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If I Am Unemployed Do I File Taxes

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If I Am Unemployed Do I File Taxes

If i am unemployed do i file taxes 6. If i am unemployed do i file taxes   Estimated Tax Table of Contents Who Must Make Estimated Tax Payments Estimated tax is a method used to pay tax on income that is not subject to withholding. If i am unemployed do i file taxes This income includes self-employment income, interest, dividends, alimony, rent, gains from the sale of assets, prizes, and awards. If i am unemployed do i file taxes Income tax generally is withheld from pensions and annuity payments you receive. If i am unemployed do i file taxes However, if the tax withheld from your pension (or other) income is not enough, you may have to pay estimated tax. If i am unemployed do i file taxes If you do not pay enough tax through withholding, by making estimated tax payments, or both, you may be charged a penalty. If i am unemployed do i file taxes Who Must Make Estimated Tax Payments If you had a tax liability for 2013, you may have to pay estimated tax for 2014. If i am unemployed do i file taxes In most cases, you must pay estimated tax for 2014 if both of the following apply. If i am unemployed do i file taxes You expect to owe at least $1,000 in tax for 2014, after subtracting your withholding and refundable credits. If i am unemployed do i file taxes You expect your withholding and refundable 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. If i am unemployed do i file taxes The 2013 tax return must cover all 12 months. If i am unemployed do i file taxes If all of your income will be subject to income tax withholding, you probably do not need to make estimated tax payments. If i am unemployed do i file taxes For more information on estimated tax, see Publication 505. If i am unemployed do i file taxes Prev  Up  Next   Home   More Online Publications
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Understanding Your CP53C Notice

We tried to direct deposit your refund, but the financial institution couldn’t process it. When refund payments are questionable, we review related returns to ensure the return is valid. We are researching your account, but it will take 8 to 10 weeks to complete our review and verify this refund.


What you need to do

  • You don’t need to do anything at this time.

You may want to

  • Call us at the toll-free number on the notice if you don’t receive your refund check or a follow-up letter within 10 weeks
  • Monitor your financial accounts

However, if you call us before 10 weeks have passed, we won’t have any information about the status of your refund.


Answers to Common Questions

Q. Why was my direct deposit refund returned to the IRS?

A. A financial institution will reject a refund for a variety of reasons. Most often, the personal information on the direct deposit doesn’t match its records: 

  • Name
  • SSN
  • Routing number

Q. Why could the refund review take up to 10 weeks?

A. We must research your account to determine if you are entitled to the refund. We try to balance customer service and tax compliance when we review tax returns. Refund timeframes are also affected by:

  • Bankruptcy
  • An open audit
  • A balance due on a related account (such as a different tax year)

Q. Will calling the IRS give me additional information or speed my refund?

A. No, calling us won’t speed up your refund. You don’t need to call us unless we send you a letter asking ask you to contact us. Our telephone assistors won’t be able to provide any additional information.


Tips for next year

If you request a direct deposit refund, be sure the account you specify is in your name (or your spouse’s if you have a joint refund).


If you changed your name as a result of a recent marriage or divorce, be sure you’ll want to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration.


Never direct your refund to an account that belongs to a relative, friend, or tax return preparer.

Page Last Reviewed or Updated: 22-Jan-2014

Printable samples of this notice (PDF)

 

 

How to get help

  • Call the 1-800 number listed on the top right corner of your notice.
  • Authorize someone (e.g., accountant) to contact the IRS on your behalf using Form 2848.
  • See if you qualify for help from a Low Income Taxpayer Clinic.
     

The If I Am Unemployed Do I File Taxes

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