per year of your expenses of attending conventions, seminars, or similar meetings held on cruise ships. Filing your state taxes for free All ships that sail are considered cruise ships. Filing your state taxes for free You can deduct these expenses only if all of the following requirements are met. Filing your state taxes for free The convention, seminar, or meeting is directly related to your trade or business. Filing your state taxes for free The cruise ship is a vessel registered in the United States. Filing your state taxes for free All of the cruise ship's ports of call are in the United States or in possessions of the United States. Filing your state taxes for free You attach to your return a written statement signed by you that includes information about: The total days of the trip (not including the days of transportation to and from the cruise ship port), The number of hours each day that you devoted to scheduled business activities, and A program of the scheduled business activities of the meeting. Filing your state taxes for free You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes: A schedule of the business activities of each day of the meeting, and The number of hours you attended the scheduled business activities. Filing your state taxes for free Prev  Up  Next   Home   More Online Publications