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H&r Block Amended Return

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H&r Block Amended Return

H&r block amended return Publication 4492 - Introductory Material Table of Contents Introduction Useful Items - You may want to see: Introduction This publication explains the major provisions of the Katrina Emergency Tax Relief Act of 2005 and the Gulf Opportunity Zone Act of 2005. H&r block amended return Useful Items - You may want to see: Publication 526 Charitable Contributions 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 547 Casualties, Disasters, and Thefts 946 How To Depreciate Property Form (and Instructions) 4506Request for Copy of Tax Return 4506-TRequest for Transcript of Tax Return 4684Casualties and Thefts 5884Work Opportunity Credit 5884-ACredits for Employers Affected by Hurricane Katrina, Rita, or Wilma 8863Education Credits (Hope and Lifetime Learning Credits) 8914Exemption Amount for Taxpayers Housing Individuals Displaced by Hurricane Katrina 8915Qualified Hurricane Retirement Plan Distributions and Repayments Prev  Up  Next   Home   More Online Publications
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Small claims courts resolve disputes over small amounts of money. While the maximum amount that can be claimed differs from state to state, court procedures are generally simple, inexpensive, quick and informal. Court fees are minimal, and you often get your filing fee back if you win your case. Typically, you will not need a lawyer-some states do not permit them. If you live in a state that allows lawyers and the party you are suing brings one, don't be intimidated. Most judges make allowances for consumers who appear without lawyers. Even though the court is informal, the judge's decision must be followed.

If you file a case and win, the losing party should give you what the court says you are owed without further action on your part. But some losers refuse to follow the court's decision. When this happens, you can go back to court and ask for the order to be enforced. Depending on local laws, law enforcement officials might sell a person's property or take money from a bank account or business cash register. If the person who owes the money receives a salary, the court might order an employer to garnish (deduct money from) each paycheck to pay you.

Check your local telephone book under the municipal, county or state government headings for small claims court offices. Ask the clerk how to use the small claims court. Before taking your own case to court, observe a small claims court session and ask the court if it has information that will help you prepare your presentation to the judge.

The H&r Block Amended Return

H&r block amended return 26. H&r block amended return   Car Expenses and Other Employee Business Expenses Table of Contents What's New Introduction Useful Items - You may want to see: Travel ExpensesTraveling Away From Home Tax Home Temporary Assignment or Job What Travel Expenses Are Deductible? Travel in the United States Travel Outside the United States Conventions Entertainment Expenses50% Limit What Entertainment Expenses Are Deductible? What Entertainment Expenses Are Not Deductible? Gift Expenses Transportation ExpensesArmed Forces reservists. H&r block amended return Parking fees. H&r block amended return Advertising display on car. H&r block amended return Car pools. H&r block amended return Hauling tools or instruments. H&r block amended return Union members' trips from a union hall. H&r block amended return Car Expenses RecordkeepingHow To Prove Expenses How Long To Keep Records and Receipts How To ReportGifts. H&r block amended return Statutory employees. H&r block amended return Reimbursements Completing Forms 2106 and 2106-EZ Special Rules What's New Standard mileage rate. H&r block amended return  For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. H&r block amended return Car expenses and use of the standard mileage rate are explained under Transportation Expenses , later. H&r block amended return Depreciation limits on cars, trucks, and vans. H&r block amended return  For 2013, the first-year limit on the total section 179 deduction, special depreciation allowance, and depreciation deduction for cars remains at $11,160 ($3,160 if you elect not to claim the special depreciation allowance). H&r block amended return For trucks and vans the first-year limit remains at $11,360 ($3,360 if you elect not to claim the special depreciation allowance). H&r block amended return For more information, see Depreciation limits in Publication 463. H&r block amended return Introduction You may be able to deduct the ordinary and necessary business-related expenses you have for: Travel, Entertainment, Gifts, or Transportation. H&r block amended return An ordinary expense is one that is common and accepted in your trade or business. H&r block amended return A necessary expense is one that is helpful and appropriate for your business. H&r block amended return An expense does not have to be required to be considered necessary. H&r block amended return This chapter explains the following. H&r block amended return What expenses are deductible. H&r block amended return How to report your expenses on your return. H&r block amended return What records you need to prove your expenses. H&r block amended return How to treat any expense reimbursements you may receive. H&r block amended return Who does not need to use this chapter. H&r block amended return   If you are an employee, you will not need to read this chapter if all of the following are true. H&r block amended return You fully accounted to your employer for your work-related expenses. H&r block amended return You received full reimbursement for your expenses. H&r block amended return Your employer required you to return any excess reimbursement and you did so. H&r block amended return There is no amount shown with a code “L” in box 12 of your Form W-2, Wage and Tax Statement. H&r block amended return If you meet all of these conditions, there is no need to show the expenses or the reimbursements on your return. H&r block amended return See Reimbursements , later, if you would like more information on reimbursements and accounting to your employer. H&r block amended return    If you meet these conditions and your employer included reimbursements on your Form W-2 in error, ask your employer for a corrected Form W-2. H&r block amended return Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule C (Form 1040) Profit or Loss From Business Schedule C-EZ (Form 1040) Net Profit From Business Schedule F (Form 1040) Profit or Loss From Farming Form 2106 Employee Business Expenses Form 2106-EZ Unreimbursed Employee Business Expenses Travel Expenses If you temporarily travel away from your tax home, you can use this section to determine if you have deductible travel expenses. H&r block amended return This section discusses: Traveling away from home, Tax home, Temporary assignment or job, and What travel expenses are deductible. H&r block amended return It also discusses the standard meal allowance, rules for travel inside and outside the United States, and deductible convention expenses. H&r block amended return Travel expenses defined. H&r block amended return   For tax purposes, travel expenses are the ordinary and necessary expenses (defined earlier) of traveling away from home for your business, profession, or job. H&r block amended return   You will find examples of deductible travel expenses in Table 26-1 . H&r block amended return Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. H&r block amended return This rest requirement is not satisfied by merely napping in your car. H&r block amended return You do not have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from duty is long enough to get necessary sleep or rest. H&r block amended return Example 1. H&r block amended return You are a railroad conductor. H&r block amended return You leave your home terminal on a regularly scheduled round-trip run between two cities and return home 16 hours later. H&r block amended return During the run, you have 6 hours off at your turnaround point where you eat two meals and rent a hotel room to get necessary sleep before starting the return trip. H&r block amended return You are considered to be away from home. H&r block amended return Example 2. H&r block amended return You are a truck driver. H&r block amended return You leave your terminal and return to it later the same day. H&r block amended return You get an hour off at your turnaround point to eat. H&r block amended return Because you are not off to get necessary sleep and the brief time off is not an adequate rest period, you are not traveling away from home. H&r block amended return Members of the Armed Forces. H&r block amended return   If you are a member of the U. H&r block amended return S. H&r block amended return Armed Forces on a permanent duty assignment overseas, you are not traveling away from home. H&r block amended return You cannot deduct your expenses for meals and lodging. H&r block amended return You cannot deduct these expenses even if you have to maintain a home in the United States for your family members who are not allowed to accompany you overseas. H&r block amended return If you are transferred from one permanent duty station to another, you may have deductible moving expenses, which are explained in Publication 521, Moving Expenses. H&r block amended return    A naval officer assigned to permanent duty aboard a ship that has regular eating and living facilities has a tax home aboard ship for travel expense purposes. H&r block amended return Tax Home To determine whether you are traveling away from home, you must first determine the location of your tax home. H&r block amended return Generally, your tax home is your regular place of business or post of duty, regardless of where you maintain your family home. H&r block amended return It includes the entire city or general area in which your business or work is located. H&r block amended return If you have more than one regular place of business, your tax home is your main place of business. H&r block amended return See Main place of business or work , later. H&r block amended return If you do not have a regular or a main place of business because of the nature of your work, then your tax home may be the place where you regularly live. H&r block amended return See No main place of business or work , later. H&r block amended return If you do not have a regular or a main place of business or post of duty and there is no place where you regularly live, you are considered an itinerant (a transient) and your tax home is wherever you work. H&r block amended return As an itinerant, you cannot claim a travel expense deduction because you are never considered to be traveling away from home. H&r block amended return Main place of business or work. H&r block amended return   If you have more than one place of business or work, consider the following when determining which one is your main place of business or work. H&r block amended return The total time you ordinarily spend in each place. H&r block amended return The level of your business activity in each place. H&r block amended return Whether your income from each place is significant or insignificant. H&r block amended return Example. H&r block amended return You live in Cincinnati where you have a seasonal job for 8 months each year and earn $40,000. H&r block amended return You work the other 4 months in Miami, also at a seasonal job, and earn $15,000. H&r block amended return Cincinnati is your main place of work because you spend most of your time there and earn most of your income there. H&r block amended return No main place of business or work. H&r block amended return   You may have a tax home even if you do not have a regular or main place of business or work. H&r block amended return Your tax home may be the home where you regularly live. H&r block amended return Factors used to determine tax home. H&r block amended return   If you do not have a regular or main place of business or work, use the following three factors to determine where your tax home is. H&r block amended return You perform part of your business in the area of your main home and use that home for lodging while doing business in the area. H&r block amended return You have living expenses at your main home that you duplicate because your business requires you to be away from that home. H&r block amended return You have not abandoned the area in which both your historical place of lodging and your claimed main home are located; you have a member or members of your family living at your main home; or you often use that home for lodging. H&r block amended return   If you satisfy all three factors, your tax home is the home where you regularly live. H&r block amended return If you satisfy only two factors, you may have a tax home depending on all the facts and circumstances. H&r block amended return If you satisfy only one factor, you are an itinerant; your tax home is wherever you work and you cannot deduct travel expenses. H&r block amended return Example. H&r block amended return You are single and live in Boston in an apartment you rent. H&r block amended return You have worked for your employer in Boston for a number of years. H&r block amended return Your employer enrolls you in a 12-month executive training program. H&r block amended return You do not expect to return to work in Boston after you complete your training. H&r block amended return During your training, you do not do any work in Boston. H&r block amended return Instead, you receive classroom and on-the-job training throughout the United States. H&r block amended return You keep your apartment in Boston and return to it frequently. H&r block amended return You use your apartment to conduct your personal business. H&r block amended return You also keep up your community contacts in Boston. H&r block amended return When you complete your training, you are transferred to Los Angeles. H&r block amended return You do not satisfy factor (1) because you did not work in Boston. H&r block amended return You satisfy factor (2) because you had duplicate living expenses. H&r block amended return You also satisfy factor (3) because you did not abandon your apartment in Boston as your main home, you kept your community contacts, and you frequently returned to live in your apartment. H&r block amended return Therefore, you have a tax home in Boston. H&r block amended return Tax home different from family home. H&r block amended return   If you (and your family) do not live at your tax home (defined earlier), you cannot deduct the cost of traveling between your tax home and your family home. H&r block amended return You also cannot deduct the cost of meals and lodging while at your tax home. H&r block amended return See Example 1 . H&r block amended return   If you are working temporarily in the same city where you and your family live, you may be considered as traveling away from home. H&r block amended return See Example 2 . H&r block amended return Example 1. H&r block amended return You are a truck driver and you and your family live in Tucson. H&r block amended return You are employed by a trucking firm that has its terminal in Phoenix. H&r block amended return At the end of your long runs, you return to your home terminal in Phoenix and spend one night there before returning home. H&r block amended return You cannot deduct any expenses you have for meals and lodging in Phoenix or the cost of traveling from Phoenix to Tucson. H&r block amended return This is because Phoenix is your tax home. H&r block amended return Example 2. H&r block amended return Your family home is in Pittsburgh, where you work 12 weeks a year. H&r block amended return The rest of the year you work for the same employer in Baltimore. H&r block amended return In Baltimore, you eat in restaurants and sleep in a rooming house. H&r block amended return Your salary is the same whether you are in Pittsburgh or Baltimore. H&r block amended return Because you spend most of your working time and earn most of your salary in Baltimore, that city is your tax home. H&r block amended return You cannot deduct any expenses you have for meals and lodging there. H&r block amended return However, when you return to work in Pittsburgh, you are away from your tax home even though you stay at your family home. H&r block amended return You can deduct the cost of your round trip between Baltimore and Pittsburgh. H&r block amended return You can also deduct your part of your family's living expenses for meals and lodging while you are living and working in Pittsburgh. H&r block amended return Temporary Assignment or Job You may regularly work at your tax home and also work at another location. H&r block amended return It may not be practical to return to your tax home from this other location at the end of each work day. H&r block amended return Temporary assignment vs. H&r block amended return indefinite assignment. H&r block amended return   If your assignment or job away from your main place of work is temporary, your tax home does not change. H&r block amended return You are considered to be away from home for the whole period you are away from your main place of work. H&r block amended return You can deduct your travel expenses if they otherwise qualify for deduction. H&r block amended return Generally, a temporary assignment in a single location is one that is realistically expected to last (and does in fact last) for 1 year or less. H&r block amended return   However, if your assignment or job is indefinite, the location of the assignment or job becomes your new tax home and you cannot deduct your travel expenses while there. H&r block amended return An assignment or job in a single location is considered indefinite if it is realistically expected to last for more than 1 year, whether or not it actually lasts for more than 1 year. H&r block amended return   If your assignment is indefinite, you must include in your income any amounts you receive from your employer for living expenses, even if they are called travel allowances and you account to your employer for them. H&r block amended return You may be able to deduct the cost of relocating to your new tax home as a moving expense. H&r block amended return See Publication 521 for more information. H&r block amended return Exception for federal crime investigations or prosecutions. H&r block amended return   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule. H&r block amended return This means you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year, provided you meet the other requirements for deductibility. H&r block amended return   For you to qualify, the Attorney General (or his or her designee) must certify that you are traveling: For the federal government, In a temporary duty status, and To investigate or prosecute, or provide support services for the investigation or prosecution of a federal crime. H&r block amended return Determining temporary or indefinite. H&r block amended return   You must determine whether your assignment is temporary or indefinite when you start work. H&r block amended return If you expect an assignment or job to last for 1 year or less, it is temporary unless there are facts and circumstances that indicate otherwise. H&r block amended return An assignment or job that is initially temporary may become indefinite due to changed circumstances. H&r block amended return A series of assignments to the same location, all for short periods but that together cover a long period, may be considered an indefinite assignment. H&r block amended return Going home on days off. H&r block amended return   If you go back to your tax home from a temporary assignment on your days off, you are not considered away from home while you are in your hometown. H&r block amended return You cannot deduct the cost of your meals and lodging there. H&r block amended return However, you can deduct your travel expenses, including meals and lodging, while traveling between your temporary place of work and your tax home. H&r block amended return You can claim these expenses up to the amount it would have cost you to stay at your temporary place of work. H&r block amended return   If you keep your hotel room during your visit home, you can deduct the cost of your hotel room. H&r block amended return In addition, you can deduct your expenses of returning home up to the amount you would have spent for meals had you stayed at your temporary place of work. H&r block amended return Probationary work period. H&r block amended return   If you take a job that requires you to move, with the understanding that you will keep the job if your work is satisfactory during a probationary period, the job is indefinite. H&r block amended return You cannot deduct any of your expenses for meals and lodging during the probationary period. H&r block amended return What Travel Expenses Are Deductible? Once you have determined that you are traveling away from your tax home, you can determine what travel expenses are deductible. H&r block amended return You can deduct ordinary and necessary expenses you have when you travel away from home on business. H&r block amended return The type of expense you can deduct depends on the facts and your circumstances. H&r block amended return Table 26-1 summarizes travel expenses you may be able to deduct. H&r block amended return You may have other deductible travel expenses that are not covered there, depending on the facts and your circumstances. H&r block amended return When you travel away from home on business, you should keep records of all the expenses you have and any advances you receive from your employer. H&r block amended return You can use a log, diary, notebook, or any other written record to keep track of your expenses. H&r block amended return The types of expenses you need to record, along with supporting documentation, are described in Table 26-2 , later. H&r block amended return Separating costs. H&r block amended return   If you have one expense that includes the costs of meals, entertainment, and other services (such as lodging or transportation), you must allocate that expense between the cost of meals and entertainment and the cost of other services. H&r block amended return You must have a reasonable basis for making this allocation. H&r block amended return For example, you must allocate your expenses if a hotel includes one or more meals in its room charge. H&r block amended return Travel expenses for another individual. H&r block amended return   If a spouse, dependent, or other individual goes with you (or your employee) on a business trip or to a business convention, you generally cannot deduct his or her travel expenses. H&r block amended return Employee. H&r block amended return   You can deduct the travel expenses of someone who goes with you if that person: Is your employee, Has a bona fide business purpose for the travel, and Would otherwise be allowed to deduct the travel expenses. H&r block amended return Business associate. H&r block amended return   If a business associate travels with you and meets the conditions in (2) and (3) above, you can deduct the travel expenses you have for that person. H&r block amended return A business associate is someone with whom you could reasonably expect to engage or deal in the active conduct of your business. H&r block amended return A business associate can be a current or prospective (likely to become) customer, client, supplier, employee, agent, partner, or professional advisor. H&r block amended return Bona fide business purpose. H&r block amended return   A bona fide business purpose exists if you can prove a real business purpose for the individual's presence. H&r block amended return Incidental services, such as typing notes or assisting in entertaining customers, are not enough to make the expenses deductible. H&r block amended return Example. H&r block amended return Jerry drives to Chicago on business and takes his wife, Linda, with him. H&r block amended return Linda is not Jerry's employee. H&r block amended return Linda occasionally types notes, performs similar services, and accompanies Jerry to luncheons and dinners. H&r block amended return The performance of these services does not establish that her presence on the trip is necessary to the conduct of Jerry's business. H&r block amended return Her expenses are not deductible. H&r block amended return Jerry pays $199 a day for a double room. H&r block amended return A single room costs $149 a day. H&r block amended return He can deduct the total cost of driving his car to and from Chicago, but only $149 a day for his hotel room. H&r block amended return If he uses public transportation, he can deduct only his fare. H&r block amended return Table 26-1. H&r block amended return Travel Expenses You Can Deduct This chart summarizes expenses you can deduct when you travel away from home for business purposes. H&r block amended return IF you have expenses for. H&r block amended return . H&r block amended return . H&r block amended return THEN you can deduct the cost of. H&r block amended return . H&r block amended return . H&r block amended return transportation travel by airplane, train, bus, or car between your home and your business destination. H&r block amended return If you were provided with a ticket or you are riding free as a result of a frequent traveler or similar program, your cost is zero. H&r block amended return If you travel by ship, see Luxury Water Travel and Cruise ships (under Conventions) in Publication 463 for additional rules and limits. H&r block amended return taxi, commuter bus, and airport limousine fares for these and other types of transportation that take you between: The airport or station and your hotel, and The hotel and the work location of your customers or clients, your business meeting place, or your temporary work location. H&r block amended return baggage and shipping sending baggage and sample or display material between your regular and temporary work locations. H&r block amended return car operating and maintaining your car when traveling away from home on business. H&r block amended return You can deduct actual expenses or the standard mileage rate as well as business-related tolls and parking. H&r block amended return If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. H&r block amended return lodging and meals your lodging and meals if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. H&r block amended return Meals include amounts spent for food, beverages, taxes, and related tips. H&r block amended return See Meals and Incidental Expenses for additional rules and limits. H&r block amended return cleaning dry cleaning and laundry. H&r block amended return telephone business calls while on your business trip. H&r block amended return This includes business communication by fax machine or other communication devices. H&r block amended return tips tips you pay for any expenses in this chart. H&r block amended return other other similar ordinary and necessary expenses related to your business travel. H&r block amended return These expenses might include transportation to or from a business meal, public stenographer's fees, computer rental fees, and operating and maintaining a house trailer. H&r block amended return Meals and Incidental Expenses You can deduct the cost of meals in either of the following situations. H&r block amended return It is necessary for you to stop for substantial sleep or rest to properly perform your duties while traveling away from home on business. H&r block amended return The meal is business-related entertainment. H&r block amended return Business-related entertainment is discussed under Entertainment Expenses , later. H&r block amended return The following discussion deals only with meals (and incidental expenses) that are not business-related entertainment. H&r block amended return Lavish or extravagant. H&r block amended return   You cannot deduct expenses for meals that are lavish or extravagant. H&r block amended return An expense is not considered lavish or extravagant if it is reasonable based on the facts and circumstances. H&r block amended return Expenses will not be disallowed merely because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. H&r block amended return 50% limit on meals. H&r block amended return   You can figure your meal expenses using either of the following methods. H&r block amended return Actual cost. H&r block amended return The standard meal allowance. H&r block amended return Both of these methods are explained below. H&r block amended return But, regardless of the method you use, you generally can deduct only 50% of the unreimbursed cost of your meals. H&r block amended return   If you are reimbursed for the cost of your meals, how you apply the 50% limit depends on whether your employer's reimbursement plan was accountable or nonaccountable. H&r block amended return If you are not reimbursed, the 50% limit applies whether the unreimbursed meal expense is for business travel or business entertainment. H&r block amended return The 50% limit is explained later under Entertainment Expenses . H&r block amended return Accountable and nonaccountable plans are discussed later under Reimbursements . H&r block amended return Actual cost. H&r block amended return   You can use the actual cost of your meals to figure the amount of your expense before reimbursement and application of the 50% deduction limit. H&r block amended return If you use this method, you must keep records of your actual cost. H&r block amended return Standard meal allowance. H&r block amended return   Generally, you can use the “standard meal allowance” method as an alternative to the actual cost method. H&r block amended return It allows you to use a set amount for your daily meals and incidental expenses (M&IE), instead of keeping records of your actual costs. H&r block amended return The set amount varies depending on where and when you travel. H&r block amended return In this chapter, “standard meal allowance” refers to the federal rate for M&IE, discussed later under Amount of standard meal allowance . H&r block amended return If you use the standard meal allowance, you still must keep records to prove the time, place, and business purpose of your travel. H&r block amended return See Recordkeeping , later. H&r block amended return Incidental expenses. H&r block amended return   The term “incidental expenses” means fees and tips given to porters, baggage carriers, hotel staff, and staff on ships. H&r block amended return Incidental expenses do not include expenses for laundry, cleaning and pressing of clothing, lodging taxes, costs of telegrams or telephone calls, transportation between places of lodging or business and places where meals are taken, or the mailing cost of filing travel vouchers and paying employer-sponsored charge card billings. H&r block amended return Incidental expenses only method. H&r block amended return   You can use an optional method (instead of actual cost) for deducting incidental expenses only. H&r block amended return The amount of the deduction is $5 a day. H&r block amended return You can use this method only if you did not pay or incur any meal expenses. H&r block amended return You cannot use this method on any day that you use the standard meal allowance. H&r block amended return    Federal employees should refer to the Federal Travel Regulations at  www. H&r block amended return gsa. H&r block amended return gov. H&r block amended return Find “What GSA Offers” and click on “Regulations: FMR, FTR, & FAR” for Federal Travel Regulation (FTR) for changes affecting claims for reimbursement. H&r block amended return 50% limit may apply. H&r block amended return   If you use the standard meal allowance method for meal expenses and you are not reimbursed or you are reimbursed under a nonaccountable plan, you can generally deduct only 50% of the standard meal allowance. H&r block amended return If you are reimbursed under an accountable plan and you are deducting amounts that are more than your reimbursements, you can deduct only 50% of the excess amount. H&r block amended return The 50% limit is explained later under Entertainment Expenses . H&r block amended return Accountable and nonaccountable plans are discussed later under Reimbursements . H&r block amended return There is no optional standard lodging amount similar to the standard meal allowance. H&r block amended return Your allowable lodging expense deduction is your actual cost. H&r block amended return Who can use the standard meal allowance. H&r block amended return   You can use the standard meal allowance whether you are an employee or self-employed, and whether or not you are reimbursed for your traveling expenses. H&r block amended return   Use of the standard meal allowance for other travel. H&r block amended return    You can use the standard meal allowance to figure your meal expenses when you travel in connection with investment and other income-producing property. H&r block amended return You can also use it to figure your meal expenses when you travel for qualifying educational purposes. H&r block amended return You cannot use the standard meal allowance to figure the cost of your meals when you travel for medical or charitable purposes. H&r block amended return Amount of standard meal allowance. H&r block amended return   The standard meal allowance is the federal M&IE rate. H&r block amended return For travel in 2013, the daily rate for most small localities in the United States is $46. H&r block amended return   Most major cities and many other localities in the United States are designated as high-cost areas, qualifying for higher standard meal allowances. H&r block amended return You can find this information (organized by state) on the Internet at www. H&r block amended return gsa. H&r block amended return gov. H&r block amended return Click on “Per Diem Rates,” then select “2013” for the period January 1, 2013 – September 30, 2013, and select “2014” for the period October 1, 2013 – December 31, 2013. H&r block amended return However, you can apply the rates in effect before October 1, 2013, for expenses of all travel within the United States for 2013 instead of the updated rates. H&r block amended return You must consistently use either the rates for the first 9 months for all of 2013 or the updated rates for the period of October 1, 2013, through December 31, 2013. H&r block amended return   If you travel to more than one location in one day, use the rate in effect for the area where you stop for sleep or rest. H&r block amended return If you work in the transportation industry, however, see Special rate for transportation workers , later. H&r block amended return Standard meal allowance for areas outside the continental United States. H&r block amended return    The standard meal allowance rates above do not apply to travel in Alaska, Hawaii, or any other location outside the continental United States. H&r block amended return The Department of Defense establishes per diem rates for Alaska, Hawaii, Puerto Rico, American Samoa, Guam, Midway, the Northern Mariana Islands, the U. H&r block amended return S. H&r block amended return Virgin Islands, Wake Island, and other non-foreign areas outside the continental United States. H&r block amended return The Department of State establishes per diem rates for all other foreign areas. H&r block amended return    You can access per diem rates for non-foreign areas outside the continental United States at: www. H&r block amended return defensetravel. H&r block amended return dod. H&r block amended return mil/site/perdiemCalc. H&r block amended return cfm. H&r block amended return You can access all other foreign per diem rates at www. H&r block amended return state. H&r block amended return gov/travel/. H&r block amended return Click on “Travel Per Diem Allowances for Foreign Areas” under “Foreign Per Diem Rates,” to obtain the latest foreign per diem rates. H&r block amended return Special rate for transportation workers. H&r block amended return   You can use a special standard meal allowance if you work in the transportation industry. H&r block amended return You are in the transportation industry if your work: Directly involves moving people or goods by airplane, barge, bus, ship, train, or truck, and Regularly requires you to travel away from home and, during any single trip, usually involves travel to areas eligible for different standard meal allowance rates. H&r block amended return If this applies to you, you can claim a standard daily meal allowance of $59 ($65 for travel outside the continental United States). H&r block amended return   Using the special rate for transportation workers eliminates the need for you to determine the standard meal allowance for every area where you stop for sleep or rest. H&r block amended return If you choose to use the special rate for any trip, you must use the special rate (and not use the regular standard meal allowance rates) for all trips you take that year. H&r block amended return Travel for days you depart and return. H&r block amended return   For both the day you depart for and the day you return from a business trip, you must prorate the standard meal allowance (figure a reduced amount for each day). H&r block amended return You can do so by one of two methods. H&r block amended return Method 1: You can claim 3/4 of the standard meal allowance. H&r block amended return Method 2: You can prorate using any method that you consistently apply and that is in accordance with reasonable business practice. H&r block amended return Example. H&r block amended return Jen is employed in New Orleans as a convention planner. H&r block amended return In March, her employer sent her on a 3-day trip to Washington, DC, to attend a planning seminar. H&r block amended return She left her home in New Orleans at 10 a. H&r block amended return m. H&r block amended return on Wednesday and arrived in Washington, DC, at 5:30 p. H&r block amended return m. H&r block amended return After spending two nights there, she flew back to New Orleans on Friday and arrived back home at 8:00 p. H&r block amended return m. H&r block amended return Jen's employer gave her a flat amount to cover her expenses and included it with her wages. H&r block amended return Under Method 1, Jen can claim 2½ days of the standard meal allowance for Washington, DC: 3/4 of the daily rate for Wednesday and Friday (the days she departed and returned), and the full daily rate for Thursday. H&r block amended return Under Method 2, Jen could also use any method that she applies consistently and that is in accordance with reasonable business practice. H&r block amended return For example, she could claim 3 days of the standard meal allowance even though a federal employee would have to use Method 1 and be limited to only 2½ days. H&r block amended return Travel in the United States The following discussion applies to travel in the United States. H&r block amended return For this purpose, the United States includes only the 50 states and the District of Columbia. H&r block amended return The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. H&r block amended return See Part of Trip Outside the United States , later. H&r block amended return Trip Primarily for Business You can deduct all your travel expenses if your trip was entirely business related. H&r block amended return If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct your business-related travel expenses. H&r block amended return These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination. H&r block amended return Example. H&r block amended return You work in Atlanta and take a business trip to New Orleans in May. H&r block amended return On your way home, you stop in Mobile to visit your parents. H&r block amended return You spend $1,996 for the 9 days you are away from home for travel, meals, lodging, and other travel expenses. H&r block amended return If you had not stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,696. H&r block amended return You can deduct $1,696 for your trip, including the cost of round-trip transportation to and from New Orleans. H&r block amended return The deduction for your meals is subject to the 50% limit on meals mentioned earlier. H&r block amended return Trip Primarily for Personal Reasons If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. H&r block amended return However, you can deduct any expenses you have while at your destination that are directly related to your business. H&r block amended return A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. H&r block amended return The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, will not change what is really a vacation into a business trip. H&r block amended return Part of Trip Outside the United States If part of your trip is outside the United States, use the rules described later under Travel Outside the United States for that part of the trip. H&r block amended return For the part of your trip that is inside the United States, use the rules for travel in the United States. H&r block amended return Travel outside the United States does not include travel from one point in the United States to another point in the United States. H&r block amended return The following discussion can help you determine whether your trip was entirely within the United States. H&r block amended return Public transportation. H&r block amended return   If you travel by public transportation, any place in the United States where that vehicle makes a scheduled stop is a point in the United States. H&r block amended return Once the vehicle leaves the last scheduled stop in the United States on its way to a point outside the United States, you apply the rules under Travel Outside the United States . H&r block amended return Example. H&r block amended return You fly from New York to Puerto Rico with a scheduled stop in Miami. H&r block amended return You return to New York nonstop. H&r block amended return The flight from New York to Miami is in the United States, so only the flight from Miami to Puerto Rico is outside the United States. H&r block amended return Because there are no scheduled stops between Puerto Rico and New York, all of the return trip is outside the United States. H&r block amended return Private car. H&r block amended return   Travel by private car in the United States is travel between points in the United States, even when you are on your way to a destination outside the United States. H&r block amended return Example. H&r block amended return You travel by car from Denver to Mexico City and return. H&r block amended return Your travel from Denver to the border and from the border back to Denver is travel in the United States, and the rules in this section apply. H&r block amended return The rules under Travel Outside the United States apply to your trip from the border to Mexico City and back to the border. H&r block amended return Travel Outside the United States If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. H&r block amended return For this purpose, the United States includes only the 50 states and the District of Columbia. H&r block amended return How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related. H&r block amended return See chapter 1 of Publication 463 for information on luxury water travel. H&r block amended return Travel Entirely for Business or Considered Entirely for Business You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business. H&r block amended return Travel entirely for business. H&r block amended return   If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses. H&r block amended return Travel considered entirely for business. H&r block amended return   Even if you did not spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions. H&r block amended return Exception 1 - No substantial control. H&r block amended return   Your trip is considered entirely for business if you did not have substantial control over arranging the trip. H&r block amended return The fact that you control the timing of your trip does not, by itself, mean that you have substantial control over arranging your trip. H&r block amended return   You do not have substantial control over your trip if you: Are an employee who was reimbursed or paid a travel expense allowance, Are not related to your employer, and Are not a managing executive. H&r block amended return    “Related to your employer” is defined later in this chapter under Per Diem and Car Allowances . H&r block amended return   A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel. H&r block amended return    A self-employed person generally has substantial control over arranging business trips. H&r block amended return Exception 2 - Outside United States no more than a week. H&r block amended return   Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. H&r block amended return One week means 7 consecutive days. H&r block amended return In counting the days, do not count the day you leave the United States, but do count the day you return to the United States. H&r block amended return Exception 3 - Less than 25% of time on personal activities. H&r block amended return   Your trip is considered entirely for business if: You were outside the United States for more than a week, and You spent less than 25% of the total time you were outside the United States on nonbusiness activities. H&r block amended return For this purpose, count both the day your trip began and the day it ended. H&r block amended return Exception 4 - Vacation not a major consideration. H&r block amended return   Your trip is considered entirely for business if you can establish that a personal vacation was not a major consideration, even if you have substantial control over arranging the trip. H&r block amended return Travel Primarily for Business If you travel outside the United States primarily for business but spend some of your time on nonbusiness activities, you generally cannot deduct all of your travel expenses. H&r block amended return You can only deduct the business portion of your cost of getting to and from your destination. H&r block amended return You must allocate the costs between your business and nonbusiness activities to determine your deductible amount. H&r block amended return These travel allocation rules are discussed in chapter 1 of Publication 463. H&r block amended return You do not have to allocate your travel expense deduction if you meet one of the four exceptions listed earlier under Travel considered entirely for business. H&r block amended return In those cases, you can deduct the total cost of getting to and from your destination. H&r block amended return Travel Primarily for Personal Reasons If you travel outside the United States primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. H&r block amended return If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business. H&r block amended return Conventions You can deduct your travel expenses when you attend a convention if you can show that your attendance benefits your trade or business. H&r block amended return You cannot deduct the travel expenses for your family. H&r block amended return If the convention is for investment, political, social, or other purposes unrelated to your trade or business, you cannot deduct the expenses. H&r block amended return Your appointment or election as a delegate does not, in itself, determine whether you can deduct travel expenses. H&r block amended return You can deduct your travel expenses only if your attendance is connected to your own trade or business. H&r block amended return Convention agenda. H&r block amended return   The convention agenda or program generally shows the purpose of the convention. H&r block amended return You can show your attendance at the convention benefits your trade or business by comparing the agenda with the official duties and responsibilities of your position. H&r block amended return The agenda does not have to deal specifically with your official duties and responsibilities; it will be enough if the agenda is so related to your position that it shows your attendance was for business purposes. H&r block amended return Conventions held outside the North American area. H&r block amended return    See chapter 1 of Publication 463 for information on conventions held outside the North American area. H&r block amended return Entertainment Expenses You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. H&r block amended return You can deduct entertainment expenses only if they are both ordinary and necessary (defined earlier in the Introduction ) and meet one of the following tests. H&r block amended return Directly-related test. H&r block amended return Associated test. H&r block amended return Both of these tests are explained in chapter 2 of Publication 463. H&r block amended return The amount you can deduct for entertainment expenses may be limited. H&r block amended return Generally, you can deduct only 50% of your unreimbursed entertainment expenses. H&r block amended return This limit is discussed next. H&r block amended return 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. H&r block amended return (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. H&r block amended return See Individuals subject to “hours of service” limits , later. H&r block amended return ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. H&r block amended return Figure 26-A summarizes the general rules explained in this section. H&r block amended return The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. H&r block amended return Included expenses. H&r block amended return   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. H&r block amended return However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. H&r block amended return Application of 50% limit. H&r block amended return   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later in this section. H&r block amended return   The 50% limit also applies to certain meal and entertainment expenses that are not business related. H&r block amended return It applies to meal and entertainment expenses incurred for the production of income, including rental or royalty income. H&r block amended return It also applies to the cost of meals included in deductible educational expenses. H&r block amended return When to apply the 50% limit. H&r block amended return   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. H&r block amended return You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this chapter. H&r block amended return Example 1. H&r block amended return You spend $200 for a business-related meal. H&r block amended return If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. H&r block amended return Your deduction cannot be more than $45 (. H&r block amended return 50 × $90). H&r block amended return Example 2. H&r block amended return You purchase two tickets to a concert and give them to a client. H&r block amended return You purchased the tickets through a ticket agent. H&r block amended return You paid $200 for the two tickets, which had a face value of $80 each ($160 total). H&r block amended return Your deduction cannot be more than $80 (. H&r block amended return 50 × $160). H&r block amended return Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. H&r block amended return Figure 26-A can help you determine if the 50% limit applies to you. H&r block amended return Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. H&r block amended return Employee's reimbursed expenses. H&r block amended return   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. H&r block amended return Accountable plans are discussed later under Reimbursements . H&r block amended return Individuals subject to “hours of service” limits. H&r block amended return   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. H&r block amended return The percentage is 80%. H&r block amended return   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. H&r block amended return Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. H&r block amended return Interstate truck operators and bus drivers who are under Department of Transportation regulations. H&r block amended return Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. H&r block amended return Certain merchant mariners who are under Coast Guard regulations. H&r block amended return Other exceptions. H&r block amended return   There are also exceptions for the self-employed, advertising expenses, selling meals or entertainment, and charitable sports events. H&r block amended return These are discussed in Publication 463. H&r block amended return Figure 26-A. H&r block amended return Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. H&r block amended return See Exceptions to the 50% Limit . H&r block amended return Please click here for the text description of the image. H&r block amended return Entertainment expenses: 50% limit What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. H&r block amended return Entertainment. H&r block amended return    Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. H&r block amended return Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; or on hunting, fishing, vacation, and similar trips. H&r block amended return A meal as a form of entertainment. H&r block amended return   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. H&r block amended return A meal expense includes the cost of food, beverages, taxes, and tips for the meal. H&r block amended return To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. H&r block amended return You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. H&r block amended return Separating costs. H&r block amended return   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. H&r block amended return You must have a reasonable basis for making this allocation. H&r block amended return For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. H&r block amended return Taking turns paying for meals or entertainment. H&r block amended return   If a group of business acquaintances take turns picking up each others' meal or entertainment checks without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. H&r block amended return Lavish or extravagant expenses. H&r block amended return   You cannot deduct expenses for entertainment that are lavish or extravagant. H&r block amended return An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. H&r block amended return Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. H&r block amended return Trade association meetings. H&r block amended return    You can deduct entertainment expenses that are directly related to, and necessary for, attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. H&r block amended return These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. H&r block amended return Entertainment tickets. H&r block amended return   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. H&r block amended return For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. H&r block amended return What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. H&r block amended return Club dues and membership fees. H&r block amended return   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. H&r block amended return This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities. H&r block amended return   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. H&r block amended return You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. H&r block amended return Entertainment facilities. H&r block amended return   Generally, you cannot deduct any expense for the use of an entertainment facility. H&r block amended return This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. H&r block amended return   An entertainment facility is any property you own, rent, or use for entertainment. H&r block amended return Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. H&r block amended return Out-of-pocket expenses. H&r block amended return   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. H&r block amended return These are not expenses for the use of an entertainment facility. H&r block amended return However, these expenses are subject to the directly-related and associated tests and to the 50% Limit discussed earlier. H&r block amended return Additional information. H&r block amended return   For more information on entertainment expenses, including discussions of the directly-related and associated tests, see chapter 2 of Publication 463. H&r block amended return Gift Expenses If you give gifts in the course of your trade or business, you can deduct all or part of the cost. H&r block amended return This section explains the limits and rules for deducting the costs of gifts. H&r block amended return $25 limit. H&r block amended return   You can deduct no more than $25 for business gifts you give directly or indirectly to each person during your tax year. H&r block amended return A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. H&r block amended return   If you give a gift to a member of a customer's family, the gift is generally considered to be an indirect gift to the customer. H&r block amended return This rule does not apply if you have a bona fide, independent business connection with that family member and the gift is not intended for the customer's eventual use or benefit. H&r block amended return   If you and your spouse both give gifts, both of you are treated as one taxpayer. H&r block amended return It does not matter whether you have separate businesses, are separately employed, or whether each of you has an independent connection with the recipient. H&r block amended return If a partnership gives gifts, the partnership and the partners are treated as one taxpayer. H&r block amended return Incidental costs. H&r block amended return   Incidental costs, such as engraving on jewelry, or packaging, insuring, and mailing, are generally not included in determining the cost of a gift for purposes of the $25 limit. H&r block amended return   A cost is incidental only if it does not add substantial value to the gift. H&r block amended return For example, the cost of customary gift wrapping is an incidental cost. H&r block amended return However, the purchase of an ornamental basket for packaging fruit is not an incidental cost if the value of the basket is substantial compared to the value of the fruit. H&r block amended return Exceptions. H&r block amended return   The following items are not considered gifts for purposes of the $25 limit. H&r block amended return An item that costs $4 or less and: Has your name clearly and permanently imprinted on the gift, and Is one of a number of identical items you widely distribute. H&r block amended return Examples include pens, desk sets, and plastic bags and cases. H&r block amended return Signs, display racks, or other promotional material to be used on the business premises of the recipient. H&r block amended return Gift or entertainment. H&r block amended return   Any item that might be considered either a gift or entertainment generally will be considered entertainment. H&r block amended return However, if you give a customer packaged food or beverages you intend the customer to use at a later date, treat it as a gift. H&r block amended return    If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. H&r block amended return You can treat the cost of the tickets as either a gift expense or an entertainment expense, whichever is to your advantage. H&r block amended return    If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. H&r block amended return You cannot choose, in this case, to treat the cost of the tickets as a gift expense. H&r block amended return Transportation Expenses This section discusses expenses you can deduct for business transportation when you are not traveling away from home as defined earlier under Travel Expenses . H&r block amended return These expenses include the cost of transportation by air, rail, bus, taxi, etc. H&r block amended return , and the cost of driving and maintaining your car. H&r block amended return Transportation expenses include the ordinary and necessary costs of all of the following. H&r block amended return Getting from one workplace to another in the course of your business or profession when you are traveling within the area of your tax home. H&r block amended return (Tax home is defined earlier under Travel Expenses . H&r block amended return ) Visiting clients or customers. H&r block amended return Going to a business meeting away from your regular workplace. H&r block amended return Getting from your home to a temporary workplace when you have one or more regular places of work. H&r block amended return These temporary workplaces can be either within the area of your tax home or outside that area. H&r block amended return Transportation expenses do not include expenses you have while traveling away from home overnight. H&r block amended return Those expenses are travel expenses, discussed earlier. H&r block amended return However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. H&r block amended return See Car Expenses , later. H&r block amended return Illustration of transportation expenses. H&r block amended return    Figure 26-B illustrates the rules for when you can deduct transportation expenses when you have a regular or main job away from your home. H&r block amended return You may want to refer to it when deciding whether you can deduct your transportation expenses. H&r block amended return Daily transportation expenses you incur while traveling from home to one or more regular places of business are generally nondeductible commuting expenses. H&r block amended return However, there are many exceptions for deducting transportation expenses, like whether your work location is temporary (inside or outside the metropolitan area), traveling for same trade or business, or if you have a home office. H&r block amended return Temporary work location. H&r block amended return   If you have one or more regular work locations away from your home and you commute to a temporary work location in the same trade or business, you can deduct the expenses of the daily round-trip transportation between your home and the temporary location, regardless of distance. H&r block amended return   If your employment at a work location is realistically expected to last (and does in fact last) for 1 year or less, the employment is temporary unless there are facts and circumstances that would indicate otherwise. H&r block amended return   If your employment at a work location is realistically expected to last for more than 1 year or if there is no realistic expectation that the employment will last for 1 year or less, the employment is not temporary, regardless of whether it actually lasts for more than 1 year. H&r block amended return   If employment at a work location initially is realistically expected to last for 1 year or less, but at some later date the employment is realistically expected to last more than 1 year, that employment will be treated as temporary (unless there are facts and circumstances that would indicate otherwise) until your expectation changes. H&r block amended return It will not be treated as temporary after the date you determine it will last more than 1 year. H&r block amended return   If the temporary work location is beyond the general area of your regular place of work and you stay overnight, you are traveling away from home. H&r block amended return You may have deductible travel expenses as discussed earlier in this chapter. H&r block amended return No regular place of work. H&r block amended return   If you have no regular place of work but ordinarily work in the metropolitan area where you live, you can deduct daily transportation costs between home and a temporary work site outside that metropolitan area. H&r block amended return   Generally, a metropolitan area includes the area within the city limits and the suburbs that are considered part of that metropolitan area. H&r block amended return   You cannot deduct daily transportation costs between your home and temporary work sites within your metropolitan area. H&r block amended return These are nondeductible commuting expenses. H&r block amended return Two places of work. H&r block amended return   If you work at two places in one day, whether or not for the same employer, you can deduct the expense of getting from one workplace to the other. H&r block amended return However, if for some personal reason you do not go directly from one location to the other, you cannot deduct more than the amount it would have cost you to go directly from the first location to the second. H&r block amended return   Transportation expenses you have in going between home and a part-time job on a day off from your main job are commuting expenses. H&r block amended return You cannot deduct them. H&r block amended return Armed Forces reservists. H&r block amended return   A meeting of an Armed Forces reserve unit is a second place of business if the meeting is held on a day on which you work at your regular job. H&r block amended return You can deduct the expense of getting from one workplace to the other as just discussed under Two places of work , earlier. H&r block amended return   You usually cannot deduct the expense if the reserve meeting is held on a day on which you do not work at your regular job. H&r block amended return In this case, your transportation generally is a nondeductible commuting expense. H&r block amended return However, you can deduct your transportation expenses if the location of the meeting is temporary and you have one or more regular places of work. H&r block amended return   If you ordinarily work in a particular metropolitan area but not at any specific location and the reserve meeting is held at a temporary location outside that metropolitan area, you can deduct your transportation expenses. H&r block amended return   If you travel away from home overnight to attend a guard or reserve meeting, you can deduct your travel expenses. H&r block amended return These expenses are discussed earlier under Travel Expenses . H&r block amended return   If you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you may be able to deduct some of your reserve-related travel costs as an adjustment to income rather than as an itemized deduction. H&r block amended return See Armed Forces reservists traveling more than 100 miles from home under Special Rules, later. H&r block amended return Commuting expenses. H&r block amended return   You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. H&r block amended return These costs are personal commuting expenses. H&r block amended return You cannot deduct commuting expenses no matter how far your home is from your regular place of work. H&r block amended return You cannot deduct commuting expenses even if you work during the commuting trip. H&r block amended return Example. H&r block amended return You sometimes use your cell phone to make business calls while commuting to and from work. H&r block amended return Sometimes business associates ride with you to and from work, and you have a business discussion in the car. H&r block amended return These activities do not change the trip from personal to business. H&r block amended return You cannot deduct your commuting expenses. H&r block amended return Parking fees. H&r block amended return   Fees you pay to park your car at your place of business are nondeductible commuting expenses. H&r block amended return You can, however, deduct business-related parking fees when visiting a customer or client. H&r block amended return Advertising display on car. H&r block amended return   Putting display material that advertises your business on your car does not change the use of your car from personal use to business use. H&r block amended return If you use this car for commuting or other personal uses, you still cannot deduct your expenses for those uses. H&r block amended return Car pools. H&r block amended return   You cannot deduct the cost of using your car in a nonprofit car pool. H&r block amended return Do not include payments you receive from the passengers in your income. H&r block amended return These payments are considered reimbursements of your expenses. H&r block amended return However, if you operate a car pool for a profit, you must include payments from passengers in your income. H&r block amended return You can then deduct your car expenses (using the rules in this chapter). H&r block amended return Hauling tools or instruments. H&r block amended return   Hauling tools or instruments in your car while commuting to and from work does not make your car expenses deductible. H&r block amended return However, you can deduct any additional costs you have for hauling tools or instruments (such as for renting a trailer you tow with your car). H&r block amended return Union members' trips from a union hall. H&r block amended return   If you get your work assignments at a union hall and then go to your place of work, the costs of getting from the union hall to your place of work are nondeductible commuting expenses. H&r block amended return Although you need the union to get your work assignments, you are employed where you work, not where the union hall is located. H&r block amended return Office in the home. H&r block amended return   If you have an office in your home that qualifies as a principal place of business, you can deduct your daily transportation costs between your home and another work location in the same trade or business. H&r block amended return (See chapter 28 for information on determining if your home office qualifies as a principal place of business. H&r block amended return ) Figure 26-B. H&r block amended return When Are Transportation Expenses Deductible? Most employees and self-employed persons can use this chart. H&r block amended return (Do not use this chart if your home is your principal place of business. H&r block amended return See Office in the home . H&r block amended return ) Please click here for the text description of the image. H&r block amended return Figure 26-B. H&r block amended return Local Transportation Examples of deductible transportation. H&r block amended return   The following examples show when you can deduct transportation expenses based on the location of your work and your home. H&r block amended return Example 1. H&r block amended return You regularly work in an office in the city where you live. H&r block amended return Your employer sends you to a 1-week training session at a different office in the same city. H&r block amended return You travel directly from your home to the training location and return each day. H&r block amended return You can deduct the cost of your daily round-trip transportation between your home and the training location. H&r block amended return Example 2. H&r block amended return Your principal place of business is in your home. H&r block amended return You can deduct the cost of round-trip transportation between your qualifying home office and your client's or customer's place of business. H&r block amended return Example 3. H&r block amended return You have no regular office, and you do not have an office in your home. H&r block amended return In this case, the location of your first business contact inside the metropolitan area is considered your office. H&r block amended return Transportation expenses between your home and this first contact are nondeductible commuting expenses. H&r block amended return Transportation expenses between your last business contact and your home are also nondeductible commuting expenses. H&r block amended return While you cannot deduct the costs of these first and last trips, you can deduct the costs of going from one client or customer to another. H&r block amended return With no regular or home office, the costs of travel between two or more business contacts in a metropolitan area are deductible while the costs of travel between the home to (and from) business contacts are not deductible. H&r block amended return Car Expenses If you use your car for business purposes, you may be able to deduct car expenses. H&r block amended return You generally can use one of the two following methods to figure your deductible expenses. H&r block amended return Standard mileage rate. H&r block amended return Actual car expenses. H&r block amended return If you use actual car expenses to figure your deduction for a car you lease, there are rules that affect the amount of your lease payments you can deduct. H&r block amended return See Leasing a car under Actual Car Expenses, later. H&r block amended return In this chapter, “car” includes a van, pickup, or panel truck. H&r block amended return Rural mail carriers. H&r block amended return   If you are a rural mail carrier, you may be able to treat the amount of qualified reimbursement you received as the amount of your allowable expense. H&r block amended return Because the qualified reimbursement is treated as paid under an accountable plan, your employer should not include the amount of reimbursement in your income. H&r block amended return   If your vehicle expenses are more than the amount of your reimbursement, you can deduct the unreimbursed expenses as an itemized deduction on Schedule A (Form 1040). H&r block amended return You must complete Form 2106 and attach it to your Form 1040. H&r block amended return   A “qualified reimbursement” is the reimbursement you receive that meets both of the following conditions. H&r block amended return It is given as an equipment maintenance allowance (EMA) to employees of the U. H&r block amended return S. H&r block amended return Postal Service. H&r block amended return It is at the rate contained in the 1991 collective bargaining agreement. H&r block amended return Any later agreement cannot increase the qualified reimbursement amount by more than the rate of inflation. H&r block amended return See your employer for information on your reimbursement. H&r block amended return If you are a rural mail carrier and received a qualified reimbursement, you cannot use the standard mileage rate. H&r block amended return Standard Mileage Rate You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. H&r block amended return For 2013, the standard mileage rate for business use is 56½ cents per mile. H&r block amended return If you use the standard mileage rate for a year, you cannot deduct your actual car expenses for that year, but see Parking fees and tolls, later. H&r block amended return You generally can use the standard mileage rate whether or not you are reimbursed and whether or not any reimbursement is more or less than the amount figured using the standard mileage rate. H&r block amended return See Reimbursements under How To Report, later. H&r block amended return Choosing the standard mileage rate. H&r block amended return   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. H&r block amended return Then in later years, you can choose to use either the standard mileage rate or actual expenses. H&r block amended return   If you want to use the standard mileage rate for a car you lease, you must use it for the entire lease period. H&r block amended return   You must make the choice to use the standard mileage rate by the due date (including extensions) of your return. H&r block amended return You cannot revoke the choice. H&r block amended return However, in a later year, you can switch from the standard mileage rate to the actual expenses method. H&r block amended return If you change to the actual expenses method in a later year, but before your car is fully depreciated, you have to estimate the remaining useful life of the car and use straight line depreciation. H&r block amended return Example. H&r block amended return Larry is an employee who occasionally uses his own car for business purposes. H&r block amended return He purchased the car in 2011, but he did not claim any unreimburse