Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

Us Tax Forms 2012

State Tax File1040 Tax Forms Printable2010 10401040ez Tax TablesFree Filing State Income TaxFiling Taxes In 2014H R Block TaxHow Do I File An Amended Tax ReturnHow Do I Amend My 2011 Tax ReturnFree E File Taxes 2012Free 2012 Tax Filing OnlineAmended Federal Tax FormTaxslayer 2011 Tax Return1040nr Free SoftwareHow Can I Amend My Tax ReturnFreefilefillableforms ComTurbotax Free 1040ezFree State Tax Preparation And FilingHow Can I File My 2012 TaxesForm 1040x 2012File State Income Tax FreeIncome Tax PreparationCan I Efile 1040xI Need To Amend My 2011 TaxesFile A Free Tax Extension OnlineTax Form 1040nrSenior Tax RebateTax Filing Deadline 2010Free Tax Filing 2011Download 2010 Tax FormsWww Hnrblock ComFederal Income Tax Amendment FormState Amended FormFile Free Taxes For 2011 No Printing NeededInstructions Michigan 2012 Mi 1040x1040 Tax FormWww Irs GovIrs Gov 1040xTaxact Online 2011Amending Federal Tax Returns

Us Tax Forms 2012

Us tax forms 2012 12. Us tax forms 2012   Business Deduction for Work-Related Education Table of Contents What's New Introduction Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. Us tax forms 2012 Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. Us tax forms 2012  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013, is 56. Us tax forms 2012 5 cents per mile. Us tax forms 2012 For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. Us tax forms 2012 Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Us tax forms 2012 To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. Us tax forms 2012 What is the tax benefit of taking a business deduction for work-related education. Us tax forms 2012   If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Us tax forms 2012 Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. Us tax forms 2012 An itemized deduction reduces the amount of your income subject to tax. Us tax forms 2012   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Us tax forms 2012 This reduces the amount of your income subject to both income tax and self-employment tax. Us tax forms 2012   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. Us tax forms 2012 You may qualify for these other benefits even if you do not meet the requirements listed above. Us tax forms 2012   Also, your work-related education expenses may qualify you to claim more than one tax benefit. Us tax forms 2012 Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Us tax forms 2012 Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Us tax forms 2012 This is education that meets at least one of the following two tests. Us tax forms 2012 The education is required by your employer or the law to keep your present salary, status, or job. Us tax forms 2012 The required education must serve a bona fide business purpose of your employer. Us tax forms 2012 The education maintains or improves skills needed in your present work. Us tax forms 2012 However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Us tax forms 2012 You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Us tax forms 2012 Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. Us tax forms 2012 Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. Us tax forms 2012 This additional education is qualifying work-related education if all three of the following requirements are met. Us tax forms 2012 It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. Us tax forms 2012 When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. Us tax forms 2012 See Education To Maintain or Improve Skills , later. Us tax forms 2012 Example. Us tax forms 2012 You are a teacher who has satisfied the minimum requirements for teaching. Us tax forms 2012 Your employer requires you to take an additional college course each year to keep your teaching job. Us tax forms 2012 If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. Us tax forms 2012 This image is too large to be displayed in the current screen. Us tax forms 2012 Please click the link to view the image. Us tax forms 2012 Figure 12-1 Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. Us tax forms 2012 This could include refresher courses, courses on current developments, and academic or vocational courses. Us tax forms 2012 Example. Us tax forms 2012 You repair televisions, radios, and stereo systems for XYZ Store. Us tax forms 2012 To keep up with the latest changes, you take special courses in radio and stereo service. Us tax forms 2012 These courses maintain and improve skills required in your work. Us tax forms 2012 Maintaining skills vs. Us tax forms 2012 qualifying for new job. Us tax forms 2012   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. Us tax forms 2012 Education during temporary absence. Us tax forms 2012   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Us tax forms 2012 Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Us tax forms 2012 Example. Us tax forms 2012 You quit your biology research job to become a full-time biology graduate student for 1 year. Us tax forms 2012 If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. Us tax forms 2012 Education during indefinite absence. Us tax forms 2012   If you stop work for more than a year, your absence from your job is considered indefinite. Us tax forms 2012 Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. Us tax forms 2012 Therefore, it is not qualifying work-related education. Us tax forms 2012 Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. Us tax forms 2012 The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Us tax forms 2012 Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. Us tax forms 2012 This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. Us tax forms 2012 You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Us tax forms 2012 Example 1. Us tax forms 2012 You are a full-time engineering student. Us tax forms 2012 Although you have not received your degree or certification, you work part time as an engineer for a firm that will employ you as a full-time engineer after you finish college. Us tax forms 2012 Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. Us tax forms 2012 The education is not qualifying work-related education. Us tax forms 2012 Example 2. Us tax forms 2012 You are an accountant and you have met the minimum educational requirements of your employer. Us tax forms 2012 Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Us tax forms 2012 These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. Us tax forms 2012 Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Us tax forms 2012 The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Us tax forms 2012 If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Us tax forms 2012 The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. Us tax forms 2012 You generally will be considered a faculty member when one or more of the following occurs. Us tax forms 2012 You have tenure. Us tax forms 2012 Your years of service count toward obtaining tenure. Us tax forms 2012 You have a vote in faculty decisions. Us tax forms 2012 Your school makes contributions for you to a retirement plan other than social security or a similar program. Us tax forms 2012 Example 1. Us tax forms 2012 The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Us tax forms 2012 In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Us tax forms 2012 If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. Us tax forms 2012 However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Us tax forms 2012 Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. Us tax forms 2012 If you have all the required education except the fifth year, you have met the minimum educational requirements. Us tax forms 2012 The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. Us tax forms 2012 Example 2. Us tax forms 2012 Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Us tax forms 2012 The additional four education courses can be qualifying work-related education. Us tax forms 2012 Although you do not have all the required courses, you have already met the minimum educational requirements. Us tax forms 2012 Example 3. Us tax forms 2012 Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Us tax forms 2012 The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Us tax forms 2012 They are needed to meet the minimum educational requirements for employment as a teacher. Us tax forms 2012 Example 4. Us tax forms 2012 You have a bachelor's degree and you work as a temporary instructor at a university. Us tax forms 2012 At the same time, you take graduate courses toward an advanced degree. Us tax forms 2012 The rules of the university state that you can become a faculty member only if you get a graduate degree. Us tax forms 2012 Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Us tax forms 2012 You have not met the minimum educational requirements to qualify you as a faculty member. Us tax forms 2012 The graduate courses are not qualifying work-related education. Us tax forms 2012 Certification in a new state. Us tax forms 2012   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. Us tax forms 2012 This is true even if you must get additional education to be certified in another state. Us tax forms 2012 Any additional education you need is qualifying work-related education. Us tax forms 2012 You have already met the minimum requirements for teaching. Us tax forms 2012 Teaching in another state is not a new trade or business. Us tax forms 2012 Example. Us tax forms 2012 You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Us tax forms 2012 You move to State B and are promptly hired as a teacher. Us tax forms 2012 You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Us tax forms 2012 These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. Us tax forms 2012 Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. Us tax forms 2012 This is true even if you do not plan to enter that trade or business. Us tax forms 2012 If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Us tax forms 2012 Example 1. Us tax forms 2012 You are an accountant. Us tax forms 2012 Your employer requires you to get a law degree at your own expense. Us tax forms 2012 You register at a law school for the regular curriculum that leads to a law degree. Us tax forms 2012 Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. Us tax forms 2012 Example 2. Us tax forms 2012 You are a general practitioner of medicine. Us tax forms 2012 You take a 2-week course to review developments in several specialized fields of medicine. Us tax forms 2012 The course does not qualify you for a new profession. Us tax forms 2012 It is qualifying work- related education because it maintains or improves skills required in your present profession. Us tax forms 2012 Example 3. Us tax forms 2012 While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Us tax forms 2012 The program will lead to qualifying you to practice psychoanalysis. Us tax forms 2012 The psychoanalytic training does not qualify you for a new profession. Us tax forms 2012 It is qualifying work-related education because it maintains or improves skills required in your present profession. Us tax forms 2012 Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. Us tax forms 2012 They are part of a program of study that can qualify you for a new profession. Us tax forms 2012 Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Us tax forms 2012 A change in duties in any of the following ways is not considered a change to a new business. Us tax forms 2012 Elementary school teacher to secondary school teacher. Us tax forms 2012 Teacher of one subject, such as biology, to teacher of another subject, such as art. Us tax forms 2012 Classroom teacher to guidance counselor. Us tax forms 2012 Classroom teacher to school administrator. Us tax forms 2012 What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education you can generally deduct your education expenses as business expenses. Us tax forms 2012 If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Us tax forms 2012 You cannot deduct expenses related to tax-exempt and excluded income. Us tax forms 2012 Deductible expenses. Us tax forms 2012   The following education expenses can be deducted. Us tax forms 2012 Tuition, books, supplies, lab fees, and similar items. Us tax forms 2012 Certain transportation and travel costs. Us tax forms 2012 Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Us tax forms 2012 Nondeductible expenses. Us tax forms 2012   You cannot deduct personal or capital expenses. Us tax forms 2012 For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Us tax forms 2012 This amount is a personal expense. Us tax forms 2012 Unclaimed reimbursement. Us tax forms 2012   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. Us tax forms 2012 Example. Us tax forms 2012 Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Us tax forms 2012 You do not file a voucher and you do not get reimbursed. Us tax forms 2012 Because you did not file a voucher, you cannot deduct the expenses on your tax return. Us tax forms 2012 Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Us tax forms 2012 If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. Us tax forms 2012 Temporary basis. Us tax forms 2012   You go to school on a temporary basis if either of the following situations applies to you. Us tax forms 2012 Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Us tax forms 2012 Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Us tax forms 2012 Your attendance is temporary up to the date you determine it will last more than 1 year. Us tax forms 2012 If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. Us tax forms 2012 Attendance not on a temporary basis. Us tax forms 2012   You do not go to school on a temporary basis if either of the following situations apply to you. Us tax forms 2012 Your attendance at school is realistically expected to last more than 1 year. Us tax forms 2012 It does not matter how long you actually attend. Us tax forms 2012 Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Us tax forms 2012 Your attendance is not temporary after the date you determine it will last more than 1 year. Us tax forms 2012 Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. Us tax forms 2012 This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Us tax forms 2012 Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Us tax forms 2012 Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Us tax forms 2012 Example 1. Us tax forms 2012 You regularly work in a nearby town, and go directly from work to home. Us tax forms 2012 You also attend school every work night for 3 months to take a course that improves your job skills. Us tax forms 2012 Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Us tax forms 2012 This is true regardless of the distance traveled. Us tax forms 2012 Example 2. Us tax forms 2012 Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Us tax forms 2012 You can deduct your transportation expenses from your regular work site to school and then home. Us tax forms 2012 Example 3. Us tax forms 2012 Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Us tax forms 2012 Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Us tax forms 2012 Example 4. Us tax forms 2012 Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Us tax forms 2012 Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Us tax forms 2012 If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Us tax forms 2012 If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. Us tax forms 2012 Using your car. Us tax forms 2012    If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. Us tax forms 2012 The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. Us tax forms 2012 5 cents per mile. Us tax forms 2012 Whichever method you use, you can also deduct parking fees and tolls. Us tax forms 2012 See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. Us tax forms 2012 Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. Us tax forms 2012 Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Us tax forms 2012 For more information, see chapter 1 of Publication 463. Us tax forms 2012 You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. Us tax forms 2012 Mainly personal travel. Us tax forms 2012   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Us tax forms 2012 You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Us tax forms 2012   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Us tax forms 2012 An important factor is the comparison of time spent on personal activities with time spent on educational activities. Us tax forms 2012 If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. Us tax forms 2012 Example 1. Us tax forms 2012 John works in Newark, New Jersey. Us tax forms 2012 He traveled to Chicago to take a deductible 1-week course at the request of his employer. Us tax forms 2012 His main reason for going to Chicago was to take the course. Us tax forms 2012 While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Us tax forms 2012 Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Us tax forms 2012 He cannot deduct his transportation expenses of going to Pleasantville. Us tax forms 2012 He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Us tax forms 2012 Example 2. Us tax forms 2012 Sue works in Boston. Us tax forms 2012 She went to a university in Michigan to take a course for work. Us tax forms 2012 The course is qualifying work-related education. Us tax forms 2012 She took one course, which is one-fourth of a full course load of study. Us tax forms 2012 She spent the rest of the time on personal activities. Us tax forms 2012 Her reasons for taking the course in Michigan were all personal. Us tax forms 2012 Sue's trip is mainly personal because three-fourths of her time is considered personal time. Us tax forms 2012 She cannot deduct the cost of her round-trip train ticket to Michigan. Us tax forms 2012 She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Us tax forms 2012 Example 3. Us tax forms 2012 Dave works in Nashville and recently traveled to California to take a 2-week seminar. Us tax forms 2012 The seminar is qualifying work-related education. Us tax forms 2012 While there, he spent an extra 8 weeks on personal activities. Us tax forms 2012 The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Us tax forms 2012 Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Us tax forms 2012 He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Us tax forms 2012 Cruises and conventions. Us tax forms 2012   Certain cruises and conventions offer seminars or courses as part of their itinerary. Us tax forms 2012 Even if the seminars or courses are work related, your deduction for travel may be limited. Us tax forms 2012 This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Us tax forms 2012   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. Us tax forms 2012 50% limit on meals. Us tax forms 2012   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Us tax forms 2012 If you were reimbursed for the meals, see How To Treat Reimbursements , later. Us tax forms 2012   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Us tax forms 2012 Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. Us tax forms 2012 Example. Us tax forms 2012 You are a French language teacher. Us tax forms 2012 While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Us tax forms 2012 You chose your itinerary and most of your activities to improve your French language skills. Us tax forms 2012 You cannot deduct your travel expenses as education expenses. Us tax forms 2012 This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. Us tax forms 2012 No Double Benefit Allowed You cannot do either of the following. Us tax forms 2012 Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. Us tax forms 2012 Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Us tax forms 2012 See Adjustments to Qualifying Work-Related Education Expenses, next. Us tax forms 2012 Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. Us tax forms 2012 You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Us tax forms 2012 Tax-free educational assistance. Us tax forms 2012   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Us tax forms 2012 Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Us tax forms 2012 Amounts that do not reduce qualifying work-related education expenses. Us tax forms 2012   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Us tax forms 2012 Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. Us tax forms 2012 How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Us tax forms 2012 There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Us tax forms 2012 You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Us tax forms 2012 Note. Us tax forms 2012 The following rules about reimbursement arrangements also apply to expense allowances received from your employer. Us tax forms 2012 Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Us tax forms 2012 Your expenses must have a business connection. Us tax forms 2012 This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. Us tax forms 2012 You must adequately account to your employer for your expenses within a reasonable period of time. Us tax forms 2012 You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. Us tax forms 2012 If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. Us tax forms 2012 If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. Us tax forms 2012 Accountable plan rules not met. Us tax forms 2012   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. Us tax forms 2012 Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). Us tax forms 2012 Expenses equal reimbursement. Us tax forms 2012   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. Us tax forms 2012 Because your expenses and reimbursements are equal, you do not have a deduction. Us tax forms 2012 Excess expenses. Us tax forms 2012   If your expenses are more than your reimbursement, you can deduct your excess expenses. Us tax forms 2012 This is discussed later, under Deducting Business Expenses . Us tax forms 2012 Allocating your reimbursements for meals. Us tax forms 2012   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. Us tax forms 2012 If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. Us tax forms 2012 Make the allocation as follows. Us tax forms 2012 Divide your meal expenses by your total expenses. Us tax forms 2012 Multiply your total reimbursement by the result from (1). Us tax forms 2012 This is the allocated reimbursement for your meal expenses. Us tax forms 2012 Subtract the amount figured in (2) from your total reimbursement. Us tax forms 2012 The difference is the allocated reimbursement for your other expenses of qualifying work-related education. Us tax forms 2012 Example. Us tax forms 2012 Your employer paid you an expense allowance of $2,000 under an accountable plan. Us tax forms 2012 The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. Us tax forms 2012 There was no indication of how much of the reimbursement was for each type of expense. Us tax forms 2012 Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). Us tax forms 2012 Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. Us tax forms 2012   1. Us tax forms 2012 $425 meal expenses  $2,500 total expenses = . Us tax forms 2012 17   2. Us tax forms 2012 $2,000 (reimbursement)×. Us tax forms 2012 17     =$340 (allocated reimbursement for meal expenses)   3. Us tax forms 2012 $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). Us tax forms 2012 After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). Us tax forms 2012 Nonaccountable Plans 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 and report the total in box 1 of your Form W-2. Us tax forms 2012 You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. Us tax forms 2012 This is discussed later under Deducting Business Expenses . Us tax forms 2012 An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. Us tax forms 2012 Reimbursements for nondeductible expenses. Us tax forms 2012   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. Us tax forms 2012 You must include them in your income. Us tax forms 2012 For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. Us tax forms 2012   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. Us tax forms 2012 Deducting Business Expenses Self-employed persons and employees report their business expenses differently. Us tax forms 2012 The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Us tax forms 2012 Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). Us tax forms 2012 If your education expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. Us tax forms 2012 See the instructions for the form you file for information on how to complete it. Us tax forms 2012 Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. Us tax forms 2012 If either (1) or (2) applies, you can deduct the total qualifying cost. Us tax forms 2012 If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Us tax forms 2012 In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Us tax forms 2012 (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Us tax forms 2012 ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Us tax forms 2012 Form 2106 or 2106-EZ. Us tax forms 2012   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. Us tax forms 2012 Form not required. Us tax forms 2012   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. Us tax forms 2012   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Us tax forms 2012 (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. Us tax forms 2012 ) Using Form 2106-EZ. Us tax forms 2012   This form is shorter and easier to use than Form 2106. Us tax forms 2012 Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. Us tax forms 2012   If you do not meet both of these requirements, use Form 2106. Us tax forms 2012 Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. Us tax forms 2012 Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. Us tax forms 2012 You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Us tax forms 2012 You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . Us tax forms 2012 For more information on qualified performing artists, see chapter 6 of Publication 463. Us tax forms 2012 Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Us tax forms 2012 They are not subject to the 2%-of-adjusted-gross-income limit. Us tax forms 2012 To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Us tax forms 2012 For more information on impairment-related work expenses, see chapter 6 of Publication 463. Us tax forms 2012 Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Us tax forms 2012 Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Us tax forms 2012 If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. Us tax forms 2012 However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. Us tax forms 2012 Examples of records to keep. Us tax forms 2012   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. Us tax forms 2012 You should keep adequate records or have sufficient evidence that will support your expenses. Us tax forms 2012 Estimates or approximations do not qualify as proof of an expense. Us tax forms 2012 Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. Us tax forms 2012 , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. Us tax forms 2012 Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. Us tax forms 2012 Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. Us tax forms 2012 Complete information about any scholarship or fellowship grants, including amounts you received during the year. Us tax forms 2012 Illustrated Example Victor Jones teaches math at a private high school in North Carolina. Us tax forms 2012 He was selected to attend a 3-week math seminar at a university in California. Us tax forms 2012 The seminar will improve his skills in his current job and is qualifying work-related education. Us tax forms 2012 He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. Us tax forms 2012 Victor will file Form 1040. Us tax forms 2012 His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. Us tax forms 2012 He shows his expenses for the seminar in Part I of the form. Us tax forms 2012 He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. Us tax forms 2012 He enters $400 on line 4 for his tuition and books. Us tax forms 2012 On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. Us tax forms 2012 He multiplies that amount by 50% and enters the result, $263, on line 5. Us tax forms 2012 On line 6, Victor totals the amounts from lines 3 through 5. Us tax forms 2012 He carries the total, $2,313, to Schedule A (Form 1040), line 21. Us tax forms 2012 Since he does not claim any vehicle expenses, Victor leaves Part II blank. Us tax forms 2012 His filled-in form is shown on the next page. Us tax forms 2012 This image is too large to be displayed in the current screen. Us tax forms 2012 Please click the link to view the image. Us tax forms 2012 Form 2106-EZ for V. Us tax forms 2012 Jones Prev  Up  Next   Home   More Online Publications
Español

Read the Consumer Action Handbook Online

Browse the Consumer Action Handbook by topic.

You can also order a print copy, explore the interactive version, download it (PDF), or download it by section.


Food and Grocery Shopping

Going Green

Telemarketing and Unwanted Mail

Utilities

The Us Tax Forms 2012

Us tax forms 2012 Publication 527 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionSale of main home used as rental property. Us tax forms 2012 Tax-free exchange of rental property occasionally used for personal purposes. Us tax forms 2012 Ordering forms and publications. Us tax forms 2012 Tax questions. Us tax forms 2012 Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 527, such as legislation enacted after it was published, go to www. Us tax forms 2012 irs. Us tax forms 2012 gov/pub527. Us tax forms 2012 What's New Net Investment Income Tax (NIIT). Us tax forms 2012  Beginning in 2013, you may be subject to the Net Investment Income Tax (NIIT). Us tax forms 2012 NIIT is a 3. Us tax forms 2012 8% tax on the lesser of net investment income or the excess of modified adjusted gross income (MAGI) over the threshold amount. Us tax forms 2012 Net investment income may include rental income and other income from passive activities. Us tax forms 2012 Use Form 8960, Net Investment Income Tax, to figure this tax. Us tax forms 2012 For more information on NIIT, go to IRS. Us tax forms 2012 gov and enter “Net Investment Income Tax” in the search box. Us tax forms 2012 Reminders Photographs of missing children. Us tax forms 2012  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Us tax forms 2012 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Us tax forms 2012 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Us tax forms 2012 Introduction Do you own a second house that you rent out all the time? Do you own a vacation home that you rent out when you or your family isn't using it? These are two common types of residential rental activities discussed in this publication. Us tax forms 2012 In most cases, all rental income must be reported on your tax return, but there are differences in the expenses you are allowed to deduct and in the way the rental activity is reported on your return. Us tax forms 2012 First, this publication will look at the rental-for-profit activity in which there is no personal use of the property. Us tax forms 2012 We will look at types of income and when each is reported, and at types of expenses and which are deductible. Us tax forms 2012 Chapter 2 discusses depreciation as it applies to your rental real estate activity—what property can be depreciated and how to figure it. Us tax forms 2012 Chapter 3 covers the actual reporting of your rental income and deductions, including casualties and thefts, limitations on losses, and claiming the correct amount of depreciation. Us tax forms 2012 Special rental situations are grouped together in chapter 4. Us tax forms 2012 These include condominiums, cooperatives, property changed to rental use, renting only part of your property, and a not-for-profit rental activity. Us tax forms 2012 Finally, in chapter 5, we will look at the rules for rental income and expenses when there is also personal use of the dwelling unit, such as a vacation home. Us tax forms 2012 Sale or exchange of rental property. Us tax forms 2012   For information on how to figure and report any gain or loss from the sale, exchange or other disposition of your rental property, see Publication 544, Sales and Other Dispositions of Assets. Us tax forms 2012 Sale of main home used as rental property. Us tax forms 2012   For information on how to figure and report any gain or loss from the sale or other disposition of your main home that you also used as rental property, see Publication 523, Selling Your Home. Us tax forms 2012 Tax-free exchange of rental property occasionally used for personal purposes. Us tax forms 2012   If you meet certain qualifying use standards, you may qualify for a tax-free exchange (a like-kind or section 1031 exchange) of one piece of rental property you own for a similar piece of rental property, even if you have used the rental property for personal purposes. Us tax forms 2012   For information on the qualifying use standards, see Rev. Us tax forms 2012 Proc. Us tax forms 2012 2008–16, 2008 IRB 547, at http://www. Us tax forms 2012 irs. Us tax forms 2012 gov/irb/2008-10_IRB/ar12. Us tax forms 2012 html . Us tax forms 2012 For more information on like-kind exchanges, see chapter 1 of Publication 544. Us tax forms 2012 Comments and suggestions. Us tax forms 2012   We welcome your comments about this publication and your suggestions for future editions. Us tax forms 2012   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Us tax forms 2012 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Us tax forms 2012 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Us tax forms 2012   You can send your comments from www. Us tax forms 2012 irs. Us tax forms 2012 gov/formspubs/. Us tax forms 2012 Click on “More Information” and then on “Comment on Tax Forms and Publications”. Us tax forms 2012   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. Us tax forms 2012 Ordering forms and publications. Us tax forms 2012   Visit www. Us tax forms 2012 irs. Us tax forms 2012 gov/formspubs/ to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Us tax forms 2012 Internal Revenue Service 1201 N. Us tax forms 2012 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Us tax forms 2012   If you have a tax question, check the information available on IRS. Us tax forms 2012 gov or call 1-800-829-1040. Us tax forms 2012 We cannot answer tax questions sent to either of the above addresses. Us tax forms 2012 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 534 Depreciating Property Placed in Service Before 1987 535 Business Expenses 544 Sales and Other Dispositions of Assets 547 Casualties, Disasters, and Thefts 551 Basis of Assets 925 Passive Activity and At-Risk Rules 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 5213 Election To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit 8582 Passive Activity Loss Limitations Schedule E (Form 1040) Supplemental Income and Loss   See chapter 6, How To Get Tax Help for information about getting these publications and forms. Us tax forms 2012 Prev  Up  Next   Home   More Online Publications