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How To Amend 2010 Tax Return

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How To Amend 2010 Tax Return

How to amend 2010 tax return 1. How to amend 2010 tax return   Filing Information Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Filing RequirementsWhen To File and Pay Foreign Currency Does My Return Have To Be On Paper? Where To File Nonresident Alien Spouse Treated as a ResidentSocial Security Number (SSN) How To Make the Choice Suspending the Choice Ending the Choice Estimated Tax Other Forms You May Have To File Topics - This chapter discusses: Whether you have to file a return, When to file your return and pay any tax due, How to treat foreign currency, How to file electronically, Where to file your return, When you can treat your nonresident alien spouse as a resident, and When you may have to make estimated tax payments. How to amend 2010 tax return Useful Items - You may want to see: Publication 3 Armed Forces' Tax Guide 501 Exemptions, Standard Deduction, and Filing Information 505 Tax Withholding and Estimated Tax 519 U. How to amend 2010 tax return S. How to amend 2010 tax return Tax Guide for Aliens 970 Tax Benefits for Education Form (and Instructions) 1040-ES Estimated Tax for Individuals 1040X Amended U. How to amend 2010 tax return S. How to amend 2010 tax return Individual Income Tax Return 2350 Application for Extension of Time To File U. How to amend 2010 tax return S. How to amend 2010 tax return Income Tax Return 2555 Foreign Earned Income 2555-EZ Foreign Earned Income Exclusion 4868 Application for Automatic Extension of Time To File U. How to amend 2010 tax return S. How to amend 2010 tax return Individual Income Tax Return 8822 Change of Address See chapter 7 for information about getting these publications and forms. How to amend 2010 tax return Filing Requirements If you are a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. How to amend 2010 tax return Your income, filing status, and age generally determine whether you must file an income tax return. How to amend 2010 tax return Generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount shown for your filing status in the following table. How to amend 2010 tax return Filing Status*   Amount Single $10,000 65 or older $11,500 Head of household $12,850 65 or older $14,350 Qualifying widow(er) $16,100 65 or older $17,300 Married filing jointly $20,000 Not living with spouse at end of year $3,900 One spouse 65 or older $21,200 Both spouses 65 or older $22,400 Married filing separately $3,900 *If you are the dependent of another taxpayer, see the instructions for Form 1040 for more information on whether you must file a return. How to amend 2010 tax return Gross income. How to amend 2010 tax return   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. How to amend 2010 tax return   For purposes of determining whether you must file a return, gross income includes any income that you can exclude as foreign earned income or as a foreign housing amount. How to amend 2010 tax return If you are self-employed, your gross income includes the amount on Part I, line 7 of Schedule C (Form 1040), Profit or Loss From Business, or line 1 of Schedule C-EZ (Form 1040), Net Profit From Business. How to amend 2010 tax return Self-employed individuals. How to amend 2010 tax return   If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is below the amount listed for your filing status in the table shown earlier. How to amend 2010 tax return Net earnings from self-employment are defined in Publication 334, Tax Guide for Small Business. How to amend 2010 tax return 65 or older. How to amend 2010 tax return   You are considered to be age 65 on the day before your 65th birthday. How to amend 2010 tax return For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. How to amend 2010 tax return Residents of U. How to amend 2010 tax return S. How to amend 2010 tax return possessions. How to amend 2010 tax return   If you are (or were) a bona fide resident of a U. How to amend 2010 tax return S. How to amend 2010 tax return possession, you may be required to file Form 8898, Statement for Individuals Who Begin or End Bona Fide Residence in a U. How to amend 2010 tax return S. How to amend 2010 tax return Possession. How to amend 2010 tax return See the instructions for the form for more information. How to amend 2010 tax return When To File and Pay If you file on a calendar year basis, the due date for filing your return is April 15 of the following year. How to amend 2010 tax return If you file on a fiscal year basis (a year ending on the last day of any month except December), the due date is 3 months and 15 days after the close of your fiscal year. How to amend 2010 tax return In general, the tax shown on your return should be paid by the due date of the return, without regard to any extension of time for filing the return. How to amend 2010 tax return When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. How to amend 2010 tax return — falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. How to amend 2010 tax return A tax return delivered by the U. How to amend 2010 tax return S. How to amend 2010 tax return mail or a designated delivery service that is postmarked or dated by the delivery service on or before the due date is considered to have been filed on or before that date. How to amend 2010 tax return See your Form 1040 or Form 1040A instructions for a list of designated delivery services. How to amend 2010 tax return Foreign wire transfers. How to amend 2010 tax return   If you have a U. How to amend 2010 tax return S. How to amend 2010 tax return bank account, you can use: EFTPS (Electronic Federal Tax Payment System), or Federal Tax Application (same-day wire transfer). How to amend 2010 tax return If you do not have a U. How to amend 2010 tax return S. How to amend 2010 tax return bank account, ask if your financial institution has a U. How to amend 2010 tax return S. How to amend 2010 tax return affiliate that can help you make same-day wire transfers. How to amend 2010 tax return   For more information, visit www. How to amend 2010 tax return eftps. How to amend 2010 tax return gov. How to amend 2010 tax return Extensions You can get an extension of time to file your return. How to amend 2010 tax return In some circumstances, you also can get an extension of time to file and pay any tax due. How to amend 2010 tax return However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. How to amend 2010 tax return This publication discusses four extensions: an automatic 2-month extension, an automatic 6-month extension, an additional extension for taxpayers out of the country, and an extension of time to meet tests. How to amend 2010 tax return If you served in a combat zone or qualified hazardous duty area, see Publication 3 for a discussion of extensions of deadlines. How to amend 2010 tax return Automatic 2-month extension. How to amend 2010 tax return   You are allowed an automatic 2-month extension to file your return and pay federal income tax if you are a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien, and on the regular due date of your return: You are living outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and Puerto Rico. How to amend 2010 tax return   If you use a calendar year, the regular due date of your return is April 15. How to amend 2010 tax return Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. How to amend 2010 tax return Married taxpayers. How to amend 2010 tax return   If you file a joint return, either you or your spouse can qualify for the automatic extension. How to amend 2010 tax return If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies for it. How to amend 2010 tax return How to get the extension. How to amend 2010 tax return   To use this automatic 2-month extension, you must attach a statement to your return explaining which of the two situations listed earlier qualified you for the extension. How to amend 2010 tax return Automatic 6-month extension. How to amend 2010 tax return   If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). How to amend 2010 tax return To get this automatic extension, you must file a paper Form 4868 or use IRS e-file (electronic filing). How to amend 2010 tax return For more information about filing electronically, see E-file options , later. How to amend 2010 tax return   The form must show your properly estimated tax liability based on the information available to you. How to amend 2010 tax return    You may not be eligible. How to amend 2010 tax return You cannot use the automatic 6-month extension of time to file if: You want the IRS to figure your tax, or You are under a court order to file by the regular due date. How to amend 2010 tax return E-file options. How to amend 2010 tax return    You can use e-file to get an extension of time to file. How to amend 2010 tax return You can either file Form 4868 electronically or you can pay part or all of your estimate of tax due using a credit or debit card. How to amend 2010 tax return   First, complete Form 4868 to use as a worksheet. How to amend 2010 tax return If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. How to amend 2010 tax return    Then, do one of the following. How to amend 2010 tax return E-file Form 4868. How to amend 2010 tax return You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. How to amend 2010 tax return You will need to provide certain information from your tax return for 2012. How to amend 2010 tax return If you wish to make a payment by electronic funds withdrawal, see the instructions for Form 4868. How to amend 2010 tax return If you e-file Form 4868, do not also send a paper Form 4868. How to amend 2010 tax return E-file and pay by credit or debit card. How to amend 2010 tax return You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card. How to amend 2010 tax return You can do this by phone or over the Internet. How to amend 2010 tax return If you do this, you do not file Form 4868. How to amend 2010 tax return For more information, see the instructions for your tax return. How to amend 2010 tax return When to file. How to amend 2010 tax return   Generally, you must request the 6-month extension by the regular due date of your return. How to amend 2010 tax return Previous 2-month extension. How to amend 2010 tax return   If you cannot file your return within the automatic 2-month extension period, you generally can get an additional 4 months to file your return, for a total of 6 months. How to amend 2010 tax return The 2-month period and the 6-month period start at the same time. How to amend 2010 tax return You have to request the additional 4 months by the new due date allowed by the 2-month extension. How to amend 2010 tax return   The additional 4 months of time to file (unlike the original 2-month extension) is not an extension of time to pay. How to amend 2010 tax return You must make an accurate estimate of your tax based on the information available to you. How to amend 2010 tax return If you find you cannot pay the full amount due with Form 4868, you can still get the extension. How to amend 2010 tax return You will owe interest on the unpaid amount from the original due date of the return. How to amend 2010 tax return   You also may be charged a penalty for paying the tax late unless you have reasonable cause for not paying your tax when due. How to amend 2010 tax return Penalties for paying the tax late are assessed from the original due date of your return, unless you qualify for the automatic 2-month extension. How to amend 2010 tax return In that situation, penalties for paying late are assessed from the extended due date of the payment (June 15 for calendar year taxpayers). How to amend 2010 tax return Additional extension of time for taxpayers out of the country. How to amend 2010 tax return   In addition to the 6-month extension, taxpayers who are out of the country can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). How to amend 2010 tax return   To request this extension, you must send the Internal Revenue Service a letter explaining the reasons why you need the additional 2 months. How to amend 2010 tax return Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You will not receive any notification from the Internal Revenue Service unless your request is denied. How to amend 2010 tax return   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350, discussed next. How to amend 2010 tax return Extension of time to meet tests. How to amend 2010 tax return   You generally cannot get an extension of more than 6 months. How to amend 2010 tax return However, if you are outside the United States and meet certain requirements, you may be able to get a longer extension. How to amend 2010 tax return   You can get an extension of more than 6 months to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. How to amend 2010 tax return The tests, the exclusions, and the deduction are explained in chapter 4. How to amend 2010 tax return   You should request an extension if all three of the following apply. How to amend 2010 tax return You are a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien. How to amend 2010 tax return You expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due. How to amend 2010 tax return Your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies. How to amend 2010 tax return   If you are granted an extension, it generally will be to 30 days beyond the date on which you can reasonably expect to qualify for an exclusion or deduction under either the bona fide residence test or the physical presence test. How to amend 2010 tax return However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension until after the end of the second year. How to amend 2010 tax return How to get an extension. How to amend 2010 tax return   To obtain an extension, file Form 2350 either by giving it to a local IRS representative or other IRS employee or by mailing it to the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0045   You must file Form 2350 by the due date for filing your return. How to amend 2010 tax return Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. How to amend 2010 tax return What if tests are not met. How to amend 2010 tax return   If you obtain an extension and unforeseen events make it impossible for you to meet either the bona fide residence test or the physical presence test, you should file your income tax return as soon as possible because you must pay interest on any tax due after the regular due date of the return (even though an extension was granted). How to amend 2010 tax return    You should make any request for an extension early, so that if it is denied you still can file your return on time. How to amend 2010 tax return Otherwise, if you file late and additional tax is due, you may be subject to a penalty. How to amend 2010 tax return Return filed before test is met. How to amend 2010 tax return   If you file a return before you meet the bona fide residence test or the physical presence test, you must include all income from both U. How to amend 2010 tax return S. How to amend 2010 tax return and foreign sources and pay the tax on that income. How to amend 2010 tax return If you later meet either of the tests, you can claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction on Form 1040X. How to amend 2010 tax return Foreign Currency You must express the amounts you report on your U. How to amend 2010 tax return S. How to amend 2010 tax return tax return in U. How to amend 2010 tax return S. How to amend 2010 tax return dollars. How to amend 2010 tax return If you receive all or part of your income or pay some or all of your expenses in foreign currency, you must translate the foreign currency into U. How to amend 2010 tax return S. How to amend 2010 tax return dollars. How to amend 2010 tax return How you do this depends on your functional currency. How to amend 2010 tax return Your functional currency generally is the U. How to amend 2010 tax return S. How to amend 2010 tax return dollar unless you are required to use the currency of a foreign country. How to amend 2010 tax return You must make all federal income tax determinations in your functional currency. How to amend 2010 tax return The U. How to amend 2010 tax return S. How to amend 2010 tax return dollar is the functional currency for all taxpayers except some qualified business units (QBUs). How to amend 2010 tax return A QBU is a separate and clearly identified unit of a trade or business that maintains separate books and records. How to amend 2010 tax return Even if you have a QBU, your functional currency is the dollar if any of the following apply. How to amend 2010 tax return You conduct the business in U. How to amend 2010 tax return S. How to amend 2010 tax return dollars. How to amend 2010 tax return The principal place of business is located in the United States. How to amend 2010 tax return You choose to or are required to use the U. How to amend 2010 tax return S. How to amend 2010 tax return dollar as your functional currency. How to amend 2010 tax return The business books and records are not kept in the currency of the economic environment in which a significant part of the business activities is conducted. How to amend 2010 tax return Make all income tax determinations in your functional currency. How to amend 2010 tax return If your functional currency is the U. How to amend 2010 tax return S. How to amend 2010 tax return dollar, you must immediately translate into U. How to amend 2010 tax return S. How to amend 2010 tax return dollars all items of income, expense, etc. How to amend 2010 tax return (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. How to amend 2010 tax return Use the exchange rate prevailing when you receive, pay, or accrue the item. How to amend 2010 tax return If there is more than one exchange rate, use the one that most properly reflects your income. How to amend 2010 tax return You can generally get exchange rates from banks and U. How to amend 2010 tax return S. How to amend 2010 tax return Embassies. How to amend 2010 tax return If your functional currency is not the U. How to amend 2010 tax return S. How to amend 2010 tax return dollar, make all income tax determinations in your functional currency. How to amend 2010 tax return At the end of the year, translate the results, such as income or loss, into U. How to amend 2010 tax return S. How to amend 2010 tax return dollars to report on your income tax return. How to amend 2010 tax return Blocked Income You generally must report your foreign income in terms of U. How to amend 2010 tax return S. How to amend 2010 tax return dollars and, with one exception (see Fulbright Grant, later), you must pay taxes due on it in U. How to amend 2010 tax return S. How to amend 2010 tax return dollars. How to amend 2010 tax return If, because of restrictions in a foreign country, your income is not readily convertible into U. How to amend 2010 tax return S. How to amend 2010 tax return dollars or into other money or property that is readily convertible into U. How to amend 2010 tax return S. How to amend 2010 tax return dollars, your income is “blocked” or “deferrable” income. How to amend 2010 tax return You can report this income in one of two ways: Report the income and pay your federal income tax with U. How to amend 2010 tax return S. How to amend 2010 tax return dollars that you have in the United States or in some other country, or Postpone the reporting of the income until it becomes unblocked. How to amend 2010 tax return If you choose to postpone the reporting of the income, you must file an information return with your tax return. How to amend 2010 tax return For this information return, you should use another Form 1040 labeled “Report of Deferrable Foreign Income, pursuant to Rev. How to amend 2010 tax return Rul. How to amend 2010 tax return 74-351. How to amend 2010 tax return ” You must declare on the information return that you will include the deferrable income in your taxable income for the year that it becomes unblocked. How to amend 2010 tax return You also must state that you waive any right to claim that the deferrable income was includible in your income for any earlier year. How to amend 2010 tax return You must report your income on your information return using the foreign currency in which you received that income. How to amend 2010 tax return If you have blocked income from more than one foreign country, include a separate information return for each country. How to amend 2010 tax return Income becomes unblocked and reportable for tax purposes when it becomes convertible, or when it is converted, into U. How to amend 2010 tax return S. How to amend 2010 tax return dollars or into other money or property that is convertible into U. How to amend 2010 tax return S. How to amend 2010 tax return currency. How to amend 2010 tax return Also, if you use blocked income for your personal expenses or dispose of it by gift, bequest, or devise, you must treat it as unblocked and reportable. How to amend 2010 tax return If you have received blocked income on which you have not paid tax, you should check to see whether that income is still blocked. How to amend 2010 tax return If it is not, you should take immediate steps to pay tax on it, file a declaration or amended declaration of estimated tax, and include the income on your tax return for the year in which the income became unblocked. How to amend 2010 tax return If you choose to postpone reporting blocked income and in a later tax year you wish to begin including it in gross income although it is still blocked, you must obtain the permission of the IRS to do so. How to amend 2010 tax return To apply for permission, file Form 3115, Application for Change in Accounting Method. How to amend 2010 tax return You also must request permission from the IRS on Form 3115 if you have not chosen to defer the reporting of blocked income in the past, but now wish to begin reporting blocked income under the deferred method. How to amend 2010 tax return See the instructions for Form 3115 for information on changing your accounting method. How to amend 2010 tax return Fulbright Grant All income must be reported in U. How to amend 2010 tax return S. How to amend 2010 tax return dollars. How to amend 2010 tax return In most cases, the tax also must be paid in U. How to amend 2010 tax return S. How to amend 2010 tax return dollars. How to amend 2010 tax return If, however, at least 70% of your Fulbright grant has been paid in nonconvertible foreign currency (blocked income), you can use the currency of the host country to pay the part of the U. How to amend 2010 tax return S. How to amend 2010 tax return tax that is based on the blocked income. How to amend 2010 tax return Paying U. How to amend 2010 tax return S. How to amend 2010 tax return tax in foreign currency. How to amend 2010 tax return   To qualify for this method of payment, you must prepare a statement that shows the following information. How to amend 2010 tax return You were a Fulbright grantee and were paid in nonconvertible foreign currency. How to amend 2010 tax return The total grant you received during the year and the amount you received in nonconvertible foreign currency. How to amend 2010 tax return At least 70% of the grant was paid in nonconvertible foreign currency. How to amend 2010 tax return The statement must be certified by the U. How to amend 2010 tax return S. How to amend 2010 tax return educational foundation or commission paying the grant or other person having control of grant payments to you. How to amend 2010 tax return   You should prepare at least two copies of this statement. How to amend 2010 tax return Attach one copy to your Form 1040 and keep the other copy for identification purposes when you make a tax deposit of nonconvertible foreign currency. How to amend 2010 tax return Figuring actual tax. How to amend 2010 tax return   When you prepare your income tax return, you may owe tax or the entire liability may have been satisfied with your estimated tax payments. How to amend 2010 tax return If you owe tax, figure the part due to (and payable in) the nonconvertible foreign currency by using the following formula. How to amend 2010 tax return   Adjusted gross income that is blocked income × Total U. How to amend 2010 tax return S. How to amend 2010 tax return tax = Tax on blocked income     Total adjusted  gross income     You must attach all of the following to the return. How to amend 2010 tax return A copy of the certified statement discussed earlier. How to amend 2010 tax return A detailed statement showing the allocation of tax attributable to amounts received in foreign currency and the rates of exchange used in determining your tax liability in U. How to amend 2010 tax return S. How to amend 2010 tax return dollars. How to amend 2010 tax return The original deposit receipt for any balance of tax due that you paid in nonconvertible foreign currency. How to amend 2010 tax return Figuring estimated tax on nonconvertible foreign currency. How to amend 2010 tax return   If you are liable for estimated tax (discussed later), figure the amount you can pay to the IRS in nonconvertible foreign currency using the following formula. How to amend 2010 tax return   Adjusted gross income that is blocked income × Total estimated U. How to amend 2010 tax return S. How to amend 2010 tax return tax = Estimated tax on blocked income     Total adjusted  gross income     If you must pay your host country income tax on your grant, subtract any estimated foreign tax credit that applies to your grant from the estimated tax on the blocked income. How to amend 2010 tax return Deposit of foreign currency with disbursing officer. How to amend 2010 tax return   Once you have determined the amount of the actual tax or estimated tax that you can pay in nonconvertible foreign currency, deposit that amount with the disbursing officer of the Department of State in the foreign country in which the foundation or commission paying the grant is located. How to amend 2010 tax return Estimated tax installments. How to amend 2010 tax return   You can either deposit the full estimated tax amount before the first installment due date or make four equal payments before the installment due dates. How to amend 2010 tax return See Estimated Tax , later. How to amend 2010 tax return Deposit receipt. How to amend 2010 tax return   Upon accepting the foreign currency, the disbursing officer will give you a receipt in duplicate. How to amend 2010 tax return The original of this receipt (showing the amount of foreign currency deposited and its equivalent in U. How to amend 2010 tax return S. How to amend 2010 tax return dollars) should be attached to your Form 1040 or payment voucher from Form 1040-ES. How to amend 2010 tax return Keep the copy for your records. How to amend 2010 tax return Does My Return Have To Be On Paper? IRS e-file (electronic filing) is the fastest, easiest, and most convenient way to file your income tax return electronically. How to amend 2010 tax return IRS e-file offers accurate, safe, and fast alternatives to filing on paper. How to amend 2010 tax return IRS computers quickly and automatically check for errors or other missing information. How to amend 2010 tax return Even returns with a foreign address can be e-filed! How to e-file. How to amend 2010 tax return   There are three ways you can e-file. How to amend 2010 tax return Use your personal computer. How to amend 2010 tax return Use a volunteer. How to amend 2010 tax return Many programs offering free tax help can e-file your return. How to amend 2010 tax return Use a tax professional. How to amend 2010 tax return Most tax professionals can e-file your return. How to amend 2010 tax return These methods are explained in detail in the instructions for your tax return. How to amend 2010 tax return Where To File If any of the following situations apply to you, do not file your return with the service center listed for your home state. How to amend 2010 tax return You claim the foreign earned income exclusion. How to amend 2010 tax return You claim the foreign housing exclusion or deduction. How to amend 2010 tax return You live in a foreign country. How to amend 2010 tax return Instead, use one of the following special addresses. How to amend 2010 tax return If you are not enclosing a check or money order, file your return with the: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 USA If you are enclosing a check or money order, file your return with: Internal Revenue Service Center P. How to amend 2010 tax return O. How to amend 2010 tax return Box 1303 Charlotte, NC 28201-1303 USA If you do not know where your legal residence is and you do not have a principal place of business in the United States, you can file with the appropriate address listed above. How to amend 2010 tax return However, you should not file with the addresses listed above if you are a bona fide resident of the U. How to amend 2010 tax return S. How to amend 2010 tax return Virgin Islands, Guam, or the Commonwealth of the Northern Mariana Islands during your entire tax year. How to amend 2010 tax return Resident of U. How to amend 2010 tax return S. How to amend 2010 tax return Virgin Islands (USVI). How to amend 2010 tax return   If you are a bona fide resident of the USVI during your entire tax year, you generally are not required to file a U. How to amend 2010 tax return S. How to amend 2010 tax return return. How to amend 2010 tax return However, you must file a return with the USVI. How to amend 2010 tax return    Send your return to the:     Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. How to amend 2010 tax return Thomas, Virgin Islands 00802 Non-USVI resident with USVI income. How to amend 2010 tax return   If you are a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien and you have income from sources in the USVI or income effectively connected with the conduct of a trade or business in the USVI, and you are not a bona fide resident of the USVI during your entire tax year, you must file identical tax returns with the United States and the USVI. How to amend 2010 tax return File the original return with the United States and file a signed copy of the U. How to amend 2010 tax return S. How to amend 2010 tax return return (including all attachments, forms, and schedules) with the Virgin Islands Bureau of Internal Revenue. How to amend 2010 tax return   You must complete Form 8689, Allocation of Individual Income Tax to the U. How to amend 2010 tax return S. How to amend 2010 tax return Virgin Islands, and attach a copy to both your U. How to amend 2010 tax return S. How to amend 2010 tax return return and your USVI return. How to amend 2010 tax return You should file your U. How to amend 2010 tax return S. How to amend 2010 tax return return with the address listed under Where To File. How to amend 2010 tax return   See Publication 570, Tax Guide for Individuals With Income From U. How to amend 2010 tax return S. How to amend 2010 tax return Possessions, for information about filing Virgin Islands returns. How to amend 2010 tax return Resident of Guam. How to amend 2010 tax return   If you are a bona fide resident of Guam during your entire tax year, you should file a return with Guam. How to amend 2010 tax return    Send your return to the:     Department of Revenue and Taxation Government of Guam P. How to amend 2010 tax return O. How to amend 2010 tax return Box 23607 GMF, GU 96921   However, if you have income from sources within Guam and you are a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien, but not a bona fide resident of Guam during the entire tax year, you should file a return with the United States. How to amend 2010 tax return Send your return to the address listed under Where To File. How to amend 2010 tax return   See Publication 570 for information about filing Guam returns. How to amend 2010 tax return Resident of the Commonwealth of the Northern Mariana Islands. How to amend 2010 tax return   If you are a bona fide resident of the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you should file a return with the Northern Mariana Islands. How to amend 2010 tax return    Send your return to the:      Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. How to amend 2010 tax return O. How to amend 2010 tax return Box 5234, CHRB Saipan, MP 96950   However, if you have income from sources within the CNMI and you are a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien, but not a bona fide resident of the CNMI during the entire tax year, you should file a return with the United States. How to amend 2010 tax return Send your return to the address listed under Where To File. How to amend 2010 tax return   See Publication 570 for information about filing Northern Mariana Islands returns. How to amend 2010 tax return Nonresident Alien Spouse Treated as a Resident If, at the end of your tax year, you are married and one spouse is a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or a resident alien and the other is a nonresident alien, you can choose to treat the nonresident as a U. How to amend 2010 tax return S. How to amend 2010 tax return resident. How to amend 2010 tax return This includes situations in which one of you is a nonresident alien at the beginning of the tax year and a resident alien at the end of the year and the other is a nonresident alien at the end of the year. How to amend 2010 tax return If you make this choice, the following two rules apply. How to amend 2010 tax return You and your spouse are treated, for income tax purposes, as residents for all tax years that the choice is in effect. How to amend 2010 tax return You must file a joint income tax return for the year you make the choice. How to amend 2010 tax return This means that neither of you can claim under any tax treaty not to be a U. How to amend 2010 tax return S. How to amend 2010 tax return resident for a tax year for which the choice is in effect. How to amend 2010 tax return You can file joint or separate returns in years after the year in which you make the choice. How to amend 2010 tax return Example 1. How to amend 2010 tax return Pat Smith, a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen, is married to Norman, a nonresident alien. How to amend 2010 tax return Pat and Norman make the choice to treat Norman as a resident alien by attaching a statement to their joint return. How to amend 2010 tax return Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended or suspended. How to amend 2010 tax return Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years. How to amend 2010 tax return Example 2. How to amend 2010 tax return When Bob and Sharon Williams got married, both were nonresident aliens. How to amend 2010 tax return In June of last year, Bob became a resident alien and remained a resident for the rest of the year. How to amend 2010 tax return Bob and Sharon both choose to be treated as resident aliens by attaching a statement to their joint return for last year. How to amend 2010 tax return Bob and Sharon must report their worldwide income for last year and all later years unless the choice is ended or suspended. How to amend 2010 tax return Bob and Sharon must file a joint return for last year, but they can file either joint or separate returns for later years. How to amend 2010 tax return If you do not choose to treat your nonresident alien spouse as a U. How to amend 2010 tax return S. How to amend 2010 tax return resident, you may be able to use head of household filing status. How to amend 2010 tax return To use this status, you must pay more than half the cost of maintaining a household for certain dependents or relatives other than your nonresident alien spouse. How to amend 2010 tax return For more information, see Publication 501. How to amend 2010 tax return Social Security Number (SSN) If you choose to treat your nonresident alien spouse as a U. How to amend 2010 tax return S. How to amend 2010 tax return resident, your spouse must have either an SSN or an individual taxpayer identification number (ITIN). How to amend 2010 tax return To get an SSN for a nonresident alien spouse, apply at an office of the U. How to amend 2010 tax return S. How to amend 2010 tax return Social Security Administration (SSA) or U. How to amend 2010 tax return S. How to amend 2010 tax return consulate. How to amend 2010 tax return You must complete Form SS-5, Application for a Social Security Card, available at www. How to amend 2010 tax return socialsecurity. How to amend 2010 tax return gov or by calling 1-800-772-1213. How to amend 2010 tax return You must also provide original or certified copies of documents to verify that spouse's age, identity, and citizenship. How to amend 2010 tax return If the nonresident alien spouse is not eligible to get an SSN, he or she can file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS to apply for an ITIN. How to amend 2010 tax return How To Make the Choice Attach a statement, signed by both spouses, to your joint return for the first tax year for which the choice applies. How to amend 2010 tax return It should contain the following: A declaration that one spouse was a nonresident alien and the other spouse a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien on the last day of your tax year and that you choose to be treated as U. How to amend 2010 tax return S. How to amend 2010 tax return residents for the entire tax year, and The name, address, and social security number (or individual taxpayer identification number) of each spouse. How to amend 2010 tax return (If one spouse died, include the name and address of the person making the choice for the deceased spouse. How to amend 2010 tax return ) You generally make this choice when you file your joint return. How to amend 2010 tax return However, you also can make the choice by filing a joint amended return on Form 1040X. How to amend 2010 tax return Attach Form 1040, 1040A, or 1040EZ and print “Amended” across the top of the amended return. How to amend 2010 tax return If you make the choice with an amended return, you and your spouse also must amend any returns that you may have filed after the year for which you made the choice. How to amend 2010 tax return You generally must file the amended joint return within 3 years from the date you filed your original U. How to amend 2010 tax return S. How to amend 2010 tax return income tax return or 2 years from the date you paid your income tax for that year, whichever is later. How to amend 2010 tax return Table 1–1. How to amend 2010 tax return Ending the Choice To Treat Nonresident Alien Spouse as a Resident Revocation   Either spouse can revoke the choice for any tax year. How to amend 2010 tax return   • The revocation must be made by the due date for filing the tax return for that tax year. How to amend 2010 tax return   • The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. How to amend 2010 tax return The statement revoking the choice must include the following:     • The name, address, and social security number (or taxpayer identification number) of each spouse. How to amend 2010 tax return     • The name and address of any person who is revoking the choice for a deceased spouse. How to amend 2010 tax return     • A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income. How to amend 2010 tax return   • If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed. How to amend 2010 tax return Death   The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. How to amend 2010 tax return   • If the surviving spouse is a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used. How to amend 2010 tax return   • If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died. How to amend 2010 tax return Divorce or  Legal separation   A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. How to amend 2010 tax return Inadequate records   The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. How to amend 2010 tax return Suspending the Choice The choice to be treated as a resident alien does not apply to any later tax year if neither of you is a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident alien at any time during the later tax year. How to amend 2010 tax return Example. How to amend 2010 tax return Dick Brown was a resident alien on December 31, 2010, and married to Judy, a nonresident alien. How to amend 2010 tax return They chose to treat Judy as a resident alien and filed a joint 2010 income tax return. How to amend 2010 tax return On January 10, 2012, Dick became a nonresident alien. How to amend 2010 tax return Judy had remained a nonresident alien. How to amend 2010 tax return Because Dick was a resident alien during part of 2012, Dick and Judy can file joint or separate returns for that year. How to amend 2010 tax return Neither Dick nor Judy was a resident alien at any time during 2013 and their choice is suspended for that year. How to amend 2010 tax return For 2013, both are treated as nonresident aliens. How to amend 2010 tax return If Dick becomes a resident alien again in 2014, their choice is no longer suspended and both are treated as resident aliens. How to amend 2010 tax return Ending the Choice Once made, the choice to be treated as a resident applies to all later years unless suspended (as explained earlier) or ended in one of the ways shown in Table 1-1. How to amend 2010 tax return If the choice is ended for any of the reasons listed in Table 1-1, neither spouse can make a choice in any later tax year. How to amend 2010 tax return Estimated Tax The requirements for determining who must pay estimated tax are the same for a U. How to amend 2010 tax return S. How to amend 2010 tax return citizen or resident abroad as for a taxpayer in the United States. How to amend 2010 tax return For current instructions on making estimated tax payments, see Form 1040-ES. How to amend 2010 tax return If you had a tax liability for 2013, you may have to pay estimated tax for 2014. How to amend 2010 tax return Generally, you must make estimated tax payments for 2014 if you expect to owe at least $1,000 in tax for 2014 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of: 90% of the tax to be shown on your 2014 tax return, or 100% of the tax shown on your 2013 tax return. How to amend 2010 tax return (The return must cover all 12 months. How to amend 2010 tax return ) If less than two-thirds of your gross income for 2013 and 2014 is from farming or fishing and your adjusted gross income for 2013 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2). How to amend 2010 tax return See Publication 505 for more information. How to amend 2010 tax return The first installment of estimated tax is due on April 15, 2014. How to amend 2010 tax return Foreign earned income exclusion. How to amend 2010 tax return   When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. How to amend 2010 tax return In addition, you can reduce your income by your estimated foreign housing deduction. How to amend 2010 tax return However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. How to amend 2010 tax return If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax. How to amend 2010 tax return   For more information about figuring your estimated tax, see Publication 505. How to amend 2010 tax return Other Forms You May Have To File FinCEN Form 114 (replaces Form TD F 90-22. How to amend 2010 tax return 1). How to amend 2010 tax return   Beginning October 1, 2013, Form 114, Report of Foreign Bank and Financial Accounts (FBAR), must be filed instead of Form TD F 90-22. How to amend 2010 tax return 1. How to amend 2010 tax return Form 114 is filed electronically with the Financial Crimes Enforcement Network (FinCEN). How to amend 2010 tax return See the filing instructions at www. How to amend 2010 tax return bsaefiling. How to amend 2010 tax return fincen. How to amend 2010 tax return treas. How to amend 2010 tax return gov/main. How to amend 2010 tax return html. How to amend 2010 tax return   You must file Form 114 if you had any financial interest in, or signature or other authority over a bank, securities, or other financial account in a foreign country. How to amend 2010 tax return You do not need to file the report if the assets are with a U. How to amend 2010 tax return S. How to amend 2010 tax return military banking facility operated by a financial institution or if the combined assets in the account(s) are $10,000 or less during the entire year. How to amend 2010 tax return   More information about the filing of Form 114 can be found in the instructions for the form. How to amend 2010 tax return FinCEN Form 105. How to amend 2010 tax return   You must file Form 105, Report of International Transportation of Currency or Monetary Instruments, if you physically transport, mail, ship, or cause to be physically transported, mailed, or shipped into or out of the United States, currency or other monetary instruments totaling more than $10,000 at one time. How to amend 2010 tax return Certain recipients of currency or monetary instruments also must file Form 105. How to amend 2010 tax return   More information about the filing of Form 105 can be found in the instructions on the back of the form. How to amend 2010 tax return Form 8938. How to amend 2010 tax return   You must file Form 8938 to report the ownership of specified foreign financial assets if the total value of those assets exceeds an applicable threshold amount (the “reporting threshold ”). How to amend 2010 tax return The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. How to amend 2010 tax return Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. How to amend 2010 tax return S. How to amend 2010 tax return person. How to amend 2010 tax return   You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. How to amend 2010 tax return   More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. How to amend 2010 tax return Prev  Up  Next   Home   More Online Publications
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The How To Amend 2010 Tax Return

How to amend 2010 tax return 6. How to amend 2010 tax return   How To Report Table of Contents Where To ReportGifts. How to amend 2010 tax return Statutory employees. How to amend 2010 tax return Vehicle Provided by Your Employer ReimbursementsAccountable Plans Nonaccountable Plans Rules for Independent Contractors and Clients How To Use Per Diem Rate TablesThe Two Substantiation Methods Transition Rules Completing Forms 2106 and 2106-EZInformation on use of cars. How to amend 2010 tax return Standard mileage rate. How to amend 2010 tax return Actual expenses. How to amend 2010 tax return Car rentals. How to amend 2010 tax return Hours of service limits. How to amend 2010 tax return Allocating your reimbursement. How to amend 2010 tax return 1. How to amend 2010 tax return Limit on meals and entertainment. How to amend 2010 tax return 2. How to amend 2010 tax return Limit on miscellaneous itemized deductions. How to amend 2010 tax return 3. How to amend 2010 tax return Limit on total itemized deductions. How to amend 2010 tax return Special Rules This chapter explains where and how to report the expenses discussed in this publication. How to amend 2010 tax return It discusses reimbursements and how to treat them under accountable and nonaccountable plans. How to amend 2010 tax return It also explains rules for independent contractors and clients, fee-basis officials, certain performing artists, Armed Forces reservists, and certain disabled employees. How to amend 2010 tax return The chapter ends with illustrations of how to report travel, entertainment, gift, and car expenses on Forms 2106 and 2106-EZ. How to amend 2010 tax return Where To Report This section provides general information on where to report the expenses discussed in this publication. How to amend 2010 tax return Self-employed. How to amend 2010 tax return   You must report your income and expenses on Schedule C (Form 1040) or Schedule C-EZ (Form 1040) if you are a sole proprietor, or on Schedule F (Form 1040) if you are a farmer. How to amend 2010 tax return You do not use Form 2106 or 2106-EZ. How to amend 2010 tax return    If you claim car or truck expenses, you must provide certain information on the use of your vehicle. How to amend 2010 tax return You provide this information on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Form 4562. How to amend 2010 tax return   If you file Schedule C (Form 1040): Report your travel expenses, except meals, on line 24a, Report your deductible meals (actual cost or standard meal allowance) and entertainment on line 24b, Report your gift expenses and transportation expenses, other than car expenses, on line 27a, and Report your car expenses on line 9. How to amend 2010 tax return Complete Part IV of the form unless you have to file Form 4562 for depreciation or amortization. How to amend 2010 tax return   If you file Schedule C-EZ (Form 1040), report the total of all business expenses on line 2. How to amend 2010 tax return You can only include 50% of your meals and entertainment in that total. How to amend 2010 tax return If you include car expenses, you must also complete Part III of the form. How to amend 2010 tax return    If you file Schedule F (Form 1040): Report your car expenses on line 10. How to amend 2010 tax return Attach Form 4562 and provide information on the use of your car in Part V of Form 4562. How to amend 2010 tax return Report all other business expenses discussed in this publication on line 32. How to amend 2010 tax return You can only include 50% of your meals and entertainment on that line. How to amend 2010 tax return See your form instructions for more information on how to complete your tax return. How to amend 2010 tax return Both self-employed and an employee. How to amend 2010 tax return   If you are both self-employed and an employee, you must keep separate records for each business activity. How to amend 2010 tax return Report your business expenses for self-employment on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040), as discussed earlier. How to amend 2010 tax return Report your business expenses for your work as an employee on Form 2106 or 2106-EZ, as discussed next. How to amend 2010 tax return Employees. How to amend 2010 tax return    If you are an employee, you generally must complete Form 2106 to deduct your travel, transportation, and entertainment expenses. How to amend 2010 tax return However, you can use the shorter Form 2106-EZ instead of Form 2106 if you meet all of the following conditions. How to amend 2010 tax return You are an employee deducting expenses attributable to your job. How to amend 2010 tax return You were not reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 are not considered reimbursements). How to amend 2010 tax return If you claim car expenses, you use the standard mileage rate. How to amend 2010 tax return   For more information on how to report your expenses on Forms 2106 and 2106-EZ, see Completing Forms 2106 and 2106-EZ , later. How to amend 2010 tax return Gifts. How to amend 2010 tax return   If you did not receive any reimbursements (or the reimbursements were all included in box 1 of your Form W-2), the only business expense you are claiming is for gifts, and the Special Rules discussed later do not apply to you, do not complete Form 2106 or 2106-EZ. How to amend 2010 tax return Instead, claim the amount of your deductible gifts directly on line 21 of Schedule A (Form 1040). How to amend 2010 tax return Statutory employees. How to amend 2010 tax return    If you received a Form W-2 and the “Statutory employee” box in box 13 was checked, report your income and expenses related to that income on Schedule C (Form 1040) or Schedule C-EZ (Form 1040). How to amend 2010 tax return Do not complete Form 2106 or 2106-EZ. How to amend 2010 tax return   Statutory employees include full-time life insurance salespersons, certain agent or commission drivers, traveling salespersons, and certain homeworkers. How to amend 2010 tax return If you are entitled to a reimbursement from your employer but you do not claim it, you cannot claim a deduction for the expenses to which that unclaimed reimbursement applies. How to amend 2010 tax return Reimbursement for personal expenses. How to amend 2010 tax return    If your employer reimburses you for nondeductible personal expenses, such as for vacation trips, your employer must report the reimbursement as wage income in box 1 of your Form W-2. How to amend 2010 tax return You cannot deduct personal expenses. How to amend 2010 tax return Income-producing property. How to amend 2010 tax return   If you have travel or transportation expenses related to income-producing property, report your deductible expenses on the form appropriate for that activity. How to amend 2010 tax return   For example, if you have rental real estate income and expenses, report your expenses on Schedule E (Form 1040), Supplemental Income and Loss. How to amend 2010 tax return See Publication 527, Residential Rental Property, for more information on the rental of real estate. How to amend 2010 tax return If you have deductible investment-related transportation expenses, report them on Schedule A (Form 1040), line 23. How to amend 2010 tax return Vehicle Provided by Your Employer If your employer provides you with a car, you may be able to deduct the actual expenses of operating that car for business purposes. How to amend 2010 tax return The amount you can deduct depends on the amount that your employer included in your income and the business and personal miles you drove during the year. How to amend 2010 tax return You cannot use the standard mileage rate. How to amend 2010 tax return Value reported on Form W-2. How to amend 2010 tax return   Your employer can figure and report either the actual value of your personal use of the car or the value of the car as if you used it only for personal purposes (100% income inclusion). How to amend 2010 tax return Your employer must separately state the amount if 100% of the annual lease value was included in your income. How to amend 2010 tax return If you are unsure of the amount included on your Form W-2, ask your employer. How to amend 2010 tax return Full value included in your income. How to amend 2010 tax return   You can deduct the value of the business use of an employer-provided car if your employer reported 100% of the value of the car in your income. How to amend 2010 tax return On your 2013 Form W-2, the amount of the value will be included in box 1, Wages, tips, other compensation, and box 14. How to amend 2010 tax return    To claim your expenses, complete Form 2106, Part II, Sections A and C. How to amend 2010 tax return Enter your actual expenses on line 23 of Section C and include the entire value of the employer-provided car on line 25. How to amend 2010 tax return Complete the rest of the form. How to amend 2010 tax return Less than full value included in your income. How to amend 2010 tax return   If less than the full annual lease value of the car was included on your Form W-2, this means that your Form W-2 only includes the value of your personal use of the car. How to amend 2010 tax return Do not enter this value on your Form 2106 because it is not deductible. How to amend 2010 tax return   If you paid any actual costs (that your employer did not provide or reimburse you for) to operate the car, you can deduct the business portion of those costs. How to amend 2010 tax return Examples of costs that you may have are gas, oil, and repairs. How to amend 2010 tax return Complete Form 2106, Part II, Sections A and C. How to amend 2010 tax return Enter your actual costs on line 23 of Section C and leave line 25 blank. How to amend 2010 tax return Complete the rest of the form. How to amend 2010 tax return Reimbursements This section explains what to do when you receive an advance or are reimbursed for any of the employee business expenses discussed in this publication. How to amend 2010 tax return If you received an advance, allowance, or reimbursement for your expenses, how you report this amount and your expenses depends on whether your employer reimbursed you under an accountable plan or a nonaccountable plan. How to amend 2010 tax return This section explains the two types of plans, how per diem and car allowances simplify proving the amount of your expenses, and the tax treatment of your reimbursements and expenses. How to amend 2010 tax return It also covers rules for independent contractors. How to amend 2010 tax return No reimbursement. How to amend 2010 tax return   You are not reimbursed or given an allowance for your expenses if you are paid a salary or commission with the understanding that you will pay your own expenses. How to amend 2010 tax return In this situation, you have no reimbursement or allowance arrangement, and you do not have to read this section on reimbursements. How to amend 2010 tax return Instead, see Completing Forms 2106 and 2106-EZ , later, for information on completing your tax return. How to amend 2010 tax return Reimbursement, allowance, or advance. How to amend 2010 tax return   A reimbursement or other expense allowance arrangement is a system or plan that an employer uses to pay, substantiate, and recover the expenses, advances, reimbursements, and amounts charged to the employer for employee business expenses. How to amend 2010 tax return Arrangements include per diem and car allowances. How to amend 2010 tax return    A per diem allowance is a fixed amount of daily reimbursement your employer gives you for your lodging, meals, and incidental expenses when you are away from home on business. How to amend 2010 tax return (The term “ incidental expenses ” is defined in chapter 1 under Standard Meal Allowance. How to amend 2010 tax return ) A car allowance is an amount your employer gives you for the business use of your car. How to amend 2010 tax return   Your employer should tell you what method of reimbursement is used and what records you must provide. How to amend 2010 tax return Employers. How to amend 2010 tax return   If you are an employer and you reimburse employee business expenses, how you treat this reimbursement on your employee's Form W-2 depends in part on whether you have an accountable plan. How to amend 2010 tax return Reimbursements treated as paid under an accountable plan, as explained next, are not reported as pay. How to amend 2010 tax return Reimbursements treated as paid under nonaccountable plans , as explained later, are reported as pay. How to amend 2010 tax return See Publication 15 (Circular E), Employer's Tax Guide, for information on employee pay. How to amend 2010 tax return Accountable Plans To be an accountable plan, your employer's reimbursement or allowance arrangement must include all of the following rules: Your expenses must have a business connection — that is, you must have paid or incurred deductible expenses while performing services as an employee of your employer. How to amend 2010 tax return You must adequately account to your employer for these expenses within a reasonable period of time. How to amend 2010 tax return You must return any excess reimbursement or allowance within a reasonable period of time. How to amend 2010 tax return “ Adequate accounting ” and “ returning excess reimbursements ” are discussed later. How to amend 2010 tax return An excess reimbursement or allowance is any amount you are paid that is more than the business-related expenses that you adequately accounted for to your employer. How to amend 2010 tax return Reasonable period of time. How to amend 2010 tax return   The definition of reasonable period of time depends on the facts and circumstances of your situation. How to amend 2010 tax return However, regardless of the facts and circumstances of your situation, actions that take place within the times specified in the following list will be treated as taking place within a reasonable period of time. How to amend 2010 tax return You receive an advance within 30 days of the time you have an expense. How to amend 2010 tax return You adequately account for your expenses within 60 days after they were paid or incurred. How to amend 2010 tax return You return any excess reimbursement within 120 days after the expense was paid or incurred. How to amend 2010 tax return You are given a periodic statement (at least quarterly) that asks you to either return or adequately account for outstanding advances and you comply within 120 days of the statement. How to amend 2010 tax return Employee meets accountable plan rules. How to amend 2010 tax return   If you meet the three rules for accountable plans, your employer should not include any reimbursements in your income in box 1 of your Form W-2. How to amend 2010 tax return If your expenses equal your reimbursements, you do not complete Form 2106. How to amend 2010 tax return You have no deduction since your expenses and reimbursement are equal. How to amend 2010 tax return    If your employer included reimbursements in box 1 of your Form W-2 and you meet all the rules for accountable plans, ask your employer for a corrected Form W-2. How to amend 2010 tax return Accountable plan rules not met. How to amend 2010 tax return   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules. How to amend 2010 tax return All reimbursements that fail to meet all three rules for accountable plans are generally treated as having been reimbursed under a nonaccountable plan (discussed later). How to amend 2010 tax return Failure to return excess reimbursements. How to amend 2010 tax return   If you are reimbursed under an accountable plan, but you fail to return, within a reasonable time, any amounts in excess of the substantiated amounts, the amounts paid in excess of the substantiated expenses are treated as paid under a nonaccountable plan. How to amend 2010 tax return See Reasonable period of time , earlier, and Returning Excess Reimbursements , later. How to amend 2010 tax return Reimbursement of nondeductible expenses. How to amend 2010 tax return   You may be reimbursed under your employer's accountable plan for expenses related to that employer's business, some of which are deductible as employee business expenses and some of which are not deductible. How to amend 2010 tax return The reimbursements you receive for the nondeductible expenses do not meet rule (1) for accountable plans, and they are treated as paid under a nonaccountable plan. How to amend 2010 tax return Example. How to amend 2010 tax return Your employer's plan reimburses you for travel expenses while away from home on business and also for meals when you work late at the office, even though you are not away from home. How to amend 2010 tax return The part of the arrangement that reimburses you for the nondeductible meals when you work late at the office is treated as paid under a nonaccountable plan. How to amend 2010 tax return The employer makes the decision whether to reimburse employees under an accountable plan or a nonaccountable plan. How to amend 2010 tax return If you are an employee who receives payments under a nonaccountable plan, you cannot convert these amounts to payments under an accountable plan by voluntarily accounting to your employer for the expenses and voluntarily returning excess reimbursements to the employer. How to amend 2010 tax return Adequate Accounting One of the rules for an accountable plan is that you must adequately account to your employer for your expenses. How to amend 2010 tax return You adequately account by giving your employer a statement of expense, an account book, a diary, or a similar record in which you entered each expense at or near the time you had it, along with documentary evidence (such as receipts) of your travel, mileage, and other employee business expenses. How to amend 2010 tax return (See Table 5-1 in chapter 5 for details you need to enter in your record and documents you need to prove certain expenses. How to amend 2010 tax return ) A per diem or car allowance satisfies the adequate accounting requirement under certain conditions. How to amend 2010 tax return See Per Diem and Car Allowances , later. How to amend 2010 tax return You must account for all amounts you received from your employer during the year as advances, reimbursements, or allowances. How to amend 2010 tax return This includes amounts you charged to your employer by credit card or other method. How to amend 2010 tax return You must give your employer the same type of records and supporting information that you would have to give to the IRS if the IRS questioned a deduction on your return. How to amend 2010 tax return You must pay back the amount of any reimbursement or other expense allowance for which you do not adequately account or that is more than the amount for which you accounted. How to amend 2010 tax return Per Diem and Car Allowances If your employer reimburses you for your expenses using a per diem or a car allowance, you can generally use the allowance as proof for the amount of your expenses. How to amend 2010 tax return A per diem or car allowance satisfies the adequate accounting requirements for the amount of your expenses only if all the following conditions apply. How to amend 2010 tax return Your employer reasonably limits payments of your expenses to those that are ordinary and necessary in the conduct of the trade or business. How to amend 2010 tax return The allowance is similar in form to and not more than the federal rate (defined later). How to amend 2010 tax return You prove the time (dates), place, and business purpose of your expenses to your employer (as explained in Table 5-1 ) within a reasonable period of time. How to amend 2010 tax return You are not related to your employer (as defined next). How to amend 2010 tax return If you are related to your employer, you must be able to prove your expenses to the IRS even if you have already adequately accounted to your employer and returned any excess reimbursement. How to amend 2010 tax return If the IRS finds that an employer's travel allowance practices are not based on reasonably accurate estimates of travel costs (including recognition of cost differences in different areas for per diem amounts), you will not be considered to have accounted to your employer. How to amend 2010 tax return In this case, you must be able to prove your expenses to the IRS. How to amend 2010 tax return Related to employer. How to amend 2010 tax return   You are related to your employer if: Your employer is your brother or sister, half brother or half sister, spouse, ancestor, or lineal descendant, Your employer is a corporation in which you own, directly or indirectly, more than 10% in value of the outstanding stock, or Certain relationships (such as grantor, fiduciary, or beneficiary) exist between you, a trust, and your employer. How to amend 2010 tax return You may be considered to indirectly own stock, for purposes of (2), if you have an interest in a corporation, partnership, estate, or trust that owns the stock or if a member of your family or your partner owns the stock. How to amend 2010 tax return The federal rate. How to amend 2010 tax return   The federal rate can be figured using any one of the following methods. How to amend 2010 tax return For per diem amounts: The regular federal per diem rate. How to amend 2010 tax return The standard meal allowance. How to amend 2010 tax return The high-low rate. How to amend 2010 tax return For car expenses: The standard mileage rate. How to amend 2010 tax return A fixed and variable rate (FAVR). How to amend 2010 tax return    For per diem amounts, use the rate in effect for the area where you stop for sleep or rest. How to amend 2010 tax return Regular federal per diem rate. How to amend 2010 tax return   The regular federal per diem rate is the highest amount that the federal government will pay to its employees for lodging, meals, and incidental expenses (or meals and incidental expenses only) while they are traveling away from home in a particular area. How to amend 2010 tax return The rates are different for different locations. How to amend 2010 tax return Your employer should have these rates available. How to amend 2010 tax return You can also find federal per diem rates at www. How to amend 2010 tax return gsa. How to amend 2010 tax return gov/perdiem. How to amend 2010 tax return The standard meal allowance. How to amend 2010 tax return   The standard meal allowance (discussed in chapter 1) is the federal rate for meals and incidental expenses (M&IE). How to amend 2010 tax return The rate for most small localities in the United States is $46 a day. How to amend 2010 tax return Most major cities and many other localities qualify for higher rates. How to amend 2010 tax return You can find this information on the Internet at www. How to amend 2010 tax return gsa. How to amend 2010 tax return gov/perdiem. How to amend 2010 tax return   You receive an allowance only for meals and incidental expenses when your employer does one of the following. How to amend 2010 tax return Provides you with lodging (furnishes it in kind). How to amend 2010 tax return Reimburses you, based on your receipts, for the actual cost of your lodging. How to amend 2010 tax return Pays the hotel, motel, etc. How to amend 2010 tax return , directly for your lodging. How to amend 2010 tax return Does not have a reasonable belief that you had (or will have) lodging expenses, such as when you stay with friends or relatives or sleep in the cab of your truck. How to amend 2010 tax return Figures the allowance on a basis similar to that used in computing your compensation, such as number of hours worked or miles traveled. How to amend 2010 tax return High-low rate. How to amend 2010 tax return   This is a simplified method of computing the federal per diem rate for travel within the continental United States. How to amend 2010 tax return It eliminates the need to keep a current list of the per diem rates for each city. How to amend 2010 tax return   Under the high-low method, the per diem amount for travel during January through September of 2013 is $242 (including $65 for M&IE) for certain high-cost locations. How to amend 2010 tax return All other areas have a per diem amount of $163 (including $52 for M&IE). How to amend 2010 tax return For more information, see Notice 2012-63, which can be found on the Internet at www. How to amend 2010 tax return irs. How to amend 2010 tax return gov/irb/2012-42_IRB/ar12. How to amend 2010 tax return html. How to amend 2010 tax return    Effective October 1, 2013, the per diem rate for certain high-cost locations increased to $251 (including $65 for M&IE). How to amend 2010 tax return The rate for all other locations increased to $170 (including $52 for M&IE). How to amend 2010 tax return Employers who did not use the high-low method during the first 9 months of 2013 cannot begin to use it before 2014. How to amend 2010 tax return For more information, see Notice 2013-65, which can be found on the Internet at www. How to amend 2010 tax return irs. How to amend 2010 tax return gov/pub/irs-drop/n-13–65. How to amend 2010 tax return pdf and Revenue Procedure 2011-47 at www. How to amend 2010 tax return irs. How to amend 2010 tax return gov/irb/2011-42_IRB/ar12. How to amend 2010 tax return html. How to amend 2010 tax return Prorating the standard meal allowance on partial days of travel. How to amend 2010 tax return   The standard meal allowance is for a full 24-hour day of travel. How to amend 2010 tax return If you travel for part of a day, such as on the days you depart and return, you must prorate the full-day M&IE rate. How to amend 2010 tax return This rule also applies if your employer uses the regular federal per diem rate or the high-low rate. How to amend 2010 tax return   You can use either of the following methods to figure the federal M&IE for that day. How to amend 2010 tax return Method 1: For the day you depart, add 3/4 of the standard meal allowance amount for that day. How to amend 2010 tax return For the day you return, add 3/4 of the standard meal allowance amount for the preceding day. How to amend 2010 tax return Method 2: Prorate the standard meal allowance using any method you consistently apply in accordance with reasonable business practice. How to amend 2010 tax return For example, an employer can treat 2 full days of per diem (that includes M&IE) paid for travel away from home from 9 a. How to amend 2010 tax return m. How to amend 2010 tax return of one day to 5 p. How to amend 2010 tax return m. How to amend 2010 tax return of the next day as being no more than the federal rate. How to amend 2010 tax return This is true even though a federal employee would be limited to a reimbursement of M&IE for only 1½ days of the federal M&IE rate. How to amend 2010 tax return The standard mileage rate. How to amend 2010 tax return   This is a set rate per mile that you can use to compute your deductible car expenses. How to amend 2010 tax return For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile. How to amend 2010 tax return Fixed and variable rate (FAVR). How to amend 2010 tax return   This is an allowance your employer may use to reimburse your car expenses. How to amend 2010 tax return Under this method, your employer pays an allowance that includes a combination of payments covering fixed and variable costs, such as a cents-per-mile rate to cover your variable operating costs (such as gas, oil, etc. How to amend 2010 tax return ) plus a flat amount to cover your fixed costs (such as depreciation (or lease payments), insurance, etc. How to amend 2010 tax return ). How to amend 2010 tax return If your employer chooses to use this method, your employer will request the necessary records from you. How to amend 2010 tax return Reporting your expenses with a per diem or car allowance. How to amend 2010 tax return   If your reimbursement is in the form of an allowance received under an accountable plan, the following facts affect your reporting. How to amend 2010 tax return The federal rate. How to amend 2010 tax return Whether the allowance or your actual expenses were more than the federal rate. How to amend 2010 tax return The following discussions explain where to report your expenses depending upon how the amount of your allowance compares to the federal rate. How to amend 2010 tax return Allowance less than or equal to the federal rate. How to amend 2010 tax return   If your allowance is less than or equal to the federal rate, the allowance will not be included in box 1 of your Form W-2. How to amend 2010 tax return You do not need to report the related expenses or the allowance on your return if your expenses are equal to or less than the allowance. How to amend 2010 tax return   However, if your actual expenses are more than your allowance, you can complete Form 2106 and deduct the excess amount on Schedule A (Form 1040). How to amend 2010 tax return If you are using actual expenses, you must be able to prove to the IRS the total amount of your expenses and reimbursements for the entire year. How to amend 2010 tax return If you are using the standard meal allowance or the standard mileage rate, you do not have to prove that amount. How to amend 2010 tax return Example 1. How to amend 2010 tax return In April, Jeremy takes a 2-day business trip to Denver. How to amend 2010 tax return The federal rate for Denver is $215 per day. How to amend 2010 tax return As required by his employer's accountable plan, he accounts for the time (dates), place, and business purpose of the trip. How to amend 2010 tax return His employer reimburses him $215 a day ($430 total) for living expenses. How to amend 2010 tax return Jeremy's living expenses in Denver are not more than $215 a day. How to amend 2010 tax return Jeremy's employer does not include any of the reimbursement on his Form W-2 and Jeremy does not deduct the expenses on his return. How to amend 2010 tax return Example 2. How to amend 2010 tax return In June, Matt takes a 2-day business trip to Boston. How to amend 2010 tax return Matt's employer uses the high-low method to reimburse employees. How to amend 2010 tax return Since Boston is a high-cost area, Matt is given an advance of $242 a day ($484 total) for his lodging, meals, and incidental expenses. How to amend 2010 tax return Matt's actual expenses totaled $700. How to amend 2010 tax return Since Matt's $700 of expenses are more than his $484 advance, he includes the excess expenses when he itemizes his deductions. How to amend 2010 tax return Matt completes Form 2106 (showing all of his expenses and reimbursements). How to amend 2010 tax return He must also allocate his reimbursement between his meals and other expenses as discussed later under Completing Forms 2106 and 2106-EZ . How to amend 2010 tax return Example 3. How to amend 2010 tax return Nicole drives 10,000 miles in 2013 for business. How to amend 2010 tax return Under her employer's accountable plan, she accounts for the time (dates), place, and business purpose of each trip. How to amend 2010 tax return Her employer pays her a mileage allowance of 40 cents a mile. How to amend 2010 tax return Since Nicole's $5,650 expense computed under the standard mileage rate (10,000 miles x 56½ cents) is more than her $4,000 reimbursement (10,000 miles × 40 cents), she itemizes her deductions to claim the excess expense. How to amend 2010 tax return Nicole completes Form 2106 (showing all her expenses and reimbursements) and enters $1,650 ($5,650 − $4,000) as an itemized deduction. How to amend 2010 tax return Allowance more than the federal rate. How to amend 2010 tax return   If your allowance is more than the federal rate, your employer must include the allowance amount up to the federal rate in box 12 of your Form W-2. How to amend 2010 tax return This amount is not taxable. How to amend 2010 tax return However, the excess allowance will be included in box 1 of your Form W-2. How to amend 2010 tax return You must report this part of your allowance as if it were wage income. How to amend 2010 tax return   If your actual expenses are less than or equal to the federal rate, you do not complete Form 2106 or claim any of your expenses on your return. How to amend 2010 tax return   However, if your actual expenses are more than the federal rate, you can complete Form 2106 and deduct those excess expenses. How to amend 2010 tax return You must report on Form 2106 your reimbursements up to the federal rate (as shown in box 12 of your Form W-2) and all your expenses. How to amend 2010 tax return You should be able to prove these amounts to the IRS. How to amend 2010 tax return Example 1. How to amend 2010 tax return Laura lives and works in Austin. How to amend 2010 tax return In July her employer sent her to Albuquerque for 4 days on business. How to amend 2010 tax return Laura's employer paid the hotel directly for her lodging and reimbursed Laura $65 a day ($260 total) for meals and incidental expenses. How to amend 2010 tax return Laura's actual meal expenses were not more than the federal rate for Albuquerque, which is $56 per day. How to amend 2010 tax return Table 6-1. How to amend 2010 tax return Reporting Travel, Entertainment, Gift, and Car Expenses and Reimbursements IF the type of reimbursement (or  other expense allowance)  arrangement is under: THEN the employer reports on Form W-2: AND the employee reports on  Form 2106: * An accountable plan with: Actual expense reimbursement: Adequate accounting made and excess returned. How to amend 2010 tax return No amount. How to amend 2010 tax return No amount. How to amend 2010 tax return Actual expense reimbursement: Adequate accounting and return of excess both required but excess not returned. How to amend 2010 tax return The excess amount as wages in box 1. How to amend 2010 tax return No amount. How to amend 2010 tax return Per diem or mileage allowance up to the federal rate: Adequate accounting made and excess returned. How to amend 2010 tax return No amount. How to amend 2010 tax return All expenses and reimbursements only if excess expenses are claimed. How to amend 2010 tax return Otherwise, form is not filed. How to amend 2010 tax return Per diem or mileage allowance up to the federal rate: Adequate accounting and return of excess both required but excess not returned. How to amend 2010 tax return The excess amount as wages in box 1. How to amend 2010 tax return The amount up to the federal rate is reported only in box 12—it is not reported in box 1. How to amend 2010 tax return No amount. How to amend 2010 tax return Per diem or mileage allowance exceeds the federal rate: Adequate accounting up to the federal rate only and excess not returned. How to amend 2010 tax return The excess amount as wages in box 1. How to amend 2010 tax return The amount up to the federal rate is reported only in box 12—it is not reported in box 1. How to amend 2010 tax return All expenses (and reimbursements reported on Form W-2, box 12) only if expenses in excess of the federal rate are claimed. How to amend 2010 tax return Otherwise, form is not filed. How to amend 2010 tax return A nonaccountable plan with: Either adequate accounting or return of excess, or both, not required by plan. How to amend 2010 tax return The entire amount as wages in box 1. How to amend 2010 tax return All expenses. How to amend 2010 tax return No reimbursement plan: The entire amount as wages in box 1. How to amend 2010 tax return All expenses. How to amend 2010 tax return * You may be able to use Form 2106-EZ. How to amend 2010 tax return See Completing Forms 2106 and 2106-EZ . How to amend 2010 tax return Her employer included the $36 that was more than the federal rate (($65 − $56) × 4) in box 1 of Laura's Form W-2. How to amend 2010 tax return Her employer shows $224 ($56 a day × 4) in box 12 of her Form W-2. How to amend 2010 tax return This amount is not included in Laura's income. How to amend 2010 tax return Laura does not have to complete Form 2106; however, she must include the $36 in her gross income as wages (by reporting the total amount shown in box 1 of her Form W-2). How to amend 2010 tax return Example 2. How to amend 2010 tax return Joe also lives in Austin and works for the same employer as Laura. How to amend 2010 tax return In May the employer sent Joe to San Diego for 4 days and paid the hotel directly for Joe's hotel bill. How to amend 2010 tax return The employer reimbursed Joe $75 a day for his meals and incidental expenses. How to amend 2010 tax return The federal rate for San Diego is $71 a day. How to amend 2010 tax return Joe can prove that his actual meal expenses totaled $380. How to amend 2010 tax return His employer's accountable plan will not pay more than $75 a day for travel to San Diego, so Joe does not give his employer the records that prove that he actually spent $380. How to amend 2010 tax return However, he does account for the time, place, and business purpose of the trip. How to amend 2010 tax return This is Joe's only business trip this year. How to amend 2010 tax return Joe was reimbursed $300 ($75 × 4 days), which is $16 more than the federal rate of $284 ($71 × 4 days). How to amend 2010 tax return The employer includes the $16 as income on Joe's Form W-2 in box 1. How to amend 2010 tax return The employer also enters $284 in box 12 of Joe's Form W-2. How to amend 2010 tax return Joe completes Form 2106 to figure his deductible expenses. How to amend 2010 tax return He enters the total of his actual expenses for the year ($380) on Form 2106. How to amend 2010 tax return He also enters the reimbursements that were not included in his income ($284). How to amend 2010 tax return His total deductible expense, before the 50% limit, is $96. How to amend 2010 tax return After he figures the 50% limit on his unreimbursed meals and entertainment, he will include the balance, $48, as an itemized deduction. How to amend 2010 tax return Example 3. How to amend 2010 tax return Debbie drives 10,000 miles in 2013 for business. How to amend 2010 tax return Under her employer's accountable plan, she gets reimbursed 60 cents a mile, which is more than the standard mileage rate. How to amend 2010 tax return Her total reimbursement is $6,000. How to amend 2010 tax return Debbie's employer must include the reimbursement amount up to the standard mileage rate, $5,650 (10,000 × 56½ cents), in box 12 of her Form W-2. How to amend 2010 tax return That amount is not taxable. How to amend 2010 tax return Her employer must also include $350 ($6,000 − $5,650) in box 1 of her Form W-2. How to amend 2010 tax return This is the reimbursement that is more than the standard mileage rate. How to amend 2010 tax return If Debbie's expenses are equal to or less than the standard mileage rate, she would not complete Form 2106. How to amend 2010 tax return If her expenses are more than the standard mileage rate, she would complete Form 2106 and report her total expenses and reimbursement (shown in box 12 of her Form W-2). How to amend 2010 tax return She would then claim the excess expenses as an itemized deduction. How to amend 2010 tax return Returning Excess Reimbursements Under an accountable plan, you are required to return any excess reimbursement or other expense allowances for your business expenses to the person paying the reimbursement or allowance. How to amend 2010 tax return Excess reimbursement means any amount for which you did not adequately account within a reasonable period of time. How to amend 2010 tax return For example, if you received a travel advance and you did not spend all the money on business-related expenses or you do not have proof of all your expenses, you have an excess reimbursement. How to amend 2010 tax return “ Adequate accounting ” and “ reasonable period of time ” were discussed earlier in this chapter. How to amend 2010 tax return Travel advance. How to amend 2010 tax return   You receive a travel advance if your employer provides you with an expense allowance before you actually have the expense, and the allowance is reasonably expected to be no more than your expense. How to amend 2010 tax return Under an accountable plan, you are required to adequately account to your employer for this advance and to return any excess within a reasonable period of time. How to amend 2010 tax return   If you do not adequately account for or do not return any excess advance within a reasonable period of time, the amount you do not account for or return will be treated as having been paid under a nonaccountable plan (discussed later). How to amend 2010 tax return Unproved amounts. How to amend 2010 tax return   If you do not prove that you actually traveled on each day for which you received a per diem or car allowance (proving the elements described in Table 5-1 ), you must return this unproved amount of the travel advance within a reasonable period of time. How to amend 2010 tax return If you do not do this, the unproved amount will be considered paid under a nonaccountable plan (discussed later). How to amend 2010 tax return Per diem allowance more than federal rate. How to amend 2010 tax return   If your employer's accountable plan pays you an allowance that is higher than the federal rate, you do not have to return the difference between the two rates for the period you can prove business-related travel expenses. How to amend 2010 tax return However, the difference will be reported as wages on your Form W-2. How to amend 2010 tax return This excess amount is considered paid under a nonaccountable plan (discussed later). How to amend 2010 tax return Example. How to amend 2010 tax return Your employer sends you on a 5-day business trip to Phoenix in March 2013 and gives you a $400 ($80 × 5 days) advance to cover your meals and incidental expenses. How to amend 2010 tax return The federal per diem for meals and incidental expenses for Phoenix is $71. How to amend 2010 tax return Your trip lasts only 3 days. How to amend 2010 tax return Under your employer's accountable plan, you must return the $160 ($80 × 2 days) advance for the 2 days you did not travel. How to amend 2010 tax return For the 3 days you did travel you do not have to return the $27 difference between the allowance you received and the federal rate for Phoenix (($80 − $71) × 3 days). How to amend 2010 tax return However, the $27 will be reported on your Form W-2 as wages. How to amend 2010 tax return Nonaccountable Plans A nonaccountable plan is a reimbursement or expense allowance arrangement that does not meet one or more of the three rules listed earlier under Accountable Plans. How to amend 2010 tax return In addition, even if your employer has an accountable plan, the following payments will be treated as being paid under a nonaccountable plan: Excess reimbursements you fail to return to your employer, and Reimbursement of nondeductible expenses related to your employer's business. How to amend 2010 tax return See Reimbursement of nondeductible expenses , earlier, under Accountable Plans. How to amend 2010 tax return An arrangement that repays you for business expenses by reducing the amount reported as your wages, salary, or other pay will be treated as a nonaccountable plan. How to amend 2010 tax return This is because you are entitled to receive the full amount of your pay whether or not you have any business expenses. How to amend 2010 tax return If you are not sure if the reimbursement or expense allowance arrangement is an accountable or nonaccountable plan, ask your employer. How to amend 2010 tax return Reporting your expenses under a nonaccountable plan. How to amend 2010 tax return   Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay. How to amend 2010 tax return Your employer will report the total in box 1 of your Form W-2. How to amend 2010 tax return    You must complete Form 2106 or 2106-EZ and itemize your deductions to deduct your expenses for travel, transportation, meals, or entertainment. How to amend 2010 tax return Your meal and entertainment expenses will be subject to the 50% limit discussed in chapter 2. How to amend 2010 tax return Also, your total expenses will be subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. How to amend 2010 tax return Example 1. How to amend 2010 tax return Kim's employer gives her $1,000 a month ($12,000 total for the year) for her business expenses. How to amend 2010 tax return Kim does not have to provide any proof of her expenses to her employer, and Kim can keep any funds that she does not spend. How to amend 2010 tax return Kim is being reimbursed under a nonaccountable plan. How to amend 2010 tax return Her employer will include the $12,000 on Kim's Form W-2 as if it were wages. How to amend 2010 tax return If Kim wants to deduct her business expenses, she must complete Form 2106 or 2106-EZ and itemize her deductions. How to amend 2010 tax return Example 2. How to amend 2010 tax return Kevin is paid $2,000 a month by his employer. How to amend 2010 tax return On days that he travels away from home on business, his employer designates $50 a day of his salary as paid to reimburse his travel expenses. How to amend 2010 tax return Because his employer would pay Kevin his monthly salary whether or not he was traveling away from home, the arrangement is a nonaccountable plan. How to amend 2010 tax return No part of the $50 a day designated by his employer is treated as paid under an accountable plan. How to amend 2010 tax return Rules for Independent Contractors and Clients This section provides rules for independent contractors who incur expenses on behalf of a client or customer. How to amend 2010 tax return The rules cover the reporting and substantiation of certain expenses discussed in this publication, and they affect both independent contractors and their clients or customers. How to amend 2010 tax return You are considered an independent contractor if you are self-employed and you perform services for a customer or client. How to amend 2010 tax return Accounting to Your Client If you received a reimbursement or an allowance for travel, entertainment, or gift expenses that you incurred on behalf of a client, you should provide an adequate accounting of these expenses to your client. How to amend 2010 tax return If you do not account to your client for these expenses, you must include any reimbursements or allowances in income. How to amend 2010 tax return You must keep adequate records of these expenses whether or not you account to your client for these expenses. How to amend 2010 tax return If you do not separately account for and seek reimbursement for meals and entertainment in connection with providing services for a client, you are subject to the 50% limit on those expenses. How to amend 2010 tax return See 50% Limit in chapter 2. How to amend 2010 tax return Adequate accounting. How to amend 2010 tax return   As a self-employed person, you adequately account by reporting your actual expenses. How to amend 2010 tax return You should follow the recordkeeping rules in chapter 5 . How to amend 2010 tax return How to report. How to amend 2010 tax return   For information on how to report expenses on your tax return, see Self-employed at the beginning of this chapter. How to amend 2010 tax return Required Records for Clients or Customers If you are a client or customer, you generally do not have to keep records to prove the reimbursements or allowances you give, in the course of your business, to an independent contractor for travel or gift expenses incurred on your behalf. How to amend 2010 tax return However, you must keep records if: You reimburse the contractor for entertainment expenses incurred on your behalf, and The contractor adequately accounts to you for these expenses. How to amend 2010 tax return Contractor adequately accounts. How to amend 2010 tax return   If the contractor adequately accounts to you for entertainment expenses, you (the client or customer) must keep records documenting each element of the expense, as explained in chapter 5 . How to amend 2010 tax return Use your records as proof for a deduction on your tax return. How to amend 2010 tax return If entertainment expenses are accounted for separately, you are subject to the 50% limit on entertainment. How to amend 2010 tax return If the contractor adequately accounts to you for reimbursed amounts, you do not have to report the amounts on an information return. How to amend 2010 tax return Contractor does not adequately account. How to amend 2010 tax return    If the contractor does not adequately account to you for allowances or reimbursements of entertainment expenses, you do not have to keep records of these items. How to amend 2010 tax return You are not subject to the 50% limit on entertainment in this case. How to amend 2010 tax return You can deduct the reimbursements or allowances as payment for services if they are ordinary and necessary business expenses. How to amend 2010 tax return However, you must file Form 1099-MISC to report amounts paid to the independent contractor if the total of the reimbursements and any other fees is $600 or more during the calendar year. How to amend 2010 tax return How To Use Per Diem Rate Tables This section contains information about the per diem rate substantiation methods available and the choice of rates you must make for the last 3 months of the year. How to amend 2010 tax return The Two Substantiation Methods High-low method. How to amend 2010 tax return   IRS notices list the localities that are treated under the high-low substantiation method as high-cost localities for all or part of the year. How to amend 2010 tax return Notice 2012–63, available at www. How to amend 2010 tax return irs. How to amend 2010 tax return gov/irb/2012–42_IRB/ar12. How to amend 2010 tax return html, lists the localities that are eligible for $242 ($65 meals and incidental expenses (M&IE)) per diem, effective October 1, 2012. How to amend 2010 tax return For travel on or after October 1, 2012, all other localities within CONUS are eligible for $163 ($52 M&IE) per diem under the high-low method. How to amend 2010 tax return   Notice 2013–65, available at www. How to amend 2010 tax return irs. How to amend 2010 tax return gov/pub/irs-drop/n-13–65. How to amend 2010 tax return pdf, lists the localities that are eligible for $251 ($65 M&IE) per diem, effective October 1, 2013. How to amend 2010 tax return For travel on or after October 1, 2013, the per diem for all other localities increased to $170 ($52 M&IE). How to amend 2010 tax return Regular federal per diem rate method. How to amend 2010 tax return   Regular federal per diem rates are published by the General Services Administration (GSA). How to amend 2010 tax return Both tables include the separate rate for meals and incidental expenses (M&IE) for each locality. How to amend 2010 tax return The rates listed for FY2013 at www. How to amend 2010 tax return gsa. How to amend 2010 tax return gov/perdiem are effective October 1, 2012 and those listed for FY2014 are effective October 1, 2013. How to amend 2010 tax return The standard rate for all locations within CONUS not specifically listed for FY2013 is $123 ($77 for lodging and $46 for M&IE). How to amend 2010 tax return For FY2014, this rate increased to $129 ($83 for lodging and $46 for M&IE). How to amend 2010 tax return Transition Rules The transition period covers the last 3 months of the calendar year, from the time that new rates are effective (generally October 1) through December 31. How to amend 2010 tax return During this period, you generally may change to the new rates or finish out the year with the rates you had been using. How to amend 2010 tax return High-low method. How to amend 2010 tax return   If you use the high-low substantiation method, when new rates become effective (generally October 1) you can either continue with the rates you used for the first part of the year or change to the new rates. How to amend 2010 tax return However, you must continue using the high-low method for the rest of the calendar year (through December 31). How to amend 2010 tax return If you are an employer, you must use the same rates for all employees reimbursed under the high-low method during that calendar year. How to amend 2010 tax return   The new rates and localities for the high-low method are included each year in a notice that is generally published in mid-to-late-September. How to amend 2010 tax return You can find the notice in the weekly Internal Revenue Bulletin (IRB) on the Internet at www. How to amend 2010 tax return irs. How to amend 2010 tax return gov/irb. How to amend 2010 tax return Federal per diem rate method. How to amend 2010 tax return   New CONUS per diem rates become effective on October 1 of each year and remain in effect through September 30 of the following year. How to amend 2010 tax return Employees being reimbursed under the per diem rate method during the first 9 months of a year (January 1–September 30) must continue under the same method through the end of that calendar year (December 31). How to amend 2010 tax return However, for travel by these employees from October 1 through December 31, you can choose to continue using the same per diem rates or use the new rates. How to amend 2010 tax return   The new federal CONUS per diem rates are published each year, generally early in September, on the Internet. How to amend 2010 tax return Go to www. How to amend 2010 tax return gsa. How to amend 2010 tax return gov/perdiem. How to amend 2010 tax return Per diem rates for localities listed for FY2014 may change at any time. How to amend 2010 tax return To be sure you have the most current rate, check www. How to amend 2010 tax return gsa. How to amend 2010 tax return gov/perdiem. How to amend 2010 tax return Completing Forms 2106 and 2106-EZ This section briefly describes how employees complete Forms 2106 and 2106-EZ. How to amend 2010 tax return Table 6-1 explains what the employer reports on Form W-2 and what the employee reports on Form 2106. How to amend 2010 tax return The instructions for the forms have more information on completing them. How to amend 2010 tax return If you are self-employed, do not file Form 2106 or 2106-EZ. How to amend 2010 tax return Report your expenses on Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040). How to amend 2010 tax return See the instructions for the form that you must file. How to amend 2010 tax return Form 2106-EZ. How to amend 2010 tax return   You may be able to use the shorter Form 2106-EZ to claim your employee business expenses. How to amend 2010 tax return You can use this form if you meet all the following conditions. How to amend 2010 tax return You are an employee deducting ordinary and necessary expenses attributable to your job. How to amend 2010 tax return You were not reimbursed by your employer for your expenses (amounts included in box 1 of your Form W-2 are not considered reimbursements). How to amend 2010 tax return If you are claiming car expenses, you are using the standard mileage rate. How to amend 2010 tax return Car expenses. How to amend 2010 tax return   If you used a car to perform your job as an employee, you may be able to deduct certain car expenses. How to amend 2010 tax return These are generally figured on Form 2106, Part II, and then claimed on Form 2106, Part I, line 1, Column A. How to amend 2010 tax return Car expenses using the standard mileage rate can also be figured on Form 2106-EZ by completing Part II and Part I, line 1. How to amend 2010 tax return Information on use of cars. How to amend 2010 tax return   If you claim any deduction for the business use of a car, you must answer certain questions and provide information about the use of the car. How to amend 2010 tax return The information relates to the following items. How to amend 2010 tax return Date placed in service. How to amend 2010 tax return Mileage (total, business, commuting, and other personal mileage). How to amend 2010 tax return Percentage of business use. How to amend 2010 tax return After-work use. How to amend 2010 tax return Use of other vehicles. How to amend 2010 tax return Whether you have evidence to support the deduction. How to amend 2010 tax return Whether or not the evidence is written. How to amend 2010 tax return Employees must complete Form 2106, Part II, Section A, or Form 2106-EZ, Part II, to provide this information. How to amend 2010 tax return Standard mileage rate. How to amend 2010 tax return   If you claim a deduction based on the standard mileage rate instead of your actual expenses, you must complete Form 2106, Part II, Section B. How to amend 2010 tax return The amount on line 22 (Section B) is carried to Form 2106, Part I, line 1. How to amend 2010 tax return In addition, on Part 1, line 2, you can deduct parking fees and tolls that apply to the business use of the car. How to amend 2010 tax return If you file Form 2106-EZ, complete Part I, line 1, for the standard mileage rate and line 2 for parking fees and tolls. How to amend 2010 tax return See Standard Mileage Rate in chapter 4 for information on using this rate. How to amend 2010 tax return Actual expenses. How to amend 2010 tax return   If you claim a deduction based on actual car expenses, you cannot use Form 2106-EZ. How to amend 2010 tax return You must complete Form 2106, Part II, Section C. How to amend 2010 tax return In addition, unless you lease your car, you must complete Section D to show your depreciation deduction and any section 179 deduction you claim. How to amend 2010 tax return   If you are still using a car that is fully depreciated, continue to complete Section C. How to amend 2010 tax return Since you have no depreciation deduction, enter zero on line 28. How to amend 2010 tax return In this case, do not complete Section D. How to amend 2010 tax return Car rentals. How to amend 2010 tax return   If you claim car rental expenses on Form 2106, line 24a, you may have to reduce that expense by an inclusion amount as described in chapter 4. How to amend 2010 tax return If so, you can show your car expenses and any inclusion amount as follows. How to amend 2010 tax return Compute the inclusion amount without taking into account your business use percentage for the tax year. How to amend 2010 tax return Report the inclusion amount from (1) on Form 2106, Part II, line 24b. How to amend 2010 tax return Report on line 24c the net amount of car rental expenses (total car rental expenses minus the inclusion amount computed in (1)). How to amend 2010 tax return The net amount of car rental expenses will be adjusted on Form 2106, Part II, line 27, to reflect the percentage of business use for the tax year. How to amend 2010 tax return Transportation expenses. How to amend 2010 tax return   Show your transportation expenses that did not involve overnight travel on Form 2106, line 2, Column A, or on Form 2106-EZ, Part I, line 2. How to amend 2010 tax return Also include on this line business expenses you have for parking fees and tolls. How to amend 2010 tax return Do not include expenses of operating your car or expenses of commuting between your home and work. How to amend 2010 tax return Employee business expenses other than meals and entertainment. How to amend 2010 tax return   Show your other employee business expenses on Form 2106, lines 3 and 4, Column A, or Form 2106-EZ, lines 3 and 4. How to amend 2010 tax return Do not include expenses for meals and entertainment on those lines. How to amend 2010 tax return Line 4 is for expenses such as gifts, educational expenses (tuition and books), office-in-the-home expenses, and trade and professional publications. How to amend 2010 tax return    If line 4 expenses are the only ones you are claiming, you received no reimbursements (or the reimbursements were all included in box 1 of your Form W-2), and the Special Rules discussed later do not apply to you, do not complete Form 2106 or 2106-EZ. How to amend 2010 tax return Claim these amounts directly on Schedule A (Form 1040), line 21. How to amend 2010 tax return List the type and amount of each expense on the dotted lines and include the total on line 21. How to amend 2010 tax return Meal and entertainment expenses. How to amend 2010 tax return   Show the full amount of your expenses for business-related meals and entertainment on Form 2106, line 5, Column B. How to amend 2010 tax return Include meals while away from your tax home overnight and other business meals and entertainment. How to amend 2010 tax return Enter 50% of the line 8, Column B, meal and entertainment expenses on line 9, Column B. How to amend 2010 tax return   If you file Form 2106-EZ, enter the full amount of your meals and entertainment on the line to the left of line 5 and multiply the total by 50%. How to amend 2010 tax return Enter the result on line 5. How to amend 2010 tax return Hours of service limits. How to amend 2010 tax return   If you are subject to the Department of Transportation's “hours of service” limits (as explained earlier under Individuals subject to “hours of service” limits in chapter 2), use 80% instead of 50% for meals while away from your tax home. How to amend 2010 tax return Reimbursements. How to amend 2010 tax return   Enter on Form 2106, line 7 (you cannot use Form 2106-EZ) the amounts your employer (or third party) reimbursed you that were not reported to you in box 1 of your Form W-2. How to amend 2010 tax return This includes any amount reported under code L in box 12 of Form W-2. How to amend 2010 tax return Allocating your reimbursement. How to amend 2010 tax return   If you were reimbursed under an accountable plan and want to deduct excess expenses that were not reimbursed, you may have to allocate your reimbursement. How to amend 2010 tax return This is necessary when your employer pays your reimbursement in the following manner: Pays you a single amount that covers meals and/or entertainment, as well as other business expenses, and Does not clearly identify how much is for deductible meals and/or entertainment. How to amend 2010 tax return You must allocate that single payment so that you know how much to enter on Form 2106, line 7, Column A and Column B. How to amend 2010 tax return Example. How to amend 2010 tax return Rob's employer paid him an expense allowance of $12,000 this year under an accountable plan. How to amend 2010 tax return The $12,000 payment consisted of $5,000 for airfare and $7,000 for meals, entertainment, and car expenses. How to amend 2010 tax return The employer did not clearly show how much of the $7,000 was for the cost of deductible meals and entertainment. How to amend 2010 tax return Rob actually spent $14,000 during the year ($5,500 for airfare, $4,500 for meals and entertainment, and $4,000 for car expenses). How to amend 2010 tax return Since the airfare allowance was clearly identified, Rob knows that $5,000 of the payment goes in Column A, line 7, of Form 2106. How to amend 2010 tax return To allocate the remaining $7,000, Rob uses the worksheet from the Instructions for Form 2106. How to amend 2010 tax return His completed worksheet follows. How to amend 2010 tax return Reimbursement Allocation Worksheet (Keep for your records)   1. How to amend 2010 tax return Enter the total amount of reimbursements your employer gave you that were not reported to you in box 1 of Form W-2 $7,000   2. How to amend 2010 tax return Enter the total amount of your expenses for the periods covered by this reimbursement 8,500   3. How to amend 2010 tax return Of the amount on line 2, enter your total expense for meals and entertainment 4,500   4. How to amend 2010 tax return Divide line 3 by line 2. How to amend 2010 tax return Enter the result as a decimal (rounded to at least three places) . How to amend 2010 tax return 529   5. How to amend 2010 tax return Multiply line 1 by line 4. How to amend 2010 tax return Enter the result here and in Column B, line 7 3,703   6. How to amend 2010 tax return Subtract line 5 from line 1. How to amend 2010 tax return Enter the result here and in Column A, line 7 $3,297 On line 7 of Form 2106, Rob enters $8,297 ($5,000 airfare and $3,297 of the $7,000) in Column A and $3,703 (of the $7,000) in Column B. How to amend 2010 tax return After you complete the form. How to amend 2010 tax return   After you have completed your Form 2106 or 2106-EZ, follow the directions on that form to deduct your expenses on the appropriate line of your tax return. How to amend 2010 tax return For most taxpayers, this is line 21 of Schedule A (Form 1040). How to amend 2010 tax return However, if you are a government official paid on a fee basis, a performing artist, an Armed Forces reservist, or a disabled employee with impairment-related work expenses, see Special Rules , later. How to amend 2010 tax return Limits on employee business expenses. How to amend 2010 tax return   Your employee business expenses may be subject to either of the limits described next. How to amend 2010 tax return They are figured in the following order on the specified form. How to amend 2010 tax return 1. How to amend 2010 tax return Limit on meals and entertainment. How to amend 2010 tax return   Certain meal and entertainment expenses are subject to a 50% limit. How to amend 2010 tax return If you are an employee, you figure this limit on line 9 of Form 2106 or line 5 of Form 2106-EZ. How to amend 2010 tax return (See 50% Limit in chapter 2. How to amend 2010 tax return ) 2. How to amend 2010 tax return Limit on miscellaneous itemized deductions. How to amend 2010 tax return   If you are an employee, deduct your employee business expenses (as figured on Form 2106 or 2106-EZ) on line 21 of Schedule A (Form 1040). How to amend 2010 tax return Most miscellaneous itemized deductions, including employee business expenses, are subject to a 2%-of-adjusted-gross-income limit. How to amend 2010 tax return This limit is figured on line 26 of Schedule A (Form 1040). How to amend 2010 tax return 3. How to amend 2010 tax return Limit on total itemized deductions. How to amend 2010 tax return   If your adjusted gross income (line 38 of Form 1040) is more than $300,000 ($150,000 if you are married filing separately), the total of certain itemized deductions, including employee business expenses, may be limited. How to amend 2010 tax return See your form instructions for information on how to figure this limit. How to amend 2010 tax return Special Rules This section discusses special rules that apply only to Armed Forces reservists, government officials who are paid on a fee basis, performing artists, and disabled employees with impairment-related work expenses. How to amend 2010 tax return Armed Forces Reservists Traveling More Than 100 Miles From Home If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. How to amend 2010 tax return The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. How to amend 2010 tax return See Per Diem and Car Allowances , earlier, for more information. How to amend 2010 tax return Any expenses in excess of these amounts can be claimed only as a miscellaneous itemized deduction subject to the 2% limit. How to amend 2010 tax return Member of a reserve component. How to amend 2010 tax return   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; the Air National Guard of the United States; or the Reserve Corps of the Public Health Service. How to amend 2010 tax return How to report. How to amend 2010 tax return   If you have reserve-related travel that takes you more than 100 miles from home, you should first complete Form 2106 or Form 2106-EZ. How to amend 2010 tax return Then include your expenses for reserve travel over 100 miles from home, up to the federal rate, from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. How to amend 2010 tax return Subtract this amount from the total on Form 2106, line 10, or Form 2106-EZ, line 6, and deduct the balance as an itemized deduction on Schedule A (Form 1040), line 21. How to amend 2010 tax return   You cannot deduct expenses of travel that does not take you more than 100 miles from home as an adjustment to gross income. How to amend 2010 tax return Instead, you must complete Form 2106 or 2106-EZ and deduct those expenses as an itemized deduction on Schedule A (Form 1040), line 21. How to amend 2010 tax return Officials Paid on a Fee Basis Certain fee-basis officials can claim their employee business expenses whether or not they itemize their other deductions on Schedule A (Form 1040). How to amend 2010 tax return Fee-basis officials are persons who are employed by a state or local government and who are paid in whole or in part on a fee basis. How to amend 2010 tax return They can deduct their business expenses in performing services in that job as an adjustment to gross income rather than as a miscellaneous itemized deduction. How to amend 2010 tax return If you are a fee-basis official, include your employee business expenses from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. How to amend 2010 tax return Expenses of Certain Performing Artists If you are a performing artist, you may qualify to deduct your employee business expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. How to amend 2010 tax return To qualify, you must meet all of the following requirements. How to amend 2010 tax return During the tax year, you perform services in the performing arts as an employee for at least two employers. How to amend 2010 tax return You receive at least $200 each from any two of these employers. How to amend 2010 tax return Your related performing-arts business expenses are more than 10% of your gross income from the performance of those services. How to amend 2010 tax return Your adjusted gross income is not more than $16,000 before deducting these business expenses. How to amend 2010 tax return Special rules for married persons. How to amend 2010 tax return   If you are married, you must file a joint return unless you lived apart from your spouse at all times during the tax year. How to amend 2010 tax return If you file a joint return, you must figure requirements (1), (2), and (3) separately for both you and your spouse. How to amend 2010 tax return However, requirement (4) applies to your and your spouse's combined adjusted gross income. How to amend 2010 tax return Where to report. How to amend 2010 tax return   If you meet all of the above requirements, you should first complete Form 2106 or 2106-EZ. How to amend 2010 tax return Then you include your performing-arts-related expenses from Form 2106, line 10, or Form 2106-EZ, line 6, in the total on Form 1040, line 24. How to amend 2010 tax return   If you do not meet all of the above requirements, you do not qualify to deduct your expenses as an adjustment to gross income. How to amend 2010 tax return Instead, you must complete Form 2106 or 2106-EZ and deduct your employee business expenses as an itemized deduction on Schedule A (Form 1040), line 21. How to amend 2010 tax return Impairment-Related Work Expenses of Disabled Employees If you are an employee with a physical or mental disability, your impairment-related work expenses are not subject to the 2%-of-adjusted-gross-income limit that applies to most other employee business expenses. How to amend 2010 tax return After you complete Form 2106 or 2106-EZ, enter your impairment-related work expenses from Form 2106, line 10, or Form 2106-EZ, line 6, on Schedule A (Form 1040), line 28, and identify the type and amount of this expense on the dotted line next to line 28. How to amend 2010 tax return Enter your employee business expenses that are unrelated to your disability from Form 2106, line 10, or Form 2106-EZ, line 6, on Schedule A (Form 1040), line 21. How to amend 2010 tax return Impairment-related work expenses are your allowable expenses for attendant care at your workplace and other expenses in connection with your workplace that are necessary for you to be able to work. How to amend 2010 tax return You are disabled if you have: A physical or mental disability (for example, blindness or deafness) that functionally limits your being employed, or A physical or mental impairment (for example, a sight or hearing impairment) that substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, or working. How to amend 2010 tax return You can deduct impairment-related expenses as business expenses if they are: Necessary for you to do your work satisfactorily, For goods and services not required or used, other than incidentally, in your personal activities, and Not specifically covered under other income tax laws. How to amend 2010 tax return Example 1. How to amend 2010 tax return You are blind. How to amend 2010 tax return You must use a reader to do your work. How to amend 2010 tax return You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. How to amend 2010 tax return The reader's services are only for your work. How to amend 2010 tax return You can deduct your expenses for the reader as business expenses. How to amend 2010 tax return Example 2. How to amend 2010 tax return You are deaf. How to amend 2010 tax return You must use a sign language interpreter during meetings while you are at work. How to amend 2010 tax return The interpreter's services are used only for your work. How to amend 2010 tax return You can deduct your expenses for the interpreter as business expenses. How to amend 2010 tax return Prev  Up  Next   Home   More Online Publications