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Free 1040 State Tax Forms

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Free 1040 State Tax Forms

Free 1040 state tax forms 3. Free 1040 state tax forms   Personal Exemptions and Dependents Table of Contents What's New Introduction Useful Items - You may want to see: ExemptionsPersonal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. Free 1040 state tax forms Taxpayer identification numbers for aliens. Free 1040 state tax forms Taxpayer identification numbers for adoptees. Free 1040 state tax forms What's New Exemption amount. Free 1040 state tax forms  The amount you can deduct for each exemption has increased. Free 1040 state tax forms It was $3,800 for 2012. Free 1040 state tax forms It is $3,900 for 2013. Free 1040 state tax forms Exemption phaseout. Free 1040 state tax forms  You lose at least part of the benefit of your exemptions if your adjusted gross income is more than a certain amount. Free 1040 state tax forms For 2013, this amount is $150,000 for a married individual filing a separate return; $250,000 for a single individual; $275,000 for a head of household; and $300,000 for married individuals filing jointly or a qualifying widow(er). Free 1040 state tax forms See Phaseout of Exemptions , later. Free 1040 state tax forms Introduction This chapter discusses the following topics. Free 1040 state tax forms Personal exemptions — You generally can take one for yourself and, if you are married, one for your spouse. Free 1040 state tax forms Exemptions for dependents — You generally can take an exemption for each of your dependents. Free 1040 state tax forms A dependent is your qualifying child or qualifying relative. Free 1040 state tax forms If you are entitled to claim an exemption for a dependent, that dependent cannot claim a personal exemption on his or her own tax return. Free 1040 state tax forms Phaseout of exemptions — Your deduction is reduced if your adjusted gross income is more than a certain amount. Free 1040 state tax forms Social security number (SSN) requirement for dependents — You must list the SSN of any dependent for whom you claim an exemption. Free 1040 state tax forms Deduction. Free 1040 state tax forms   Exemptions reduce your taxable income. Free 1040 state tax forms You can deduct $3,900 for each exemption you claim in 2013. Free 1040 state tax forms But you may lose at least part of the dollar amount of your exemptions if your adjusted gross income is more than a certain amount. Free 1040 state tax forms See Phaseout of Exemptions , later. Free 1040 state tax forms How to claim exemptions. Free 1040 state tax forms    How you claim an exemption on your tax return depends on which form you file. Free 1040 state tax forms    If you file Form 1040EZ, the exemption amount is combined with the standard deduction amount and entered on line 5. Free 1040 state tax forms    If you file Form 1040A, complete lines 6a through 6d. Free 1040 state tax forms The total number of exemptions you can claim is the total in the box on line 6d. Free 1040 state tax forms Also complete line 26. Free 1040 state tax forms   If you file Form 1040, complete lines 6a through 6d. Free 1040 state tax forms The total number of exemptions you can claim is the total in the box on line 6d. Free 1040 state tax forms Also complete line 42. Free 1040 state tax forms Useful Items - You may want to see: Publication 501 Exemptions, Standard Deduction, and Filing Information Form (and Instructions) 2120 Multiple Support Declaration 8332 Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent Exemptions There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). Free 1040 state tax forms While each is worth the same amount ($3,900 for 2013), different rules apply to each type. Free 1040 state tax forms Personal Exemptions You are generally allowed one exemption for yourself. Free 1040 state tax forms If you are married, you may be allowed one exemption for your spouse. Free 1040 state tax forms These are called personal exemptions. Free 1040 state tax forms Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. Free 1040 state tax forms If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. Free 1040 state tax forms Your Spouse's Exemption Your spouse is never considered your dependent. Free 1040 state tax forms Joint return. Free 1040 state tax forms   On a joint return you can claim one exemption for yourself and one for your spouse. Free 1040 state tax forms Separate return. Free 1040 state tax forms   If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. Free 1040 state tax forms This is true even if the other taxpayer does not actually claim your spouse as a dependent. Free 1040 state tax forms You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. Free 1040 state tax forms S. Free 1040 state tax forms tax purposes, must not be filing a return, and must not be the dependent of another taxpayer. Free 1040 state tax forms Death of spouse. Free 1040 state tax forms   If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . Free 1040 state tax forms If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . Free 1040 state tax forms   If you remarried during the year, you cannot take an exemption for your deceased spouse. Free 1040 state tax forms   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. Free 1040 state tax forms If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. Free 1040 state tax forms Divorced or separated spouse. Free 1040 state tax forms   If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. Free 1040 state tax forms This rule applies even if you provided all of your former spouse's support. Free 1040 state tax forms Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. Free 1040 state tax forms You can claim an exemption for a dependent even if your dependent files a return. Free 1040 state tax forms The term “dependent” means: A qualifying child, or A qualifying relative. Free 1040 state tax forms The terms “ qualifying child ” and “ qualifying relative ” are defined later. Free 1040 state tax forms You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. Free 1040 state tax forms Dependent taxpayer test. Free 1040 state tax forms Joint return test. Free 1040 state tax forms Citizen or resident test. Free 1040 state tax forms These three tests are explained in detail later. Free 1040 state tax forms All the requirements for claiming an exemption for a dependent are summarized in Table 3-1. Free 1040 state tax forms Table 3-1. Free 1040 state tax forms Overview of the Rules for Claiming an Exemption for a Dependent Caution. Free 1040 state tax forms This table is only an overview of the rules. Free 1040 state tax forms For details, see the rest of this chapter. Free 1040 state tax forms You cannot claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. Free 1040 state tax forms   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. Free 1040 state tax forms   You cannot claim a person as a dependent unless that person is a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen, U. Free 1040 state tax forms S. Free 1040 state tax forms resident alien, U. Free 1040 state tax forms S. Free 1040 state tax forms national, or a resident of Canada or Mexico. Free 1040 state tax forms 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. Free 1040 state tax forms   Tests To Be a Qualifying Child   Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. Free 1040 state tax forms   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or (c) any age if permanently and totally disabled. Free 1040 state tax forms   The child must have lived with you for more than half of the year. Free 1040 state tax forms 2  The child must not have provided more than half of his or her own support for the year. Free 1040 state tax forms   The child is not filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid). Free 1040 state tax forms  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. Free 1040 state tax forms See the Special Rule for Qualifying Child of More Than One Person to find out which person is the person entitled to claim the child as a qualifying child. Free 1040 state tax forms   The person cannot be your qualifying child or the qualifying child of any other taxpayer. Free 1040 state tax forms   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). Free 1040 state tax forms   The person's gross income for the year must be less than $3,900. Free 1040 state tax forms 3  You must provide more than half of the person's total support for the year. Free 1040 state tax forms 4  1There is an exception for certain adopted children. Free 1040 state tax forms 2There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. Free 1040 state tax forms 3There is an exception if the person is disabled and has income from a sheltered workshop. Free 1040 state tax forms 4There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. Free 1040 state tax forms Dependent not allowed a personal exemption. Free 1040 state tax forms If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. Free 1040 state tax forms This is true even if you do not claim the dependent's exemption on your return. Free 1040 state tax forms It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. Free 1040 state tax forms Housekeepers, maids, or servants. Free 1040 state tax forms   If these people work for you, you cannot claim exemptions for them. Free 1040 state tax forms Child tax credit. Free 1040 state tax forms   You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. Free 1040 state tax forms For more information, see chapter 34. Free 1040 state tax forms Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. Free 1040 state tax forms Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. Free 1040 state tax forms If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. Free 1040 state tax forms Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. Free 1040 state tax forms Exception. Free 1040 state tax forms   You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. Free 1040 state tax forms Example 1—child files joint return. Free 1040 state tax forms You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Free 1040 state tax forms He earned $25,000 for the year. Free 1040 state tax forms The couple files a joint return. Free 1040 state tax forms You cannot take an exemption for your daughter. Free 1040 state tax forms Example 2—child files joint return only as claim for refund of withheld tax. Free 1040 state tax forms Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Free 1040 state tax forms Neither is required to file a tax return. Free 1040 state tax forms They do not have a child. Free 1040 state tax forms Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. Free 1040 state tax forms The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. Free 1040 state tax forms You can claim exemptions for each of them if all the other tests to do so are met. Free 1040 state tax forms Example 3—child files joint return to claim American opportunity credit. Free 1040 state tax forms The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Free 1040 state tax forms He and his wife are not required to file a tax return. Free 1040 state tax forms However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Free 1040 state tax forms Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. Free 1040 state tax forms The exception to the joint return test does not apply, so you cannot claim an exemption for either of them. Free 1040 state tax forms Citizen or Resident Test You cannot claim a person as a dependent unless that person is a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen, U. Free 1040 state tax forms S. Free 1040 state tax forms resident alien, U. Free 1040 state tax forms S. Free 1040 state tax forms national, or a resident of Canada or Mexico. Free 1040 state tax forms However, there is an exception for certain adopted children, as explained next. Free 1040 state tax forms Exception for adopted child. Free 1040 state tax forms   If you are a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen or U. Free 1040 state tax forms S. Free 1040 state tax forms national who has legally adopted a child who is not a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen, U. Free 1040 state tax forms S. Free 1040 state tax forms resident alien, or U. Free 1040 state tax forms S. Free 1040 state tax forms national, this test is met if the child lived with you as a member of your household all year. Free 1040 state tax forms This exception also applies if the child was lawfully placed with you for legal adoption. Free 1040 state tax forms Child's place of residence. Free 1040 state tax forms   Children usually are citizens or residents of the country of their parents. Free 1040 state tax forms   If you were a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen when your child was born, the child may be a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country. Free 1040 state tax forms Foreign students' place of residence. Free 1040 state tax forms   Foreign students brought to this country under a qualified international education exchange program and placed in American homes for a temporary period generally are not U. Free 1040 state tax forms S. Free 1040 state tax forms residents and do not meet this test. Free 1040 state tax forms You cannot claim an exemption for them. Free 1040 state tax forms However, if you provided a home for a foreign student, you may be able to take a charitable contribution deduction. Free 1040 state tax forms See Expenses Paid for Student Living With You in chapter 24. Free 1040 state tax forms U. Free 1040 state tax forms S. Free 1040 state tax forms national. Free 1040 state tax forms   A U. Free 1040 state tax forms S. Free 1040 state tax forms national is an individual who, although not a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen, owes his or her allegiance to the United States. Free 1040 state tax forms U. Free 1040 state tax forms S. Free 1040 state tax forms nationals include American Samoans and Northern Mariana Islanders who chose to become U. Free 1040 state tax forms S. Free 1040 state tax forms nationals instead of U. Free 1040 state tax forms S. Free 1040 state tax forms citizens. Free 1040 state tax forms Qualifying Child Five tests must be met for a child to be your qualifying child. Free 1040 state tax forms The five tests are: Relationship, Age, Residency, Support, and Joint return. Free 1040 state tax forms These tests are explained next. Free 1040 state tax forms If a child meets the five tests to be the qualifying child of more than one person, a special rule applies to determine which person can actually treat the child as a qualifying child. Free 1040 state tax forms See Special Rule for Qualifying Child of More Than One Person, later. Free 1040 state tax forms Relationship Test To meet this test, a child must be: Your son, daughter, stepchild, foster child, or a descendant (for example, your grandchild) of any of them, or Your brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant (for example, your niece or nephew) of any of them. Free 1040 state tax forms Adopted child. Free 1040 state tax forms   An adopted child is always treated as your own child. Free 1040 state tax forms The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Free 1040 state tax forms Foster child. Free 1040 state tax forms   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Free 1040 state tax forms Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), A student under age 24 at the end of the year and younger than you (or your spouse, if filing jointly), or Permanently and totally disabled at any time during the year, regardless of age. Free 1040 state tax forms Example. Free 1040 state tax forms Your son turned 19 on December 10. Free 1040 state tax forms Unless he was permanently and totally disabled or a student, he does not meet the age test because, at the end of the year, he was not under age 19. Free 1040 state tax forms Child must be younger than you or spouse. Free 1040 state tax forms   To be your qualifying child, a child who is not permanently and totally disabled must be younger than you. Free 1040 state tax forms However, if you are married filing jointly, the child must be younger than you or your spouse but does not have to be younger than both of you. Free 1040 state tax forms Example 1—child not younger than you or spouse. Free 1040 state tax forms Your 23-year-old brother, who is a student and unmarried, lives with you and your spouse. Free 1040 state tax forms He is not disabled. Free 1040 state tax forms Both you and your spouse are 21 years old, and you file a joint return. Free 1040 state tax forms Your brother is not your qualifying child because he is not younger than you or your spouse. Free 1040 state tax forms Example 2—child younger than your spouse but not younger than you. Free 1040 state tax forms The facts are the same as in Example 1 except your spouse is 25 years old. Free 1040 state tax forms Because your brother is younger than your spouse, and you and your spouse are filing a joint return, your brother is your qualifying child, even though he is not younger than you. Free 1040 state tax forms Student defined. Free 1040 state tax forms   To qualify as a student, your child must be, during some part of each of any 5 calendar months of the year: A full-time student at a school that has a regular teaching staff, course of study, and a regularly enrolled student body at the school, or A student taking a full-time, on-farm training course given by a school described in (1), or by a state, county, or local government agency. Free 1040 state tax forms The 5 calendar months do not have to be consecutive. Free 1040 state tax forms Full-time student. Free 1040 state tax forms   A full-time student is a student who is enrolled for the number of hours or courses the school considers to be full-time attendance. Free 1040 state tax forms School defined. Free 1040 state tax forms   A school can be an elementary school, junior or senior high school, college, university, or technical, trade, or mechanical school. Free 1040 state tax forms However, an on-the-job training course, correspondence school, or school offering courses only through the Internet does not count as a school. Free 1040 state tax forms Vocational high school students. Free 1040 state tax forms   Students who work on “co-op” jobs in private industry as a part of a school's regular course of classroom and practical training are considered full-time students. Free 1040 state tax forms Permanently and totally disabled. Free 1040 state tax forms   Your child is permanently and totally disabled if both of the following apply. Free 1040 state tax forms He or she cannot engage in any substantial gainful activity because of a physical or mental condition. Free 1040 state tax forms A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death. Free 1040 state tax forms Residency Test To meet this test, your child must have lived with you for more than half the year. Free 1040 state tax forms There are exceptions for temporary absences, children who were born or died during the year, kidnapped children, and children of divorced or separated parents. Free 1040 state tax forms Temporary absences. Free 1040 state tax forms   Your child is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. Free 1040 state tax forms Your child is also considered to have lived with you during any required hospital stay following birth, as long as the child would have lived with you during that time but for the hospitalization. Free 1040 state tax forms Death or birth of child. Free 1040 state tax forms   A child who was born or died during the year is treated as having lived with you more than half of the year if your home was the child's home more than half of the time he or she was alive during the year. Free 1040 state tax forms Child born alive. Free 1040 state tax forms   You may be able to claim an exemption for a child born alive during the year, even if the child lived only for a moment. Free 1040 state tax forms State or local law must treat the child as having been born alive. Free 1040 state tax forms There must be proof of a live birth shown by an official document, such as a birth certificate. Free 1040 state tax forms The child must be your qualifying child or qualifying relative, and all the other tests to claim an exemption for a dependent must be met. Free 1040 state tax forms Stillborn child. Free 1040 state tax forms   You cannot claim an exemption for a stillborn child. Free 1040 state tax forms Kidnapped child. Free 1040 state tax forms   You may be able to treat your child as meeting the residency test even if the child has been kidnapped. Free 1040 state tax forms See Publication 501 for details. Free 1040 state tax forms Children of divorced or separated parents (or parents who live apart). Free 1040 state tax forms   In most cases, because of the residency test, a child of divorced or separated parents is the qualifying child of the custodial parent. Free 1040 state tax forms However, the child will be treated as the qualifying child of the noncustodial parent if all four of the following statements are true. Free 1040 state tax forms The parents: Are divorced or legally separated under a decree of divorce or separate maintenance, Are separated under a written separation agreement, or Lived apart at all times during the last 6 months of the year, whether or not they are or were married. Free 1040 state tax forms The child received over half of his or her support for the year from the parents. Free 1040 state tax forms The child is in the custody of one or both parents for more than half of the year. Free 1040 state tax forms Either of the following statements is true. Free 1040 state tax forms The custodial parent signs a written declaration, discussed later, that he or she will not claim the child as a dependent for the year, and the noncustodial parent attaches this written declaration to his or her return. Free 1040 state tax forms (If the decree or agreement went into effect after 1984 and before 2009, see Post-1984 and pre-2009 divorce decree or separation agreement , later. Free 1040 state tax forms If the decree or agreement went into effect after 2008, see Post-2008 divorce decree or separation agreement , later. Free 1040 state tax forms ) A pre-1985 decree of divorce or separate maintenance or written separation agreement that applies to 2013 states that the noncustodial parent can claim the child as a dependent, the decree or agreement was not changed after 1984 to say the noncustodial parent cannot claim the child as a dependent, and the noncustodial parent provides at least $600 for the child's support during the year. Free 1040 state tax forms Custodial parent and noncustodial parent. Free 1040 state tax forms   The custodial parent is the parent with whom the child lived for the greater number of nights during the year. Free 1040 state tax forms The other parent is the noncustodial parent. Free 1040 state tax forms   If the parents divorced or separated during the year and the child lived with both parents before the separation, the custodial parent is the one with whom the child lived for the greater number of nights during the rest of the year. Free 1040 state tax forms   A child is treated as living with a parent for a night if the child sleeps: At that parent's home, whether or not the parent is present, or In the company of the parent, when the child does not sleep at a parent's home (for example, the parent and child are on vacation together). Free 1040 state tax forms Equal number of nights. Free 1040 state tax forms   If the child lived with each parent for an equal number of nights during the year, the custodial parent is the parent with the higher adjusted gross income (AGI). Free 1040 state tax forms December 31. Free 1040 state tax forms   The night of December 31 is treated as part of the year in which it begins. Free 1040 state tax forms For example, December 31, 2013, is treated as part of 2013. Free 1040 state tax forms Emancipated child. Free 1040 state tax forms   If a child is emancipated under state law, the child is treated as not living with either parent. Free 1040 state tax forms See Examples 5 and 6. Free 1040 state tax forms Absences. Free 1040 state tax forms   If a child was not with either parent on a particular night (because, for example, the child was staying at a friend's house), the child is treated as living with the parent with whom the child normally would have lived for that night, except for the absence. Free 1040 state tax forms But if it cannot be determined with which parent the child normally would have lived or if the child would not have lived with either parent that night, the child is treated as not living with either parent that night. Free 1040 state tax forms Parent works at night. Free 1040 state tax forms   If, due to a parent's nighttime work schedule, a child lives for a greater number of days, but not nights, with the parent who works at night, that parent is treated as the custodial parent. Free 1040 state tax forms On a school day, the child is treated as living at the primary residence registered with the school. Free 1040 state tax forms Example 1—child lived with one parent for a greater number of nights. Free 1040 state tax forms You and your child’s other parent are divorced. Free 1040 state tax forms In 2013, your child lived with you 210 nights and with the other parent 155 nights. Free 1040 state tax forms You are the custodial parent. Free 1040 state tax forms Example 2—child is away at camp. Free 1040 state tax forms In 2013, your daughter lives with each parent for alternate weeks. Free 1040 state tax forms In the summer, she spends 6 weeks at summer camp. Free 1040 state tax forms During the time she is at camp, she is treated as living with you for 3 weeks and with her other parent, your ex-spouse, for 3 weeks because this is how long she would have lived with each parent if she had not attended summer camp. Free 1040 state tax forms Example 3—child lived same number of nights with each parent. Free 1040 state tax forms Your son lived with you 180 nights during the year and lived the same number of nights with his other parent, your ex-spouse. Free 1040 state tax forms Your AGI is $40,000. Free 1040 state tax forms Your ex-spouse's AGI is $25,000. Free 1040 state tax forms You are treated as your son's custodial parent because you have the higher AGI. Free 1040 state tax forms Example 4—child is at parent’s home but with other parent. Free 1040 state tax forms Your son normally lives with you during the week and with his other parent, your ex-spouse, every other weekend. Free 1040 state tax forms You become ill and are hospitalized. Free 1040 state tax forms The other parent lives in your home with your son for 10 consecutive days while you are in the hospital. Free 1040 state tax forms Your son is treated as living with you during this 10-day period because he was living in your home. Free 1040 state tax forms Example 5—child emancipated in May. Free 1040 state tax forms When your son turned age 18 in May 2013, he became emancipated under the law of the state where he lives. Free 1040 state tax forms As a result, he is not considered in the custody of his parents for more than half of the year. Free 1040 state tax forms The special rule for children of divorced or separated parents does not apply. Free 1040 state tax forms Example 6—child emancipated in August. Free 1040 state tax forms Your daughter lives with you from January 1, 2013, until May 31, 2013, and lives with her other parent, your ex-spouse, from June 1, 2013, through the end of the year. Free 1040 state tax forms She turns 18 and is emancipated under state law on August 1, 2013. Free 1040 state tax forms Because she is treated as not living with either parent beginning on August 1, she is treated as living with you the greater number of nights in 2013. Free 1040 state tax forms You are the custodial parent. Free 1040 state tax forms Written declaration. Free 1040 state tax forms    The custodial parent may use either Form 8332 or a similar statement (containing the same information required by the form) to make the written declaration to release the exemption to the noncustodial parent. Free 1040 state tax forms The noncustodial parent must attach a copy of the form or statement to his or her tax return. Free 1040 state tax forms   The exemption can be released for 1 year, for a number of specified years (for example, alternate years), or for all future years, as specified in the declaration. Free 1040 state tax forms Post-1984 and pre-2009 divorce decree or separation agreement. Free 1040 state tax forms   If the divorce decree or separation agreement went into effect after 1984 and before 2009, the noncustodial parent may be able to attach certain pages from the decree or agreement instead of Form 8332. Free 1040 state tax forms The decree or agreement must state all three of the following. Free 1040 state tax forms The noncustodial parent can claim the child as a dependent without regard to any condition, such as payment of support. Free 1040 state tax forms The custodial parent will not claim the child as a dependent for the year. Free 1040 state tax forms The years for which the noncustodial parent, rather than the custodial parent, can claim the child as a dependent. Free 1040 state tax forms   The noncustodial parent must attach all of the following pages of the decree or agreement to his or her tax return. Free 1040 state tax forms The cover page (write the other parent's social security number on this page). Free 1040 state tax forms The pages that include all of the information identified in items (1) through (3) above. Free 1040 state tax forms The signature page with the other parent's signature and the date of the agreement. Free 1040 state tax forms Post-2008 divorce decree or separation agreement. Free 1040 state tax forms   The noncustodial parent cannot attach pages from the decree or agreement instead of Form 8332 if the decree or agreement went into effect after 2008. Free 1040 state tax forms The custodial parent must sign either Form 8332 or a similar statement whose only purpose is to release the custodial parent's claim to an exemption for a child, and the noncustodial parent must attach a copy to his or her return. Free 1040 state tax forms The form or statement must release the custodial parent's claim to the child without any conditions. Free 1040 state tax forms For example, the release must not depend on the noncustodial parent paying support. Free 1040 state tax forms    The noncustodial parent must attach the required information even if it was filed with a return in an earlier year. Free 1040 state tax forms Revocation of release of claim to an exemption. Free 1040 state tax forms   The custodial parent can revoke a release of claim to exemption that he or she previously released to the noncustodial parent on Form 8332 (or a similar statement). Free 1040 state tax forms For the revocation to be effective for 2013, the custodial parent must have given (or made reasonable efforts to give) written notice of the revocation to the noncustodial parent in 2012 or earlier. Free 1040 state tax forms The custodial parent can use Part III of Form 8332 for this purpose and must attach a copy of the revocation to his or her return for each tax year he or she claims the child as a dependent as a result of the revocation. Free 1040 state tax forms Remarried parent. Free 1040 state tax forms   If you remarry, the support provided by your new spouse is treated as provided by you. Free 1040 state tax forms Parents who never married. Free 1040 state tax forms   This special rule for divorced or separated parents also applies to parents who never married, and who lived apart at all times during the last 6 months of the year. Free 1040 state tax forms Support Test (To Be a Qualifying Child) To meet this test, the child cannot have provided more than half of his or her own support for the year. Free 1040 state tax forms This test is different from the support test to be a qualifying relative, which is described later. Free 1040 state tax forms However, to see what is or is not support, see Support Test (To Be a Qualifying Relative) , later. Free 1040 state tax forms If you are not sure whether a child provided more than half of his or her own support, you may find Worksheet 3-1 helpful. Free 1040 state tax forms Worksheet 3-1. Free 1040 state tax forms Worksheet for Determining Support Funds Belonging to the Person You Supported       1. Free 1040 state tax forms Enter the total funds belonging to the person you supported, including income received (taxable and nontaxable) and amounts borrowed during the year, plus the amount in savings and other accounts at the beginning of the year. Free 1040 state tax forms Do not include funds provided by the state; include those amounts on line 23 instead 1. Free 1040 state tax forms     2. Free 1040 state tax forms Enter the amount on line 1 that was used for the person's support 2. Free 1040 state tax forms     3. Free 1040 state tax forms Enter the amount on line 1 that was used for other purposes 3. Free 1040 state tax forms     4. Free 1040 state tax forms Enter the total amount in the person's savings and other accounts at the end of the year 4. Free 1040 state tax forms     5. Free 1040 state tax forms Add lines 2 through 4. Free 1040 state tax forms (This amount should equal line 1. Free 1040 state tax forms ) 5. Free 1040 state tax forms     Expenses for Entire Household (where the person you supported lived)       6. Free 1040 state tax forms Lodging (complete line 6a or 6b):         a. Free 1040 state tax forms Enter the total rent paid 6a. Free 1040 state tax forms       b. Free 1040 state tax forms Enter the fair rental value of the home. Free 1040 state tax forms If the person you supported owned the home,  also include this amount in line 21 6b. Free 1040 state tax forms     7. Free 1040 state tax forms Enter the total food expenses 7. Free 1040 state tax forms     8. Free 1040 state tax forms Enter the total amount of utilities (heat, light, water, etc. Free 1040 state tax forms not included in line 6a or 6b) 8. Free 1040 state tax forms     9. Free 1040 state tax forms Enter the total amount of repairs (not included in line 6a or 6b) 9. Free 1040 state tax forms     10. Free 1040 state tax forms Enter the total of other expenses. Free 1040 state tax forms Do not include expenses of maintaining the home, such as mortgage interest, real estate taxes, and insurance 10. Free 1040 state tax forms     11. Free 1040 state tax forms Add lines 6a through 10. Free 1040 state tax forms These are the total household expenses 11. Free 1040 state tax forms     12. Free 1040 state tax forms Enter total number of persons who lived in the household 12. Free 1040 state tax forms     Expenses for the Person You Supported       13. Free 1040 state tax forms Divide line 11 by line 12. Free 1040 state tax forms This is the person's share of the household expenses 13. Free 1040 state tax forms     14. Free 1040 state tax forms Enter the person's total clothing expenses 14. Free 1040 state tax forms     15. Free 1040 state tax forms Enter the person's total education expenses 15. Free 1040 state tax forms     16. Free 1040 state tax forms Enter the person's total medical and dental expenses not paid for or reimbursed by insurance 16. Free 1040 state tax forms     17. Free 1040 state tax forms Enter the person's total travel and recreation expenses 17. Free 1040 state tax forms     18. Free 1040 state tax forms Enter the total of the person's other expenses 18. Free 1040 state tax forms     19. Free 1040 state tax forms Add lines 13 through 18. Free 1040 state tax forms This is the total cost of the person's support for the year 19. Free 1040 state tax forms     Did the Person Provide More Than Half of His or Her Own Support?       20. Free 1040 state tax forms Multiply line 19 by 50% (. Free 1040 state tax forms 50) 20. Free 1040 state tax forms     21. Free 1040 state tax forms Enter the amount from line 2, plus the amount from line 6b if the person you supported owned  the home. Free 1040 state tax forms This is the amount the person provided for his or her own support 21. Free 1040 state tax forms     22. Free 1040 state tax forms Is line 21 more than line 20?   No. Free 1040 state tax forms You meet the support test for this person to be your qualifying child. Free 1040 state tax forms If this person also meets the other tests to be a qualifying child, stop here; do not complete lines 23–26. Free 1040 state tax forms Otherwise, go to line 23 and fill out the rest of the worksheet to determine if this person is your qualifying relative. Free 1040 state tax forms    Yes. Free 1040 state tax forms You do not meet the support test for this person to be either your qualifying child or your qualifying relative. Free 1040 state tax forms Stop here. Free 1040 state tax forms        Did You Provide More Than Half?       23. Free 1040 state tax forms Enter the amount others provided for the person's support. Free 1040 state tax forms Include amounts provided by state, local, and other welfare societies or agencies. Free 1040 state tax forms Do not include any amounts included on line 1 23. Free 1040 state tax forms     24. Free 1040 state tax forms Add lines 21 and 23 24. Free 1040 state tax forms     25. Free 1040 state tax forms Subtract line 24 from line 19. Free 1040 state tax forms This is the amount you provided for the person's support 25. Free 1040 state tax forms     26. Free 1040 state tax forms Is line 25 more than line 20?   Yes. Free 1040 state tax forms You meet the support test for this person to be your qualifying relative. Free 1040 state tax forms    No. Free 1040 state tax forms You do not meet the support test for this person to be your qualifying relative. Free 1040 state tax forms You cannot claim an exemption for this person unless you can do so under a multiple support agreement, the support test for children of divorced or separated parents, or the special rule for kidnapped children. Free 1040 state tax forms See Multiple Support Agreement or Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) , or Kidnapped child under Qualifying Relative. Free 1040 state tax forms   Example. Free 1040 state tax forms You provided $4,000 toward your 16-year-old son's support for the year. Free 1040 state tax forms He has a part-time job and provided $6,000 to his own support. Free 1040 state tax forms He provided more than half of his own support for the year. Free 1040 state tax forms He is not your qualifying child. Free 1040 state tax forms Foster care payments and expenses. Free 1040 state tax forms   Payments you receive for the support of a foster child from a child placement agency are considered support provided by the agency. Free 1040 state tax forms Similarly, payments you receive for the support of a foster child from a state or county are considered support provided by the state or county. Free 1040 state tax forms   If you are not in the trade or business of providing foster care and your unreimbursed out-of-pocket expenses in caring for a foster child were mainly to benefit an organization qualified to receive deductible charitable contributions, the expenses are deductible as charitable contributions but are not considered support you provided. Free 1040 state tax forms For more information about the deduction for charitable contributions, see chapter 24. Free 1040 state tax forms If your unreimbursed expenses are not deductible as charitable contributions, they may qualify as support you provided. Free 1040 state tax forms   If you are in the trade or business of providing foster care, your unreimbursed expenses are not considered support provided by you. Free 1040 state tax forms Example 1. Free 1040 state tax forms Lauren, a foster child, lived with Mr. Free 1040 state tax forms and Mrs. Free 1040 state tax forms Smith for the last 3 months of the year. Free 1040 state tax forms The Smiths cared for Lauren because they wanted to adopt her (although she had not been placed with them for adoption). Free 1040 state tax forms They did not care for her as a trade or business or to benefit the agency that placed her in their home. Free 1040 state tax forms The Smiths' unreimbursed expenses are not deductible as charitable contributions but are considered support they provided for Lauren. Free 1040 state tax forms Example 2. Free 1040 state tax forms You provided $3,000 toward your 10-year-old foster child's support for the year. Free 1040 state tax forms The state government provided $4,000, which is considered support provided by the state, not by the child. Free 1040 state tax forms See Support provided by the state (welfare, food stamps, housing, etc. Free 1040 state tax forms ) , later. Free 1040 state tax forms Your foster child did not provide more than half of her own support for the year. Free 1040 state tax forms Scholarships. Free 1040 state tax forms   A scholarship received by a child who is a student is not taken into account in determining whether the child provided more than half of his or her own support. Free 1040 state tax forms Joint Return Test (To Be a Qualifying Child) To meet this test, the child cannot file a joint return for the year. Free 1040 state tax forms Exception. Free 1040 state tax forms   An exception to the joint return test applies if your child and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid. Free 1040 state tax forms Example 1—child files joint return. Free 1040 state tax forms You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. Free 1040 state tax forms He earned $25,000 for the year. Free 1040 state tax forms The couple files a joint return. Free 1040 state tax forms Because your daughter and her husband file a joint return, she is not your qualifying child. Free 1040 state tax forms Example 2—child files joint return only as a claim for refund of withheld tax. Free 1040 state tax forms Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. Free 1040 state tax forms Neither is required to file a tax return. Free 1040 state tax forms They do not have a child. Free 1040 state tax forms Taxes were taken out of their pay so they filed a joint return only to get a refund of the withheld taxes. Free 1040 state tax forms The exception to the joint return test applies, so your son may be your qualifying child if all the other tests are met. Free 1040 state tax forms Example 3—child files joint return to claim American opportunity credit. Free 1040 state tax forms The facts are the same as in Example 2 except no taxes were taken out of your son's pay. Free 1040 state tax forms He and his wife were not required to file a tax return. Free 1040 state tax forms However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. Free 1040 state tax forms Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income tax withheld or estimated tax paid. Free 1040 state tax forms The exception to the joint return test does not apply, so your son is not your qualifying child. Free 1040 state tax forms Special Rule for Qualifying Child of More Than One Person If your qualifying child is not a qualifying child of anyone else, this special rule does not apply to you and you do not need to read about it. Free 1040 state tax forms This is also true if your qualifying child is not a qualifying child of anyone else except your spouse with whom you file a joint return. Free 1040 state tax forms If a child is treated as the qualifying child of the noncustodial parent under the rules for children of divorced or separated parents (or parents who live apart) described earlier, see Applying this special rule to divorced or separated parents (or parents who live apart), later. Free 1040 state tax forms Sometimes, a child meets the relationship, age, residency, support, and joint return tests to be a qualifying child of more than one person. Free 1040 state tax forms Although the child is a qualifying child of each of these persons, only one person can actually treat the child as a qualifying child to take all of the following tax benefits (provided the person is eligible for each benefit). Free 1040 state tax forms The exemption for the child. Free 1040 state tax forms The child tax credit. Free 1040 state tax forms Head of household filing status. Free 1040 state tax forms The credit for child and dependent care expenses. Free 1040 state tax forms The exclusion from income for dependent care benefits. Free 1040 state tax forms The earned income credit. Free 1040 state tax forms The other person cannot take any of these benefits based on this qualifying child. Free 1040 state tax forms In other words, you and the other person cannot agree to divide these benefits between you. Free 1040 state tax forms The other person cannot take any of these tax benefits for a child unless he or she has a different qualifying child. Free 1040 state tax forms Tiebreaker rules. Free 1040 state tax forms   To determine which person can treat the child as a qualifying child to claim these six tax benefits, the following tiebreaker rules apply. Free 1040 state tax forms If only one of the persons is the child's parent, the child is treated as the qualifying child of the parent. Free 1040 state tax forms If the parents file a joint return together and can claim the child as a qualifying child, the child is treated as the qualifying child of the parents. Free 1040 state tax forms If the parents do not file a joint return together but both parents claim the child as a qualifying child, the IRS will treat the child as the qualifying child of the parent with whom the child lived for the longer period of time during the year. Free 1040 state tax forms If the child lived with each parent for the same amount of time, the IRS will treat the child as the qualifying child of the parent who had the higher adjusted gross income (AGI) for the year. Free 1040 state tax forms If no parent can claim the child as a qualifying child, the child is treated as the qualifying child of the person who had the highest AGI for the year. Free 1040 state tax forms If a parent can claim the child as a qualifying child but no parent does so claim the child, the child is treated as the qualifying child of the person who had the highest AGI for the year, but only if that person's AGI is higher than the highest AGI of any of the child's parents who can claim the child. Free 1040 state tax forms If the child's parents file a joint return with each other, this rule can be applied by dividing the parents' combined AGI equally between the parents. Free 1040 state tax forms See Example 6 . Free 1040 state tax forms   Subject to these tiebreaker rules, you and the other person may be able to choose which of you claims the child as a qualifying child. Free 1040 state tax forms Example 1—child lived with parent and grandparent. Free 1040 state tax forms You and your 3-year-old daughter Jane lived with your mother all year. Free 1040 state tax forms You are 25 years old, unmarried, and your AGI is $9,000. Free 1040 state tax forms Your mother's AGI is $15,000. Free 1040 state tax forms Jane's father did not live with you or your daughter. Free 1040 state tax forms You have not signed Form 8332 (or a similar statement) to release the child's exemption to the noncustodial parent. Free 1040 state tax forms Jane is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. Free 1040 state tax forms However, only one of you can claim her. Free 1040 state tax forms Jane is not a qualifying child of anyone else, including her father. Free 1040 state tax forms You agree to let your mother claim Jane. Free 1040 state tax forms This means your mother can claim Jane as a qualifying child for all of the six tax benefits listed earlier, if she qualifies (and if you do not claim Jane as a qualifying child for any of those tax benefits). Free 1040 state tax forms Example 2—parent has higher AGI than grandparent. Free 1040 state tax forms The facts are the same as in Example 1 except your AGI is $18,000. Free 1040 state tax forms Because your mother's AGI is not higher than yours, she cannot claim Jane. Free 1040 state tax forms Only you can claim Jane. Free 1040 state tax forms Example 3—two persons claim same child. Free 1040 state tax forms The facts are the same as in Example 1 except that you and your mother both claim Jane as a qualifying child. Free 1040 state tax forms In this case, you, as the child's parent, will be the only one allowed to claim Jane as a qualifying child. Free 1040 state tax forms The IRS will disallow your mother's claim to the six tax benefits listed earlier unless she has another qualifying child. Free 1040 state tax forms Example 4—qualifying children split between two persons. Free 1040 state tax forms The facts are the same as in Example 1 except you also have two other young children who are qualifying children of both you and your mother. Free 1040 state tax forms Only one of you can claim each child. Free 1040 state tax forms However, if your mother's AGI is higher than yours, you can allow your mother to claim one or more of the children. Free 1040 state tax forms For example, if you claim one child, your mother can claim the other two. Free 1040 state tax forms Example 5—taxpayer who is a qualifying child. Free 1040 state tax forms The facts are the same as in Example 1 except you are only 18 years old and did not provide more than half of your own support for the year. Free 1040 state tax forms This means you are your mother's qualifying child. Free 1040 state tax forms If she can claim you as a dependent, then you cannot claim your daughter as a dependent because of the Dependent Taxpayer Test explained earlier. Free 1040 state tax forms Example 6—child lived with both parents and grandparent. Free 1040 state tax forms The facts are the same as in Example 1 except you are married to your daughter's father. Free 1040 state tax forms The two of you live together with your daughter and your mother, and have an AGI of $20,000 on a joint return. Free 1040 state tax forms If you and your husband do not claim your daughter as a qualifying child, your mother can claim her instead. Free 1040 state tax forms Even though the AGI on your joint return, $20,000, is more than your mother's AGI of $15,000, for this purpose each parent's AGI can be treated as $10,000, so your mother's $15,000 AGI is treated as higher than the highest AGI of any of the child's parents who can claim the child. Free 1040 state tax forms Example 7—separated parents. Free 1040 state tax forms You, your husband, and your 10-year-old son lived together until August 1, 2013, when your husband moved out of the household. Free 1040 state tax forms In August and September, your son lived with you. Free 1040 state tax forms For the rest of the year, your son lived with your husband, the boy's father. Free 1040 state tax forms Your son is a qualifying child of both you and your husband because your son lived with each of you for more than half the year and because he met the relationship, age, support, and joint return tests for both of you. Free 1040 state tax forms At the end of the year, you and your husband still were not divorced, legally separated, or separated under a written separation agreement, so the rule for children of divorced or separated parents (or parents who live apart) does not apply. Free 1040 state tax forms You and your husband will file separate returns. Free 1040 state tax forms Your husband agrees to let you treat your son as a qualifying child. Free 1040 state tax forms This means, if your husband does not claim your son as a qualifying child, you can claim your son as a qualifying child for the dependency exemption, child tax credit, and exclusion for dependent care benefits (if you qualify for each of those tax benefits). Free 1040 state tax forms However, you cannot claim head of household filing status because you and your husband did not live apart for the last 6 months of the year. Free 1040 state tax forms As a result, your filing status is married filing separately, so you cannot claim the earned income credit or the credit for child and dependent care expenses. Free 1040 state tax forms Example 8—separated parents claim same child. Free 1040 state tax forms The facts are the same as in Example 7 except that you and your husband both claim your son as a qualifying child. Free 1040 state tax forms In this case, only your husband will be allowed to treat your son as a qualifying child. Free 1040 state tax forms This is because, during 2013, the boy lived with him longer than with you. Free 1040 state tax forms If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. Free 1040 state tax forms If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the exclusion for dependent care benefits. Free 1040 state tax forms In addition, because you and your husband did not live apart for the last 6 months of the year, your husband cannot claim head of household filing status. Free 1040 state tax forms As a result, his filing status is married filing separately, so he cannot claim the earned income credit or the credit for child and dependent care expenses. Free 1040 state tax forms Example 9—unmarried parents. Free 1040 state tax forms You, your 5-year-old son, and your son's father lived together all year. Free 1040 state tax forms You and your son's father are not married. Free 1040 state tax forms Your son is a qualifying child of both you and his father because he meets the relationship, age, residency, support, and joint return tests for both you and his father. Free 1040 state tax forms Your AGI is $12,000 and your son's father's AGI is $14,000. Free 1040 state tax forms Your son's father agrees to let you claim the child as a qualifying child. Free 1040 state tax forms This means you can claim him as a qualifying child for the dependency exemption, child tax credit, head of household filing status, credit for child and dependent care expenses, exclusion for dependent care benefits, and the earned income credit, if you qualify for each of those tax benefits (and if your son's father does not, in fact, claim your son as a qualifying child for any of those tax benefits). Free 1040 state tax forms Example 10—unmarried parents claim same child. Free 1040 state tax forms The facts are the same as in Example 9 except that you and your son's father both claim your son as a qualifying child. Free 1040 state tax forms In this case, only your son's father will be allowed to treat your son as a qualifying child. Free 1040 state tax forms This is because his AGI, $14,000, is more than your AGI, $12,000. Free 1040 state tax forms If you claimed an exemption or the child tax credit for your son, the IRS will disallow your claim to both these tax benefits. Free 1040 state tax forms If you do not have another qualifying child or dependent, the IRS will also disallow your claim to the earned income credit, head of household filing status, the credit for child and dependent care expenses, and the exclusion for dependent care benefits. Free 1040 state tax forms Example 11—child did not live with a parent. Free 1040 state tax forms You and your 7-year-old niece, your sister's child, lived with your mother all year. Free 1040 state tax forms You are 25 years old, and your AGI is $9,300. Free 1040 state tax forms Your mother's AGI is $15,000. Free 1040 state tax forms Your niece's parents file jointly, have an AGI of less than $9,000, and do not live with you or their child. Free 1040 state tax forms Your niece is a qualifying child of both you and your mother because she meets the relationship, age, residency, support, and joint return tests for both you and your mother. Free 1040 state tax forms However, only your mother can treat her as a qualifying child. Free 1040 state tax forms This is because your mother's AGI, $15,000, is more than your AGI, $9,300. Free 1040 state tax forms Applying this special rule to divorced or separated parents (or parents who live apart). Free 1040 state tax forms   If a child is treated as the qualifying child of the noncustodial parent under the rules described earlier for children of divorced or separated parents (or parents who live apart), only the noncustodial parent can claim an exemption and the child tax credit for the child. Free 1040 state tax forms However, the custodial parent, if eligible, or other eligible person can claim the child as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, and the earned income credit. Free 1040 state tax forms If the child is the qualifying child of more than one person for these benefits, then the tiebreaker rules just explained determine which person can treat the child as a qualifying child. Free 1040 state tax forms Example 1. Free 1040 state tax forms You and your 5-year-old son lived all year with your mother, who paid the entire cost of keeping up the home. Free 1040 state tax forms Your AGI is $10,000. Free 1040 state tax forms Your mother's AGI is $25,000. Free 1040 state tax forms Your son's father did not live with you or your son. Free 1040 state tax forms Under the rules explained earlier for children of divorced or separated parents (or parents who live apart), your son is treated as the qualifying child of his father, who can claim an exemption and the child tax credit for him. Free 1040 state tax forms Because of this, you cannot claim an exemption or the child tax credit for your son. Free 1040 state tax forms However, your son's father cannot claim your son as a qualifying child for head of household filing status, the credit for child and dependent care expenses, the exclusion for dependent care benefits, or the earned income credit. Free 1040 state tax forms You and your mother did not have any child care expenses or dependent care benefits, so neither of you can claim the credit for child and dependent care expenses or the exclusion for dependent care benefits. Free 1040 state tax forms But the boy is a qualifying child of both you and your mother for head of household filing status and the earned income credit because he meets the relationship, age, residency, support, and joint return tests for both you and your mother. Free 1040 state tax forms (Note: The support test does not apply for the earned income credit. Free 1040 state tax forms ) However, you agree to let your mother claim your son. Free 1040 state tax forms This means she can claim him for head of household filing status and the earned income credit if she qualifies for each and if you do not claim him as a qualifying child for the earned income credit. Free 1040 state tax forms (You cannot claim head of household filing status because your mother paid the entire cost of keeping up the home. Free 1040 state tax forms ) Example 2. Free 1040 state tax forms The facts are the same as in Example 1 except your AGI is $25,000 and your mother's AGI is $21,000. Free 1040 state tax forms Your mother cannot claim your son as a qualifying child for any purpose because her AGI is not higher than yours. Free 1040 state tax forms Example 3. Free 1040 state tax forms The facts are the same as in Example 1 except you and your mother both claim your son as a qualifying child for the earned income credit. Free 1040 state tax forms Your mother also claims him as a qualifying child for head of household filing status. Free 1040 state tax forms You, as the child's parent, will be the only one allowed to claim your son as a qualifying child for the earned income credit. Free 1040 state tax forms The IRS will disallow your mother's claim to the earned income credit and head of household filing status unless she has another qualifying child. Free 1040 state tax forms Qualifying Relative Four tests must be met for a person to be your qualifying relative. Free 1040 state tax forms The four tests are: Not a qualifying child test, Member of household or relationship test, Gross income test, and Support test. Free 1040 state tax forms Age. Free 1040 state tax forms   Unlike a qualifying child, a qualifying relative can be any age. Free 1040 state tax forms There is no age test for a qualifying relative. Free 1040 state tax forms Kidnapped child. Free 1040 state tax forms   You may be able to treat a child as your qualifying relative even if the child has been kidnapped. Free 1040 state tax forms See Publication 501 for details. Free 1040 state tax forms Not a Qualifying Child Test A child is not your qualifying relative if the child is your qualifying child or the qualifying child of any other taxpayer. Free 1040 state tax forms Example 1. Free 1040 state tax forms Your 22-year-old daughter, who is a student, lives with you and meets all the tests to be your qualifying child. Free 1040 state tax forms She is not your qualifying relative. Free 1040 state tax forms Example 2. Free 1040 state tax forms Your 2-year-old son lives with your parents and meets all the tests to be their qualifying child. Free 1040 state tax forms He is not your qualifying relative. Free 1040 state tax forms Example 3. Free 1040 state tax forms Your son lives with you but is not your qualifying child because he is 30 years old and does not meet the age test. Free 1040 state tax forms He may be your qualifying relative if the gross income test and the support test are met. Free 1040 state tax forms Example 4. Free 1040 state tax forms Your 13-year-old grandson lived with his mother for 3 months, with his uncle for 4 months, and with you for 5 months during the year. Free 1040 state tax forms He is not your qualifying child because he does not meet the residency test. Free 1040 state tax forms He may be your qualifying relative if the gross income test and the support test are met. Free 1040 state tax forms Child of person not required to file a return. Free 1040 state tax forms   A child is not the qualifying child of any other taxpayer and so may qualify as your qualifying relative if the child's parent (or other person for whom the child is defined as a qualifying child) is not required to file an income tax return and either: Does not file an income tax return, or Files a return only to get a refund of income tax withheld or estimated tax paid. Free 1040 state tax forms Example 1—return not required. Free 1040 state tax forms You support an unrelated friend and her 3-year-old child, who lived with you all year in your home. Free 1040 state tax forms Your friend has no gross income, is not required to file a 2013 tax return, and does not file a 2013 tax return. Free 1040 state tax forms Both your friend and her child are your qualifying relatives if the support test is met. Free 1040 state tax forms Example 2—return filed to claim refund. Free 1040 state tax forms The facts are the same as in Example 1 except your friend had wages of $1,500 during the year and had income tax withheld from her wages. Free 1040 state tax forms She files a return only to get a refund of the income tax withheld and does not claim the earned income credit or any other tax credits or deductions. Free 1040 state tax forms Both your friend and her child are your qualifying relatives if the support test is met. Free 1040 state tax forms Example 3—earned income credit claimed. Free 1040 state tax forms The facts are the same as in Example 2 except your friend had wages of $8,000 during the year and claimed the earned income credit on her return. Free 1040 state tax forms Your friend's child is the qualifying child of another taxpayer (your friend), so you cannot claim your friend's child as your qualifying relative. Free 1040 state tax forms Child in Canada or Mexico. Free 1040 state tax forms   You may be able to claim your child as a dependent even if the child lives in Canada or Mexico. Free 1040 state tax forms If the child does not live with you, the child does not meet the residency test to be your qualifying child. Free 1040 state tax forms However, the child may still be your qualifying relative. Free 1040 state tax forms If the persons the child does live with are not U. Free 1040 state tax forms S. Free 1040 state tax forms citizens and have no U. Free 1040 state tax forms S. Free 1040 state tax forms gross income, those persons are not “taxpayers,” so the child is not the qualifying child of any other taxpayer. Free 1040 state tax forms If the child is not the qualifying child of any other taxpayer, the child is your qualifying relative as long as the gross income test and the support test are met. Free 1040 state tax forms   You cannot claim as a dependent a child who lives in a foreign country other than Canada or Mexico, unless the child is a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen, U. Free 1040 state tax forms S. Free 1040 state tax forms resident alien, or U. Free 1040 state tax forms S. Free 1040 state tax forms national. Free 1040 state tax forms There is an exception for certain adopted children who lived with you all year. Free 1040 state tax forms See Citizen or Resident Test , earlier. Free 1040 state tax forms Example. Free 1040 state tax forms You provide all the support of your children, ages 6, 8, and 12, who live in Mexico with your mother and have no income. Free 1040 state tax forms You are single and live in the United States. Free 1040 state tax forms Your mother is not a U. Free 1040 state tax forms S. Free 1040 state tax forms citizen and has no U. Free 1040 state tax forms S. Free 1040 state tax forms income, so she is not a “taxpayer. Free 1040 state tax forms ” Your children are not your qualifying children because they do not meet the residency test. Free 1040 state tax forms But since they are not the qualifying children of any other taxpayer, they are your qualifying relatives and you can claim them as dependents. Free 1040 state tax forms You may also be able to claim your mother as a dependent if the gross income and support tests are met. Free 1040 state tax forms Member of Household or Relationship Test To meet this test, a person must either: Live with you all year as a member of your household, or Be related to you in one of the ways listed under Relatives who do not have to live with you . Free 1040 state tax forms If at any time during the year the person was your spouse, that person cannot be your qualifying relative. Free 1040 state tax forms However, see Personal Exemptions , earlier. Free 1040 state tax forms Relatives who do not have to live with you. Free 1040 state tax forms   A person related to you in any of the following ways does not have to live with you all year as a member of your household to meet this test. Free 1040 state tax forms Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). Free 1040 state tax forms (A legally adopted child is considered your child. Free 1040 state tax forms ) Your brother, sister, half brother, half sister, stepbrother, or stepsister. Free 1040 state tax forms Your father, mother, grandparent, or other direct ancestor, but not foster parent. Free 1040 state tax forms Your stepfather or stepmother. Free 1040 state tax forms A son or daughter of your brother or sister. Free 1040 state tax forms A son or daughter of your half brother or half sister. Free 1040 state tax forms A brother or sister of your father or mother. Free 1040 state tax forms Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law. Free 1040 state tax forms Any of these relationships that were established by marriage are not ended by death or divorce. Free 1040 state tax forms Example. Free 1040 state tax forms You and your wife began supporting your wife's father, a widower, in 2006. Free 1040 state tax forms Your wife died in 2012. Free 1040 state tax forms Despite your wife's death, your father-in-law continues to meet this test, even if he does not live with you. Free 1040 state tax forms You can claim him as a dependent if all other tests are met, including the gross income test and support test. Free 1040 state tax forms Foster child. Free 1040 state tax forms   A foster child is an individual who is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Free 1040 state tax forms Joint return. Free 1040 state tax forms   If you file a joint return, the person can be related to either you or your spouse. Free 1040 state tax forms Also, the person does not need to be related to the spouse who provides support. Free 1040 state tax forms   For example, your spouse's uncle who receives more than half of his support from you may be your qualifying relative, even though he does not live with you. Free 1040 state tax forms However, if you and your spouse file separate returns, your spouse's uncle can be your qualifying relative only if he lives with you all year as a member of your household. Free 1040 state tax forms Temporary absences. Free 1040 state tax forms   A person is considered to live with you as a member of your household during periods of time when one of you, or both, are temporarily absent due to special circumstances such as: Illness, Education, Business, Vacation, or Military service. Free 1040 state tax forms   If the person is placed in a nursing home for an indefinite period of time to receive constant medical care, the absence may be considered temporary. Free 1040 state tax forms Death or birth. Free 1040 state tax forms   A person who died during the year, but lived with you as a member of your household until death, will meet this test. Free 1040 state tax forms The same is true for a child who was born during the year and lived with you as a member of your household for the rest of the year. Free 1040 state tax forms The test is also met if a child lived with you as a member of your household except for any required hospital stay following birth. Free 1040 state tax forms   If your dependent died during the year and you otherwise qualify to claim an exemption for the dependent, you can still claim the exemption. Free 1040 state tax forms Example. Free 1040 state tax forms Your dependent mother died on January 15. Free 1040 state tax forms She met the tests to be your qualifying relative. Free 1040 state tax forms The other tests to claim an exemption for a dependent were also met. Free 1040 state tax forms You can claim an exemption for her on your return. Free 1040 state tax forms Local law violated. Free 1040 state tax forms   A person does not meet this test if at any time during the year the relationship between you and that person violates local law. Free 1040 state tax forms Example. Free 1040 state tax forms Your girlfriend lived with you as a member of your household all year. Free 1040 state tax forms However, your relationship with her violated the laws of the state where you live, because she was married to someone else. Free 1040 state tax forms Therefore, she does not meet this test and you cannot claim her as a dependent. Free 1040 state tax forms Adopted child. Free 1040 state tax forms   An adopted child is always treated as your own child. Free 1040 state tax forms The term “adopted child” includes a child who was lawfully placed with you for legal adoption. Free 1040 state tax forms Cousin. Free 1040 state tax forms   Your cousin meets this test only if he or she lives with you all year as a member of your household. Free 1040 state tax forms A cousin is a descendant of a brother or sister of your father or mother. Free 1040 state tax forms Gross Income Test To meet this test, a person's gross income for the year must be less than $3,900. Free 1040 state tax forms Gross income defined. Free 1040 state tax forms   Gross income is all income in the form of money, property, and services that is not exempt from tax. Free 1040 state tax forms   In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. Free 1040 state tax forms   Gross receipts from rental property are gross income. Free 1040 state tax forms Do not deduct taxes, repairs, or other expenses, to determine the gross income from rental property. Free 1040 state tax forms   Gross income includes a partner's share of the gross (not a share of the net) partnership income. Free 1040 state tax forms    Gross income also includes all taxable unemployment compensation and certain scholarship and fellowship grants. Free 1040 state tax forms Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally are not included in gross income. Free 1040 state tax forms For more information about scholarships, see chapter 12. Free 1040 state tax forms   Tax-exempt income, such as certain social security benefits, is not included in gross income. Free 1040 state tax forms Disabled dependent working at sheltered workshop. Free 1040 state tax forms   For purposes of the gross income test, the gross income of an individual who is permanently and totally disabled at any time during the year does not include income for services the individual performs at a sheltered workshop. Free 1040 state tax forms The availability of medical care at the workshop must be the main reason for the individual's presence there. Free 1040 state tax forms Also, the income must come solely from activities at the workshop that are incident to this medical care. Free 1040 state tax forms   A “sheltered workshop” is a school that: Provides special instruction or training designed to alleviate the disability of the individual, and Is operated by certain tax-exempt organizations, or by a state, a U. Free 1040 state tax forms S. Free 1040 state tax forms possession, a political subdivision of a state or possession, the United States, or the District of Columbia. Free 1040 state tax forms “Permanently and totally disabled” has the same meaning here as under Qualifying Child, earlier. Free 1040 state tax forms Support Test (To Be a Qualifying Relative) To meet this test, you generally must provide more than half of a person's total support during the calendar year. Free 1040 state tax forms However, if two or more persons provide support, but no one person provides more than half of a person's total support, see Multiple Support Agreement , later. Free 1040 state tax forms How to determine if support test is met. Free 1040 state tax forms   You figure whether you have provided more than half of a person's total support by comparing the amount you contributed to that person's support with the entire amount of support that person received from all sources. Free 1040 state tax forms This includes support the person provided from his or her own funds. Free 1040 state tax forms   You may find Worksheet 3-1 helpful in figuring whether you provided more than half of a person's support. Free 1040 state tax forms Person's own funds not used for support. Free 1040 state tax forms   A person's own funds are not support unless they are actually spent for support. Free 1040 state tax forms Example. Free 1040 state tax forms Your mother received $2,400 in social security benefits and $300 in interest. Free 1040 state tax forms She paid $2,000 for lodging and $400 for recreation. Free 1040 state tax forms She put $300 in a savings account. Free 1040 state tax forms Even though your mother received a total of $2,700 ($2,400 + $300), she spent only $2,400 ($2,000 + $400) for her own support. Free 1040 state tax forms If you spent more than $2,400 for her support and no other support was received, you have provided more than half of her support. Free 1040 state tax forms Child's wages used for own support. Free 1040 state tax forms   You cannot include in your contribution to your child's support any support paid for by the child with the child's own wages, even if you paid the wages. Free 1040 state tax forms Year support is provided. Free 1040 state tax forms   The year you provide the support is the year you pay for it, even if you do so with borrowed money that you repay in a later year. Free 1040 state tax forms   If you use a fiscal year to report your income, you must provide more than half of the dependent's support for the calendar year in which your fiscal year begins. Free 1040 state tax forms Armed Forces dependency allotments. Free 1040 state tax forms   The part of the allotment contributed by the government and the part taken out of your military pay are both considered provided by you in figuring whether you provide more than half of the support. Free 1040 state tax forms If your allotment is used to support persons other than those you name, you can take the exemptions for them if they otherwise qualify. Free 1040 state tax forms Example. Free 1040 state tax forms You are in the Armed Forces. Free 1040 state tax forms You authorize an allotment for your widowed mother that she uses to support herself and her sister. Free 1040 state tax forms If the allotment provides more than half of each person's support, you can take an exemption for each of them, if they otherwise qualify, even though you authorize the allotment only for your mother. Free 1040 state tax forms Tax-exempt military quarters allowances. Free 1040 state tax forms   These allowances are treated the same way as dependency allotments in figuring support. Free 1040 state tax forms The allotment of pay and the tax-exempt basic allowance for quarters are both considered as provided by you for support. Free 1040 state tax forms Tax-exempt income. Free 1040 state tax forms   In figuring a person's total support, include tax-exempt income, savings, and borrowed amounts used to support that person. Free 1040 state tax forms Tax-exempt income includes certain social security benefits, welfare benefits, nontaxable life insurance proceeds, Armed Forces family allotments, nontaxable pensions, and tax-exempt interest. Free 1040 state tax forms Example 1. Free 1040 state tax forms You provide $4,000 toward your mother's support during the year. Free 1040 state tax forms She has earned income of $600, nontaxable social security benefits of $4,800, and tax-exempt interest of $200. Free 1040 state tax forms She uses all these for her support. Free 1040 state tax forms You cannot claim an exemption for your mother because the $4,000 you provide is not more than half of her total support of $9,600 ($4,000 + $600 + $4,800 + $200). Free 1040 state tax forms Example 2. Free 1040 state tax forms Your niece takes out a student loan of $2,500 a
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Operating a Business

Employer ID Number (EIN)
An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. Find out if you need an EIN and how to apply for one.

Recordkeeping
Unless you are a professional bookkeeper, you probably don't like to spend valuable business time keeping records. But keeping good records can actually help you save money.

Business Name Change
Explanation for businesses on how to make a name change.

Businesses with Employees
If you operate a business and have employees, then this section has the information you will need. You will find resources on hiring, recordkeeping and other topics such as employment taxes, and wage reporting requirements.

Paying Independent Contractors
If you pay independent contractors, you may have to file Form 1099-MISC, Miscellaneous Income, to report payments for services performed for your trade or business.

What is Taxable and Nontaxable Income?
You can receive income in the form of money, property, or services. This section lists many kinds of income that are taxable or nontaxable.

Filing and Paying Your Business Taxes
This section discusses business taxes you may have to pay and the forms you may have to file. It also discusses taxpayer identification numbers.

e-File Form 940, 941 or 944 for Small Businesses
Learn your options for e-filing form 940, 941 or 944.

Estimated Taxes
Federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. There are two ways to pay as you go: withholding, and estimated taxes.

Business Expenses
You can deduct the cost of operating your business. These costs are known as business expenses. These are costs you do not have to capitalize or include in the cost of goods sold.

Business Tax Credits
A list of forms for claiming business tax credits, and a brief explanation about when carryovers, and credits cease.

Intangibles
Intangible Property is property that has value but cannot be seen or touched. Generally, you can either amortize or depreciate intangible property.

Avoiding Problems
This section provides links to resources to help the small business owner create a recordkeeping system, get the latest on the cash vs. accrual accounting methods, and tips on understanding their IRS notice, what to do if you haven’t filed a tax return, and how to recognize and avoid tax scams.

Closing a Business
There is more involved in closing your business than just locking the doors. This section provides procedures for getting out of business, including what forms to file and how to handle additional revenue received or expenses you may incur.

IRS Tax Calendar for Small Businesses and Self-Employed
The tax calendar is available for downloading and printing, or you can view it online.

Retirement Plans
The advantages of a retirement plan are numerous. There are economic, business and tax advantages for your business, for your employees and for you. A retirement plan may give you an important competitive edge in attracting and keeping the best employees - and help you plan for your own retirement years. Visit the IRS Video Portal and search keyword "retire" for a more information about choosing, operating and maintaining your retirement plan.

References/Related Topics

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Page Last Reviewed or Updated: 21-Feb-2014

The Free 1040 State Tax Forms

Free 1040 state tax forms 28. Free 1040 state tax forms   Miscellaneous Deductions Table of Contents What's New Introduction Useful Items - You may want to see: Deductions Subject to the 2% LimitUnreimbursed Employee Expenses (Line 21) Tax Preparation Fees (Line 22) Other Expenses (Line 23) Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses What's New Standard mileage rate. Free 1040 state tax forms  The 2013 rate for business use of a vehicle is 56½ cents per mile. Free 1040 state tax forms Introduction This chapter explains which expenses you can claim as miscellaneous itemized deductions on Schedule A (Form 1040). Free 1040 state tax forms You must reduce the total of most miscellaneous itemized deductions by 2% of your adjusted gross income. Free 1040 state tax forms This chapter covers the following topics. Free 1040 state tax forms Deductions subject to the 2% limit. Free 1040 state tax forms Deductions not subject to the 2% limit. Free 1040 state tax forms Expenses you cannot deduct. Free 1040 state tax forms You must keep records to verify your deductions. Free 1040 state tax forms You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence. Free 1040 state tax forms For more information on recordkeeping, get Publication 552, Record- keeping for Individuals. Free 1040 state tax forms Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 525 Taxable and Nontaxable Income 529 Miscellaneous Deductions 535 Business Expenses 587 Business Use of Your Home (Including Use by Daycare Providers) 946 How To Depreciate Property Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040). Free 1040 state tax forms You can claim the amount of expenses that is more than 2% of your adjusted gross income. Free 1040 state tax forms You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Free 1040 state tax forms Your adjusted gross income is the amount on Form 1040, line 38. Free 1040 state tax forms Generally, you apply the 2% limit after you apply any other deduction limit. Free 1040 state tax forms For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed in chapter 26) before you apply the 2% limit. Free 1040 state tax forms Deductions subject to the 2% limit are discussed in the three categories in which you report them on Schedule A (Form 1040). Free 1040 state tax forms Unreimbursed employee expenses (line 21). Free 1040 state tax forms Tax preparation fees (line 22). Free 1040 state tax forms Other expenses (line 23). Free 1040 state tax forms Unreimbursed Employee Expenses (Line 21) Generally, you can deduct on Schedule A (Form 1040), line 21, unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Free 1040 state tax forms An expense is ordinary if it is common and accepted in your trade, business, or profession. Free 1040 state tax forms An expense is necessary if it is appropriate and helpful to your business. Free 1040 state tax forms An expense does not have to be required to be considered necessary. Free 1040 state tax forms Examples of unreimbursed employee expenses are listed next. Free 1040 state tax forms The list is followed by discussions of additional unreimbursed employee expenses. Free 1040 state tax forms Business bad debt of an employee. Free 1040 state tax forms Education that is work related. Free 1040 state tax forms (See chapter 27. Free 1040 state tax forms ) Legal fees related to your job. Free 1040 state tax forms Licenses and regulatory fees. Free 1040 state tax forms Malpractice insurance premiums. Free 1040 state tax forms Medical examinations required by an employer. Free 1040 state tax forms Occupational taxes. Free 1040 state tax forms Passport for a business trip. Free 1040 state tax forms Subscriptions to professional journals and trade magazines related to your work. Free 1040 state tax forms Travel, transportation, entertainment, and gifts related to your work. Free 1040 state tax forms (See chapter 26. Free 1040 state tax forms ) Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Free 1040 state tax forms Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer that are attributable to the pay you received from that employer. Free 1040 state tax forms Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Free 1040 state tax forms For more information about the rules and exceptions to the rules affecting the allowable deductions for a home computer, see Publication 529. Free 1040 state tax forms Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Free 1040 state tax forms Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Free 1040 state tax forms Lobbying and political activities. Free 1040 state tax forms   You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Free 1040 state tax forms See Dues used for lobbying under Nondeductible Expenses, later. Free 1040 state tax forms Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Free 1040 state tax forms If you file Form 1040A, you can deduct these expenses on line 16. Free 1040 state tax forms If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Free 1040 state tax forms However, neither spouse can deduct more than $250 of his or her qualified expenses. Free 1040 state tax forms Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Free 1040 state tax forms You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Free 1040 state tax forms The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Free 1040 state tax forms See Publication 587 for more detailed information and a worksheet. Free 1040 state tax forms Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Free 1040 state tax forms You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Free 1040 state tax forms Employment and outplacement agency fees. Free 1040 state tax forms   You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Free 1040 state tax forms Employer pays you back. Free 1040 state tax forms   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Free 1040 state tax forms (See Recoveries in chapter 12. Free 1040 state tax forms ) Employer pays the employment agency. Free 1040 state tax forms   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Free 1040 state tax forms Résumé. Free 1040 state tax forms   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Free 1040 state tax forms Travel and transportation expenses. Free 1040 state tax forms   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Free 1040 state tax forms You can deduct the travel expenses if the trip is primarily to look for a new job. Free 1040 state tax forms The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Free 1040 state tax forms   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Free 1040 state tax forms   You can choose to use the standard mileage rate to figure your car expenses. Free 1040 state tax forms The 2013 rate for business use of a vehicle is 56½ cents per mile. Free 1040 state tax forms See chapter 26 for more information. Free 1040 state tax forms Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Free 1040 state tax forms Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Free 1040 state tax forms If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Free 1040 state tax forms Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Free 1040 state tax forms If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Free 1040 state tax forms Research Expenses of a College Professor If you are a college professor, you can deduct research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Free 1040 state tax forms You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Free 1040 state tax forms However, you cannot deduct the cost of travel as a form of education. Free 1040 state tax forms Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Free 1040 state tax forms You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Free 1040 state tax forms For more information about depreciation, see Publication 946. Free 1040 state tax forms Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Free 1040 state tax forms You can also deduct assessments for benefit payments to unemployed union members. Free 1040 state tax forms However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Free 1040 state tax forms Also, you cannot deduct contributions to a pension fund, even if the union requires you to make the contributions. Free 1040 state tax forms You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Free 1040 state tax forms See Lobbying Expenses under Nondeductible Expenses, later. Free 1040 state tax forms Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Free 1040 state tax forms You must wear them as a condition of your employment. Free 1040 state tax forms The clothes are not suitable for everyday wear. Free 1040 state tax forms It is not enough that you wear distinctive clothing. Free 1040 state tax forms The clothing must be specifically required by your employer. Free 1040 state tax forms Nor is it enough that you do not, in fact, wear your work clothes away from work. Free 1040 state tax forms The clothing must not be suitable for taking the place of your regular clothing. Free 1040 state tax forms Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Free 1040 state tax forms ). Free 1040 state tax forms Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Free 1040 state tax forms However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Free 1040 state tax forms Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Free 1040 state tax forms Protective clothing. Free 1040 state tax forms   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Free 1040 state tax forms   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Free 1040 state tax forms Military uniforms. Free 1040 state tax forms   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Free 1040 state tax forms However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Free 1040 state tax forms In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Free 1040 state tax forms   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Free 1040 state tax forms   You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Free 1040 state tax forms Tax Preparation Fees (Line 22) You can usually deduct tax preparation fees in the year you pay them. Free 1040 state tax forms Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Free 1040 state tax forms These fees include the cost of tax preparation software programs and tax publications. Free 1040 state tax forms They also include any fee you paid for electronic filing of your return. Free 1040 state tax forms Other Expenses (Line 23) You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2% limit. Free 1040 state tax forms On Schedule A (Form 1040), line 23, you can deduct expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Free 1040 state tax forms You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonably and closely related to these purposes. Free 1040 state tax forms Some of these other expenses are explained in the following discussions. Free 1040 state tax forms If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses , later, under Nondeductible Expenses. Free 1040 state tax forms Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Free 1040 state tax forms Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Free 1040 state tax forms First report the loss in Section B of Form 4684, Casualties and Thefts. Free 1040 state tax forms You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Free 1040 state tax forms To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Free 1040 state tax forms For other casualty and theft losses, see chapter 25. Free 1040 state tax forms Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Free 1040 state tax forms Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Free 1040 state tax forms The fees are deductible in the year paid. Free 1040 state tax forms Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Free 1040 state tax forms You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Free 1040 state tax forms But if you work as an employee and also use the computer in that work, see Publication 946. Free 1040 state tax forms Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Free 1040 state tax forms Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Free 1040 state tax forms The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Free 1040 state tax forms For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Free 1040 state tax forms Fees to Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Free 1040 state tax forms But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Free 1040 state tax forms You must add the fee to the cost of the property. Free 1040 state tax forms You cannot deduct the fee you pay to a broker to sell securities. Free 1040 state tax forms You can use the fee only to figure gain or loss from the sale. Free 1040 state tax forms See the Instructions for Form 8949 for information on how to report the fee. Free 1040 state tax forms Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Free 1040 state tax forms A hobby is not a business because it is not carried on to make a profit. Free 1040 state tax forms See Activity not for profit in chapter 12 under Other Income. Free 1040 state tax forms Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Free 1040 state tax forms Deductions of pass-through entities are passed through to the partners or shareholders. Free 1040 state tax forms The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Free 1040 state tax forms Example. Free 1040 state tax forms You are a member of an investment club that is formed solely to invest in securities. Free 1040 state tax forms The club is treated as a partnership. Free 1040 state tax forms The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Free 1040 state tax forms In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Free 1040 state tax forms However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Free 1040 state tax forms Publicly offered mutual funds. Free 1040 state tax forms   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Free 1040 state tax forms A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Free 1040 state tax forms   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Free 1040 state tax forms This net figure is the amount you report on your return as income. Free 1040 state tax forms You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Free 1040 state tax forms Information returns. Free 1040 state tax forms   You should receive information returns from pass-through entities. Free 1040 state tax forms Partnerships and S corporations. Free 1040 state tax forms   These entities issue Schedule K-1, which lists the items and amounts you must report and identifies the tax return schedules and lines to use. Free 1040 state tax forms Nonpublicly offered mutual funds. Free 1040 state tax forms   These funds will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing your share of gross income and investment expenses. Free 1040 state tax forms You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Free 1040 state tax forms Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Free 1040 state tax forms Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Free 1040 state tax forms You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce, if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Free 1040 state tax forms You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F), on the appropriate schedule. Free 1040 state tax forms You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040). Free 1040 state tax forms See Tax Preparation Fees , earlier. Free 1040 state tax forms Loss on Deposits For information on whether, and if so, how, you may deduct a loss on your deposit in a qualified financial institution, see Loss on Deposits in chapter 25. Free 1040 state tax forms Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Free 1040 state tax forms If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Free 1040 state tax forms If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Free 1040 state tax forms Repayments of Social Security Benefits For information on how to deduct your repayments of certain social security benefits, see Repayments More Than Gross Benefits in chapter 11. Free 1040 state tax forms Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Free 1040 state tax forms You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Free 1040 state tax forms Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Free 1040 state tax forms These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Free 1040 state tax forms Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your individual retirement arrangement (IRA) are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Free 1040 state tax forms For more information about IRAs, see chapter 17. Free 1040 state tax forms Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Free 1040 state tax forms They are not subject to the 2% limit. Free 1040 state tax forms Report these items on Schedule A (Form 1040), line 28. Free 1040 state tax forms List of Deductions Each of the following items is discussed in detail after the list (except where indicated). Free 1040 state tax forms Amortizable premium on taxable bonds. Free 1040 state tax forms Casualty and theft losses from income- producing property. Free 1040 state tax forms Federal estate tax on income in respect of a decedent. Free 1040 state tax forms Gambling losses up to the amount of gambling winnings. Free 1040 state tax forms Impairment-related work expenses of persons with disabilities. Free 1040 state tax forms Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Free 1040 state tax forms Losses from Ponzi-type investment schemes. Free 1040 state tax forms See Losses from Ponzi-type investment schemes under Theft in chapter 25. Free 1040 state tax forms Repayments of more than $3,000 under a claim of right. Free 1040 state tax forms Unrecovered investment in an annuity. Free 1040 state tax forms Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Free 1040 state tax forms You can elect to amortize the premium on taxable bonds. Free 1040 state tax forms The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Free 1040 state tax forms Part of the premium on some bonds may be a miscellaneous deduction not subject to the 2% limit. Free 1040 state tax forms For more information, see Amortizable Premium on Taxable Bonds in Publication 529, and Bond Premium Amortization in chapter 3 of Publication 550, Investment Income and Expenses. Free 1040 state tax forms Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Free 1040 state tax forms First, report the loss in Form 4684, Section B. Free 1040 state tax forms You may also have to include the loss on Form 4797, Sales of Business Property if you are otherwise required to file that form. Free 1040 state tax forms To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Free 1040 state tax forms For more information on casualty and theft losses, see chapter 25. Free 1040 state tax forms Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Free 1040 state tax forms Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Free 1040 state tax forms See Publication 559 for more information. Free 1040 state tax forms Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Free 1040 state tax forms You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Free 1040 state tax forms You cannot deduct gambling losses that are more than your winnings. Free 1040 state tax forms You cannot reduce your gambling winnings by your gambling losses and report the difference. Free 1040 state tax forms You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Free 1040 state tax forms Therefore, your records should show your winnings separately from your losses. Free 1040 state tax forms Diary of winnings and losses. Free 1040 state tax forms You must keep an accurate diary or similar record of your losses and winnings. Free 1040 state tax forms Your diary should contain at least the following information. Free 1040 state tax forms The date and type of your specific wager or wagering activity. Free 1040 state tax forms The name and address or location of the gambling establishment. Free 1040 state tax forms The names of other persons present with you at the gambling establishment. Free 1040 state tax forms The amount(s) you won or lost. Free 1040 state tax forms See Publication 529 for more information. Free 1040 state tax forms Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Free 1040 state tax forms Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and for other expenses in connection with your place of work that are necessary for you to be able to work. Free 1040 state tax forms Self-employed. Free 1040 state tax forms   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Free 1040 state tax forms Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28. Free 1040 state tax forms It is not subject to the passive activity limitations. Free 1040 state tax forms Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid or take a credit against your tax. Free 1040 state tax forms See Repayments in chapter 12 for more information. Free 1040 state tax forms Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Free 1040 state tax forms If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Free 1040 state tax forms See chapter 10 for more information about the tax treatment of pensions and annuities. Free 1040 state tax forms Nondeductible Expenses Examples of nondeductible expenses are listed next. Free 1040 state tax forms The list is followed by discussions of additional nondeductible expenses. Free 1040 state tax forms List of Nondeductible Expenses Broker's commissions that you paid in connection with your IRA or other investment property. Free 1040 state tax forms Burial or funeral expenses, including the cost of a cemetery lot. Free 1040 state tax forms Capital expenses. Free 1040 state tax forms Fees and licenses, such as car licenses, marriage licenses, and dog tags. Free 1040 state tax forms Hobby losses, but see Hobby Expenses , earlier. Free 1040 state tax forms Home repairs, insurance, and rent. Free 1040 state tax forms Illegal bribes and kickbacks. Free 1040 state tax forms See Bribes and kickbacks in chapter 11 of Publication 535. Free 1040 state tax forms Losses from the sale of your home, furniture, personal car, etc. Free 1040 state tax forms Personal disability insurance premiums. Free 1040 state tax forms Personal, living, or family expenses. Free 1040 state tax forms The value of wages never received or lost vacation time. Free 1040 state tax forms Adoption Expenses You cannot deduct the expenses of adopting a child, but you may be able to take a credit for those expenses. Free 1040 state tax forms See chapter 37. Free 1040 state tax forms Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Free 1040 state tax forms These include qualification and registration fees for primary elections. Free 1040 state tax forms Legal fees. Free 1040 state tax forms   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Free 1040 state tax forms Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Free 1040 state tax forms Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Free 1040 state tax forms This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Free 1040 state tax forms You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Free 1040 state tax forms Dues paid to airline, hotel, and luncheon clubs are not deductible. Free 1040 state tax forms Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Free 1040 state tax forms If you haul tools, instruments, or other items, in your car to and from work, you can deduct only the additional cost of hauling the items such as the rent on a trailer to carry the items. Free 1040 state tax forms Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Free 1040 state tax forms This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Free 1040 state tax forms Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Free 1040 state tax forms Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Free 1040 state tax forms Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Free 1040 state tax forms However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Free 1040 state tax forms See Home Office under Unreimbursed Employee Expenses, earlier, and Security System under Deducting Expenses in Publication 587. Free 1040 state tax forms Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Free 1040 state tax forms Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Free 1040 state tax forms You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Free 1040 state tax forms See chapter 18 for information on alimony. Free 1040 state tax forms Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Free 1040 state tax forms These include expenses to: Influence legislation, Participate or intervene in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Free 1040 state tax forms Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Free 1040 state tax forms Dues used for lobbying. Free 1040 state tax forms   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Free 1040 state tax forms See Lobbying Expenses in Publication 529 for information on exceptions. Free 1040 state tax forms Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Free 1040 state tax forms However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Free 1040 state tax forms See chapter 25. Free 1040 state tax forms Example. Free 1040 state tax forms A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Free 1040 state tax forms The diamond falls from the ring and is never found. Free 1040 state tax forms The loss of the diamond is a casualty. Free 1040 state tax forms Lunches with Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Free 1040 state tax forms See chapter 26 for information on deductible expenses while traveling away from home. Free 1040 state tax forms Meals While Working Late You cannot deduct the cost of meals while working late. Free 1040 state tax forms However, you may be able to claim a deduction if the cost of meals is a deductible entertainment expense, or if you are traveling away from home. Free 1040 state tax forms See chapter 26 for information on deductible entertainment expenses and expenses while traveling away from home. Free 1040 state tax forms Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Free 1040 state tax forms Custody of children. Free 1040 state tax forms Breach of promise to marry suit. Free 1040 state tax forms Civil or criminal charges resulting from a personal relationship. Free 1040 state tax forms Damages for personal injury, except for certain unlawful discrimination and whistleblower claims. Free 1040 state tax forms Preparation of a title (or defense or perfection of a title). Free 1040 state tax forms Preparation of a will. Free 1040 state tax forms Property claims or property settlement in a divorce. Free 1040 state tax forms You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Free 1040 state tax forms Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Free 1040 state tax forms Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Free 1040 state tax forms Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Free 1040 state tax forms Accounting certificate fees paid for the initial right to practice accounting. Free 1040 state tax forms Bar exam fees and incidental expenses in securing initial admission to the bar. Free 1040 state tax forms Medical and dental license fees paid to get initial licensing. Free 1040 state tax forms Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Free 1040 state tax forms Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Free 1040 state tax forms Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Free 1040 state tax forms Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Free 1040 state tax forms You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Free 1040 state tax forms Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Free 1040 state tax forms You cannot deduct interest on a debt incurred or continued to buy or carry  tax-exempt securities. Free 1040 state tax forms If you have expenses to produce both taxable and tax-exempt income, but you cannot identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct. Free 1040 state tax forms Example. Free 1040 state tax forms During the year, you received taxable interest of $4,800 and tax-exempt interest of $1,200. Free 1040 state tax forms In earning this income, you had total expenses of $500 during the year. Free 1040 state tax forms You cannot identify the amount of each expense item that is for each income item. Free 1040 state tax forms Therefore, 80% ($4,800/$6,000) of the expense is for the taxable interest and 20% ($1,200/$6,000) is for the tax-exempt interest. Free 1040 state tax forms You can deduct, subject to the 2% limit, expenses of $400 (80% of $500). Free 1040 state tax forms Travel Expenses for Another Individual You generally cannot deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on business or personal travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. Free 1040 state tax forms See chapter 26 for more information on deductible travel expenses. Free 1040 state tax forms Voluntary Unemployment Benefit Fund Contributions You cannot deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. Free 1040 state tax forms However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions. Free 1040 state tax forms Wristwatches You cannot deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties. Free 1040 state tax forms Prev  Up  Next   Home   More Online Publications