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Www Free State Tax Return

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Www Free State Tax Return

Www free state tax return 7. Www free state tax return   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. Www free state tax return Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. Www free state tax return Useful Items - You may want to see: Forms (and Instructions) 1040 U. Www free state tax return S. Www free state tax return Individual Income Tax Return 1040A U. Www free state tax return S. Www free state tax return Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Www free state tax return S. Www free state tax return Nonresident Alien Income Tax Return 1040NR-EZ U. Www free state tax return S. Www free state tax return Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. Www free state tax return What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. Www free state tax return Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. Www free state tax return The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). Www free state tax return Under U. Www free state tax return S. Www free state tax return immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Www free state tax return Extensions of time to file. Www free state tax return   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. Www free state tax return You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). Www free state tax return Use Form 4868 to get the extension to October 15. Www free state tax return In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Www free state tax return To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Www free state tax return Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Www free state tax return   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. Www free state tax return S. Www free state tax return citizens and resident aliens abroad who expect to qualify for special tax treatment). Www free state tax return    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. Www free state tax return You may be able to file your return electronically. Www free state tax return See IRS e-file in your form instructions. Www free state tax return Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. Www free state tax return If you are any of the following, you must file a return. Www free state tax return A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. Www free state tax return (But see Exceptions , later. Www free state tax return ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. Www free state tax return S. Www free state tax return sources, or Your income is exempt from income tax. Www free state tax return A nonresident alien individual not engaged in a trade or business in the United States with U. Www free state tax return S. Www free state tax return income on which the tax liability was not satisfied by the withholding of tax at the source. Www free state tax return A representative or agent responsible for filing the return of an individual described in (1) or (2). Www free state tax return A fiduciary for a nonresident alien estate or trust. Www free state tax return You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. Www free state tax return For example, if you have no U. Www free state tax return S. Www free state tax return business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. Www free state tax return For information on what is timely, see When to file for deductions and credits under When To File, later. Www free state tax return Exceptions. Www free state tax return   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. Www free state tax return Your only U. Www free state tax return S. Www free state tax return trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. Www free state tax return You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Www free state tax return Even if you have left the United States and filed a Form 1040-C, U. Www free state tax return S. Www free state tax return Departing Alien Income Tax Return, on departure, you still must file an annual U. Www free state tax return S. Www free state tax return income tax return. Www free state tax return If you are married and both you and your spouse are required to file, you must each file a separate return. Www free state tax return Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. Www free state tax return You do not claim any dependents. Www free state tax return You cannot be claimed as a dependent on someone else's U. Www free state tax return S. Www free state tax return tax return. Www free state tax return If you were married, you do not claim an exemption for your spouse. Www free state tax return Your taxable income is less than $100,000. Www free state tax return The only itemized deduction you can claim is for state and local income taxes. Www free state tax return Note. Www free state tax return Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. Www free state tax return See chapter 5. Www free state tax return Your only U. Www free state tax return S. Www free state tax return source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. Www free state tax return (If you had taxable interest or dividend income, you cannot use this form. Www free state tax return ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. Www free state tax return You are not claiming any tax credits. Www free state tax return This is not an “expatriation return. Www free state tax return ” See Expatriation Tax in chapter 4. Www free state tax return The only taxes you owe are: The income tax from the Tax Table. Www free state tax return The social security and Medicare tax from Form 4137 or Form 8919. Www free state tax return You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. Www free state tax return You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. Www free state tax return If you do not meet all of the above conditions, you must file Form 1040NR. Www free state tax return When To File If you are an employee and you receive wages subject to U. Www free state tax return S. Www free state tax return income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. Www free state tax return For the 2013 calendar year, file your return by April 15, 2014. Www free state tax return If you are not an employee who receives wages subject to U. Www free state tax return S. Www free state tax return income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Www free state tax return For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. Www free state tax return ) Extensions of time to file. Www free state tax return   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. Www free state tax return For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). Www free state tax return You must file the extension by the regular due date of your return. Www free state tax return   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). Www free state tax return To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Www free state tax return Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Www free state tax return When to file for deductions and credits. Www free state tax return   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. Www free state tax return For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. Www free state tax return However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. Www free state tax return The allowance of the following credits is not affected by this time requirement. Www free state tax return Credit for withheld taxes. Www free state tax return Credit for excise tax on certain uses of gasoline and special fuels. Www free state tax return Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. Www free state tax return Protective return. Www free state tax return   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. Www free state tax return S. Www free state tax return trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. Www free state tax return By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. Www free state tax return You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. Www free state tax return   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. Www free state tax return To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. Www free state tax return   You can follow the same procedure if you believe you have no U. Www free state tax return S. Www free state tax return tax liability because of a U. Www free state tax return S. Www free state tax return tax treaty. Www free state tax return Be sure to also complete item L on page 5 of Form 1040NR. Www free state tax return Waiver of filing deadline. Www free state tax return   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. Www free state tax return S. Www free state tax return income tax return (including a protective return) and you cooperate with the IRS in determining your U. Www free state tax return S. Www free state tax return income tax liability for the tax year for which you did not file a return. Www free state tax return Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. Www free state tax return  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. Www free state tax return O. Www free state tax return Box 1303 Charlotte, NC 28201-1303 Aliens from the U. Www free state tax return S. Www free state tax return Virgin Islands. Www free state tax return    If you are a bona fide resident of the U. Www free state tax return S. Www free state tax return Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. Www free state tax return S. Www free state tax return Virgin Islands and file your income tax returns at the following address. Www free state tax return Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Www free state tax return Thomas, VI 00802   Report all income from U. Www free state tax return S. Www free state tax return sources, as well as income from other sources, on your return. Www free state tax return For information on filing U. Www free state tax return S. Www free state tax return Virgin Islands returns, contact the U. Www free state tax return S. Www free state tax return Virgin Islands Bureau of Internal Revenue. Www free state tax return   Chapter 8 discusses withholding from U. Www free state tax return S. Www free state tax return wages of U. Www free state tax return S. Www free state tax return Virgin Islanders. Www free state tax return Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Www free state tax return   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. Www free state tax return Report all income, including income from U. Www free state tax return S. Www free state tax return sources, on your return. Www free state tax return It is not necessary to file a separate U. Www free state tax return S. Www free state tax return income tax return. Www free state tax return    Bona fide residents of Guam should file their Guam returns at the following address. Www free state tax return   Department of Revenue and Taxation Government of Guam P. Www free state tax return O. Www free state tax return Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. Www free state tax return   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Www free state tax return O. Www free state tax return Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. Www free state tax return 570, Tax Guide for Individuals With Income From U. Www free state tax return S. Www free state tax return Possessions, for information on where to file your return. Www free state tax return Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. Www free state tax return S. Www free state tax return Individual Income Tax Return. Www free state tax return Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. Www free state tax return If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. Www free state tax return ) to Form 1040X. Www free state tax return Print “Amended” across the top. Www free state tax return Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. Www free state tax return A return filed before the final due date is considered to have been filed on the due date. Www free state tax return Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. Www free state tax return FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. Www free state tax return The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. Www free state tax return The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. Www free state tax return However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. Www free state tax return A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. Www free state tax return Filing requirements. Www free state tax return   FinCEN Form 105 filing requirements follow. Www free state tax return Recipients. Www free state tax return   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. Www free state tax return Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. Www free state tax return   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. Www free state tax return Travelers. Www free state tax return   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. Www free state tax return Penalties. Www free state tax return   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. Www free state tax return Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. Www free state tax return More information. Www free state tax return   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. Www free state tax return Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. Www free state tax return A resident alien of the United States for any part of the tax year. Www free state tax return A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. Www free state tax return S. Www free state tax return income tax treaty. Www free state tax return See Effect of Tax Treaties in chapter 1. Www free state tax return A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. Www free state tax return See chapter 1 for information about this election. Www free state tax return A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Www free state tax return See Publication 570, Tax Guide for Individuals With Income From U. Www free state tax return S. Www free state tax return Possessions, for a definition of bona fide resident. Www free state tax return You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). Www free state tax return The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Www free state tax return Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Www free state tax return S. Www free state tax return person. Www free state tax return You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Www free state tax return More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Www free state tax return Penalties The law provides penalties for failure to file returns or pay taxes as required. Www free state tax return Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. Www free state tax return You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. Www free state tax return If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. Www free state tax return Filing late. Www free state tax return   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. Www free state tax return The penalty is based on the tax not paid by the due date (without regard to extensions). Www free state tax return The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. Www free state tax return Fraud. Www free state tax return   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. Www free state tax return Return over 60 days late. Www free state tax return   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Www free state tax return Exception. Www free state tax return   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. Www free state tax return Paying tax late. Www free state tax return   You will have to pay a failure-to-pay penalty of ½ of 1% (. Www free state tax return 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. Www free state tax return This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. Www free state tax return   The monthly rate of the failure-to-pay penalty is half the usual rate (. Www free state tax return 25% instead of . Www free state tax return 50%) if an installment agreement is in effect for that month. Www free state tax return You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. Www free state tax return   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. Www free state tax return If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. Www free state tax return   This penalty cannot be more than 25% of your unpaid tax. Www free state tax return You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. Www free state tax return Combined penalties. Www free state tax return   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. Www free state tax return However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Www free state tax return Accuracy-related penalty. Www free state tax return   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. Www free state tax return The penalty is equal to 20% of the underpayment. Www free state tax return The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. Www free state tax return The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. Www free state tax return Negligence or disregard. Www free state tax return   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. Www free state tax return Negligence also includes failure to keep adequate books and records. Www free state tax return You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. Www free state tax return   The term “disregard” includes any careless, reckless, or intentional disregard. Www free state tax return Adequate disclosure. Www free state tax return   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. Www free state tax return See Disclosure statement , later. Www free state tax return   This exception will not apply to an item that is attributable to a tax shelter. Www free state tax return In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. Www free state tax return Substantial understatement of income tax. Www free state tax return   You understate your tax if the tax shown on your return is less than the correct tax. Www free state tax return The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. Www free state tax return However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. Www free state tax return   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. Www free state tax return However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. Www free state tax return Substantial authority. Www free state tax return   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. Www free state tax return Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. Www free state tax return Disclosure statement. Www free state tax return   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. Www free state tax return You must also have a reasonable basis for treating the item the way you did. Www free state tax return   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. Www free state tax return   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. Www free state tax return Transaction lacking economic substance. Www free state tax return   For more information on economic substance, see section 7701(o). Www free state tax return Foreign financial asset. Www free state tax return   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. Www free state tax return Reasonable cause. Www free state tax return   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. Www free state tax return You must also show that you acted in good faith. Www free state tax return This does not apply to a transaction that lacks economic substance. Www free state tax return Filing erroneous claim for refund or credit. Www free state tax return   You may have to pay a penalty if you file an erroneous claim for refund or credit. Www free state tax return The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. Www free state tax return However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. Www free state tax return The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. Www free state tax return Frivolous tax submission. Www free state tax return   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. Www free state tax return A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. Www free state tax return For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. Www free state tax return irs. Www free state tax return gov/irb/2010-17_irb/ar13. Www free state tax return html. Www free state tax return   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. Www free state tax return This includes altering or striking out the preprinted language above the space provided for your signature. Www free state tax return   This penalty is added to any other penalty provided by law. Www free state tax return Fraud. Www free state tax return   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. Www free state tax return Failure to supply taxpayer identification number. Www free state tax return   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. Www free state tax return You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. Www free state tax return   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. Www free state tax return The number must be shown on the Form 1099-INT or other statement the bank sends you. Www free state tax return If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. Www free state tax return (You also may be subject to “backup” withholding of income tax. Www free state tax return )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. Www free state tax return Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. Www free state tax return Prev  Up  Next   Home   More Online Publications
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The Www Free State Tax Return

Www free state tax return 27. Www free state tax return   Tax Benefits for Work-Related Education Table of Contents What's New Introduction Useful Items - You may want to see: 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. Www free state tax return Transportation Expenses Travel Expenses No Double Benefit Allowed Reimbursements Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping What's New Standard mileage rate. Www free state tax return  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 56½ cents per mile. Www free state tax return For more information, see Transportation Expenses under What Expenses Can Be Deducted. Www free state tax return Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Www free state tax return To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040) if you are an employee, File Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040) if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education . Www free state tax return 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. Www free state tax return 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. Www free state tax return See chapter 28. Www free state tax return If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Www free state tax return Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits (see chapter 35). Www free state tax return You may qualify for these other benefits even if you do not meet the requirements listed earlier. Www free state tax return Also, keep in mind that your work-related education expenses may qualify you to claim more than one tax benefit. Www free state tax return Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Www free state tax return When you figure your taxes, you may want to compare these tax benefits so you can choose the method(s) that give you the lowest tax liability. Www free state tax return Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 970 Tax Benefits for Education Form (and Instructions) 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses Schedule A (Form 1040) Itemized Deductions Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Www free state tax return This is education that meets at least one of the following two tests. Www free state tax return The education is required by your employer or the law to keep your present salary, status, or job. Www free state tax return The required education must serve a bona fide business purpose of your employer. Www free state tax return The education maintains or improves skills needed in your present work. Www free state tax return 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. Www free state tax return You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Www free state tax return Use Figure 27-A, later, as a quick check to see if your education qualifies. Www free state tax return 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. Www free state tax return This additional education is qualifying work-related education if all three of the following requirements are met. Www free state tax return 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. Www free state tax return 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. Www free state tax return See Education To Maintain or Improve Skills , later. Www free state tax return Example. Www free state tax return You are a teacher who has satisfied the minimum requirements for teaching. Www free state tax return Your employer requires you to take an additional college course each year to keep your teaching job. Www free state tax return 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. Www free state tax return 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. Www free state tax return This could include refresher courses, courses on current developments, and academic or vocational courses. Www free state tax return Example. Www free state tax return You repair televisions, radios, and stereo systems for XYZ Store. Www free state tax return To keep up with the latest changes, you take special courses in radio and stereo service. Www free state tax return These courses maintain and improve skills required in your work. Www free state tax return Maintaining skills vs. Www free state tax return qualifying for new job. Www free state tax return   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. Www free state tax return Education during temporary absence. Www free state tax return   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. Www free state tax return Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Www free state tax return Example. Www free state tax return You quit your biology research job to become a full-time biology graduate student for one year. Www free state tax return 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. Www free state tax return Education during indefinite absence. Www free state tax return   If you stop work for more than a year, your absence from your job is considered indefinite. Www free state tax return 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. Www free state tax return Therefore, it is not qualifying work-related education. Www free state tax return 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. Www free state tax return The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Www free state tax return 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. Www free state tax return 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. Www free state tax return You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Www free state tax return Example 1. Www free state tax return You are a full-time engineering student. Www free state tax return 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. Www free state tax return 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. Www free state tax return The education is not qualifying work-related education. Www free state tax return Example 2. Www free state tax return You are an accountant and you have met the minimum educational requirements of your employer. Www free state tax return Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Www free state tax return 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. Www free state tax return Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Www free state tax return The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Www free state tax return If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Www free state tax return 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. Www free state tax return You generally will be considered a faculty member when one or more of the following occurs. Www free state tax return You have tenure. Www free state tax return Your years of service count toward obtaining tenure. Www free state tax return You have a vote in faculty decisions. Www free state tax return Your school makes contributions for you to a retirement plan other than social security or a similar program. Www free state tax return Example 1. Www free state tax return The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Www free state tax return In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Www free state tax return 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. Www free state tax return However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Www free state tax return 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. Www free state tax return If you have all the required education except the fifth year, you have met the minimum educational requirements. Www free state tax return 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. Www free state tax return Figure 27-A Does Your Work-Related Education Qualify? Please click here for the text description of the image. Www free state tax return Figure 27-A. Www free state tax return Does Your Work-Related Education Qualify?" Example 2. Www free state tax return Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Www free state tax return The additional four education courses can be qualifying work-related education. Www free state tax return Although you do not have all the required courses, you have already met the minimum educational requirements. Www free state tax return Example 3. Www free state tax return Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Www free state tax return The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Www free state tax return They are needed to meet the minimum educational requirements for employment as a teacher. Www free state tax return Example 4. Www free state tax return You have a bachelor's degree and you work as a temporary instructor at a university. Www free state tax return At the same time, you take graduate courses toward an advanced degree. Www free state tax return The rules of the university state that you can become a faculty member only if you get a graduate degree. Www free state tax return Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Www free state tax return You have not met the minimum educational requirements to qualify you as a faculty member. Www free state tax return The graduate courses are not qualifying work-related education. Www free state tax return Certification in a new state. Www free state tax return   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. Www free state tax return This is true even if you must get additional education to be certified in another state. Www free state tax return Any additional education you need is qualifying work-related education. Www free state tax return You have already met the minimum requirements for teaching. Www free state tax return Teaching in another state is not a new trade or business. Www free state tax return Example. Www free state tax return You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Www free state tax return You move to State B and are promptly hired as a teacher. Www free state tax return You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Www free state tax return 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. Www free state tax return 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. Www free state tax return This is true even if you do not plan to enter that trade or business. Www free state tax return If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Www free state tax return Example 1. Www free state tax return You are an accountant. Www free state tax return Your employer requires you to get a law degree at your own expense. Www free state tax return You register at a law school for the regular curriculum that leads to a law degree. Www free state tax return 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. Www free state tax return Example 2. Www free state tax return You are a general practitioner of medicine. Www free state tax return You take a 2-week course to review developments in several specialized fields of medicine. Www free state tax return The course does not qualify you for a new profession. Www free state tax return It is qualifying work-related education because it maintains or improves skills required in your present profession. Www free state tax return Example 3. Www free state tax return While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Www free state tax return The program will lead to qualifying you to practice psychoanalysis. Www free state tax return The psychoanalytic training does not qualify you for a new profession. Www free state tax return It is qualifying work-related education because it maintains or improves skills required in your present profession. Www free state tax return 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. Www free state tax return They are part of a program of study that can qualify you for a new profession. Www free state tax return Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Www free state tax return A change in duties in any of the following ways is not considered a change to a new business. Www free state tax return Elementary school teacher to secondary school teacher. Www free state tax return Teacher of one subject, such as biology, to teacher of another subject, such as art. Www free state tax return Classroom teacher to guidance counselor. Www free state tax return Classroom teacher to school administrator. Www free state tax return 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. Www free state tax return If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Www free state tax return You cannot deduct expenses related to tax-exempt and excluded income. Www free state tax return Deductible expenses. Www free state tax return   The following education expenses can be deducted. Www free state tax return Tuition, books, supplies, lab fees, and similar items. Www free state tax return Certain transportation and travel costs. Www free state tax return Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Www free state tax return Nondeductible expenses. Www free state tax return   You cannot deduct personal or capital expenses. Www free state tax return For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Www free state tax return This amount is a personal expense. Www free state tax return Unclaimed reimbursement. Www free state tax return   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. Www free state tax return Example. Www free state tax return Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Www free state tax return You do not file a voucher, and you do not get reimbursed. Www free state tax return Because you did not file a voucher, you cannot deduct the expenses on your tax return. Www free state tax return Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Www free state tax return 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. Www free state tax return Temporary basis. Www free state tax return   You go to school on a temporary basis if either of the following situations applies to you. Www free state tax return Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Www free state tax return 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. Www free state tax return Your attendance is temporary up to the date you determine it will last more than 1 year. Www free state tax return Note. Www free state tax return If you are in either situation (1) or (2), your attendance is not temporary if facts and circumstances indicate otherwise. Www free state tax return Attendance not on a temporary basis. Www free state tax return   You do not go to school on a temporary basis if either of the following situations apply to you. Www free state tax return Your attendance at school is realistically expected to last more than 1 year. Www free state tax return It does not matter how long you actually attend. Www free state tax return 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. Www free state tax return Your attendance is not temporary after the date you determine it will last more than 1 year. Www free state tax return 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. Www free state tax return This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Www free state tax return Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Www free state tax return Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Www free state tax return Example 1. Www free state tax return You regularly work in a nearby town, and go directly from work to home. Www free state tax return You also attend school every work night for 3 months to take a course that improves your job skills. Www free state tax return Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Www free state tax return This is true regardless of the distance traveled. Www free state tax return Example 2. Www free state tax return Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Www free state tax return You can deduct your transportation expenses from your regular work site to school and then home. Www free state tax return Example 3. Www free state tax return Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Www free state tax return Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Www free state tax return Example 4. Www free state tax return Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Www free state tax return Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Www free state tax return If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Www free state tax return 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. Www free state tax return Using your car. Www free state tax return   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. Www free state tax return The standard mileage rate for miles driven from January 1, 2013, through December 31, 2013 is 56½ cents per mile. Www free state tax return Whichever method you use, you can also deduct parking fees and tolls. Www free state tax return See chapter 26 for information on deducting your actual expenses of using a car. Www free state tax return 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. Www free state tax return Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Www free state tax return For more information, see chapter 26. Www free state tax return You cannot deduct expenses for personal activities, such as sightseeing, visiting, or entertaining. Www free state tax return Mainly personal travel. Www free state tax return   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Www free state tax return You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Www free state tax return   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Www free state tax return An important factor is the comparison of time spent on personal activities with time spent on educational activities. Www free state tax return 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. Www free state tax return Example 1. Www free state tax return John works in Newark, New Jersey. Www free state tax return He traveled to Chicago to take a deductible 1-week course at the request of his employer. Www free state tax return His main reason for going to Chicago was to take the course. Www free state tax return While there, he took a sight-seeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Www free state tax return Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Www free state tax return He cannot deduct his transportation expenses of going to Pleasantville. Www free state tax return He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Www free state tax return Example 2. Www free state tax return Sue works in Boston. Www free state tax return She went to a university in Michigan to take a course for work. Www free state tax return The course is qualifying work-related education. Www free state tax return She took one course, which is one-fourth of a full course load of study. Www free state tax return She spent the rest of the time on personal activities. Www free state tax return Her reasons for taking the course in Michigan were all personal. Www free state tax return Sue's trip is mainly personal because three-fourths of her time is considered personal time. Www free state tax return She cannot deduct the cost of her round-trip train ticket to Michigan. Www free state tax return She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Www free state tax return Example 3. Www free state tax return Dave works in Nashville and recently traveled to California to take a 2-week seminar. Www free state tax return The seminar is qualifying work-related education. Www free state tax return While there, he spent an extra 8 weeks on personal activities. Www free state tax return The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Www free state tax return Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Www free state tax return He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Www free state tax return Cruises and conventions. Www free state tax return   Certain cruises and conventions offer seminars or courses as part of their itinerary. Www free state tax return Even if the seminars or courses are work-related, your deduction for travel may be limited. Www free state tax return This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Www free state tax return   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. Www free state tax return 50% limit on meals. Www free state tax return   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Www free state tax return You cannot have been reimbursed for the meals. Www free state tax return   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Www free state tax return 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. Www free state tax return Example. Www free state tax return You are a French language teacher. Www free state tax return While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Www free state tax return You chose your itinerary and most of your activities to improve your French language skills. Www free state tax return You cannot deduct your travel expenses as education expenses. Www free state tax return 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. Www free state tax return No Double Benefit Allowed You cannot do either of the following. Www free state tax return Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, the tuition and fees deduction (see chapter 35). Www free state tax return Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Www free state tax return See Adjustments to Qualifying Work-Related Education Expenses , next. Www free state tax return 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. Www free state tax return You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Www free state tax return For more information, see chapter 12 of Publication 970. Www free state tax return Tax-free educational assistance includes: The tax-free part of scholarships and fellowships (see chapter 1 of Publication 970), The tax-free part of Pell grants (see chapter 1 of Publication 970), The tax-free part of employer-provided educational assistance (see chapter 11 of Publication 970), Veterans' educational assistance (see chapter 1 of Publication 970), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received for education assistance. Www free state tax return Amounts that do not reduce qualifying work-related education expenses. Www free state tax return   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. Www free state tax return   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. Www free state tax return Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Www free state tax return There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Www free state tax return You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Www free state tax return For information on how to treat reimbursements under both accountable and nonaccountable plans, see Reimbursements in chapter 26. Www free state tax return Deducting Business Expenses Self-employed persons and employees report business expenses differently. Www free state tax return The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Www free state tax return Self-Employed Persons If you are self-employed, report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C, C-EZ, or F). Www free state tax return If your educational 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. Www free state tax return See the instructions for the form you file for information on how to complete it. Www free state tax return 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. Www free state tax return If either (1) or (2) applies, you can deduct the total qualifying cost. Www free state tax return If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Www free state tax return 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. Www free state tax return (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Www free state tax return ) 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. Www free state tax return See chapter 28. Www free state tax return Form 2106 or 2106-EZ. Www free state tax return   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or Form 2106-EZ. Www free state tax return Form not required. Www free state tax return   Do not complete either Form 2106 or Form 2106-EZ if: If amounts included in box 1 of your Form W-2, are not considered reimbursements, and You are not claiming travel, transportation, meal, or entertainment expenses. Www free state tax return   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21. Www free state tax return (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Www free state tax return ) Using Form 2106-EZ. Www free state tax return   This form is shorter and easier to use than Form 2106. Www free state tax return 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. Www free state tax return   If you do not meet both of these requirements, use Form 2106. Www free state tax return 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. Www free state tax return Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24. Www free state tax return You do not have to itemize your deductions on Schedule A (Form 1040), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Www free state tax return You must complete Form 2106 or 2106-EZ to figure your deduction, even if you meet the requirements described earlier under Form not required . Www free state tax return For more information on qualified performing artists, see chapter 6 of Publication 463. Www free state tax return 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. Www free state tax return They are not subject to the 2%-of-adjusted-gross-income limit. Www free state tax return To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Www free state tax return For more information on impairment-related work expenses, see chapter 6 of Publication 463. Www free state tax return Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Www free state tax return Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Www free state tax return For specific information about keeping records of business expenses, see Recordkeeping in chapter 26. Www free state tax return Prev  Up  Next   Home   More Online Publications