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Www freefilefillableforms com ffa freefileforms htm 12. Www freefilefillableforms com ffa freefileforms htm   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. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm  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. Www freefilefillableforms com ffa freefileforms htm 5 cents per mile. Www freefilefillableforms com ffa freefileforms htm For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. Www freefilefillableforms com ffa freefileforms htm Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm What is the tax benefit of taking a business deduction for work-related education. Www freefilefillableforms com ffa freefileforms htm   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 freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm An itemized deduction reduces the amount of your income subject to tax. Www freefilefillableforms com ffa freefileforms htm   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Www freefilefillableforms com ffa freefileforms htm This reduces the amount of your income subject to both income tax and self-employment tax. Www freefilefillableforms com ffa freefileforms htm   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. Www freefilefillableforms com ffa freefileforms htm You may qualify for these other benefits even if you do not meet the requirements listed above. Www freefilefillableforms com ffa freefileforms htm   Also, your work-related education expenses may qualify you to claim more than one tax benefit. Www freefilefillableforms com ffa freefileforms htm Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Www freefilefillableforms com ffa freefileforms htm Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Www freefilefillableforms com ffa freefileforms htm This is education that meets at least one of the following two tests. Www freefilefillableforms com ffa freefileforms htm The education is required by your employer or the law to keep your present salary, status, or job. Www freefilefillableforms com ffa freefileforms htm The required education must serve a bona fide business purpose of your employer. Www freefilefillableforms com ffa freefileforms htm The education maintains or improves skills needed in your present work. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Www freefilefillableforms com ffa freefileforms htm Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm This additional education is qualifying work-related education if all three of the following requirements are met. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm See Education To Maintain or Improve Skills , later. Www freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm You are a teacher who has satisfied the minimum requirements for teaching. Www freefilefillableforms com ffa freefileforms htm Your employer requires you to take an additional college course each year to keep your teaching job. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm This could include refresher courses, courses on current developments, and academic or vocational courses. Www freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm You repair televisions, radios, and stereo systems for XYZ Store. Www freefilefillableforms com ffa freefileforms htm To keep up with the latest changes, you take special courses in radio and stereo service. Www freefilefillableforms com ffa freefileforms htm These courses maintain and improve skills required in your work. Www freefilefillableforms com ffa freefileforms htm Maintaining skills vs. Www freefilefillableforms com ffa freefileforms htm qualifying for new job. Www freefilefillableforms com ffa freefileforms htm   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 freefilefillableforms com ffa freefileforms htm Education during temporary absence. Www freefilefillableforms com ffa freefileforms htm   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 freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm You quit your biology research job to become a full-time biology graduate student for 1 year. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Education during indefinite absence. Www freefilefillableforms com ffa freefileforms htm   If you stop work for more than a year, your absence from your job is considered indefinite. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Therefore, it is not qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Www freefilefillableforms com ffa freefileforms htm Example 1. Www freefilefillableforms com ffa freefileforms htm You are a full-time engineering student. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm The education is not qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm Example 2. Www freefilefillableforms com ffa freefileforms htm You are an accountant and you have met the minimum educational requirements of your employer. Www freefilefillableforms com ffa freefileforms htm Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Www freefilefillableforms com ffa freefileforms htm The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Www freefilefillableforms com ffa freefileforms htm If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm You generally will be considered a faculty member when one or more of the following occurs. Www freefilefillableforms com ffa freefileforms htm You have tenure. Www freefilefillableforms com ffa freefileforms htm Your years of service count toward obtaining tenure. Www freefilefillableforms com ffa freefileforms htm You have a vote in faculty decisions. Www freefilefillableforms com ffa freefileforms htm Your school makes contributions for you to a retirement plan other than social security or a similar program. Www freefilefillableforms com ffa freefileforms htm Example 1. Www freefilefillableforms com ffa freefileforms htm The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Www freefilefillableforms com ffa freefileforms htm In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm If you have all the required education except the fifth year, you have met the minimum educational requirements. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Example 2. Www freefilefillableforms com ffa freefileforms htm Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Www freefilefillableforms com ffa freefileforms htm The additional four education courses can be qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm Although you do not have all the required courses, you have already met the minimum educational requirements. Www freefilefillableforms com ffa freefileforms htm Example 3. Www freefilefillableforms com ffa freefileforms htm Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Www freefilefillableforms com ffa freefileforms htm The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm They are needed to meet the minimum educational requirements for employment as a teacher. Www freefilefillableforms com ffa freefileforms htm Example 4. Www freefilefillableforms com ffa freefileforms htm You have a bachelor's degree and you work as a temporary instructor at a university. Www freefilefillableforms com ffa freefileforms htm At the same time, you take graduate courses toward an advanced degree. Www freefilefillableforms com ffa freefileforms htm The rules of the university state that you can become a faculty member only if you get a graduate degree. Www freefilefillableforms com ffa freefileforms htm Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Www freefilefillableforms com ffa freefileforms htm You have not met the minimum educational requirements to qualify you as a faculty member. Www freefilefillableforms com ffa freefileforms htm The graduate courses are not qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm Certification in a new state. Www freefilefillableforms com ffa freefileforms htm   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 freefilefillableforms com ffa freefileforms htm This is true even if you must get additional education to be certified in another state. Www freefilefillableforms com ffa freefileforms htm Any additional education you need is qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm You have already met the minimum requirements for teaching. Www freefilefillableforms com ffa freefileforms htm Teaching in another state is not a new trade or business. Www freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Www freefilefillableforms com ffa freefileforms htm You move to State B and are promptly hired as a teacher. Www freefilefillableforms com ffa freefileforms htm You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm This is true even if you do not plan to enter that trade or business. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Example 1. Www freefilefillableforms com ffa freefileforms htm You are an accountant. Www freefilefillableforms com ffa freefileforms htm Your employer requires you to get a law degree at your own expense. Www freefilefillableforms com ffa freefileforms htm You register at a law school for the regular curriculum that leads to a law degree. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Example 2. Www freefilefillableforms com ffa freefileforms htm You are a general practitioner of medicine. Www freefilefillableforms com ffa freefileforms htm You take a 2-week course to review developments in several specialized fields of medicine. Www freefilefillableforms com ffa freefileforms htm The course does not qualify you for a new profession. Www freefilefillableforms com ffa freefileforms htm It is qualifying work- related education because it maintains or improves skills required in your present profession. Www freefilefillableforms com ffa freefileforms htm Example 3. Www freefilefillableforms com ffa freefileforms htm While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Www freefilefillableforms com ffa freefileforms htm The program will lead to qualifying you to practice psychoanalysis. Www freefilefillableforms com ffa freefileforms htm The psychoanalytic training does not qualify you for a new profession. Www freefilefillableforms com ffa freefileforms htm It is qualifying work-related education because it maintains or improves skills required in your present profession. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm They are part of a program of study that can qualify you for a new profession. Www freefilefillableforms com ffa freefileforms htm Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Www freefilefillableforms com ffa freefileforms htm A change in duties in any of the following ways is not considered a change to a new business. Www freefilefillableforms com ffa freefileforms htm Elementary school teacher to secondary school teacher. Www freefilefillableforms com ffa freefileforms htm Teacher of one subject, such as biology, to teacher of another subject, such as art. Www freefilefillableforms com ffa freefileforms htm Classroom teacher to guidance counselor. Www freefilefillableforms com ffa freefileforms htm Classroom teacher to school administrator. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Www freefilefillableforms com ffa freefileforms htm You cannot deduct expenses related to tax-exempt and excluded income. Www freefilefillableforms com ffa freefileforms htm Deductible expenses. Www freefilefillableforms com ffa freefileforms htm   The following education expenses can be deducted. Www freefilefillableforms com ffa freefileforms htm Tuition, books, supplies, lab fees, and similar items. Www freefilefillableforms com ffa freefileforms htm Certain transportation and travel costs. Www freefilefillableforms com ffa freefileforms htm Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Www freefilefillableforms com ffa freefileforms htm Nondeductible expenses. Www freefilefillableforms com ffa freefileforms htm   You cannot deduct personal or capital expenses. Www freefilefillableforms com ffa freefileforms htm For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Www freefilefillableforms com ffa freefileforms htm This amount is a personal expense. Www freefilefillableforms com ffa freefileforms htm Unclaimed reimbursement. Www freefilefillableforms com ffa freefileforms htm   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 freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Www freefilefillableforms com ffa freefileforms htm You do not file a voucher and you do not get reimbursed. Www freefilefillableforms com ffa freefileforms htm Because you did not file a voucher, you cannot deduct the expenses on your tax return. Www freefilefillableforms com ffa freefileforms htm Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Temporary basis. Www freefilefillableforms com ffa freefileforms htm   You go to school on a temporary basis if either of the following situations applies to you. Www freefilefillableforms com ffa freefileforms htm Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Your attendance is temporary up to the date you determine it will last more than 1 year. Www freefilefillableforms com ffa freefileforms htm If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. Www freefilefillableforms com ffa freefileforms htm Attendance not on a temporary basis. Www freefilefillableforms com ffa freefileforms htm   You do not go to school on a temporary basis if either of the following situations apply to you. Www freefilefillableforms com ffa freefileforms htm Your attendance at school is realistically expected to last more than 1 year. Www freefilefillableforms com ffa freefileforms htm It does not matter how long you actually attend. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Your attendance is not temporary after the date you determine it will last more than 1 year. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Www freefilefillableforms com ffa freefileforms htm Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Www freefilefillableforms com ffa freefileforms htm Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Www freefilefillableforms com ffa freefileforms htm Example 1. Www freefilefillableforms com ffa freefileforms htm You regularly work in a nearby town, and go directly from work to home. Www freefilefillableforms com ffa freefileforms htm You also attend school every work night for 3 months to take a course that improves your job skills. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm This is true regardless of the distance traveled. Www freefilefillableforms com ffa freefileforms htm Example 2. Www freefilefillableforms com ffa freefileforms htm Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Www freefilefillableforms com ffa freefileforms htm You can deduct your transportation expenses from your regular work site to school and then home. Www freefilefillableforms com ffa freefileforms htm Example 3. Www freefilefillableforms com ffa freefileforms htm Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Www freefilefillableforms com ffa freefileforms htm Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Www freefilefillableforms com ffa freefileforms htm Example 4. Www freefilefillableforms com ffa freefileforms htm Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Www freefilefillableforms com ffa freefileforms htm Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Www freefilefillableforms com ffa freefileforms htm If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Using your car. Www freefilefillableforms com ffa freefileforms htm    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 freefilefillableforms com ffa freefileforms htm The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. Www freefilefillableforms com ffa freefileforms htm 5 cents per mile. Www freefilefillableforms com ffa freefileforms htm Whichever method you use, you can also deduct parking fees and tolls. Www freefilefillableforms com ffa freefileforms htm See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Www freefilefillableforms com ffa freefileforms htm For more information, see chapter 1 of Publication 463. Www freefilefillableforms com ffa freefileforms htm You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. Www freefilefillableforms com ffa freefileforms htm Mainly personal travel. Www freefilefillableforms com ffa freefileforms htm   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Www freefilefillableforms com ffa freefileforms htm An important factor is the comparison of time spent on personal activities with time spent on educational activities. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Example 1. Www freefilefillableforms com ffa freefileforms htm John works in Newark, New Jersey. Www freefilefillableforms com ffa freefileforms htm He traveled to Chicago to take a deductible 1-week course at the request of his employer. Www freefilefillableforms com ffa freefileforms htm His main reason for going to Chicago was to take the course. Www freefilefillableforms com ffa freefileforms htm While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Www freefilefillableforms com ffa freefileforms htm Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Www freefilefillableforms com ffa freefileforms htm He cannot deduct his transportation expenses of going to Pleasantville. Www freefilefillableforms com ffa freefileforms htm He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Www freefilefillableforms com ffa freefileforms htm Example 2. Www freefilefillableforms com ffa freefileforms htm Sue works in Boston. Www freefilefillableforms com ffa freefileforms htm She went to a university in Michigan to take a course for work. Www freefilefillableforms com ffa freefileforms htm The course is qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm She took one course, which is one-fourth of a full course load of study. Www freefilefillableforms com ffa freefileforms htm She spent the rest of the time on personal activities. Www freefilefillableforms com ffa freefileforms htm Her reasons for taking the course in Michigan were all personal. Www freefilefillableforms com ffa freefileforms htm Sue's trip is mainly personal because three-fourths of her time is considered personal time. Www freefilefillableforms com ffa freefileforms htm She cannot deduct the cost of her round-trip train ticket to Michigan. Www freefilefillableforms com ffa freefileforms htm She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Www freefilefillableforms com ffa freefileforms htm Example 3. Www freefilefillableforms com ffa freefileforms htm Dave works in Nashville and recently traveled to California to take a 2-week seminar. Www freefilefillableforms com ffa freefileforms htm The seminar is qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm While there, he spent an extra 8 weeks on personal activities. Www freefilefillableforms com ffa freefileforms htm The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Www freefilefillableforms com ffa freefileforms htm Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Www freefilefillableforms com ffa freefileforms htm He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Www freefilefillableforms com ffa freefileforms htm Cruises and conventions. Www freefilefillableforms com ffa freefileforms htm   Certain cruises and conventions offer seminars or courses as part of their itinerary. Www freefilefillableforms com ffa freefileforms htm Even if the seminars or courses are work related, your deduction for travel may be limited. Www freefilefillableforms com ffa freefileforms htm This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Www freefilefillableforms com ffa freefileforms htm   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 freefilefillableforms com ffa freefileforms htm 50% limit on meals. Www freefilefillableforms com ffa freefileforms htm   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm If you were reimbursed for the meals, see How To Treat Reimbursements , later. Www freefilefillableforms com ffa freefileforms htm   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm You are a French language teacher. Www freefilefillableforms com ffa freefileforms htm While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Www freefilefillableforms com ffa freefileforms htm You chose your itinerary and most of your activities to improve your French language skills. Www freefilefillableforms com ffa freefileforms htm You cannot deduct your travel expenses as education expenses. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm No Double Benefit Allowed You cannot do either of the following. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Www freefilefillableforms com ffa freefileforms htm See Adjustments to Qualifying Work-Related Education Expenses, next. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Www freefilefillableforms com ffa freefileforms htm Tax-free educational assistance. Www freefilefillableforms com ffa freefileforms htm   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). Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Amounts that do not reduce qualifying work-related education expenses. Www freefilefillableforms com ffa freefileforms htm   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 freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Www freefilefillableforms com ffa freefileforms htm There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Www freefilefillableforms com ffa freefileforms htm You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Www freefilefillableforms com ffa freefileforms htm Note. Www freefilefillableforms com ffa freefileforms htm The following rules about reimbursement arrangements also apply to expense allowances received from your employer. Www freefilefillableforms com ffa freefileforms htm Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Www freefilefillableforms com ffa freefileforms htm Your expenses must have a business connection. Www freefilefillableforms com ffa freefileforms htm This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. Www freefilefillableforms com ffa freefileforms htm You must adequately account to your employer for your expenses within a reasonable period of time. Www freefilefillableforms com ffa freefileforms htm You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Accountable plan rules not met. Www freefilefillableforms com ffa freefileforms htm   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. Www freefilefillableforms com ffa freefileforms htm Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). Www freefilefillableforms com ffa freefileforms htm Expenses equal reimbursement. Www freefilefillableforms com ffa freefileforms htm   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. Www freefilefillableforms com ffa freefileforms htm Because your expenses and reimbursements are equal, you do not have a deduction. Www freefilefillableforms com ffa freefileforms htm Excess expenses. Www freefilefillableforms com ffa freefileforms htm   If your expenses are more than your reimbursement, you can deduct your excess expenses. Www freefilefillableforms com ffa freefileforms htm This is discussed later, under Deducting Business Expenses . Www freefilefillableforms com ffa freefileforms htm Allocating your reimbursements for meals. Www freefilefillableforms com ffa freefileforms htm   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Make the allocation as follows. Www freefilefillableforms com ffa freefileforms htm Divide your meal expenses by your total expenses. Www freefilefillableforms com ffa freefileforms htm Multiply your total reimbursement by the result from (1). Www freefilefillableforms com ffa freefileforms htm This is the allocated reimbursement for your meal expenses. Www freefilefillableforms com ffa freefileforms htm Subtract the amount figured in (2) from your total reimbursement. Www freefilefillableforms com ffa freefileforms htm The difference is the allocated reimbursement for your other expenses of qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm Example. Www freefilefillableforms com ffa freefileforms htm Your employer paid you an expense allowance of $2,000 under an accountable plan. Www freefilefillableforms com ffa freefileforms htm The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. Www freefilefillableforms com ffa freefileforms htm There was no indication of how much of the reimbursement was for each type of expense. Www freefilefillableforms com ffa freefileforms htm Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). Www freefilefillableforms com ffa freefileforms htm Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. Www freefilefillableforms com ffa freefileforms htm   1. Www freefilefillableforms com ffa freefileforms htm $425 meal expenses  $2,500 total expenses = . Www freefilefillableforms com ffa freefileforms htm 17   2. Www freefilefillableforms com ffa freefileforms htm $2,000 (reimbursement)×. Www freefilefillableforms com ffa freefileforms htm 17     =$340 (allocated reimbursement for meal expenses)   3. Www freefilefillableforms com ffa freefileforms htm $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). Www freefilefillableforms com ffa freefileforms htm After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. Www freefilefillableforms com ffa freefileforms htm This is discussed later under Deducting Business Expenses . Www freefilefillableforms com ffa freefileforms htm An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. Www freefilefillableforms com ffa freefileforms htm Reimbursements for nondeductible expenses. Www freefilefillableforms com ffa freefileforms htm   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. Www freefilefillableforms com ffa freefileforms htm You must include them in your income. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. Www freefilefillableforms com ffa freefileforms htm Deducting Business Expenses Self-employed persons and employees report their business expenses differently. Www freefilefillableforms com ffa freefileforms htm The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Www freefilefillableforms com ffa freefileforms htm 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)). Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm See the instructions for the form you file for information on how to complete it. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm If either (1) or (2) applies, you can deduct the total qualifying cost. Www freefilefillableforms com ffa freefileforms htm If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Www freefilefillableforms com ffa freefileforms htm ) 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 freefilefillableforms com ffa freefileforms htm Form 2106 or 2106-EZ. Www freefilefillableforms com ffa freefileforms htm   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. Www freefilefillableforms com ffa freefileforms htm Form not required. Www freefilefillableforms com ffa freefileforms htm   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. Www freefilefillableforms com ffa freefileforms htm   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. Www freefilefillableforms com ffa freefileforms htm (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. Www freefilefillableforms com ffa freefileforms htm ) Using Form 2106-EZ. Www freefilefillableforms com ffa freefileforms htm   This form is shorter and easier to use than Form 2106. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm   If you do not meet both of these requirements, use Form 2106. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm For more information on qualified performing artists, see chapter 6 of Publication 463. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm They are not subject to the 2%-of-adjusted-gross-income limit. Www freefilefillableforms com ffa freefileforms htm 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 freefilefillableforms com ffa freefileforms htm For more information on impairment-related work expenses, see chapter 6 of Publication 463. Www freefilefillableforms com ffa freefileforms htm Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Www freefilefillableforms com ffa freefileforms htm Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Examples of records to keep. Www freefilefillableforms com ffa freefileforms htm   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. Www freefilefillableforms com ffa freefileforms htm You should keep adequate records or have sufficient evidence that will support your expenses. Www freefilefillableforms com ffa freefileforms htm Estimates or approximations do not qualify as proof of an expense. Www freefilefillableforms com ffa freefileforms htm Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. Www freefilefillableforms com ffa freefileforms htm , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Complete information about any scholarship or fellowship grants, including amounts you received during the year. Www freefilefillableforms com ffa freefileforms htm Illustrated Example Victor Jones teaches math at a private high school in North Carolina. Www freefilefillableforms com ffa freefileforms htm He was selected to attend a 3-week math seminar at a university in California. Www freefilefillableforms com ffa freefileforms htm The seminar will improve his skills in his current job and is qualifying work-related education. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Victor will file Form 1040. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm He shows his expenses for the seminar in Part I of the form. Www freefilefillableforms com ffa freefileforms htm He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. Www freefilefillableforms com ffa freefileforms htm He enters $400 on line 4 for his tuition and books. Www freefilefillableforms com ffa freefileforms htm On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. Www freefilefillableforms com ffa freefileforms htm He multiplies that amount by 50% and enters the result, $263, on line 5. Www freefilefillableforms com ffa freefileforms htm On line 6, Victor totals the amounts from lines 3 through 5. Www freefilefillableforms com ffa freefileforms htm He carries the total, $2,313, to Schedule A (Form 1040), line 21. Www freefilefillableforms com ffa freefileforms htm Since he does not claim any vehicle expenses, Victor leaves Part II blank. Www freefilefillableforms com ffa freefileforms htm His filled-in form is shown on the next page. Www freefilefillableforms com ffa freefileforms htm This image is too large to be displayed in the current screen. Www freefilefillableforms com ffa freefileforms htm Please click the link to view the image. Www freefilefillableforms com ffa freefileforms htm Form 2106-EZ for V. Www freefilefillableforms com ffa freefileforms htm Jones Prev  Up  Next   Home   More Online Publications
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Www freefilefillableforms com ffa freefileforms htm Publication 926 - Introductory Material Table of Contents Future Developments What's New Reminder IntroductionTax questions. Www freefilefillableforms com ffa freefileforms htm Future Developments For the latest information about developments related to Publication 926, such as legislation enacted after it was published, go to www. Www freefilefillableforms com ffa freefileforms htm irs. Www freefilefillableforms com ffa freefileforms htm gov/pub926. Www freefilefillableforms com ffa freefileforms htm What's New Social security and Medicare tax for 2014. Www freefilefillableforms com ffa freefileforms htm  The social security tax rate is 6. Www freefilefillableforms com ffa freefileforms htm 2% each for the employee and employer, unchanged from 2013. Www freefilefillableforms com ffa freefileforms htm The social security wage base limit is $117,000. Www freefilefillableforms com ffa freefileforms htm The Medicare tax rate is 1. Www freefilefillableforms com ffa freefileforms htm 45% each for the employee and employer, unchanged from 2013. Www freefilefillableforms com ffa freefileforms htm There is no wage base limit for Medicare tax. Www freefilefillableforms com ffa freefileforms htm Social security and Medicare taxes apply to the wages of household employees you pay $1,900 or more in cash or an equivalent form of compensation. Www freefilefillableforms com ffa freefileforms htm Qualified parking exclusion and commuter transportation benefit. Www freefilefillableforms com ffa freefileforms htm  For 2014, the monthly exclusion for qualified parking is $250 and the monthly exclusion for commuter highway vehicle transportation and transit passes is $130. Www freefilefillableforms com ffa freefileforms htm Reminder Additional Medicare Tax withholding. Www freefilefillableforms com ffa freefileforms htm  In addition to withholding Medicare tax at 1. Www freefilefillableforms com ffa freefileforms htm 45%, you must withhold a 0. Www freefilefillableforms com ffa freefileforms htm 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. Www freefilefillableforms com ffa freefileforms htm You are required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Www freefilefillableforms com ffa freefileforms htm Additional Medicare Tax is only imposed on the employee. Www freefilefillableforms com ffa freefileforms htm There is no employer share of Additional Medicare Tax. Www freefilefillableforms com ffa freefileforms htm All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. Www freefilefillableforms com ffa freefileforms htm For more information on Additional Medicare Tax, visit IRS. Www freefilefillableforms com ffa freefileforms htm gov and enter “Additional Medicare Tax” in the search box. Www freefilefillableforms com ffa freefileforms htm Credit reduction states. Www freefilefillableforms com ffa freefileforms htm  A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a “credit reduction state. Www freefilefillableforms com ffa freefileforms htm ” The Department of Labor (DOL) determines these states. Www freefilefillableforms com ffa freefileforms htm If you paid any wages that are subject to the unemployment compensation laws in any credit reduction state, your federal unemployment (FUTA) tax credit is reduced. Www freefilefillableforms com ffa freefileforms htm See the Instructions for Schedule H (Form 1040) for more information. Www freefilefillableforms com ffa freefileforms htm Outsourcing payroll duties. Www freefilefillableforms com ffa freefileforms htm  Employers are responsible to ensure that tax returns are filed and deposits and payments are made, even if the employer contracts with a third party to perform these acts. Www freefilefillableforms com ffa freefileforms htm The employer remains responsible if the third party fails to perform any required action. Www freefilefillableforms com ffa freefileforms htm If you choose to outsource any of your payroll and related tax duties (that is, withholding, reporting, and paying over social security, Medicare, FUTA, and income taxes) to a third-party payer such as a payroll service provider or reporting agent, visit IRS. Www freefilefillableforms com ffa freefileforms htm gov and enter “outsourcing payroll duties” in the search box for helpful information on this topic. Www freefilefillableforms com ffa freefileforms htm Photographs of missing children. Www freefilefillableforms com ffa freefileforms htm  The IRS is a proud partner with the National Center for Missing and Exploited Children. Www freefilefillableforms com ffa freefileforms htm Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Www freefilefillableforms com ffa freefileforms htm 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. Www freefilefillableforms com ffa freefileforms htm Introduction The information in this publication applies to you only if you have a household employee. Www freefilefillableforms com ffa freefileforms htm If you have a household employee in 2014, you may need to pay state and federal employment taxes for 2014. Www freefilefillableforms com ffa freefileforms htm You generally must add your federal employment taxes to the income tax that you will report on your 2014 federal income tax return. Www freefilefillableforms com ffa freefileforms htm This publication will help you decide whether you have a household employee and, if you do, whether you need to pay federal employment taxes (social security tax, Medicare tax, FUTA, and federal income tax withholding). Www freefilefillableforms com ffa freefileforms htm It explains how to figure, pay, and report these taxes for your household employee. Www freefilefillableforms com ffa freefileforms htm It also explains what records you need to keep. Www freefilefillableforms com ffa freefileforms htm This publication also tells you where to find out whether you need to pay state unemployment tax for your household employee. Www freefilefillableforms com ffa freefileforms htm Comments and suggestions. Www freefilefillableforms com ffa freefileforms htm   We welcome your comments about this publication and your suggestions for future editions. Www freefilefillableforms com ffa freefileforms htm   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Www freefilefillableforms com ffa freefileforms htm NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Www freefilefillableforms com ffa freefileforms htm Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Www freefilefillableforms com ffa freefileforms htm   You can also send us comments from www. Www freefilefillableforms com ffa freefileforms htm irs. Www freefilefillableforms com ffa freefileforms htm gov/formspubs. Www freefilefillableforms com ffa freefileforms htm Click on More Information and then click on Comment on Tax Forms and Publications. Www freefilefillableforms com ffa freefileforms htm   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. Www freefilefillableforms com ffa freefileforms htm Tax questions. Www freefilefillableforms com ffa freefileforms htm   If you have a tax question, check the information available on IRS. Www freefilefillableforms com ffa freefileforms htm gov or call 1-800-829-1040 or 1-800-829-4933 (TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability at 1-800-829-4059) Monday–Friday from 7:00 a. Www freefilefillableforms com ffa freefileforms htm m. Www freefilefillableforms com ffa freefileforms htm –7:00 p. Www freefilefillableforms com ffa freefileforms htm m. Www freefilefillableforms com ffa freefileforms htm local time (Alaska and Hawaii follow Pacific time). 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