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Form 1040ez Instructions

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Form 1040ez Instructions

Form 1040ez instructions 1. Form 1040ez instructions   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. Form 1040ez instructions Business associate. Form 1040ez instructions Bona fide business purpose. Form 1040ez instructions 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. Form 1040ez instructions This chapter discusses: Traveling away from home, Temporary assignment or job, and What travel expenses are deductible. Form 1040ez instructions It also discusses the standard meal allowance, rules for travel inside and outside the United States, luxury water travel, and deductible convention expenses. Form 1040ez instructions Travel expenses defined. Form 1040ez instructions   For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. Form 1040ez instructions   An ordinary expense is one that is common and accepted in your trade or business. Form 1040ez instructions A necessary expense is one that is helpful and appropriate for your business. Form 1040ez instructions An expense does not have to be required to be considered necessary. Form 1040ez instructions   You will find examples of deductible travel expenses in Table 1-1 , later. Form 1040ez instructions 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. Form 1040ez instructions This rest requirement is not satisfied by merely napping in your car. Form 1040ez instructions 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. Form 1040ez instructions Example 1. Form 1040ez instructions You are a railroad conductor. Form 1040ez instructions You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. Form 1040ez instructions 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. Form 1040ez instructions You are considered to be away from home. Form 1040ez instructions Example 2. Form 1040ez instructions You are a truck driver. Form 1040ez instructions You leave your terminal and return to it later the same day. Form 1040ez instructions You get an hour off at your turnaround point to eat. Form 1040ez instructions 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. Form 1040ez instructions Members of the Armed Forces. Form 1040ez instructions   If you are a member of the U. Form 1040ez instructions S. Form 1040ez instructions Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. Form 1040ez instructions You cannot deduct your expenses for meals and lodging. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions   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. Form 1040ez instructions Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. Form 1040ez instructions Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. Form 1040ez instructions It includes the entire city or general area in which your business or work is located. Form 1040ez instructions If you have more than one regular place of business, your tax home is your main place of business. Form 1040ez instructions See Main place of business or work , later. Form 1040ez instructions 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. Form 1040ez instructions See No main place of business or work , later. Form 1040ez instructions 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. Form 1040ez instructions As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. Form 1040ez instructions Main place of business or work. Form 1040ez instructions   If you have more than one place of work, consider the following when determining which one is your main place of business or work. Form 1040ez instructions The total time you ordinarily spend in each place. Form 1040ez instructions The level of your business activity in each place. Form 1040ez instructions Whether your income from each place is significant or insignificant. Form 1040ez instructions Example. Form 1040ez instructions You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. Form 1040ez instructions You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. Form 1040ez instructions Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. Form 1040ez instructions No main place of business or work. Form 1040ez instructions   You may have a tax home even if you do not have a regular or main place of work. Form 1040ez instructions Your tax home may be the home where you regularly live. Form 1040ez instructions Factors used to determine tax home. Form 1040ez instructions   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. Form 1040ez instructions 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. Form 1040ez instructions You have living expenses at your main home that you duplicate because your business requires you to be away from that home. Form 1040ez instructions 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. Form 1040ez instructions   If you satisfy all three factors, your tax home is the home where you regularly live. Form 1040ez instructions If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. Form 1040ez instructions If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. Form 1040ez instructions Example 1. Form 1040ez instructions You are single and live in Boston in an apartment you rent. Form 1040ez instructions You have worked for your employer in Boston for a number of years. Form 1040ez instructions Your employer enrolls you in a 12-month executive training program. Form 1040ez instructions You do not expect to return to work in Boston after you complete your training. Form 1040ez instructions During your training, you do not do any work in Boston. Form 1040ez instructions Instead, you receive classroom and on-the-job training throughout the United States. Form 1040ez instructions You keep your apartment in Boston and return to it frequently. Form 1040ez instructions You use your apartment to conduct your personal business. Form 1040ez instructions You also keep up your community contacts in Boston. Form 1040ez instructions When you complete your training, you are transferred to Los Angeles. Form 1040ez instructions You do not satisfy factor (1) because you did not work in Boston. Form 1040ez instructions You satisfy factor (2) because you had duplicate living expenses. Form 1040ez instructions 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. Form 1040ez instructions Therefore, you have a tax home in Boston. Form 1040ez instructions Example 2. Form 1040ez instructions You are an outside salesperson with a sales territory covering several states. Form 1040ez instructions Your employer's main office is in Newark, but you do not conduct any business there. Form 1040ez instructions Your work assignments are temporary, and you have no way of knowing where your future assignments will be located. Form 1040ez instructions You have a room in your married sister's house in Dayton. Form 1040ez instructions You stay there for one or two weekends a year, but you do no work in the area. Form 1040ez instructions You do not pay your sister for the use of the room. Form 1040ez instructions You do not satisfy any of the three factors listed earlier. Form 1040ez instructions You are an itinerant and have no tax home. Form 1040ez instructions 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. Form 1040ez instructions You also cannot deduct the cost of meals and lodging while at your tax home. Form 1040ez instructions See Example 1 , later. Form 1040ez instructions If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. Form 1040ez instructions See Example 2 , later. Form 1040ez instructions Example 1. Form 1040ez instructions You are a truck driver and you and your family live in Tucson. Form 1040ez instructions You are employed by a trucking firm that has its terminal in Phoenix. Form 1040ez instructions At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. Form 1040ez instructions You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. Form 1040ez instructions This is because Phoenix is your tax home. Form 1040ez instructions Example 2. Form 1040ez instructions Your family home is in Pittsburgh, where you work 12 weeks a year. Form 1040ez instructions The rest of the year you work for the same employer in Baltimore. Form 1040ez instructions In Baltimore, you eat in restaurants and sleep in a rooming house. Form 1040ez instructions Your salary is the same whether you are in Pittsburgh or Baltimore. Form 1040ez instructions Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. Form 1040ez instructions You cannot deduct any expenses you have for meals and lodging there. Form 1040ez instructions However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. Form 1040ez instructions You can deduct the cost of your round trip between Baltimore and Pittsburgh. Form 1040ez instructions You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. Form 1040ez instructions Temporary Assignment or Job You may regularly work at your tax home and also work at another location. Form 1040ez instructions It may not be practical to return to your tax home from this other location at the end of each work day. Form 1040ez instructions Temporary assignment vs. Form 1040ez instructions indefinite assignment. Form 1040ez instructions   If your assignment or job away from your main place of work is temporary, your tax home does not change. Form 1040ez instructions You are considered to be away from home for the whole period you are away from your main place of work. Form 1040ez instructions You can deduct your travel expenses if they otherwise qualify for deduction. Form 1040ez instructions 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. Form 1040ez instructions    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. Form 1040ez instructions 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. Form 1040ez instructions   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. Form 1040ez instructions You may be able to deduct the cost of relocating to your new tax home as a moving expense. Form 1040ez instructions See Publication 521 for more information. Form 1040ez instructions Exception for federal crime investigations or prosecutions. Form 1040ez instructions   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. Form 1040ez instructions 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. Form 1040ez instructions   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. Form 1040ez instructions Determining temporary or indefinite. Form 1040ez instructions   You must determine whether your assignment is temporary or indefinite when you start work. Form 1040ez instructions 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. Form 1040ez instructions An assignment or job that is initially temporary may become indefinite due to changed circumstances. Form 1040ez instructions 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. Form 1040ez instructions   The following examples illustrate whether an assignment or job is temporary or indefinite. Form 1040ez instructions Example 1. Form 1040ez instructions You are a construction worker. Form 1040ez instructions You live and regularly work in Los Angeles. Form 1040ez instructions You are a member of a trade union in Los Angeles that helps you get work in the Los Angeles area. Form 1040ez instructions Your tax home is Los Angeles. Form 1040ez instructions Because of a shortage of work, you took a job on a construction project in Fresno. Form 1040ez instructions Your job was scheduled to end in 8 months. Form 1040ez instructions The job actually lasted 10 months. Form 1040ez instructions You realistically expected the job in Fresno to last 8 months. Form 1040ez instructions The job actually did last less than 1 year. Form 1040ez instructions The job is temporary and your tax home is still in Los Angeles. Form 1040ez instructions Example 2. Form 1040ez instructions The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 18 months. Form 1040ez instructions The job actually was completed in 10 months. Form 1040ez instructions 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. Form 1040ez instructions You cannot deduct any travel expenses you had in Fresno because Fresno became your tax home. Form 1040ez instructions Example 3. Form 1040ez instructions The facts are the same as in Example 1, except that you realistically expected the work in Fresno to last 9 months. Form 1040ez instructions After 8 months, however, you were asked to remain for 7 more months (for a total actual stay of 15 months). Form 1040ez instructions Initially, you realistically expected the job in Fresno to last for only 9 months. Form 1040ez instructions 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. Form 1040ez instructions You can only deduct your travel expenses for the first 8 months. Form 1040ez instructions You cannot deduct any travel expenses you had after that time because Fresno became your tax home when the job became indefinite. Form 1040ez instructions Going home on days off. Form 1040ez instructions   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. Form 1040ez instructions You cannot deduct the cost of your meals and lodging there. Form 1040ez instructions However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. Form 1040ez instructions You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. Form 1040ez instructions   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. Form 1040ez instructions 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. Form 1040ez instructions Probationary work period. Form 1040ez instructions   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. Form 1040ez instructions You cannot deduct any of your expenses for meals and lodging during the probationary period. Form 1040ez instructions 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. Form 1040ez instructions You can deduct ordinary and necessary expenses you have when you travel away from home on business. Form 1040ez instructions The type of expense you can deduct depends on the facts and your circumstances. Form 1040ez instructions Table 1-1 summarizes travel expenses you may be able to deduct. Form 1040ez instructions You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. Form 1040ez instructions 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. Form 1040ez instructions You can use a log, diary, notebook, or any other written record to keep track of your expenses. Form 1040ez instructions The types of expenses you need to record, along with supporting documentation, are described in Table 5-1 (see chapter 5). Form 1040ez instructions Separating costs. Form 1040ez instructions   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. Form 1040ez instructions You must have a reasonable basis for making this allocation. Form 1040ez instructions For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. Form 1040ez instructions Travel expenses for another individual. Form 1040ez instructions    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. Form 1040ez instructions Employee. Form 1040ez instructions   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. Form 1040ez instructions Business associate. Form 1040ez instructions   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. Form 1040ez instructions A business associate is someone with whom you could reasonably expect to actively conduct business. Form 1040ez instructions A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. Form 1040ez instructions Bona fide business purpose. Form 1040ez instructions   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. Form 1040ez instructions Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. Form 1040ez instructions Table 1-1. Form 1040ez instructions Travel Expenses You Can Deduct   This chart summarizes expenses you can deduct when you travel away from home for business purposes. Form 1040ez instructions IF you have expenses for. Form 1040ez instructions . Form 1040ez instructions . Form 1040ez instructions THEN you can deduct the cost of. Form 1040ez instructions . Form 1040ez instructions . Form 1040ez instructions transportation travel by airplane, train, bus, or car between your home and your business destination. Form 1040ez instructions 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. Form 1040ez instructions If you travel by ship, see Luxury Water Travel and Cruise Ships (under Conventions) for additional rules and limits. Form 1040ez instructions 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. Form 1040ez instructions baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. Form 1040ez instructions car operating and maintaining your car when traveling away from home on business. Form 1040ez instructions You can deduct actual expenses or the standard mileage rate, as well as business-related tolls and parking. Form 1040ez instructions If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Form 1040ez instructions 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. Form 1040ez instructions Meals include amounts spent for food, beverages, taxes, and related tips. Form 1040ez instructions See Meals for additional rules and limits. Form 1040ez instructions cleaning dry cleaning and laundry. Form 1040ez instructions telephone business calls while on your business trip. Form 1040ez instructions This includes business communication by fax machine or other communication devices. Form 1040ez instructions tips tips you pay for any expenses in this chart. Form 1040ez instructions other other similar ordinary and necessary expenses related to your business travel. Form 1040ez instructions 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. Form 1040ez instructions Example. Form 1040ez instructions Jerry drives to Chicago on business and takes his wife, Linda, with him. Form 1040ez instructions Linda is not Jerry's employee. Form 1040ez instructions Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. Form 1040ez instructions The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. Form 1040ez instructions Her expenses are not deductible. Form 1040ez instructions Jerry pays $199 a day for a double room. Form 1040ez instructions A single room costs $149 a day. Form 1040ez instructions He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. Form 1040ez instructions If he uses public transportation, he can deduct only his fare. Form 1040ez instructions Meals You can deduct the cost of meals in either of the following situations. Form 1040ez instructions It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. Form 1040ez instructions The meal is business-related entertainment. Form 1040ez instructions Business-related entertainment is discussed in chapter 2 . Form 1040ez instructions The following discussion deals only with meals that are not business-related entertainment. Form 1040ez instructions Lavish or extravagant. Form 1040ez instructions   You cannot deduct expenses for meals that are lavish or extravagant. Form 1040ez instructions An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. Form 1040ez instructions 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. Form 1040ez instructions 50% limit on meals. Form 1040ez instructions   You can figure your meals expense using either of the following methods. Form 1040ez instructions Actual cost. Form 1040ez instructions The standard meal allowance. Form 1040ez instructions Both of these methods are explained below. Form 1040ez instructions But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. Form 1040ez instructions   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. Form 1040ez instructions If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. Form 1040ez instructions Chapter 2 discusses the 50% Limit in more detail, and chapter 6 discusses accountable and nonaccountable plans. Form 1040ez instructions 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. Form 1040ez instructions If you use this method, you must keep records of your actual cost. Form 1040ez instructions Standard Meal Allowance Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. Form 1040ez instructions 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. Form 1040ez instructions The set amount varies depending on where and when you travel. Form 1040ez instructions In this publication, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . Form 1040ez instructions If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. Form 1040ez instructions See the recordkeeping rules for travel in chapter 5 . Form 1040ez instructions Incidental expenses. Form 1040ez instructions   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. Form 1040ez instructions   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. Form 1040ez instructions Incidental-expenses-only method. Form 1040ez instructions   You can use an optional method (instead of actual cost) for deducting incidental expenses only. Form 1040ez instructions The amount of the deduction is $5 a day. Form 1040ez instructions You can use this method only if you did not pay or incur any meal expenses. Form 1040ez instructions You cannot use this method on any day that you use the standard meal allowance. Form 1040ez instructions This method is subject to the proration rules for partial days. Form 1040ez instructions See Travel for days you depart and return , later in this chapter. Form 1040ez instructions Note. Form 1040ez instructions The incidental-expenses-only method is not subject to the 50% limit discussed below. Form 1040ez instructions Federal employees should refer to the Federal Travel Regulations at www. Form 1040ez instructions gsa. Form 1040ez instructions gov. Form 1040ez instructions 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. Form 1040ez instructions 50% limit may apply. Form 1040ez instructions   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. Form 1040ez instructions 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. Form 1040ez instructions The 50% limit is discussed in more detail in chapter 2, and accountable and nonaccountable plans are discussed in chapter 6. Form 1040ez instructions There is no optional standard lodging amount similar to the standard meal allowance. Form 1040ez instructions Your allowable lodging expense deduction is your actual cost. Form 1040ez instructions Who can use the standard meal allowance. Form 1040ez instructions   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. Form 1040ez instructions Use of the standard meal allowance for other travel. Form 1040ez instructions   You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. Form 1040ez instructions You can also use it to figure your meal expenses when you travel for qualifying educational purposes. Form 1040ez instructions You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. Form 1040ez instructions Amount of standard meal allowance. Form 1040ez instructions   The standard meal allowance is the federal M&IE rate. Form 1040ez instructions For travel in 2013, the rate for most small localities in the United States is $46 a day. Form 1040ez instructions    Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. Form 1040ez instructions    You can find this information (organized by state) on the Internet at www. Form 1040ez instructions gsa. Form 1040ez instructions gov/perdiem. Form 1040ez instructions Enter a zip code or select a city and state for the per diem rates for the current fiscal year. Form 1040ez instructions Per diem rates for prior fiscal years are available by using the drop down menu under “Search by State. Form 1040ez instructions ”   Per diem rates are listed by the Federal government's fiscal year which runs from October 1 to September 30. Form 1040ez instructions 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. Form 1040ez instructions   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. Form 1040ez instructions If you work in the transportation industry, however, see Special rate for transportation workers , later. Form 1040ez instructions Standard meal allowance for areas outside the continental United States. Form 1040ez instructions   The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. Form 1040ez instructions The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. Form 1040ez instructions S. Form 1040ez instructions Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. Form 1040ez instructions The Department of State establishes per diem rates for all other foreign areas. Form 1040ez instructions    You can access per diem rates for non-foreign areas outside the continental United States at: www. Form 1040ez instructions defensetravel. Form 1040ez instructions dod. Form 1040ez instructions mil/site/perdiemCalc. Form 1040ez instructions cfm. Form 1040ez instructions You can access all other foreign per diem rates at: www. Form 1040ez instructions state. Form 1040ez instructions gov/travel/. Form 1040ez instructions Click on “Travel Per Diem Allowances for Foreign Areas,” under “Foreign Per Diem Rates” to obtain the latest foreign per diem rates. Form 1040ez instructions Special rate for transportation workers. Form 1040ez instructions   You can use a special standard meal allowance if you work in the transportation industry. Form 1040ez instructions 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. Form 1040ez instructions If this applies to you, you can claim a standard meal allowance of $59 a day ($65 for travel outside the continental United States). Form 1040ez instructions   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. Form 1040ez instructions 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. Form 1040ez instructions Travel for days you depart and return. Form 1040ez instructions   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). Form 1040ez instructions You can do so by one of two methods. Form 1040ez instructions Method 1: You can claim 3/4 of the standard meal allowance. Form 1040ez instructions Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. Form 1040ez instructions Example. Form 1040ez instructions Jen is employed in New Orleans as a convention planner. Form 1040ez instructions In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. Form 1040ez instructions She left her home in New Orleans at 10 a. Form 1040ez instructions m. Form 1040ez instructions on Wednesday and arrived in Washington, DC, at 5:30 p. Form 1040ez instructions m. Form 1040ez instructions After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. Form 1040ez instructions m. Form 1040ez instructions Jen's employer gave her a flat amount to cover her expenses and included it with her wages. Form 1040ez instructions 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. Form 1040ez instructions Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. Form 1040ez instructions 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. Form 1040ez instructions Travel in the United States The following discussion applies to travel in the United States. Form 1040ez instructions For this purpose, the United States includes the 50 states and the District of Columbia. Form 1040ez instructions 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. Form 1040ez instructions See Part of Trip Outside the United States , later. Form 1040ez instructions Trip Primarily for Business You can deduct all of your travel expenses if your trip was entirely business related. Form 1040ez instructions 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. Form 1040ez instructions These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. Form 1040ez instructions Example. Form 1040ez instructions You work in Atlanta and take a business trip to New Orleans in May. Form 1040ez instructions Your business travel totals 850 miles round trip. Form 1040ez instructions On your way, you stop in Mobile to visit your parents. Form 1040ez instructions You spend $2,120 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. Form 1040ez instructions If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,820. Form 1040ez instructions You can deduct $1,820 for your trip, including the cost of round-trip transportation to and from New Orleans. Form 1040ez instructions The deduction for your meals is subject to the 50% limit on meals mentioned earlier. Form 1040ez instructions 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. Form 1040ez instructions However, you can deduct any expenses you have while at your destination that are directly related to your business. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions For the part of your trip that is inside the United States, use the rules for travel in the United States. Form 1040ez instructions Travel outside the United States does not include travel from one point in the United States to another point in the United States. Form 1040ez instructions The following discussion can help you determine whether your trip was entirely within the United States. Form 1040ez instructions Public transportation. Form 1040ez instructions   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. Form 1040ez instructions 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 . Form 1040ez instructions Example. Form 1040ez instructions You fly from New York to Puerto Rico with a scheduled stop in Miami. Form 1040ez instructions You return to New York nonstop. Form 1040ez instructions 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. Form 1040ez instructions Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. Form 1040ez instructions Private car. Form 1040ez instructions   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. Form 1040ez instructions Example. Form 1040ez instructions You travel by car from Denver to Mexico City and return. Form 1040ez instructions 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. Form 1040ez instructions The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. Form 1040ez instructions 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. Form 1040ez instructions For this purpose, the United States includes the 50 states and the District of Columbia. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions Travel entirely for business. Form 1040ez instructions   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. Form 1040ez instructions Travel considered entirely for business. Form 1040ez instructions   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. Form 1040ez instructions Exception 1 - No substantial control. Form 1040ez instructions   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. Form 1040ez instructions The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. Form 1040ez instructions   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. Form 1040ez instructions    “Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances . Form 1040ez instructions   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. Form 1040ez instructions   A self-employed person generally has substantial control over arranging business trips. Form 1040ez instructions Exception 2 - Outside United States no more than a week. Form 1040ez instructions   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. Form 1040ez instructions One week means 7 consecutive days. Form 1040ez instructions 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. Form 1040ez instructions Example. Form 1040ez instructions You traveled to Brussels primarily for business. Form 1040ez instructions You left Denver on Tuesday and flew to New York. Form 1040ez instructions On Wednesday, you flew from New York to Brussels, arriving the next morning. Form 1040ez instructions On Thursday and Friday, you had business discussions, and from Saturday until Tuesday, you were sightseeing. Form 1040ez instructions You flew back to New York, arriving Wednesday afternoon. Form 1040ez instructions On Thursday, you flew back to Denver. Form 1040ez instructions 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. Form 1040ez instructions This is because the day you depart does not count as a day outside the United States. Form 1040ez instructions You can deduct your cost of the round-trip flight between Denver and Brussels. Form 1040ez instructions You can also deduct the cost of your stay in Brussels for Thursday and Friday while you conducted business. Form 1040ez instructions However, you cannot deduct the cost of your stay in Brussels from Saturday through Tuesday because those days were spent on nonbusiness activities. Form 1040ez instructions Exception 3 - Less than 25% of time on personal activities. Form 1040ez instructions   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. Form 1040ez instructions For this purpose, count both the day your trip began and the day it ended. Form 1040ez instructions Example. Form 1040ez instructions You flew from Seattle to Tokyo, where you spent 14 days on business and 5 days on personal matters. Form 1040ez instructions You then flew back to Seattle. Form 1040ez instructions You spent 1 day flying in each direction. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions Exception 4 - Vacation not a major consideration. Form 1040ez instructions   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. Form 1040ez instructions 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. Form 1040ez instructions You can only deduct the business portion of your cost of getting to and from your destination. Form 1040ez instructions You must allocate the costs between your business and other activities to determine your deductible amount. Form 1040ez instructions See Travel allocation rules , later. Form 1040ez instructions 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 . Form 1040ez instructions In those cases, you can deduct the total cost of getting to and from your destination. Form 1040ez instructions Travel allocation rules. Form 1040ez instructions   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. Form 1040ez instructions The days you depart from and return to the United States are both counted as days outside the United States. Form 1040ez instructions   To figure the deductible amount of your round-trip travel expenses, use the following fraction. Form 1040ez instructions The numerator (top number) is the total number of business days outside the United States. Form 1040ez instructions The denominator (bottom number) is the total number of business and nonbusiness days of travel. Form 1040ez instructions Counting business days. Form 1040ez instructions   Your business days include transportation days, days your presence was required, days you spent on business, and certain weekends and holidays. Form 1040ez instructions Transportation day. Form 1040ez instructions   Count as a business day any day you spend traveling to or from a business destination. Form 1040ez instructions 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. Form 1040ez instructions Extra days for side trips or nonbusiness activities cannot be counted as business days. Form 1040ez instructions Presence required. Form 1040ez instructions   Count as a business day any day your presence is required at a particular place for a specific business purpose. Form 1040ez instructions Count it as a business day even if you spend most of the day on nonbusiness activities. Form 1040ez instructions Day spent on business. Form 1040ez instructions   If your principal activity during working hours is the pursuit of your trade or business, count the day as a business day. Form 1040ez instructions Also, count as a business day any day you are prevented from working because of circumstances beyond your control. Form 1040ez instructions Certain weekends and holidays. Form 1040ez instructions   Count weekends, holidays, and other necessary standby days as business days if they fall between business days. Form 1040ez instructions 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. Form 1040ez instructions Example 1. Form 1040ez instructions Your tax home is New York City. Form 1040ez instructions You travel to Quebec, where you have a business appointment on Friday. Form 1040ez instructions You have another appointment on the following Monday. Form 1040ez instructions Because your presence was required on both Friday and Monday, they are business days. Form 1040ez instructions Because the weekend is between business days, Saturday and Sunday are counted as business days. Form 1040ez instructions This is true even though you use the weekend for sightseeing, visiting friends, or other nonbusiness activity. Form 1040ez instructions Example 2. Form 1040ez instructions 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. Form 1040ez instructions Nonbusiness activity on the way to or from your business destination. Form 1040ez instructions   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. Form 1040ez instructions   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. Form 1040ez instructions   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Form 1040ez instructions 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. Form 1040ez instructions Example. Form 1040ez instructions You live in New York. Form 1040ez instructions On May 4 you flew to Paris to attend a business conference that began on May 5. Form 1040ez instructions The conference ended at noon on May 14. Form 1040ez instructions 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. Form 1040ez instructions The primary purpose for the trip was to attend the conference. Form 1040ez instructions If you had not stopped in Dublin, you would have arrived home the evening of May 14. Form 1040ez instructions You do not meet any of the exceptions that would allow you to consider your travel entirely for business. Form 1040ez instructions May 4 through May 14 (11 days) are business days and May 15 through May 21 (7 days) are nonbusiness days. Form 1040ez instructions You can deduct the cost of your meals (subject to the 50% limit), lodging, and other business-related travel expenses while in Paris. Form 1040ez instructions You cannot deduct your expenses while in Dublin. Form 1040ez instructions You also cannot deduct 7/18 of what it would have cost you to travel round-trip between New York and Dublin. Form 1040ez instructions 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. Form 1040ez instructions Round-trip airfare from New York to Dublin would have been $1,250. Form 1040ez instructions 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). Form 1040ez instructions Your deductible air travel expense is $1,364 ($1,850 − $486). Form 1040ez instructions Nonbusiness activity at, near, or beyond business destination. Form 1040ez instructions   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. Form 1040ez instructions   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. Form 1040ez instructions   You determine the nonbusiness portion of that expense by multiplying it by a fraction. Form 1040ez instructions 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. Form 1040ez instructions   None of your travel expenses for nonbusiness activities at, near, or beyond your business destination are deductible. Form 1040ez instructions Example. Form 1040ez instructions 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. Form 1040ez instructions You cannot deduct any part of the cost of your trip from Paris to Venice and return to Paris. Form 1040ez instructions In addition, you cannot deduct 7/18 of the airfare and other expenses from New York to Paris and back to New York. Form 1040ez instructions 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. Form 1040ez instructions (Assume these expenses total $4,939. Form 1040ez instructions ) 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. Form 1040ez instructions Other methods. Form 1040ez instructions   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. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions Example. Form 1040ez instructions The university from which you graduated has a continuing education program for members of its alumni association. Form 1040ez instructions 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. Form 1040ez instructions However, none of the conferences are directed toward specific occupations or professions. Form 1040ez instructions It is up to each participant to seek out specialists and organizational settings appropriate to his or her occupational interests. Form 1040ez instructions 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. Form 1040ez instructions These sessions are composed of a variety of activities including workshops, mini-lectures, role playing, skill development, and exercises. Form 1040ez instructions Professional conference directors schedule and conduct the sessions. Form 1040ez instructions Participants can choose those sessions they wish to attend. Form 1040ez instructions You can participate in this program since you are a member of the alumni association. Form 1040ez instructions You and your family take one of the trips. Form 1040ez instructions You spend about 2 hours at each of the planned sessions. Form 1040ez instructions The rest of the time you go touring and sightseeing with your family. Form 1040ez instructions The trip lasts less than 1 week. Form 1040ez instructions Your travel expenses for the trip are not deductible since the trip was primarily a vacation. Form 1040ez instructions 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. Form 1040ez instructions These expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses. Form 1040ez instructions 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. Form 1040ez instructions The limit is twice the highest federal per diem rate allowable at the time of your travel. Form 1040ez instructions (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. Form 1040ez instructions ) Daily limit on luxury water travel. Form 1040ez instructions   The highest federal per diem rate allowed and the daily limit for luxury water travel in 2013 is shown in the following table. Form 1040ez instructions   2013 Dates Highest Federal Per Diem Daily Limit on Luxury Water Travel   Jan. Form 1040ez instructions 1 – Mar. Form 1040ez instructions 31 $367 $734   Apr. Form 1040ez instructions 1 – June 30 312 624   July 1 – Aug. Form 1040ez instructions 31 310 620   Sept. Form 1040ez instructions 1 – Sept. Form 1040ez instructions 30 366 732   Oct. Form 1040ez instructions 1 – Dec. Form 1040ez instructions 31 374 748 Example. Form 1040ez instructions Caroline, a travel agent, traveled by ocean liner from New York to London, England, on business in May. Form 1040ez instructions Her expense for the 6-day cruise was $5,200. Form 1040ez instructions Caroline's deduction for the cruise cannot exceed $3,744 (6 days × $624 daily limit). Form 1040ez instructions Meals and entertainment. Form 1040ez instructions   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. Form 1040ez instructions For a discussion of the 50% Limit , see chapter 2. Form 1040ez instructions Example. Form 1040ez instructions In the previous example, Caroline's luxury water travel had a total cost of $5,200. Form 1040ez instructions Of that amount, $3,700 was separately stated as meals and entertainment. Form 1040ez instructions Caroline, who is self-employed, is not reimbursed for any of her travel expenses. Form 1040ez instructions Caroline figures her deductible travel expenses as follows. Form 1040ez instructions Meals and entertainment $3,700   50% limit × . Form 1040ez instructions 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. Form 1040ez instructions Not separately stated. Form 1040ez instructions   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. Form 1040ez instructions 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. Form 1040ez instructions See Cruise Ships under Conventions. Form 1040ez instructions Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. Form 1040ez instructions You cannot deduct the travel expenses for your family. Form 1040ez instructions If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. Form 1040ez instructions Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. Form 1040ez instructions You can deduct your travel expenses only if your attendance is connected to your own trade or business. Form 1040ez instructions Convention agenda. Form 1040ez instructions   The convention agenda or program generally shows the purpose of the convention. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions See Reasonableness test , later. Form 1040ez instructions 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 . Form 1040ez instructions North American area. Form 1040ez instructions   The North American area includes the following locations. Form 1040ez instructions 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. Form 1040ez instructions S. Form 1040ez instructions Virgin Islands Jamaica Wake Island Jarvis Island   The North American area also includes U. Form 1040ez instructions S. Form 1040ez instructions islands, cays, and reefs that are possessions of the United States and not part of the fifty states or the District of Columbia. Form 1040ez instructions Reasonableness test. Form 1040ez instructions   The following factors are taken into account to determine if it was reasonable to hold the meeting outside the North American area. Form 1040ez instructions The purpose of the meeting and the activities taking place at the meeting. Form 1040ez instructions The purposes and activities of the sponsoring organizations or groups. Form 1040ez instructions 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. Form 1040ez instructions Other relevant factors you may present. Form 1040ez instructions 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. Form 1040ez instructions All ships that sail are considered cruise ships. Form 1040ez instructions You can deduct these expenses only if all of the following requirements are met. Form 1040ez instructions The convention, seminar, or meeting is directly related to your trade or business. Form 1040ez instructions The cruise ship is a vessel registered in the United States. Form 1040ez instructions All of the cruise ship's ports of call are in the United States or in possessions of the United States. Form 1040ez instructions 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. Form 1040ez instructions 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. Form 1040ez instructions Prev  Up  Next   Home   More Online Publications
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The Form 1040ez Instructions

Form 1040ez instructions Publication 80 - Introductory Material Table of Contents Future Developments What's New Reminders Calendar Future Developments For the latest information about developments related to Publication 80 (Circular SS), such as legislation enacted after it was published, go to www. Form 1040ez instructions irs. Form 1040ez instructions gov/pub80. Form 1040ez instructions What's New Social security and Medicare tax for 2014. Form 1040ez instructions  The social security tax rate is 6. Form 1040ez instructions 2% each for the employee and employer, unchanged from 2013. Form 1040ez instructions The social security wage base limit is $117,000. Form 1040ez instructions The Medicare tax rate is 1. Form 1040ez instructions 45% each for the employee and employer, unchanged from 2013. Form 1040ez instructions There is no wage base limit for Medicare tax. Form 1040ez instructions Social security and Medicare taxes apply to the wages of household workers you pay $1,900 or more in cash or an equivalent form of compensation. Form 1040ez instructions Social security and Medicare taxes apply to election workers who are paid $1,600 or more in cash or an equivalent form of compensation. Form 1040ez instructions Change of responsible party. Form 1040ez instructions . Form 1040ez instructions  Beginning January 1, 2014, any entity with an employer identification number (EIN) must file Form 8822-B, Change of Address or Responsible Party—Business, to report the latest change to its responsible party. Form 1040ez instructions Form 8822-B must be filed within 60 days of the change. Form 1040ez instructions If the change in the identity of your responsible party occurred before 2014, and you have not previously notified the IRS of the change, file Form 8822-B before March 1, 2014, reporting only the most recent change. Form 1040ez instructions For a definition of “responsible party”, see the Form 8822-B instructions. Form 1040ez instructions Same-sex marriage. Form 1040ez instructions  For federal tax purposes, individuals of the same sex are considered married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Form 1040ez instructions For more information, see Revenue Ruling 2013-17, 2013-38 I. Form 1040ez instructions R. Form 1040ez instructions B. Form 1040ez instructions 201, available at www. Form 1040ez instructions irs. Form 1040ez instructions gov/irb/2013-38_IRB/ar07. Form 1040ez instructions html. Form 1040ez instructions Notice 2013-61 provides special administrative procedures for employers to make claims for refund or adjustments of overpayments of social security and Medicare taxes with respect to certain same-sex spouse benefits before expiration of the period of limitations. Form 1040ez instructions Notice 2013-61, 2013-44 I. Form 1040ez instructions R. Form 1040ez instructions B. Form 1040ez instructions 432, is available at www. Form 1040ez instructions irs. Form 1040ez instructions gov/irb/2013-44_IRB/ar10. Form 1040ez instructions html. Form 1040ez instructions Reminders Additional Medicare Tax withholding. Form 1040ez instructions  In addition to withholding Medicare tax at 1. Form 1040ez instructions 45%, you must withhold a 0. Form 1040ez instructions 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Form 1040ez instructions You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Form 1040ez instructions Additional Medicare Tax is only imposed on the employee. Form 1040ez instructions There is no employer share of Additional Medicare Tax. Form 1040ez instructions All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Form 1040ez instructions For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Employment and Payments , in section 12. Form 1040ez instructions For more information on Additional Medicare Tax, visit IRS. Form 1040ez instructions gov and enter “Additional Medicare Tax” in the search box. Form 1040ez instructions Work opportunity tax credit for qualified tax-exempt organizations hiring qualified veterans. Form 1040ez instructions  The work opportunity tax credit is available for eligible unemployed veterans who begin work on or after November 22, 2011, and before January 1, 2014. Form 1040ez instructions Qualified tax-exempt organizations that hire eligible unemployed veterans can claim the work opportunity tax credit against their payroll tax liability using Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. Form 1040ez instructions For more information, visit IRS. Form 1040ez instructions gov and enter “work opportunity tax credit” in the search box. Form 1040ez instructions Outsourcing payroll duties. Form 1040ez instructions  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. Form 1040ez instructions The employer remains responsible if the third party fails to perform any required action. Form 1040ez instructions If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. Form 1040ez instructions gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Form 1040ez instructions Residents of the Philippines working in the Commonwealth of the Northern Mariana Islands (CNMI). Form 1040ez instructions  The IRS will not assert that an employer has understated liability for social security and Medicare taxes because they failed to treat services performed before January 1, 2015, in the CNMI by a resident of the Philippines as employment as defined under Internal Revenue Code section 3121(b). Form 1040ez instructions For more information, see Announcement 2012-43, 2012-51 I. Form 1040ez instructions R. Form 1040ez instructions B. Form 1040ez instructions 723, available at www. Form 1040ez instructions irs. Form 1040ez instructions gov/irb/2012-51_IRB/ar15. Form 1040ez instructions html. Form 1040ez instructions CNMI government employees now subject to social security and Medicare taxes. Form 1040ez instructions  Beginning in the fourth calendar quarter of 2012, CNMI government employees are subject to social security and Medicare taxes. Form 1040ez instructions COBRA premium assistance credit. Form 1040ez instructions  The credit for COBRA premium assistance payments applies to premiums paid for employees involuntarily terminated between September 1, 2008 and May 31, 2010, and to premiums paid for up to 15 months. Form 1040ez instructions See COBRA premium assistance credit in Publication 15 (Circular E), Employer's Tax Guide. Form 1040ez instructions You can get Publication 15 (Circular E) at IRS. Form 1040ez instructions gov. Form 1040ez instructions You must receive written notice from the IRS to file Form 944. Form 1040ez instructions  If you have been filing Forms 941-SS and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944, Employer's ANNUAL Federal Tax Return, instead of Forms 941-SS, you must contact the IRS to request to file Form 944. Form 1040ez instructions You must receive written notice from the IRS to file Form 944 instead of Forms 941-SS before you may file this form. Form 1040ez instructions For more information on requesting to file Form 944 visit IRS. Form 1040ez instructions gov and enter “file employment taxes annually” in the search box. Form 1040ez instructions Federal employers in the CNMI. Form 1040ez instructions  The U. Form 1040ez instructions S. Form 1040ez instructions Treasury Department and the CNMI Division of Revenue and Taxation entered into an agreement under 5 USC 5517 in December 2006. Form 1040ez instructions Under this agreement, all federal employers (including the Department of Defense) are required to withhold CNMI income taxes (rather than federal income taxes) and deposit the CNMI taxes with the CNMI Treasury for employees who are subject to CNMI taxes and whose regular place of federal employment is in the CNMI. Form 1040ez instructions Federal employers are also required to file quarterly and annual reports with the CNMI Division of Revenue and Taxation. Form 1040ez instructions For questions, contact the CNMI Division of Revenue and Taxation. Form 1040ez instructions Change of address. Form 1040ez instructions  Use Form 8822-B to notify the IRS of an address change. Form 1040ez instructions Do not mail Form 8822-B with your employment tax return. Form 1040ez instructions Federal tax deposits must be made by electronic funds transfer. Form 1040ez instructions  You must use electronic funds transfer to make all federal tax deposits. Form 1040ez instructions Generally, electronic fund transfers are made using the Electronic Federal Tax Payment System (EFTPS). Form 1040ez instructions If you do not want to use EFTPS, you can arrange for your tax professional, financial institution, payroll service, or other trusted third party to make electronic deposits on your behalf. Form 1040ez instructions Also, you may arrange for your financial institution to initiate a same-day wire payment on your behalf. Form 1040ez instructions EFTPS is a free service provided by the Department of Treasury. Form 1040ez instructions Services provided by your tax professional, financial institution, payroll service, or other third party may have a fee. Form 1040ez instructions For more information on making federal tax deposits, see How To Deposit in section 8. Form 1040ez instructions For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www. Form 1040ez instructions eftps. Form 1040ez instructions gov or call 1-800-555-4477 (U. Form 1040ez instructions S. Form 1040ez instructions Virgin Islands only) or 303-967-5916 (toll call) or 1-800-733-4829 (TDD). Form 1040ez instructions Additional information about EFTPS is also available in Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started. Form 1040ez instructions Electronic filing and payment. Form 1040ez instructions  Using electronic options can make filing a return and paying your federal tax easier. Form 1040ez instructions Use the Electronic Federal Tax Payment System (EFTPS) to make deposits or pay in full, whether you rely on a tax professional or prepare your own taxes. Form 1040ez instructions You can use IRS e-file to file certain returns. Form 1040ez instructions If there is a balance due on the return, you can e-file and e-pay in a single step by authorizing an electronic funds withdrawal (EFW) from your bank account while e-filing. Form 1040ez instructions Do not use EFW to pay taxes that are required to be deposited. Form 1040ez instructions Visit the IRS website at www. Form 1040ez instructions irs. Form 1040ez instructions gov/efile for more information on filing electronically. Form 1040ez instructions For more information on paying your taxes using EFW, visit the IRS website at www. Form 1040ez instructions irs. Form 1040ez instructions gov/e-pay. Form 1040ez instructions A fee may be charged to file electronically. Form 1040ez instructions For EFTPS, visit www. Form 1040ez instructions eftps. Form 1040ez instructions gov or call EFTPS Customer Service at 1-800-555-4477 (U. Form 1040ez instructions S. Form 1040ez instructions Virgin Islands only) or 303-967-5916 (toll call). Form 1040ez instructions For electronic filing of Forms W-2AS, W-2CM, W-2GU, W-2VI, Wage and Tax Statements; W-3SS, Transmittal of Wage and Tax Statements; and W-2c, Corrected Wage and Tax Statement, visit www. Form 1040ez instructions socialsecurity. Form 1040ez instructions gov/employer. Form 1040ez instructions If you are filing your tax return or paying your federal taxes electronically, a valid EIN is required. Form 1040ez instructions If a valid EIN is not provided, the return or payment will not be processed. Form 1040ez instructions This may result in penalties and delays in processing your return or payment. Form 1040ez instructions Electronic option for filing Forms W-2AS, W-2CM, W-2GU, or W-2VI. Form 1040ez instructions  Employers in American Samoa, the CNMI, Guam, and the U. Form 1040ez instructions S. Form 1040ez instructions Virgin Islands can now use the Social Security Administration's W-2 Online service to create, save, print, and submit up to 50 Forms W-2AS, W-2CM, W-2GU, or W-2VI at a time over the Internet. Form 1040ez instructions Form W-3SS will be generated automatically based on your Forms W-2AS, W-2CM, W-2GU, or W-2VI. Form 1040ez instructions For more information, visit Social Security Administration's SSA website at www. Form 1040ez instructions ssa. Form 1040ez instructions gov/bso/bsowelcome. Form 1040ez instructions htm. Form 1040ez instructions Credit or debit card payments. Form 1040ez instructions  For information on paying your taxes with a credit or debit card, visit the IRS website at www. Form 1040ez instructions irs. Form 1040ez instructions gov/e-pay. Form 1040ez instructions However, do not use credit or debit cards to make federal tax deposits. Form 1040ez instructions Hiring new employees. Form 1040ez instructions  Record the number and name from each new employee's social security card. Form 1040ez instructions An employee who does not have a social security card should apply for one on Form SS-5, Application for a Social Security Card. Form 1040ez instructions See section 3. Form 1040ez instructions Reporting discrepancies between Forms 941-SS (or Form 944) and Forms W-2. Form 1040ez instructions  File Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations, to explain certain wage, tax, and payment discrepancies between Forms 941-SS (or Form 944), and Forms W-2 that were caused by acquisitions, statutory mergers, or consolidations. Form 1040ez instructions For more information, see the Instructions for Schedule D (Form 941). Form 1040ez instructions Apply for an employer identification number (EIN) online. Form 1040ez instructions  You can apply for an EIN online by visiting IRS. Form 1040ez instructions gov and clicking on the Apply for an EIN Online link under Tools. Form 1040ez instructions Dishonored payments. Form 1040ez instructions  Any form of payment that is dishonored and returned from a financial institution is subject to a penalty. Form 1040ez instructions The penalty is $25 or 2% of the payment, whichever is more. Form 1040ez instructions However, the penalty on dishonored payments of $24. Form 1040ez instructions 99 or less is an amount equal to the payment. Form 1040ez instructions For example, a dishonored payment of $18 is charged a penalty of $18. Form 1040ez instructions Private delivery services. Form 1040ez instructions  You can use certain private delivery services designated by the IRS to send tax returns or payments. Form 1040ez instructions The list includes only the following: DHL Express (DHL): DHL Same Day Service. Form 1040ez instructions Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Form 1040ez instructions United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Form 1040ez instructions M. Form 1040ez instructions , UPS Worldwide Express Plus, and UPS Worldwide Express. Form 1040ez instructions For the IRS mailing address to use if you are using a private delivery service, go to IRS. Form 1040ez instructions gov and enter “private delivery service” in the search box. Form 1040ez instructions Your private delivery service can tell you how to get written proof of the mailing date. Form 1040ez instructions Private delivery services cannot deliver items to P. Form 1040ez instructions O. Form 1040ez instructions boxes. Form 1040ez instructions You must use the U. Form 1040ez instructions S. Form 1040ez instructions Postal Service to mail any item to an IRS P. Form 1040ez instructions O. Form 1040ez instructions box address. Form 1040ez instructions Recordkeeping. Form 1040ez instructions  Keep all records of employment taxes for 4 years. Form 1040ez instructions These should be available for IRS review. Form 1040ez instructions There is no required format for such records, but they should include your EIN; the amounts and dates of all wage payments (including fringe benefits) and tips reported; the names, addresses, and occupations of employees receiving such payments and their social security numbers; copies of returns filed; dates of employment; and the dates and amounts of deposits made. Form 1040ez instructions Farm employers must keep a record of the name, permanent address, and EIN of each crew leader. Form 1040ez instructions See Farm Crew Leaders in section 2. Form 1040ez instructions Disregarded entities and qualified subchapter S subsidiaries (QSubs). Form 1040ez instructions  Eligible single-owner disregarded entities and QSubs are treated as separate entities for employment tax purposes. Form 1040ez instructions Eligible single-member entities that have not elected to be taxed as corporations must report and pay employment taxes on wages paid to their employees using the entities' own names and EINs. Form 1040ez instructions See Regulations sections 1. Form 1040ez instructions 1361-4(a)(7) and 301. Form 1040ez instructions 7701-2(c)(2)(iv). Form 1040ez instructions Photographs of missing children. Form 1040ez instructions  The IRS is a proud partner with the National Center for Missing and Exploited Children. Form 1040ez instructions Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Form 1040ez instructions You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Form 1040ez instructions Calendar   If any date for filing a return, furnishing a form, or depositing taxes falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. Form 1040ez instructions A statewide legal holiday delays a filing due date only if the IRS office where you are required to file is located in that state. Form 1040ez instructions However, a statewide legal holiday does not delay the due date of federal tax deposits. Form 1040ez instructions See Deposits on Business Days Only in section 8. Form 1040ez instructions For any filing due date, you will meet the “file” or “furnish” requirement if the envelope containing the return or form is properly addressed, contains sufficient postage, and is postmarked by the U. Form 1040ez instructions S. Form 1040ez instructions Postal Service on or before the due date, or sent by an IRS-designated delivery service on or before the due date. Form 1040ez instructions See Private delivery services under Reminders. Form 1040ez instructions The following are important dates and responsibilities. Form 1040ez instructions Also see Publication 509, Tax Calendars. Form 1040ez instructions By January 31. Form 1040ez instructions   Furnish wage and tax statements to employees. Form 1040ez instructions Give each employee a completed Form W-2AS, W-2CM, W-2GU, or W-2VI. Form 1040ez instructions See section 10 for more information. Form 1040ez instructions File Form 943, Employer's Annual Federal Tax Return for Agricultural Employees, with the IRS. Form 1040ez instructions If you deposited all Form 943 taxes when due, you have 10 additional calendar days to file. Form 1040ez instructions U. Form 1040ez instructions S. Form 1040ez instructions Virgin Islands employers only must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, with the IRS. Form 1040ez instructions Pay or deposit (if more than $500) any balance of the tax due. Form 1040ez instructions If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Form 1040ez instructions File Form 944 with the IRS if you were notified by the IRS to file Form 944 instead of quarterly Forms 941-SS. Form 1040ez instructions If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Form 1040ez instructions By February 28. Form 1040ez instructions  File paper wage and tax statements with the Social Security Administration (SSA). Form 1040ez instructions File Copy A of Forms W-2AS, W-2CM, W-2GU, or W-2VI, and Form W-3SS with the Social Security Administration (SSA). Form 1040ez instructions For electronically filed returns, see By March 31 next. Form 1040ez instructions By March 31. Form 1040ez instructions  File electronic Forms W-2AS, W-2CM, W-2GU, or W-2VI with the SSA. Form 1040ez instructions Visit the SSA's Reporting Instructions & Information webpage at www. Form 1040ez instructions socialsecurity. Form 1040ez instructions gov/employer for more information. Form 1040ez instructions By April 30, July 31, October 31, and January 31. Form 1040ez instructions  File Form 941-SS with the IRS. Form 1040ez instructions If you deposited the full amount of taxes when due, you have 10 additional calendar days to file. Form 1040ez instructions Do not file Forms 941-SS for these quarters if you have been notified to file Form 944 and you did not request to file quarterly Forms 941-SS. Form 1040ez instructions Deposit FUTA tax for the quarter (including any amount carried over from other quarters) if over $500. Form 1040ez instructions If $500 or less, carry it over to the next quarter. Form 1040ez instructions See section 11 for more information. Form 1040ez instructions Prev  Up  Next   Home   More Online Publications