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1040x 2012 Tax Form

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1040x 2012 Tax Form

1040x 2012 tax form Index Symbols 30% Tax, The 30% Tax , Residents of Canada or Mexico engaged in transportation-related employment. 1040x 2012 tax form , Students, teachers, and researchers. 1040x 2012 tax form A Accuracy-related penalties, Accuracy-related penalty. 1040x 2012 tax form Additional Medicare Tax, Additional Medicare Tax. 1040x 2012 tax form , Additional Medicare Tax. 1040x 2012 tax form Adoption credit Dual-status alien, Adoption credit. 1040x 2012 tax form Nonresident alien, Adoption credit. 1040x 2012 tax form Resident alien, Adoption credit. 1040x 2012 tax form Agricultural workers, Agricultural workers. 1040x 2012 tax form , Agricultural Workers Alien Nonresident, Nonresident Aliens, Nonresident Aliens, Nonresident Aliens Resident, Resident Aliens, Resident Aliens, Resident Aliens Alien status, employer notification of, Notification of Alien Status Alternative minimum tax, Alternative minimum tax. 1040x 2012 tax form Amended returns, Amended Returns and Claims for Refund American Samoa, residents of, Aliens From American Samoa or Puerto Rico, Special rules for aliens from certain U. 1040x 2012 tax form S. 1040x 2012 tax form possessions. 1040x 2012 tax form , Bona Fide Residents of American Samoa or Puerto Rico Annuities Income, Income from certain annuities. 1040x 2012 tax form Source rule, Pensions and Annuities Asset-use test, Asset-use test. 1040x 2012 tax form Assistance (see Tax help) Athletes, professional, Professional athletes. 1040x 2012 tax form Awards, Scholarships, Grants, Prizes, and Awards B Basis of property, Depreciable property. 1040x 2012 tax form Beneficiary of estate or trust, Beneficiary of an estate or trust. 1040x 2012 tax form Business expenses, ordinary and necessary, Ordinary and necessary business expenses. 1040x 2012 tax form Business operations, Business operations. 1040x 2012 tax form Business profits and losses and sales transactions, Business Profits and Losses and Sales Transactions Business, U. 1040x 2012 tax form S. 1040x 2012 tax form , Trade or Business in the United States Business-activities test, Business-activities test. 1040x 2012 tax form C Canada Commuters, Regular commuters from Canada or Mexico. 1040x 2012 tax form Exemptions, Exemptions Personal exemption, Resident Aliens Qualifying widow filing status, Qualifying widow(er). 1040x 2012 tax form Residents of, Residents of Mexico or Canada or U. 1040x 2012 tax form S. 1040x 2012 tax form nationals. 1040x 2012 tax form Social security benefits, Special Rule for Canadian and German Social Security Benefits Transportation-related employment, Residents of Canada or Mexico engaged in transportation-related employment. 1040x 2012 tax form Withholding tax, U. 1040x 2012 tax form S. 1040x 2012 tax form nationals or residents of Canada, Mexico, or South Korea. 1040x 2012 tax form Capital assets, sales or exchanges, Sales or Exchanges of Capital Assets Casualty and theft losses, Casualty and theft losses. 1040x 2012 tax form Central withholding agreements, Central withholding agreements. 1040x 2012 tax form Charitable contributions, Charitable contributions. 1040x 2012 tax form Child and dependent care credit Dual-status alien, Child and dependent care credit. 1040x 2012 tax form Nonresident alien, Child and dependent care credit. 1040x 2012 tax form Resident alien, Child and dependent care credit. 1040x 2012 tax form Child tax credit Resident alien, Child tax credit. 1040x 2012 tax form , Child tax credit. 1040x 2012 tax form , Child tax credit. 1040x 2012 tax form Claims for refund, Amended Returns and Claims for Refund Closer connection, Closer Connection to a Foreign Country Commodities, trading in, Trading in stocks, securities, and commodities. 1040x 2012 tax form Community income, Community Income Commuters from Canada or Mexico, Regular commuters from Canada or Mexico. 1040x 2012 tax form Compensation for labor or personal services Geographical basis, Geographical Basis Contingent interest, Contingent interest. 1040x 2012 tax form Credit for the elderly or the disabled Dual-status alien, 6) Tax credits. 1040x 2012 tax form Resident alien, Credit for the elderly or the disabled. 1040x 2012 tax form Credits against tax Child and dependent care credit, Child and dependent care credit. 1040x 2012 tax form , Child and dependent care credit. 1040x 2012 tax form Child tax credit, Child tax credit. 1040x 2012 tax form , Child tax credit. 1040x 2012 tax form , Child tax credit. 1040x 2012 tax form Credit for the elderly or the disabled, 6) Tax credits. 1040x 2012 tax form Dual-status alien, Credits Earned income credit, Earned income credit. 1040x 2012 tax form , 6) Tax credits. 1040x 2012 tax form Education credits, Education credits. 1040x 2012 tax form , Education credits. 1040x 2012 tax form , 6) Tax credits. 1040x 2012 tax form Excess social security tax withheld, Excess social security tax withheld. 1040x 2012 tax form Foreign tax credit, Foreign tax credit. 1040x 2012 tax form , Foreign tax credit. 1040x 2012 tax form Hope credit, Education credits. 1040x 2012 tax form , Education credits. 1040x 2012 tax form Lifetime learning credit, Education credits. 1040x 2012 tax form , Education credits. 1040x 2012 tax form Retirement savings contributions, Retirement savings contributions credit. 1040x 2012 tax form , Retirement savings contributions credit. 1040x 2012 tax form , Retirement savings contributions credit. 1040x 2012 tax form Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. 1040x 2012 tax form Tax withheld at source, Tax withheld at the source. 1040x 2012 tax form Tax withheld on partnership income, Tax withheld on partnership income. 1040x 2012 tax form Withholding from wages, Withholding from wages. 1040x 2012 tax form Crew members Alien status, Crew members. 1040x 2012 tax form Compensation, Crew members. 1040x 2012 tax form Currency, transporting, Other Forms You May Have To File D Days of presence, Days of Presence in the United States De minimis presence, De minimis presence. 1040x 2012 tax form Deductions, Deductions, Itemized Deductions Departure permit, When to get a sailing or departure permit. 1040x 2012 tax form Depreciable property, Depreciable property. 1040x 2012 tax form Diplomats (see Foreign government employees) Direct economic relationship, Personal Service Income Disclosure statement, Disclosure statement. 1040x 2012 tax form Dividends, U. 1040x 2012 tax form S. 1040x 2012 tax form source income, Dividends Dual-status aliens, Dual-Status Aliens Dual-status tax year, Dual-Status Aliens, Dual-Status Tax Year Child care credit, Child and dependent care credit. 1040x 2012 tax form Computation of tax, How To Figure Tax Credit for the elderly or the disabled, 6) Tax credits. 1040x 2012 tax form Earned income credit, 6) Tax credits. 1040x 2012 tax form Education credit, 6) Tax credits. 1040x 2012 tax form Exemptions, 2) Exemptions. 1040x 2012 tax form Foreign tax credit, Foreign tax credit. 1040x 2012 tax form Forms to file, Forms To File Head of household. 1040x 2012 tax form , 3) Head of household. 1040x 2012 tax form Income subject to tax, Income Subject to Tax Joint return, 4) Joint return. 1040x 2012 tax form Residency ending date, Dual-Status Aliens Residency starting date, Dual-Status Aliens Restrictions, Restrictions for Dual-Status Taxpayers Standard deduction, 1) Standard deduction. 1040x 2012 tax form Tax rates, 5) Tax rates. 1040x 2012 tax form When and where to file, When and Where To File E Earned income credit Dual-status alien, 6) Tax credits. 1040x 2012 tax form Nonresident alien, Earned income credit. 1040x 2012 tax form Resident alien, Earned income credit. 1040x 2012 tax form Education credits Dual-status alien, 6) Tax credits. 1040x 2012 tax form Nonresident alien, Education credits. 1040x 2012 tax form Resident alien, Education credits. 1040x 2012 tax form Effectively connected income, Effectively Connected Income Foreign income, Foreign Income Investment income, Investment Income Pensions, Pensions. 1040x 2012 tax form Real property gain or loss, Real Property Gain or Loss Real property income choice, Income From Real Property Tax on, Tax on Effectively Connected Income Transportation income, Transportation Income Employees of foreign governments, Employees of foreign governments. 1040x 2012 tax form Employees of international organizations, Employees of international organizations. 1040x 2012 tax form Employees, household, Household employees. 1040x 2012 tax form Employees, withholding exemption under tax treaty, Employees and independent contractors. 1040x 2012 tax form Employer identification number, Employer identification number (EIN). 1040x 2012 tax form Estate, beneficiary, Beneficiary of an estate or trust. 1040x 2012 tax form Estimated tax, Paying Tax Through Withholding or Estimated Tax , Estimated Tax Form 1040-ES (NR) Excess social security tax, Excess social security tax withheld. 1040x 2012 tax form Exchange visitors, Exchange Visitors Income from foreign employer, Students and exchange visitors. 1040x 2012 tax form Social security and Medicare taxes, Students and Exchange Visitors Exclusions from gross income, Exclusions From Gross Income Annuities, Income from certain annuities. 1040x 2012 tax form Compensation from a foreign employer, Students and exchange visitors. 1040x 2012 tax form Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing Students and exchange visitors, Students and exchange visitors. 1040x 2012 tax form Treaty income, Income affected by treaties. 1040x 2012 tax form , Treaty Income Exempt individual, Exempt individual. 1040x 2012 tax form Exemption from withholding Employees, Employees and independent contractors. 1040x 2012 tax form Independent contractors, Employees and independent contractors. 1040x 2012 tax form Students, teachers, and researchers, Students, teachers, and researchers. 1040x 2012 tax form Exemptions Dual-status taxpayer, Exemptions Indian students and business apprentices, Students and business apprentices from India. 1040x 2012 tax form Nonresident alien, Exemptions Resident alien, Exemptions Residents of Mexico or Canada, Residents of Mexico or Canada or U. 1040x 2012 tax form S. 1040x 2012 tax form nationals. 1040x 2012 tax form Residents of South Korea, Residents of South Korea. 1040x 2012 tax form U. 1040x 2012 tax form S. 1040x 2012 tax form nationals, Residents of Mexico or Canada or U. 1040x 2012 tax form S. 1040x 2012 tax form nationals. 1040x 2012 tax form Expatriation tax, Expatriation Before June 4, 2004 F Fellowship grant Excludable, Scholarships and Fellowship Grants Source rule, Scholarships, Grants, Prizes, and Awards Withholding tax, Withholding on Scholarships and Fellowship Grants Filing requirements, Nonresident Aliens Filing returns, Figuring Your Tax Amended returns, Amended Returns and Claims for Refund Claims for refund, Amended Returns and Claims for Refund Commonwealth of the Northern Mariana Islands, Aliens from Guam or the Commonwealth of the Northern Mariana Islands. 1040x 2012 tax form Dual-status taxpayer, Forms To File Estimated tax, When to pay estimated tax. 1040x 2012 tax form Form 1040-C, Form 1040-C Form 1040NR, Figuring Your Tax, Nonresident Aliens Form 1040NR-EZ, Figuring Your Tax, Form 1040NR-EZ Form 2063, Form 2063 Guam, Aliens from Guam or the Commonwealth of the Northern Mariana Islands. 1040x 2012 tax form Nonresident alien, Figuring Your Tax U. 1040x 2012 tax form S. 1040x 2012 tax form Virgin Islands, Aliens from the U. 1040x 2012 tax form S. 1040x 2012 tax form Virgin Islands. 1040x 2012 tax form Who must file, Nonresident Aliens Filing status, Filing Status First-year choice, First-Year Choice Fixed or determinable income, Fixed or Determinable Income Foreign country, Foreign country. 1040x 2012 tax form Foreign earned income exclusion, Foreign Earned Income and Housing Amount Foreign employer, Employees of foreign persons, organizations, or offices. 1040x 2012 tax form , Foreign employer. 1040x 2012 tax form Foreign government employees Alien status, Foreign government-related individuals. 1040x 2012 tax form Exempt from U. 1040x 2012 tax form S. 1040x 2012 tax form tax, Employees of Foreign Governments and International Organizations Tax treaty exemption, Employees of Foreign Governments Foreign income subject to U. 1040x 2012 tax form S. 1040x 2012 tax form tax, Foreign Income Foreign organizations, charitable contributions to, Charitable contributions. 1040x 2012 tax form Foreign tax credit Dual-status alien, Foreign tax credit. 1040x 2012 tax form Nonresident alien, Foreign tax credit. 1040x 2012 tax form Resident alien, Foreign tax credit. 1040x 2012 tax form Forms, Form 8843. 1040x 2012 tax form 1040-C, Form 1040-C 1040-ES(NR), Estimated Tax Form 1040-ES (NR) 1040NR, Nonresident Aliens 1040NR-EZ, Form 1040NR-EZ 1040X, Amended Returns and Claims for Refund 1042-S, Tax Withheld on Real Property Sales 1116, Foreign tax credit. 1040x 2012 tax form , Foreign tax credit. 1040x 2012 tax form , Foreign tax credit. 1040x 2012 tax form 2063, Form 2063 2106, Deductible travel expenses. 1040x 2012 tax form 2210, Penalty for failure to pay estimated income tax. 1040x 2012 tax form 3903, Moving expenses. 1040x 2012 tax form 4563, Residents of American Samoa. 1040x 2012 tax form 4790 (see FinCEN 105) 6251, Alternative minimum tax. 1040x 2012 tax form 8233, Employees and independent contractors. 1040x 2012 tax form 8275, Disclosure statement. 1040x 2012 tax form 8288, Credit for tax withheld. 1040x 2012 tax form 8288-A, Credit for tax withheld. 1040x 2012 tax form 8288-B, Withholding certificates. 1040x 2012 tax form 8801, Credit for prior year minimum tax. 1040x 2012 tax form 8805, Tax Withheld on Partnership Income, Tax Withheld on Real Property Sales 8833, Effect of Tax Treaties, Resident Aliens 8840, Form 8840. 1040x 2012 tax form 8843, Form 8843. 1040x 2012 tax form 8854, Reporting requirements. 1040x 2012 tax form FinCEN 105, Other Forms You May Have To File W-4, Withholding on Wages, Alternate Withholding Procedure, Form W-4. 1040x 2012 tax form W-7, Individual taxpayer identification number (ITIN). 1040x 2012 tax form W-8BEN, Income Entitled to Tax Treaty Benefits W-8ECI, Withholding on Pensions W-9, Notification of Alien Status Forms to file Dual-status alien, Forms To File Nonresident aliens, Nonresident Aliens Resident alien, Resident Aliens Sailing permits, Forms To File Free tax services, Free help with your tax return. 1040x 2012 tax form G Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing German social security benefits, Special Rule for Canadian and German Social Security Benefits Green card test, Green Card Test H Head of household Nonresident alien, Head of household. 1040x 2012 tax form Resident alien, Head of household. 1040x 2012 tax form Help (see Tax help) Home, sale of, Gain From the Sale of Your Main Home Household employees, Household employees. 1040x 2012 tax form I Identification number, taxpayer Defined, Identification Number Penalty for failure to supply, Failure to supply taxpayer identification number. 1040x 2012 tax form Income Community, Community Income Effectively connected, Effectively Connected Income Exclusions, Exclusions From Gross Income Fixed or determinable, Fixed or Determinable Income Foreign, Foreign Income From real property, Income From Real Property Income affected by treaties, Income affected by treaties. 1040x 2012 tax form Interest, Interest Income Investment, Investment Income Personal services, Personal Service Income Reporting, Reporting Your Income Sale of home, Gain From the Sale of Your Main Home Tip, Withholding on Tip Income Income code 28, Gambling Winnings Income from U. 1040x 2012 tax form S. 1040x 2012 tax form sources, Source of Income Dividends, Dividends Interest, Interest Income Pensions and annuities, Pensions and Annuities Personal property, Personal Property Personal services, Personal Services Real property, Real Property Rents or royalties, Rents or Royalties Independent contractors Withholding exemption under tax treaty, Employees and independent contractors. 1040x 2012 tax form Withholding rules, Independent Contractors India, students and business apprentices from Exemptions, Students and business apprentices from India. 1040x 2012 tax form Exemptions for spouse and dependents, Students and business apprentices from India. 1040x 2012 tax form Standard deduction, Students and business apprentices from India. 1040x 2012 tax form Withholding allowances, Students and business apprentices from India. 1040x 2012 tax form Individual retirement arrangement (IRA), Individual retirement arrangement (IRA). 1040x 2012 tax form Individual taxpayer identification number (ITIN), Individual taxpayer identification number (ITIN). 1040x 2012 tax form Intangible property, Intangible property. 1040x 2012 tax form Interest Portfolio, Portfolio interest. 1040x 2012 tax form , Interest that does not qualify as portfolio interest. 1040x 2012 tax form Interest income Contingent, Contingent interest. 1040x 2012 tax form Excludable, Interest Income Source rule, Interest Income International organization employees Alien status, Foreign government-related individuals. 1040x 2012 tax form Exempt from U. 1040x 2012 tax form S. 1040x 2012 tax form tax, Employees of Foreign Governments and International Organizations International social security agreements, International Social Security Agreements Interrupted period of residence, Interrupted Period of Residence Inventory, Inventory property. 1040x 2012 tax form Investment income, Investment Income Itemized deductions, Itemized Deductions J Job expenses, Job expenses and other miscellaneous deductions. 1040x 2012 tax form K Korea, South Exemptions, Residents of South Korea. 1040x 2012 tax form , Exemptions Married filing separately, Married nonresident alien. 1040x 2012 tax form Qualifying widow filing status, Qualifying widow(er). 1040x 2012 tax form Withholding tax, U. 1040x 2012 tax form S. 1040x 2012 tax form nationals or residents of Canada, Mexico, or South Korea. 1040x 2012 tax form L Last year of residency, Last Year of Residency Long-term U. 1040x 2012 tax form S. 1040x 2012 tax form resident Defined, Long-term resident defined. 1040x 2012 tax form Expatriation tax, Long-term resident defined. 1040x 2012 tax form Losses Business, Business Profits and Losses and Sales Transactions Capital Assets, Sales or Exchanges of Capital Assets Casualty and theft, Casualty and theft losses. 1040x 2012 tax form Of nonresident aliens, Losses. 1040x 2012 tax form Real property, Real Property Gain or Loss M Married filing jointly Nonresident alien, Married nonresident alien. 1040x 2012 tax form Resident alien, Married filing jointly. 1040x 2012 tax form Medical condition, Medical condition. 1040x 2012 tax form Medicare tax, Social Security and Medicare Taxes Mexico Commuters, Regular commuters from Canada or Mexico. 1040x 2012 tax form Exemptions, Exemptions Personal exemption, Resident Aliens Qualifying widow filing status, Qualifying widow(er). 1040x 2012 tax form Residents of, Residents of Mexico or Canada or U. 1040x 2012 tax form S. 1040x 2012 tax form nationals. 1040x 2012 tax form Transportation-related employment, Residents of Canada or Mexico engaged in transportation-related employment. 1040x 2012 tax form Withholding tax, U. 1040x 2012 tax form S. 1040x 2012 tax form nationals or residents of Canada, Mexico, or South Korea. 1040x 2012 tax form Miscellaneous deductions, Job expenses and other miscellaneous deductions. 1040x 2012 tax form Monetary instruments, transporting, Other Forms You May Have To File Moving expenses, Moving expenses. 1040x 2012 tax form Multi-level marketing, Multi-level marketing. 1040x 2012 tax form , Multi-level marketing. 1040x 2012 tax form Municipal bonds, State and local government obligations. 1040x 2012 tax form N National of the United States, Qualifying widow(er). 1040x 2012 tax form , 5) Tax rates. 1040x 2012 tax form , Withholding on Wages Natural resources (see Real property) Non-registered obligations, Obligations not in registered form. 1040x 2012 tax form Nonresident alien, Nonresident Aliens Annuity income, Income from certain annuities. 1040x 2012 tax form Business expenses, Ordinary and necessary business expenses. 1040x 2012 tax form Casualty and theft losses, Casualty and theft losses. 1040x 2012 tax form Charitable contributions, Charitable contributions. 1040x 2012 tax form Child care credit, Child and dependent care credit. 1040x 2012 tax form Credit for excess social security tax withheld, Excess social security tax withheld. 1040x 2012 tax form Credit for income tax withheld, Withholding from wages. 1040x 2012 tax form Credit for prior year minimum tax, Credit for prior year minimum tax. 1040x 2012 tax form Defined, Nonresident Aliens Earned income credit, Earned income credit. 1040x 2012 tax form Education credits, Education credits. 1040x 2012 tax form Effectively connected income, tax on, Tax on Effectively Connected Income Filing Form 1040NR, Figuring Your Tax Filing Form 1040NR-EZ, Figuring Your Tax Foreign tax credit, Foreign tax credit. 1040x 2012 tax form Gambling winnings, dog or horse racing, Gambling Winnings From Dog or Horse Racing Head of household, Head of household. 1040x 2012 tax form How income is taxed, Nonresident Aliens Individual retirement arrangement (IRA), Individual retirement arrangement (IRA). 1040x 2012 tax form Interest income, Interest Income Job expenses, Job expenses and other miscellaneous deductions. 1040x 2012 tax form Losses, Losses. 1040x 2012 tax form Married filing jointly, Married nonresident alien. 1040x 2012 tax form Miscellaneous deductions, Job expenses and other miscellaneous deductions. 1040x 2012 tax form Moving expenses, Moving expenses. 1040x 2012 tax form Personal exemptions, Exemptions Qualifying widow(er), Qualifying widow(er). 1040x 2012 tax form Standard deduction, Standard deduction. 1040x 2012 tax form State and local income taxes, State and local income taxes. 1040x 2012 tax form Students, Nonresident Alien Students Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. 1040x 2012 tax form Tax withheld at source, Tax withheld at the source. 1040x 2012 tax form Travel expenses, Travel expenses. 1040x 2012 tax form Withholding from partnership income, Tax withheld on partnership income. 1040x 2012 tax form Withholding tax, Paying Tax Through Withholding or Estimated Tax Nonresident spouse treated as a resident, Nonresident Spouse Treated as a Resident O Obligations Not in registered form, Obligations not in registered form. 1040x 2012 tax form Registered, Obligations in registered form. 1040x 2012 tax form Original issue discount, Original issue discount (OID). 1040x 2012 tax form P Partnership Income, tax withheld on, Tax Withheld on Partnership Income Partnerships, Partnerships. 1040x 2012 tax form Payment against U. 1040x 2012 tax form S. 1040x 2012 tax form tax, Payments Tax withheld at the source, Tax withheld at the source. 1040x 2012 tax form Withholding from wages, Tax Withheld Penalties, Penalties. 1040x 2012 tax form , Penalties Accuracy-related, Accuracy-related penalty. 1040x 2012 tax form Failure to file, Filing late. 1040x 2012 tax form Failure to pay, Paying tax late. 1040x 2012 tax form Failure to supply taxpayer identification number, Failure to supply taxpayer identification number. 1040x 2012 tax form Fraud, Fraud. 1040x 2012 tax form Frivolous tax submission, Frivolous tax submission. 1040x 2012 tax form Negligence, Negligence or disregard. 1040x 2012 tax form Substantial understatement of income tax, Substantial understatement of income tax. 1040x 2012 tax form Penalty for failure to pay estimated income tax, Penalty for failure to pay estimated income tax. 1040x 2012 tax form Penalty on early withdrawal of savings, Penalty on early withdrawal of savings. 1040x 2012 tax form Pensions, Pensions. 1040x 2012 tax form Source rule, Pensions and Annuities Withholding on, Withholding on Pensions Personal exemption Prorating, Personal exemption. 1040x 2012 tax form Withholding allowance, Allowance for Personal Exemption Personal property, Personal Property Personal services income Connected with U. 1040x 2012 tax form S. 1040x 2012 tax form business, Personal Service Income Paid by foreign employer, Services Performed for Foreign Employer Source rule, Personal Services Tax treaty exemption, Personal Services Withholding on wages, Withholding on Wages Portfolio interest, Portfolio interest. 1040x 2012 tax form , Interest that does not qualify as portfolio interest. 1040x 2012 tax form Prizes, Scholarships, Grants, Prizes, and Awards Professional athletes, Professional athletes. 1040x 2012 tax form Property Depreciable, Depreciable property. 1040x 2012 tax form Intangible, Intangible property. 1040x 2012 tax form Inventory, Inventory property. 1040x 2012 tax form Personal, Personal Property Real, Real Property, Real Property Gain or Loss Protective return, Protective return. 1040x 2012 tax form Publications (see Tax help) Puerto Rico, residents of, Aliens From American Samoa or Puerto Rico, Special rules for aliens from certain U. 1040x 2012 tax form S. 1040x 2012 tax form possessions. 1040x 2012 tax form , Bona Fide Residents of American Samoa or Puerto Rico, Residents of American Samoa and Puerto Rico. 1040x 2012 tax form Q Qualified investment entity Distributions paid by, Qualified investment entities. 1040x 2012 tax form R Railroad retirement benefits, Social Security Benefits, Social security and railroad retirement benefits. 1040x 2012 tax form Real estate (see Real property) Real property Definition, Real Property Income from, Income From Real Property Natural resources, Natural resources. 1040x 2012 tax form Sale or exchange of, Real Property Gain or Loss Source rule, Real Property Tax withheld on sale of, Tax Withheld on Real Property Sales U. 1040x 2012 tax form S. 1040x 2012 tax form real property interest, U. 1040x 2012 tax form S. 1040x 2012 tax form real property interest. 1040x 2012 tax form Real property income, Real property income. 1040x 2012 tax form Refunds, claims for, Amended Returns and Claims for Refund Registered obligations, Obligations in registered form. 1040x 2012 tax form Rents, Rents or Royalties Researchers, wage withholding exemption under tax treaty, Students, teachers, and researchers. 1040x 2012 tax form , Appendix B—Tax Treaty Exemption Procedure for Teachers and Researchers Residence, interrupted, Interrupted Period of Residence Residency First year, First Year of Residency Last year, Last Year of Residency Starting date, Residency starting date under substantial presence test. 1040x 2012 tax form Termination date, Last Year of Residency Tests, Resident Aliens Resident alien, Resident Aliens Child tax credit, Child tax credit. 1040x 2012 tax form , Child tax credit. 1040x 2012 tax form , Child tax credit. 1040x 2012 tax form Defined, Resident Aliens Education credits, Education credits. 1040x 2012 tax form Head of household, Head of household. 1040x 2012 tax form Married filing jointly, Married filing jointly. 1040x 2012 tax form Qualifying widow(er), Qualifying widow(er). 1040x 2012 tax form Resident alien status, choosing, Choosing Resident Alien Status Retirement savings contributions credit Dual-status alien, Retirement savings contributions credit. 1040x 2012 tax form Nonresident alien, Retirement savings contributions credit. 1040x 2012 tax form Resident alien, Retirement savings contributions credit. 1040x 2012 tax form Royalties, Rents or Royalties S Sailing permits, departing aliens Aliens not requiring, Aliens Not Required To Obtain Sailing or Departure Permits Bond furnished, insuring tax payment, Paying Taxes and Obtaining Refunds Form 1040-C, Form 1040-C Form 2063, Form 2063 Forms to file, Forms To File When to get, When to get a sailing or departure permit. 1040x 2012 tax form Where to get, Where to get a sailing or departure permit. 1040x 2012 tax form Salary (see Personal services income) Sale of home, income from, Gain From the Sale of Your Main Home Sales or exchanges, capital assets, Sales or Exchanges of Capital Assets Scholarship Excludable, Scholarships and Fellowship Grants Source rule, Scholarships, Grants, Prizes, and Awards Withholding tax, Withholding on Scholarships and Fellowship Grants Securities, trading in, Trading in stocks, securities, and commodities. 1040x 2012 tax form Self-employed retirement plans, Self-employed SEP, SIMPLE, and qualified retirement plans. 1040x 2012 tax form Self-employment tax, Self-Employment Tax Social security benefits Dual-status alien, Social security and railroad retirement benefits. 1040x 2012 tax form Nonresident alien, Social Security Benefits Social security number, Social security number (SSN). 1040x 2012 tax form Social security tax Credit for excess tax withheld, Social Security and Medicare Taxes Excess withheld, Excess social security tax withheld. 1040x 2012 tax form Foreign students and exchange visitors, Students and Exchange Visitors International agreements, International Social Security Agreements Self-employment tax, Self-Employment Tax Totalization agreements, International Social Security Agreements Withheld in error, Refund of Taxes Withheld in Error Source of compensation for labor or personal services Alternative basis, Alternative Basis Multi-year compensation, Multi-year compensation. 1040x 2012 tax form Time basis, Time Basis Source of income, Source of Income Standard deduction, Standard deduction. 1040x 2012 tax form State and local income taxes, State and local income taxes. 1040x 2012 tax form Stocks, trading in, Trading in stocks, securities, and commodities. 1040x 2012 tax form Student loan interest expense, Student loan interest expense. 1040x 2012 tax form Students Alien status, Students. 1040x 2012 tax form Engaged in U. 1040x 2012 tax form S. 1040x 2012 tax form business, Students and trainees. 1040x 2012 tax form Fellowship grant, Scholarships, Grants, Prizes, and Awards, Withholding on Scholarships and Fellowship Grants Income from foreign employer, Students and exchange visitors. 1040x 2012 tax form Scholarship, Scholarships, Grants, Prizes, and Awards, Withholding on Scholarships and Fellowship Grants Social security and Medicare taxes, Students and Exchange Visitors Tax treaty exemption, Students, Apprentices, and Trainees Wage withholding exemption under tax treaty, Students, teachers, and researchers. 1040x 2012 tax form , Appendix A—Tax Treaty Exemption Procedure for Students Students and business apprentices from India, Students and business apprentices from India. 1040x 2012 tax form , Students and business apprentices from India. 1040x 2012 tax form , Students and business apprentices from India. 1040x 2012 tax form , Students and business apprentices from India. 1040x 2012 tax form Substantial presence test, Substantial Presence Test T Tax credits and payments Nonresident aliens, Nonresident Aliens Resident aliens, Tax Credits and Payments Tax help, How To Get Tax Help Tax home, Tax home. 1040x 2012 tax form , Tax home. 1040x 2012 tax form Tax paid on undistributed long-term capital gains, Tax paid on undistributed long-term capital gains. 1040x 2012 tax form Tax treaties Benefits, Treaty Income, Some Typical Tax Treaty Benefits Capital gains, Capital Gains Effect of, Effect of Tax Treaties Employees of foreign governments, Employees of Foreign Governments Exclusions from income, Income affected by treaties. 1040x 2012 tax form Income affected by, Income affected by treaties. 1040x 2012 tax form Reporting benefits claimed, Reporting Treaty Benefits Claimed Teachers and professors, Teachers, Professors, and Researchers Trainees, students, and apprentices, Students, Apprentices, and Trainees Tax Treaties Income entitled to benefits, Income Entitled to Tax Treaty Benefits Tax year, Tax Year, Tax Year Tax, expatriation, Expatriation Before June 4, 2004 Tax, transportation, Transportation Tax Taxpayer identification number Defined, Identification Number Penalty for failure to supply, Failure to supply taxpayer identification number. 1040x 2012 tax form Teachers Alien status, Teachers and trainees. 1040x 2012 tax form Tax treaty exemption, Teachers, Professors, and Researchers Wage withholding exemption under tax treaty, Students, teachers, and researchers. 1040x 2012 tax form , Appendix B—Tax Treaty Exemption Procedure for Teachers and Researchers Tie-breaker rule, Effect of Tax Treaties Tip income, Withholding on Tip Income Totalization agreements, International Social Security Agreements Trade or business, U. 1040x 2012 tax form S. 1040x 2012 tax form , Trade or Business in the United States Beneficiary of estate or trust, Beneficiary of an estate or trust. 1040x 2012 tax form Business operations, Business operations. 1040x 2012 tax form Income from U. 1040x 2012 tax form S. 1040x 2012 tax form sources, Effectively Connected Income Partnerships, Partnerships. 1040x 2012 tax form Personal services, Personal Services Students and trainees, Students and trainees. 1040x 2012 tax form Trading in stocks, securities, and commodities, Trading in stocks, securities, and commodities. 1040x 2012 tax form Trading in stocks, securities, and commodities, Trading in stocks, securities, and commodities. 1040x 2012 tax form Trainees, Teachers and trainees. 1040x 2012 tax form , Students and trainees. 1040x 2012 tax form Transportation income Connected with U. 1040x 2012 tax form S. 1040x 2012 tax form business, Transportation Income Source rule, Transportation Income Transportation of currency or monetary instruments, Other Forms You May Have To File Transportation tax, Transportation Tax Transportation-related employment, residents of Canada or Mexico, Residents of Canada or Mexico engaged in transportation-related employment. 1040x 2012 tax form Travel expenses, Travel expenses. 1040x 2012 tax form Treaties, income affected by, Income affected by treaties. 1040x 2012 tax form Treaty benefits for resident aliens, Resident Aliens Treaty benefits, reporting benefits claimed, Reporting Treaty Benefits Claimed Trust, beneficiary, Beneficiary of an estate or trust. 1040x 2012 tax form TTY/TDD information, How To Get Tax Help U U. 1040x 2012 tax form S Virgin Islands, residents of Withholding on wages, Residents of the U. 1040x 2012 tax form S. 1040x 2012 tax form Virgin Islands. 1040x 2012 tax form U. 1040x 2012 tax form S. 1040x 2012 tax form national, Qualifying widow(er). 1040x 2012 tax form , 5) Tax rates. 1040x 2012 tax form , Withholding on Wages U. 1040x 2012 tax form S. 1040x 2012 tax form real property holding corporation, U. 1040x 2012 tax form S. 1040x 2012 tax form real property holding corporation. 1040x 2012 tax form 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Income Withholding tax Allowance for personal exemption, Allowance for Personal Exemption Central withholding agreements, Central withholding agreements. 1040x 2012 tax form Notification of alien status, Notification of Alien Status On sale of real property, Withholding of tax. 1040x 2012 tax form Pensions, Withholding on Pensions Puerto Rico, residents of, Residents of American Samoa and Puerto Rico. 1040x 2012 tax form Real property sales, Tax Withheld on Real Property Sales Residents of Canada, Mexico, or South Korea, U. 1040x 2012 tax form S. 1040x 2012 tax form nationals or residents of Canada, Mexico, or South Korea. 1040x 2012 tax form Scholarships and grants, Withholding on Scholarships and Fellowship Grants Social security taxes, Social Security and Medicare Taxes Tax treaty benefits, Income Entitled to Tax Treaty Benefits Tip income, Withholding on Tip Income U. 1040x 2012 tax form S. 1040x 2012 tax form nationals, U. 1040x 2012 tax form S. 1040x 2012 tax form nationals or 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The 1040x 2012 Tax Form

1040x 2012 tax form 2. 1040x 2012 tax form   Entertainment Table of Contents Directly-Related Test Associated TestMeetings at conventions. 1040x 2012 tax form 50% LimitExceptions to the 50% Limit What Entertainment Expenses Are Deductible?A meal as a form of entertainment. 1040x 2012 tax form Deduction may depend on your type of business. 1040x 2012 tax form Exception for events that benefit charitable organizations. 1040x 2012 tax form Food and beverages in skybox seats. 1040x 2012 tax form What Entertainment Expenses Are Not Deductible?Out-of-pocket expenses. 1040x 2012 tax form You may be able to deduct business-related entertainment expenses you have for entertaining a client, customer, or employee. 1040x 2012 tax form The rules and definitions are summarized in Table 2-1 . 1040x 2012 tax form You can deduct entertainment expenses only if they are both ordinary and necessary and meet one of the following tests. 1040x 2012 tax form Directly-related test. 1040x 2012 tax form Associated test. 1040x 2012 tax form Both of these tests are explained later. 1040x 2012 tax form An ordinary expense is one that is common and accepted in your trade or business. 1040x 2012 tax form A necessary expense is one that is helpful and appropriate for your business. 1040x 2012 tax form An expense does not have to be required to be considered necessary. 1040x 2012 tax form The amount you can deduct for entertainment expenses may be limited. 1040x 2012 tax form Generally, you can deduct only 50% of your unreimbursed entertainment expenses. 1040x 2012 tax form This limit is discussed later under 50% Limit. 1040x 2012 tax form Directly-Related Test To meet the directly-related test for entertainment expenses (including entertainment-related meals), you must show that: The main purpose of the combined business and entertainment was the active conduct of business, You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit at some future time. 1040x 2012 tax form Business is generally not considered to be the main purpose when business and entertainment are combined on hunting or fishing trips, or on yachts or other pleasure boats. 1040x 2012 tax form Even if you show that business was the main purpose, you generally cannot deduct the expenses for the use of an entertainment facility. 1040x 2012 tax form See Entertainment facilities under What Entertainment Expenses Are Not Deductible? later in this chapter. 1040x 2012 tax form You must consider all the facts, including the nature of the business transacted and the reasons for conducting business during the entertainment. 1040x 2012 tax form It is not necessary to devote more time to business than to entertainment. 1040x 2012 tax form However, if the business discussion is only incidental to the entertainment, the entertainment expenses do not meet the directly-related test. 1040x 2012 tax form Table 2-1. 1040x 2012 tax form When Are Entertainment Expenses Deductible? General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. 1040x 2012 tax form Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. 1040x 2012 tax form An ordinary expense is one that is common and accepted in your trade or business. 1040x 2012 tax form A necessary expense is one that is helpful and appropriate. 1040x 2012 tax form Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. 1040x 2012 tax form   Associated test Entertainment is associated with your trade or business, and Entertainment is directly before or after a substantial business discussion. 1040x 2012 tax form Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. 1040x 2012 tax form You cannot deduct expenses that are lavish or extravagant under the circumstances. 1040x 2012 tax form You generally can deduct only 50% of your unreimbursed entertainment expenses (see 50% Limit ). 1040x 2012 tax form You do not have to show that business income or other business benefit actually resulted from each entertainment expense. 1040x 2012 tax form Clear business setting. 1040x 2012 tax form   If the entertainment takes place in a clear business setting and is for your business or work, the expenses are considered directly related to your business or work. 1040x 2012 tax form The following situations are examples of entertainment in a clear business setting. 1040x 2012 tax form Entertainment in a hospitality room at a convention where business goodwill is created through the display or discussion of business products. 1040x 2012 tax form Entertainment that is mainly a price rebate on the sale of your products (such as a restaurant owner providing an occasional free meal to a loyal customer). 1040x 2012 tax form Entertainment of a clear business nature occurring under circumstances where there is no meaningful personal or social relationship between you and the persons entertained. 1040x 2012 tax form An example is entertainment of business and civic leaders at the opening of a new hotel or play when the purpose is to get business publicity rather than to create or maintain the goodwill of the persons entertained. 1040x 2012 tax form Expenses not considered directly related. 1040x 2012 tax form   Entertainment expenses generally are not considered directly related if you are not there or in situations where there are substantial distractions that generally prevent you from actively conducting business. 1040x 2012 tax form The following are examples of situations where there are substantial distractions. 1040x 2012 tax form A meeting or discussion at a nightclub, theater, or sporting event. 1040x 2012 tax form A meeting or discussion during what is essentially a social gathering, such as a cocktail party. 1040x 2012 tax form A meeting with a group that includes persons who are not business associates at places such as cocktail lounges, country clubs, golf clubs, athletic clubs, or vacation resorts. 1040x 2012 tax form Associated Test Even if your expenses do not meet the directly-related test, they may meet the associated test. 1040x 2012 tax form To meet the associated test for entertainment expenses (including entertainment-related meals), you must show that the entertainment is: Associated with the active conduct of your trade or business, and Directly before or after a substantial business discussion (defined later). 1040x 2012 tax form Associated with trade or business. 1040x 2012 tax form   Generally, an expense is associated with the active conduct of your trade or business if you can show that you had a clear business purpose for having the expense. 1040x 2012 tax form The purpose may be to get new business or to encourage the continuation of an existing business relationship. 1040x 2012 tax form Substantial business discussion. 1040x 2012 tax form   Whether a business discussion is substantial depends on the facts of each case. 1040x 2012 tax form A business discussion will not be considered substantial unless you can show that you actively engaged in the discussion, meeting, negotiation, or other business transaction to get income or some other specific business benefit. 1040x 2012 tax form   The meeting does not have to be for any specified length of time, but you must show that the business discussion was substantial in relation to the meal or entertainment. 1040x 2012 tax form It is not necessary that you devote more time to business than to entertainment. 1040x 2012 tax form You do not have to discuss business during the meal or entertainment. 1040x 2012 tax form Meetings at conventions. 1040x 2012 tax form   You are considered to have a substantial business discussion if you attend meetings at a convention or similar event, or at a trade or business meeting sponsored and conducted by a business or professional organization. 1040x 2012 tax form However, your reason for attending the convention or meeting must be to further your trade or business. 1040x 2012 tax form The organization that sponsors the convention or meeting must schedule a program of business activities that is the main activity of the convention or meeting. 1040x 2012 tax form Directly before or after business discussion. 1040x 2012 tax form   If the entertainment is held on the same day as the business discussion, it is considered to be held directly before or after the business discussion. 1040x 2012 tax form   If the entertainment and the business discussion are not held on the same day, you must consider the facts of each case to see if the associated test is met. 1040x 2012 tax form Among the facts to consider are the place, date, and duration of the business discussion. 1040x 2012 tax form If you or your business associates are from out of town, you must also consider the dates of arrival and departure, and the reasons the entertainment and the discussion did not take place on the same day. 1040x 2012 tax form Example. 1040x 2012 tax form A group of business associates comes from out of town to your place of business to hold a substantial business discussion. 1040x 2012 tax form If you entertain those business guests on the evening before the business discussion, or on the evening of the day following the business discussion, the entertainment generally is considered to be held directly before or after the discussion. 1040x 2012 tax form The expense meets the associated test. 1040x 2012 tax form 50% Limit In general, you can deduct only 50% of your business-related meal and entertainment expenses. 1040x 2012 tax form (If you are subject to the Department of Transportation's “hours of service” limits, you can deduct 80% of your business-related meal and entertainment expenses. 1040x 2012 tax form See Individuals subject to “hours of service” limits , later. 1040x 2012 tax form ) The 50% limit applies to employees or their employers, and to self-employed persons (including independent contractors) or their clients, depending on whether the expenses are reimbursed. 1040x 2012 tax form Figure A summarizes the general rules explained in this section. 1040x 2012 tax form The 50% limit applies to business meals or entertainment expenses you have while: Traveling away from home (whether eating alone or with others) on business, Entertaining customers at your place of business, a restaurant, or other location, or Attending a business convention or reception, business meeting, or business luncheon at a club. 1040x 2012 tax form Included expenses. 1040x 2012 tax form   Expenses subject to the 50% limit include: Taxes and tips relating to a business meal or entertainment activity, Cover charges for admission to a nightclub, Rent paid for a room in which you hold a dinner or cocktail party, and Amounts paid for parking at a sports arena. 1040x 2012 tax form However, the cost of transportation to and from a business meal or a business-related entertainment activity is not subject to the 50% limit. 1040x 2012 tax form Figure A. 1040x 2012 tax form Does the 50% Limit Apply to Your Expenses? There are exceptions to these rules. 1040x 2012 tax form See Exceptions to the 50% Limit . 1040x 2012 tax form Please click here for the text description of the image. 1040x 2012 tax form Figure A. 1040x 2012 tax form Does the 50% limit apply to Your Expenses?TAs for Figure A are: Notice 87-23; Form 2106 instructions Application of 50% limit. 1040x 2012 tax form   The 50% limit on meal and entertainment expenses applies if the expense is otherwise deductible and is not covered by one of the exceptions discussed later. 1040x 2012 tax form   The 50% limit also applies to certain meal and entertainment expenses that are not business related. 1040x 2012 tax form It applies to meal and entertainment expenses you have for the production of income, including rental or royalty income. 1040x 2012 tax form It also applies to the cost of meals included in deductible educational expenses. 1040x 2012 tax form When to apply the 50% limit. 1040x 2012 tax form   You apply the 50% limit after determining the amount that would otherwise qualify for a deduction. 1040x 2012 tax form You first have to determine the amount of meal and entertainment expenses that would be deductible under the other rules discussed in this publication. 1040x 2012 tax form Example 1. 1040x 2012 tax form You spend $200 for a business-related meal. 1040x 2012 tax form If $110 of that amount is not allowable because it is lavish and extravagant, the remaining $90 is subject to the 50% limit. 1040x 2012 tax form Your deduction cannot be more than $45 (50% × $90). 1040x 2012 tax form Example 2. 1040x 2012 tax form You purchase two tickets to a concert and give them to a client. 1040x 2012 tax form You purchased the tickets through a ticket agent. 1040x 2012 tax form You paid $200 for the two tickets, which had a face value of $80 each ($160 total). 1040x 2012 tax form Your deduction cannot be more than $80 (50% × $160). 1040x 2012 tax form Exceptions to the 50% Limit Generally, business-related meal and entertainment expenses are subject to the 50% limit. 1040x 2012 tax form Figure A can help you determine if the 50% limit applies to you. 1040x 2012 tax form Expenses not subject to 50% limit. 1040x 2012 tax form   Your meal or entertainment expense is not subject to the 50% limit if the expense meets one of the following exceptions. 1040x 2012 tax form 1 - Employee's reimbursed expenses. 1040x 2012 tax form   If you are an employee, you are not subject to the 50% limit on expenses for which your employer reimburses you under an accountable plan. 1040x 2012 tax form Accountable plans are discussed in chapter 6. 1040x 2012 tax form 2 - Self-employed. 1040x 2012 tax form   If you are self-employed, your deductible meal and entertainment expenses are not subject to the 50% limit if all of the following requirements are met. 1040x 2012 tax form You have these expenses as an independent contractor. 1040x 2012 tax form Your customer or client reimburses you or gives you an allowance for these expenses in connection with services you perform. 1040x 2012 tax form You provide adequate records of these expenses to your customer or client. 1040x 2012 tax form (See chapter 5 . 1040x 2012 tax form )   In this case, your client or customer is subject to the 50% limit on the expenses. 1040x 2012 tax form Example. 1040x 2012 tax form You are a self-employed attorney who adequately accounts for meal and entertainment expenses to a client who reimburses you for these expenses. 1040x 2012 tax form You are not subject to the directly-related or associated test, nor are you subject to the 50% limit. 1040x 2012 tax form If the client can deduct the expenses, the client is subject to the 50% limit. 1040x 2012 tax form If you (as an independent contractor) have expenses for meals and entertainment related to providing services for a client but do not adequately account for and seek reimbursement from the client for those expenses, you are subject to the directly-related or associated test and to the 50% limit. 1040x 2012 tax form 3 - Advertising expenses. 1040x 2012 tax form   You are not subject to the 50% limit if you provide meals, entertainment, or recreational facilities to the general public as a means of advertising or promoting goodwill in the community. 1040x 2012 tax form For example, neither the expense of sponsoring a television or radio show nor the expense of distributing free food and beverages to the general public is subject to the 50% limit. 1040x 2012 tax form 4 - Sale of meals or entertainment. 1040x 2012 tax form   You are not subject to the 50% limit if you actually sell meals, entertainment, goods and services, or use of facilities to the public. 1040x 2012 tax form For example, if you run a nightclub, your expense for the entertainment you furnish to your customers, such as a floor show, is not subject to the 50% limit. 1040x 2012 tax form 5 - Charitable sports event. 1040x 2012 tax form   You are not subject to the 50% limit if you pay for a package deal that includes a ticket to a qualified charitable sports event. 1040x 2012 tax form For the conditions the sports event must meet, see Exception for events that benefit charitable organizations under What Entertainment Expenses Are Deductible?, later. 1040x 2012 tax form Individuals subject to “hours of service” limits. 1040x 2012 tax form   You can deduct a higher percentage of your meal expenses while traveling away from your tax home if the meals take place during or incident to any period subject to the Department of Transportation's “hours of service” limits. 1040x 2012 tax form The percentage is 80%. 1040x 2012 tax form   Individuals subject to the Department of Transportation's “hours of service” limits include the following persons. 1040x 2012 tax form Certain air transportation workers (such as pilots, crew, dispatchers, mechanics, and control tower operators) who are under Federal Aviation Administration regulations. 1040x 2012 tax form Interstate truck operators and bus drivers who are under Department of Transportation regulations. 1040x 2012 tax form Certain railroad employees (such as engineers, conductors, train crews, dispatchers, and control operations personnel) who are under Federal Railroad Administration regulations. 1040x 2012 tax form Certain merchant mariners who are under Coast Guard regulations. 1040x 2012 tax form What Entertainment Expenses Are Deductible? This section explains different types of entertainment expenses you may be able to deduct. 1040x 2012 tax form Entertainment. 1040x 2012 tax form   Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation. 1040x 2012 tax form Examples include entertaining guests at nightclubs; at social, athletic, and sporting clubs; at theaters; at sporting events; on yachts; or on hunting, fishing, vacation, and similar trips. 1040x 2012 tax form   Entertainment also may include meeting personal, living, or family needs of individuals, such as providing meals, a hotel suite, or a car to customers or their families. 1040x 2012 tax form A meal as a form of entertainment. 1040x 2012 tax form   Entertainment includes the cost of a meal you provide to a customer or client, whether the meal is a part of other entertainment or by itself. 1040x 2012 tax form A meal expense includes the cost of food, beverages, taxes, and tips for the meal. 1040x 2012 tax form To deduct an entertainment-related meal, you or your employee must be present when the food or beverages are provided. 1040x 2012 tax form    You cannot claim the cost of your meal both as an entertainment expense and as a travel expense. 1040x 2012 tax form    Meals sold in the normal course of your business are not considered entertainment. 1040x 2012 tax form Deduction may depend on your type of business. 1040x 2012 tax form   Your kind of business may determine if a particular activity is considered entertainment. 1040x 2012 tax form For example, if you are a dress designer and have a fashion show to introduce your new designs to store buyers, the show generally is not considered entertainment. 1040x 2012 tax form This is because fashion shows are typical in your business. 1040x 2012 tax form But, if you are an appliance distributor and hold a fashion show for the spouses of your retailers, the show generally is considered entertainment. 1040x 2012 tax form Separating costs. 1040x 2012 tax form   If you have one expense that includes the costs of entertainment and other services (such as lodging or transportation), you must allocate that expense between the cost of entertainment and the cost of other services. 1040x 2012 tax form You must have a reasonable basis for making this allocation. 1040x 2012 tax form For example, you must allocate your expenses if a hotel includes entertainment in its lounge on the same bill with your room charge. 1040x 2012 tax form Taking turns paying for meals or entertainment. 1040x 2012 tax form   If a group of business acquaintances takes turns picking up each others' meal or entertainment checks primarily for personal reasons, without regard to whether any business purposes are served, no member of the group can deduct any part of the expense. 1040x 2012 tax form Lavish or extravagant expenses. 1040x 2012 tax form   You cannot deduct expenses for entertainment that are lavish or extravagant. 1040x 2012 tax form An expense is not considered lavish or extravagant if it is reasonable considering the facts and circumstances. 1040x 2012 tax form Expenses will not be disallowed just because they are more than a fixed dollar amount or take place at deluxe restaurants, hotels, nightclubs, or resorts. 1040x 2012 tax form Allocating between business and nonbusiness. 1040x 2012 tax form   If you entertain business and nonbusiness individuals at the same event, you must divide your entertainment expenses between business and nonbusiness. 1040x 2012 tax form You can deduct only the business part. 1040x 2012 tax form If you cannot establish the part of the expense for each person participating, allocate the expense to each participant on a pro rata basis. 1040x 2012 tax form Example. 1040x 2012 tax form You entertain a group of individuals that includes yourself, three business prospects, and seven social guests. 1040x 2012 tax form Only 4/11 of the expense qualifies as a business entertainment expense. 1040x 2012 tax form You cannot deduct the expenses for the seven social guests because those costs are nonbusiness expenses. 1040x 2012 tax form Trade association meetings. 1040x 2012 tax form   You can deduct entertainment expenses that are directly related to and necessary for attending business meetings or conventions of certain exempt organizations if the expenses of your attendance are related to your active trade or business. 1040x 2012 tax form These organizations include business leagues, chambers of commerce, real estate boards, trade associations, and professional associations. 1040x 2012 tax form Entertainment tickets. 1040x 2012 tax form   Generally, you cannot deduct more than the face value of an entertainment ticket, even if you paid a higher price. 1040x 2012 tax form For example, you cannot deduct service fees you pay to ticket agencies or brokers or any amount over the face value of the tickets you pay to scalpers. 1040x 2012 tax form Exception for events that benefit charitable organizations. 1040x 2012 tax form   Different rules apply when the cost of a ticket to a sports event benefits a charitable organization. 1040x 2012 tax form You can take into account the full cost you pay for the ticket, even if it is more than the face value, if all of the following conditions apply. 1040x 2012 tax form The event's main purpose is to benefit a qualified charitable organization. 1040x 2012 tax form The entire net proceeds go to the charity. 1040x 2012 tax form The event uses volunteers to perform substantially all the event's work. 1040x 2012 tax form    The 50% limit on entertainment does not apply to any expense for a package deal that includes a ticket to such a charitable sports event. 1040x 2012 tax form Example 1. 1040x 2012 tax form You purchase tickets to a golf tournament organized by the local volunteer fire company. 1040x 2012 tax form All net proceeds will be used to buy new fire equipment. 1040x 2012 tax form The volunteers will run the tournament. 1040x 2012 tax form You can deduct the entire cost of the tickets as a business expense if they otherwise qualify as an entertainment expense. 1040x 2012 tax form Example 2. 1040x 2012 tax form You purchase tickets to a college football game through a ticket broker. 1040x 2012 tax form After having a business discussion, you take a client to the game. 1040x 2012 tax form Net proceeds from the game go to colleges that qualify as charitable organizations. 1040x 2012 tax form However, since the colleges also pay individuals to perform services, such as coaching and recruiting, you can only use the face value of the tickets in determining your business deduction. 1040x 2012 tax form Skyboxes and other private luxury boxes. 1040x 2012 tax form   If you rent a skybox or other private luxury box for more than one event at the same sports arena, you generally cannot deduct more than the price of a nonluxury box seat ticket. 1040x 2012 tax form   To determine whether a skybox has been rented for more than one event, count each game or other performance as one event. 1040x 2012 tax form For example, renting a skybox for a series of playoff games is considered renting it for more than one event. 1040x 2012 tax form All skyboxes you rent in the same arena, along with any rentals by related parties, are considered in making this determination. 1040x 2012 tax form   Related parties include: Family members (spouses, ancestors, and lineal descendants), Parties who have made a reciprocal arrangement involving the sharing of skyboxes, Related corporations, A partnership and its principal partners, and A corporation and a partnership with common ownership. 1040x 2012 tax form Example. 1040x 2012 tax form You pay $3,000 to rent a 10-seat skybox at Team Stadium for three baseball games. 1040x 2012 tax form The cost of regular nonluxury box seats at each event is $30 a seat. 1040x 2012 tax form You can deduct (subject to the 50% limit) $900 ((10 seats × $30 each) × 3 events). 1040x 2012 tax form Food and beverages in skybox seats. 1040x 2012 tax form   If expenses for food and beverages are separately stated, you can deduct these expenses in addition to the amounts allowable for the skybox, subject to the requirements and limits that apply. 1040x 2012 tax form The amounts separately stated for food and beverages must be reasonable. 1040x 2012 tax form You cannot inflate the charges for food and beverages to avoid the limited deduction for skybox rentals. 1040x 2012 tax form What Entertainment Expenses Are Not Deductible? This section explains different types of entertainment expenses you generally may not be able to deduct. 1040x 2012 tax form Club dues and membership fees. 1040x 2012 tax form   You cannot deduct dues (including initiation fees) for membership in any club organized for: Business, Pleasure, Recreation, or Other social purpose. 1040x 2012 tax form This rule applies to any membership organization if one of its principal purposes is either: To conduct entertainment activities for members or their guests, or To provide members or their guests with access to entertainment facilities, discussed later. 1040x 2012 tax form   The purposes and activities of a club, not its name, will determine whether or not you can deduct the dues. 1040x 2012 tax form You cannot deduct dues paid to: Country clubs, Golf and athletic clubs, Airline clubs, Hotel clubs, and Clubs operated to provide meals under circumstances generally considered to be conducive to business discussions. 1040x 2012 tax form Entertainment facilities. 1040x 2012 tax form   Generally, you cannot deduct any expense for the use of an entertainment facility. 1040x 2012 tax form This includes expenses for depreciation and operating costs such as rent, utilities, maintenance, and protection. 1040x 2012 tax form   An entertainment facility is any property you own, rent, or use for entertainment. 1040x 2012 tax form Examples include a yacht, hunting lodge, fishing camp, swimming pool, tennis court, bowling alley, car, airplane, apartment, hotel suite, or home in a vacation resort. 1040x 2012 tax form Out-of-pocket expenses. 1040x 2012 tax form   You can deduct out-of-pocket expenses, such as for food and beverages, catering, gas, and fishing bait, that you provided during entertainment at a facility. 1040x 2012 tax form These are not expenses for the use of an entertainment facility. 1040x 2012 tax form However, these expenses are subject to the directly-related and associated tests and to the 50% limit , all discussed earlier. 1040x 2012 tax form Expenses for spouses. 1040x 2012 tax form   You generally cannot deduct the cost of entertainment for your spouse or for the spouse of a customer. 1040x 2012 tax form However, you can deduct these costs if you can show you had a clear business purpose, rather than a personal or social purpose, for providing the entertainment. 1040x 2012 tax form Example. 1040x 2012 tax form You entertain a customer. 1040x 2012 tax form The cost is an ordinary and necessary business expense and is allowed under the entertainment rules. 1040x 2012 tax form The customer's spouse joins you because it is impractical to entertain the customer without the spouse. 1040x 2012 tax form You can deduct the cost of entertaining the customer's spouse. 1040x 2012 tax form If your spouse joins the party because the customer's spouse is present, the cost of the entertainment for your spouse is also deductible. 1040x 2012 tax form Gift or entertainment. 1040x 2012 tax form   Any item that might be considered either a gift or entertainment generally will be considered entertainment. 1040x 2012 tax form However, if you give a customer packaged food or beverages that you intend the customer to use at a later date, treat it as a gift. 1040x 2012 tax form   If you give a customer tickets to a theater performance or sporting event and you do not go with the customer to the performance or event, you have a choice. 1040x 2012 tax form You can treat the tickets as either a gift or entertainment, whichever is to your advantage. 1040x 2012 tax form   You can change your treatment of the tickets at a later date by filing an amended return. 1040x 2012 tax form Generally, an amended return must be filed within 3 years from the date the original return was filed or within 2 years from the time the tax was paid, whichever is later. 1040x 2012 tax form   If you go with the customer to the event, you must treat the cost of the tickets as an entertainment expense. 1040x 2012 tax form You cannot choose, in this case, to treat the tickets as a gift. 1040x 2012 tax form Prev  Up  Next   Home   More Online Publications