Department of the Treasury

Internal Revenue Service

Publication 529

(Rev. December 2020)

Cat. No. 15056O

Miscellaneous Deductions

Jan 04, 2021

Reminders

Future developments. For the latest information about developments related to Pub. 529, such as legislation enacted after it was published, go to IRS.gov/Pub529.

Photographs of missing children. The IRS is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. 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.

Introduction

This publication explains that you can no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. Miscellaneous itemized deductions are those deductions that would have been subject to the 2%-of-adjusted-gross-income (AGI) limitation. You can still claim certain expenses as itemized deductions on Schedule﻿ ﻿A (Form 1040), Schedule﻿ ﻿A (1040-NR), or as an adjustment to income on Form 1040 or 1040-SR. This publication covers the following topics.

Deductions for Unreimbursed Employee Expenses.

Expenses you can't deduct.

Expenses you can deduct.

How to report your deductions.

Note. Generally, nonresident aliens who fall into one of the qualified categories of employment are allowed deductions to the extent they are directly related to income which is effectively connected with the conduct of a trade or business within the United States.

You must keep records to verify your deductions. You should keep receipts, canceled checks, substitute checks, financial account statements, and other documentary evidence.

Comments and suggestions.

We welcome your comments about this publication and suggestions for future editions.

You can send us comments through IRS.gov/FormComments. Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will consider your comments and suggestions as we revise our tax forms, instructions, and publications. Do not send tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions.

If you have a tax question not answered by this publication or the How To Get Tax Help section at the end of this publication, go to the IRS Interactive Tax Assistant page at IRS.gov/Help/ITA where you can find topics by using the search feature or viewing the categories listed.

Getting tax forms, instructions, and publications.

Visit IRS.gov/Forms to download current and prior-year forms, instructions, and publications.

Ordering tax forms, instructions, and publications.

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800﻿-﻿829﻿-﻿3676 to order prior-year forms and instructions. The IRS will process your order for forms and publications as soon as possible. Do not resubmit requests you’ve already sent us. You can get forms and publications faster online.

Useful Items

You may want to see:

Publication

﻿ ﻿463﻿ ﻿Travel, Gift, and Car Expenses

﻿ ﻿525﻿ ﻿Taxable and Nontaxable Income

﻿ ﻿535﻿ ﻿Business Expenses

﻿ ﻿587﻿ ﻿Business Use of Your Home (Including Use by Daycare Providers)

﻿ ﻿946﻿ ﻿How To Depreciate Property

Form (and Instructions)

﻿ ﻿Schedule A (Form 1040)﻿ ﻿Itemized Deductions

﻿ ﻿Schedule A (Form 1040-NR)﻿ ﻿Itemized Deductions

﻿ ﻿2106﻿ ﻿Employee Business Expenses

See How To Get Tax Help at the end of this publication for information about getting these publications and forms.

Deductions for Unreimbursed Employee Expenses

You can no longer claim any miscellaneous itemized deductions that are subject to the 2%-of-AGI limitation, including unreimbursed employee expenses. However, you may be able to deduct certain unreimbursed employee business expenses if you fall into one of the following categories of employment listed under Unreimbursed Employee Expenses next, or are an eligible educator as defined under Educator Expenses, later.

Unreimbursed Employee Expenses

You can no longer claim a deduction for unreimbursed employee expenses unless you fall into one of the following categories of employment, or have certain qualified educator expenses.

Armed Forces reservists.

Qualified performing artists.

Fee-basis state or local government officials.

Employees with impairment-related work expenses.

Unreimbursed employee expenses for individuals in these categories of employment are deducted as adjustments to gross income. Qualified employees listed in one of the categories above must complete Form 2106 to take the deduction. Certain qualified educator expenses are also deducted as an adjustment to gross income but you are not required to complete Form 2106.

 You can deduct only unreimbursed employee expenses that are paid or incurred during your tax year, for carrying on your trade or business of being an employee, and ordinary and necessary.

An expense is ordinary if it is common and accepted in your trade, business, or profession. An expense is necessary if it is appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary.

Categories of Employment

You can deduct unreimbursed employee expenses only if you qualify as an Armed Forces reservist, a qualified performing artist, a fee-basis state or local government official, or an employee with impairment-related work expenses.

Armed Forces reservist (member of a reserve component).

You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Navy, Marine Corps, Air Force, or Coast Guard Reserve; the Army National Guard of the United States; or the Reserve Corps of the Public Health Service.

Armed Forces reservists traveling more than 100 miles from home.

If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income. The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. The balance, if any, is reported on Schedule﻿ ﻿A.

For more information on travel expenses, see Pub. 463.

Qualified performing artist.

You are a qualified performing artist if you:

Performed services in the performing arts as an employee for at least two employers during the tax year,

Received from at least two of the employers wages of $200 or more per employer,

Had allowable business expenses attributable to the performing arts of more than 10% of gross income from the performing arts, and

Had adjusted gross income of $16,000 or less before deducting expenses as a performing artist.

If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. For example, musicians and entertainers can deduct the cost of theatrical clothing and accessories that aren't suitable for everyday wear. If you are an employee, complete Form 2106. See Pub. 463 for more information.

 Fee-basis state or local government official.

You are a qualifying fee-basis official if you are employed by a state or political subdivision of a state and are compensated, in whole or in part, on a fee basis.

If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. See Pub. 463 for more information.

Employee with impairment-related work expenses.

Impairment-related work expenses are the allowable expenses of an individual with physical or mental disabilities for attendant care at his or her place of employment. They also include other expenses in connection with the place of employment that enable the employee to work. See Pub. 463 for more details.

If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses.

Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work.

Educator Expenses

If you were an eligible educator for the tax year, you may be able to deduct qualified expenses you paid as an adjustment to gross income on your Schedule 1 (Form 1040), rather than as a miscellaneous itemized deduction. See the Instructions for Forms 1040 and 1040-SR for more information.

Eligible educator.

An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year.

Qualified expenses.

Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense doesn’t have to be required to be considered necessary.

Qualified expenses also include those expenses you incur while participating in professional development courses related to the curriculum in which you provide instruction. It also includes those expenses related to those students for whom you provide that instruction.

Qualified expenses don’t include expenses for home schooling or for nonathletic supplies for courses in health or physical education. You must reduce your qualified expenses by the following amounts.

Excludable U.S. series EE and I savings bond interest from Form 8815.

Nontaxable qualified state tuition program earnings.

Nontaxable earnings from Coverdell education savings accounts.

Any reimbursements you received for those expenses that weren’t reported to you on your Form W-2, box 1.

Expenses You Can’t Deduct

In addition to the expenses that are no longer deductible as a miscellaneous itemized deduction, there are expenses that are traditionally nondeductible under the Internal Revenue Code. Both categories of deduction are discussed next.

Miscellaneous Deductions Subject to the 2% AGI Limit

Unless you qualify for an exception, you generally can't deduct the following expenses, even if you fall into one of the qualified categories of employment listed earlier.

Appraisal fees for a casualty loss or charitable contribution.

Casualty and theft losses from property used in performing services as an employee.

Clerical help and office rent in caring for investments.

Credit or debit card convenience fees.

Depreciation on home computers used for investments.

Fees to collect interest and dividends.

Hobby expenses, but generally not more than hobby income.

Indirect miscellaneous deductions from pass-through entities.

Investment fees and expenses.

Legal fees related to producing or collecting taxable income or getting tax advice.

Loss on deposits in an insolvent or bankrupt financial institution.

Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you.

Repayments of income.

Repayments of social security benefits.

Safe deposit box rental, except for storing jewelry and other personal effects.

Service charges on dividend reinvestment plans.

Tax advice fees.

Trustee's fees for your IRA, if separately billed and paid.

Appraisal Fees

Appraisal fees you pay to figure a casualty loss or the fair market value of donated property are miscellaneous itemized deductions and can no longer be deducted.

Casualty and Theft Losses

Damaged or stolen property used in performing services as an employee is a miscellaneous deduction and can no longer be deducted. For more information on casualty and theft losses, see Pub. 547, Casualties, Disasters, and Thefts.

Clerical Help and Office Rent

Office expenses, such as rent and clerical help, you pay in connection with your investments and collecting taxable income on those investments are miscellaneous itemized deductions and are no longer deductible.

Credit or Debit Card Convenience Fees

The convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card is a miscellaneous itemized deduction and is no longer deductible.

Depreciation on Home Computer

If you use your home computer to produce income (for example, to manage your investments that produce taxable income), the depreciation of the computer for that part of the usage of the computer is a miscellaneous itemized deduction and is no longer deductible.

Fees To Collect Interest and Dividends

Fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock are miscellaneous itemized deductions and can no longer be deducted.

Fines or Penalties

No deduction is allowed for fines and penalties paid to a government or specified nongovernmental entity for the violation of any law except in the following situations.

Certain amounts that constitute restitution.

Certain amounts paid to come into compliance with the law.

Amounts paid or incurred as the result of certain court orders in which no government or specified nongovernmental agency is a party.

Amounts paid or incurred for taxes due.

Nondeductible amounts include an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Fines or penalties include amounts paid such as parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. No deduction is allowed for the restitution amount or amount paid to come into compliance with the law unless the amounts are specifically identified in the settlement agreement or court order. Also, any amount paid or incurred as reimbursement to the government for the costs of any investigation or litigation are nondeductible.

Hobby Expenses

A hobby isn’t a business because it isn’t carried on to make a profit. If you receive income for an activity that you don’t carry out to make a profit, the expenses you pay for the activity are miscellaneous itemized deductions and can no longer be deducted. See Not-for-Profit Activities in chapter﻿ ﻿1 of Pub. 535. You must still report the income you receive on your Schedule 1 (Form 1040).

Indirect Deductions of Pass-Through Entities

Pass-through entities include partnerships, S corporations, and mutual funds that aren't publicly offered. Deductions of pass-through entities are passed through to the partners or shareholders. The partner’s or shareholder’s share of passed-through deductions for investment expenses are miscellaneous itemized deductions and can no longer be deducted.

Nonpublicly offered mutual funds.

These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. The investment expenses reported on Form 1099-DIV are a miscellaneous itemized deduction and are no longer deductible.

Investment Fees and Expenses

Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.

Legal Expenses

Legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax are miscellaneous itemized deductions and are no longer deductible.

You can deduct legal expenses that are related to doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business.

You can deduct expenses of resolving tax issues relating to profit or loss from business reported on Schedule﻿ ﻿C (Form 1040), Profit or Loss From Business (Sole Proprietorship), from rentals or royalties reported on Schedule﻿ ﻿E (Form 1040), Supplemental Income and Loss, or from farm income and expenses reported on Schedule﻿ ﻿F (Form 1040), Profit or Loss From Farming, on that schedule. Expenses for resolving nonbusiness tax issues are miscellaneous itemized deductions and are no longer deductible.

Loss on Deposits

A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount hasn't been finally determined.

If none of the deposit is federally insured, you could deduct the loss as a nonbusiness bad debt. Report it on your Schedule﻿ ﻿D (Form 1040). You can no longer deduct the loss as an ordinary loss or as a casualty loss on your Schedule﻿ ﻿A (Form 1040).

Loss on IRA

A loss on your traditional IRA (or Roth IRA) investment is a miscellaneous itemized deduction and can no longer be deducted.

Repayments of Income

Generally, repayments of amounts that you included in income in an earlier year is a miscellaneous itemized deduction and can no longer be deducted. If you had to repay more than $3,000 that you included in your income in an earlier year, you may be able to deduct the amount. See Repayments Under Claim of Right, later.

Repayments of Social Security Benefits

If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you may be able to deduct part of this negative figure if the figure is more than $3,000. If the figure is less than $3,000, it is a miscellaneous itemized deduction and can no longer be deducted. See Pub. 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information.

Safe Deposit Box Rent

Rent you pay for a safe deposit box you use to store taxable income-producing stocks, bonds, or investment related papers is a miscellaneous itemized deduction and can no longer be deducted. You also can't deduct the rent if you use the box for jewelry, other personal items, or tax-exempt securities.

Service Charges on Dividend Reinvestment Plans

Service charges you pay as a subscriber in a dividend reinvestment plan are a miscellaneous itemized deduction and can no longer be deducted. These service charges include payments for:

Holding shares acquired through a plan,

Collecting and reinvesting cash dividends, and

Keeping individual records and providing detailed statements of accounts.

Tax Preparation Fees

Tax preparation fees on the return for the year in which you pay them are a miscellaneous itemized deduction and can no longer be deducted. These fees include the cost of tax preparation software programs and tax publications. They also include any fee you paid for electronic filing of your return.

Trustee's Administrative Fees for IRA

Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are a miscellaneous itemized deduction and can no longer be deducted.

Nondeductible Expenses

In addition to the miscellaneous itemized deductions discussed earlier, you can't deduct the following expenses.

List of Nondeductible Expenses

Adoption expenses.

Broker's commissions.

Burial or funeral expenses, including the cost of a cemetery lot.

Campaign expenses.

Capital expenses.

Check-writing fees.

Club dues.

Commuting expenses.

Fees and licenses, such as car licenses, marriage licenses, and dog tags.

Fines or penalties.

Health spa expenses.

Hobby losses—but see Hobby Expenses, earlier.

Home repairs, insurance, and rent.

Home security system.

Illegal bribes and kickbacks—see Bribes and kickbacks in chapter﻿ ﻿11 of Pub. 535.

Investment-related seminars.

Life insurance premiums paid by the insured.

Lobbying expenses.

Losses from the sale of your home, furniture, personal car, etc.

Lost or misplaced cash or property.

Lunches with co-workers.

Meals while working late.

Medical expenses as business expenses other than medical examinations required by your employer.

Personal disability insurance premiums.

Personal legal expenses.

Personal, living, or family expenses.

Political contributions.

Professional accreditation fees.

Professional reputation improvement expenses.

Relief fund contributions.

Residential telephone line.

Stockholders’ meeting attendance expenses.

Tax-exempt income earning/collecting expenses.

The value of wages never received or lost vacation time.

Travel expenses for another individual.

Voluntary unemployment benefit fund contributions.

Wristwatches.

Adoption Expenses

You can't deduct the expenses of adopting a child but you may be able to take a credit for those expenses. For details, see Form 8839, Qualified Adoption Expenses.

Commissions

Commissions paid on the purchase of securities aren't deductible, either as business or nonbusiness expenses. Instead, these fees must be added to the taxpayer's cost of the securities. Commissions paid on the sale are deductible as business expenses only by dealers.

Campaign Expenses

You can't deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. These include qualification and registration fees for primary elections.

Legal fees.

You can't deduct legal fees paid to defend charges that arise from participation in a political campaign.

Capital Expenses

You can't currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. If you use such property in your work, you may be able to take a depreciation deduction. See Pub. 946. If the property is a car used in your work, also see Pub. 463.

Check-Writing Fees on Personal Account

If you have a personal checking account, you can't deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest.

Club Dues

Generally, you can't deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs.

You can't deduct dues paid to an organization if one of its main purposes is to:

Conduct entertainment activities for members or their guests, or

Provide members or their guests with access to entertainment facilities.

Dues paid to airline, hotel, and luncheon clubs aren't deductible.

Commuting Expenses

You can't deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). If you fall into one of the qualified categories of employment discussed under Unreimbursed Employee Expenses, earlier, and you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items.

Fines or Penalties

No deduction is allowed for fines and penalties paid to a government or specified nongovernmental entity for the violation of any law except in the following situations.

Certain amounts that constitute restitution.

Certain amounts paid to come into compliance with the law.

Amounts paid or incurred as the result of certain court orders in which no government or specified nongovernmental agency is a party.

Amounts paid or incurred for taxes due.

Nondeductible amounts include an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Fines or penalties include amounts paid such as parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike.

No deduction is allowed for the restitution amount or amount paid to come into compliance with the law unless the amounts are specifically identified in the settlement agreement or court order. Also, any amount paid or incurred as reimbursement to the government for the costs of any investigation or litigation are nondeductible.

Health Spa Expenses

You can't deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer.

Home Security System

You can't deduct the cost of a home security system as a miscellaneous deduction. However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. See Home Office under Expenses You Can Deduct, later, and Pub. 587.

Investment-Related Seminars

You can't deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes.

Life Insurance Premiums

You can't deduct premiums you pay on your life insurance. You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. See Pub. 504, Divorced or Separated Individuals, for information on alimony.

Lobbying Expenses

You generally can't deduct amounts paid or incurred for lobbying expenses. These include expenses to:

Influence legislation;

Participate, or intervene, in any political campaign for, or against, any candidate for public office;

Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums; or

Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials.

Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities.

Covered executive branch official.

A covered executive branch official, for the purpose of (4) above, is any of the following officials.

The President.

The Vice President.

Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office.

Any individual serving in a position in Level I of the Executive Schedule under section 5312 of title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals.

Dues used for lobbying.

If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you can't deduct that part.

Exceptions.

You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business.

You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year aren't more than $2,000 (not counting overhead expenses).

If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Payments by the other person to you for lobbying activities can't be deducted.

Lost or Mislaid Cash or Property

You can't deduct a loss based on the mere disappearance of money or property. However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. See Pub. 547.

Lunches With Co-Workers

You can't deduct the expenses of lunches with co-workers, except while traveling away from home on business. See Pub. 463 for information on deductible expenses while traveling away from home.

Meals While Working Late

You can't deduct the cost of meals while working late. However, you may be able to claim a deduction for 50% of the cost of the meals if you are traveling away from home. See Pub. 463 for information on deductible expenses while traveling away from home.

Personal Legal Expenses

You can't deduct personal legal expenses such as those for the following.

Custody of children.

Breach of promise to marry suit.

Civil or criminal charges resulting from a personal relationship.

Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). For more information about unlawful discrimination claims, see Expenses You Can’t Deduct, earlier.

Preparation of a title (or defense or perfection of a title).

Preparation of a will.

Property claims or property settlement in a divorce.

You can't deduct these expenses even if a result of the legal proceeding is the loss of income-producing property.

Political Contributions

You can't deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate aren't deductible.

Professional Accreditation Fees

You can't deduct professional accreditation fees such as the following.

Accounting certificate fees paid for the initial right to practice accounting.

Bar exam fees and incidental expenses in securing initial admission to the bar.

Medical and dental license fees paid to get initial licensing.

Professional Reputation

You can't deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation.

Relief Fund Contributions

You can't deduct contributions paid to a private plan that pays benefits to any covered employee who can't work because of any injury or illness not related to the job.

Residential Telephone Service

You can't deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business.

Stockholders' Meetings

You can't deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. You can't deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments.

Tax-Exempt Income Expenses

You can't deduct expenses to produce tax-exempt income. You can't deduct interest on a debt incurred or continued to buy or carry tax-exempt securities.

If you have expenses to produce both taxable and tax-exempt income, but you can't identify the expenses that produce each type of income, you must divide the expenses based on the amount of each type of income to determine the amount that you can deduct.

Travel Expenses for Another Individual

You generally can't deduct travel expenses you pay or incur for a spouse, dependent, or other individual who accompanies you (or your employee) on personal or business travel unless the spouse, dependent, or other individual is an employee of the taxpayer, the travel is for a bona fide business purpose, and such expenses would otherwise be deductible by the spouse, dependent, or other individual. See Pub. 463 for more information on deductible travel expenses.

Voluntary Unemployment Benefit Fund Contributions

You can't deduct voluntary unemployment benefit fund contributions you make to a union fund or a private fund. However, you can deduct contributions as taxes if state law requires you to make them to a state unemployment fund that covers you for the loss of wages from unemployment caused by business conditions.

Wristwatches

You can't deduct the cost of a wristwatch, even if there is a job requirement that you know the correct time to properly perform your duties.

Expenses You Can Deduct

You can deduct the items listed below as itemized deductions. Report these items on your Schedule﻿ ﻿A (Form 1040), or your Schedule﻿ ﻿A (Form 1040-NR).

List of Deductions

Amortizable premium on taxable bonds.

Casualty and theft losses from income-producing property.

Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust.

Federal estate tax on income in respect of a decedent.

Fines or penalties.

Gambling losses up to the amount of gambling winnings.

Impairment-related work expenses of persons with disabilities.

Losses from Ponzi-type investment schemes.

Repayments of more than $3,000 under a claim of right.

Unlawful discrimination claims.

Unrecovered investment in an annuity.

An ordinary loss attributable to a contingent payment debt instrument or an inflation-indexed debt instrument (for example, a Treasury Inflation-Protected Security).

Amortizable Premium on Taxable Bonds

In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. You can elect to amortize the premium on taxable bonds. The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item.

Pre-1998 election to amortize bond premium.

Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium doesn't apply to bonds you acquired before 1988.

Bonds acquired after October 22, 1986, and before 1988.

The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond.

Bonds acquired before October 23, 1986.

The amortization of the premium on these bonds is deducted as an itemized deduction on your Schedule﻿ ﻿A (Form 1040).

Deduction for excess premium.

On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. If this occurs, treat the excess as an itemized deduction on your Schedule﻿ ﻿A (Form 1040). However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods.

If any of the excess bond premium can't be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. If there is a bond premium carryforward as of the end of the accrual period in which the bond is sold, retired, or otherwise disposed of, treat the carryforward as an itemized deduction on your Schedule﻿ ﻿A (Form 1040).

CautionPre-1998 choice to amortize bond premium. If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years.

More information.

For more information on bond premium, see Bond Premium Amortization in chapter﻿ ﻿3 of Pub. 550.

Casualty and Theft Losses of Income-Producing Property

You can deduct a casualty or theft loss as an itemized deduction on your Schedule﻿ ﻿A (Form 1040), if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). First report the loss on Form 4684. You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, or Form 4797. For more information on casualty and theft losses, see Pub. 547.

Excess Deductions of an Estate or Trust

Generally, if an estate or trust has an excess deduction resulting from total deductions being greater than its gross income, in the estate’s or trust's last tax year, a beneficiary can deduct the excess deductions, depending on its character. The excess deductions retain their character as an adjustment to arrive at adjusted gross income on Schedule 1 (Form 1040), as a non-miscellaneous itemized deduction reported on Schedule﻿ ﻿A (Form 1040), or as a miscellaneous itemized deduction. For more information on excess deductions of an estate or trust, see the Instructions for Schedule﻿ ﻿K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR.

Federal Estate Tax on Income in Respect of a Decedent

You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that wasn't properly includible in the decedent's final income tax return. See Pub. 559 for information about figuring the amount of this deduction.

Fines or Penalties

Generally, a deduction is allowed for fines and penalties paid to a government or specified nongovernmental entity for the violation of any law in the following situations.

Certain amounts that constitute restitution.

Certain amounts paid to come into compliance with the law.

Amounts paid or incurred as the result of certain court orders in which no government or specified nongovernmental agency is a party.

Amounts paid or incurred for taxes due.

Nondeductible amounts include an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Fines or penalties include amounts paid such as parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike.

No deduction is allowed for the restitution amount or amount paid to come into compliance with the law unless the amounts are specifically identified in the settlement agreement or court order. Also, any amount paid or incurred as reimbursement to the government for the costs of any investigation or litigation are nondeductible.

Gambling Losses Up to the Amount of Gambling Winnings

You must report the full amount of your gambling winnings for the year on your Schedule 1 (Form 1040). You deduct your gambling losses for the year on your Schedule﻿ ﻿A (Form 1040). Gambling losses include the actual cost of wagers plus expenses incurred in connection with the conduct of the gambling activity, such as travel to and from a casino. You can't deduct gambling losses that are more than your winnings. Generally, nonresident aliens can't deduct gambling losses on your Schedule﻿ ﻿A (Form 1040-NR).

You can't reduce your gambling winnings by your gambling losses and report the difference. You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Therefore, your records should show your winnings separately from your losses.

Diary of winnings and losses.You must keep an accurate diary or similar record of your losses and winnings.

Your diary should contain at least the following information.

The date and type of your specific wager or wagering activity.

The name and address or location of the gambling establishment.

The names of other persons present with you at the gambling establishment.

The amount(s) you won or lost.

Proof of winnings and losses.

In addition to your diary, you should also have other documentation. You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings; Form 5754, Statement by Person(s) Receiving Gambling Winnings; wagering tickets; canceled checks; substitute checks; credit records; bank withdrawals; and statements of actual winnings or payment slips provided to you by the gambling establishment.

For specific wagering transactions, you can use the following items to support your winnings and losses.

CautionThese recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. They aren't all-inclusive. Your tax liability depends on your particular facts and circumstances.

Keno.

Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check-cashing records.

Slot machines.

A record of the machine number and all winnings by date and time the machine was played.

Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc.).

The number of the table at which you were playing. Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage.

Bingo.

A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Supplemental records include any receipts from the casino, parlor, etc.

Racing (horse, harness, dog, etc.).

A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Supplemental records include unredeemed tickets and payment records from the racetrack.

Lotteries.

A record of ticket purchases, dates, winnings, and losses. Supplemental records include unredeemed tickets, payment slips, and winnings statements.

Home Office

If you use a part of your home regularly and exclusively to conduct business, you may be able to deduct a part of the operating expenses and depreciation of your home.

You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively:

As your principal place of business for any trade or business;

As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business; or

In the case of a separate structure not attached to your home, in connection with your trade or business.

Principal place of business.

If you have more than one place of business, the business part of your home is your principal place of business if:

You use it regularly and exclusively for administrative or management activities of your trade or business, and

You have no other fixed location where you conduct substantial administrative or management activities of your trade or business.

Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location.

You should keep records that will give the information needed to figure the deduction according to these rules. Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim.

More information.

See Pub. 587 for more detailed information and a worksheet for figuring the deduction.

Losses From Ponzi-Type Investment Schemes

These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. You figure the deductible loss in Section B of Form 4684. See the Form 4684 instructions and Pub. 547, Casualties, Disasters, and Thefts, for more information.

Repayments Under Claim of Right

If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. See Repayments in Pub. 525 for more information.

Unlawful Discrimination Claims

You may be able to deduct, as an adjustment to income on your Schedule 1 (Form 1040), attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U.S. Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. However, the amount you can deduct on your Schedule 1 (Form 1040), is limited to the amount of the judgment or settlement you are including in income for the tax year. See Pub. 525 for more information.

Unrecovered Investment in Annuity

A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. See Pub. 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities.

How To Report

Claim most deductions as an itemized deduction on your Schedule﻿ ﻿A (Form 1040), or Schedule﻿ ﻿A (Form 1040-NR). However, see Schedule 1 (Form 1040), later.

Reporting employee business expenses.

As described earlier in Unreimbursed Employee Expenses, there are four categories of employees who can claim deductions for unreimbursed employee expenses.

Employees in the following categories can claim their unreimbursed employee expenses.

Armed Forces reservists.

Qualified performing artists.

Fee-basis state or local government officials.

Employees with impairment-related work expenses.

Generally, nonresident aliens who fall into one of the qualified categories of employment are allowed deductions to the extent they are directly related to income which is effectively connected with the conduct of a trade or business within the United States.

Form 2106.

If you have deductible employee business expenses, you must usually file Form 2106.

You must file Form 2106 if any of the following applies to you.

You are a qualified performing artist claiming performing-artist-related expenses.

You are a fee-basis state or local government official claiming expenses in performing that job.

You are an individual with a disability and are claiming impairment-related work expenses. See Employees with impairment-related work expenses, later.

You have travel expenses as a member of the Armed Forces reserves that you can deduct as an adjustment to gross income.

You are claiming job-related vehicle, travel, transportation, or non-entertainment meal expenses. See the Instructions for Form 2106 for more information.

Depreciation.

Use Form 4562, to claim the depreciation deduction for a computer you placed in service after 2018. Complete Form 4562, if you are claiming a section 179 deduction.

Don't use Form 4562 to claim the depreciation deduction for a computer you placed in service before 2019 and used only in your home office, unless you are otherwise required to file Form 4562. Instead, report the depreciation directly on the appropriate form.

Employees with impairment-related work expenses.

Most of the categories of employees who are able to claim deductions for unreimbursed employees report these deductions as an adjustment to income on Schedule 1 (Form 1040), discussed next. However, employees with impairment-related work expenses on Form 2106 report these expenses on Schedule﻿ ﻿A (Form 1040).

Enter impairment-related work expenses on Form 2106. Enter on your Schedule﻿ ﻿A (Form 1040); or your Schedule﻿ ﻿A (Form 1040-NR), that part of the amount on Form 2106, that is related to your impairment. Those employment-related expenses not related to your impairment are a miscellaneous itemized deduction and are no longer deductible.

If you are self-employed, enter your impairment-related work expenses on the appropriate Form (Schedule﻿ ﻿C, E, or F) used to report your business income and expenses.

Example. You are blind. You must use a reader to do your work. You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. The reader's services are only for your work. You can deduct your expenses for the reader as impairment-related work expenses.

Schedule 1 (Form 1040)

Most deductible employee business expenses on Form 2106 are reported as an adjustment to income on your Schedule 1 (Form 1040). However, certain other expenses are deducted on Schedule﻿ ﻿A (Form 1040).

Educator expenses.

Certain qualified expenses of eligible educators can be deducted on your Schedule 1 (Form 1040).

Unlawful discrimination claims.

You can deduct certain attorney fees and court costs for unlawful discrimination claims, described earlier, on your Schedule 1 (Form 1040).

Example

Debra Smith is an army reservist stationed 110 miles from her home. She makes this trip once each month. In addition to her travel expenses, she pays for her own uniforms and for the cost of cleaning those uniforms.

In addition to her employee business expenses as an army reservist, she has gambling losses from her trips to the casino and race track. She has gambling winnings of $5,400 and gambling losses of $5,700.

Debra completes Form 2106. She enters her transportation expenses of $500 as a reservist and she enters the amount of her expenses for the purchase of uniforms and their cleaning, $250. She then completes the form, entering the $750 as her total expenses. Only the transportation expenses for travel as a reservist are deductible as an adjustment on her Schedule 1 (Form 1040). The $250 is a miscellaneous itemized deduction and is not deductible.

Debra claims her gambling losses that don’t exceed her gambling winnings as an itemized deduction. Debra enters her allowable loss ($5,400) on her Schedule﻿ ﻿A (Form 1040).

How To Get Tax Help

If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away.

Preparing and filing your tax return.

After receiving all your wage and earnings statements (Form W-2, W-2G, 1099-R, 1099-MISC, 1099-NEC, etc.); unemployment compensation statements (by mail or in a digital format) or other government payment statements (Form 1099-G); and interest, dividend, and retirement statements from banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to prepare your return.

Free options for tax preparation.

Go to IRS.gov to see your options for preparing and filing your return online or in your local community, if you qualify, which include the following.

Free File. This program lets you prepare and file your federal individual income tax return for free using brand-name tax-preparation-and-filing software or Free File fillable forms. However, state tax preparation may not be available through Free File. Go to IRS.gov/FreeFile to see if you qualify for free online federal tax preparation, e-filing, and direct deposit or payment options.

VITA. The Volunteer Income Tax Assistance (VITA) program offers free tax help to people with low-to-moderate incomes, persons with disabilities, and limited-English-speaking taxpayers who need help preparing their own tax returns. Go to IRS.gov/VITA, download the free IRS2Go app, or call 800﻿-﻿906﻿-﻿9887 for information on free tax return preparation.

TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. Go to IRS.gov/TCE, download the free IRS2Go app, or call 888﻿-﻿227﻿-﻿7669 for information on free tax return preparation.

MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military OneSource.Also, the IRS offers Free Fillable Forms, which can be completed online and then filed electronically regardless of income.

Using online tools to help prepare your return.

Go to IRS.gov/Tools for the following.

The Earned Income Tax Credit Assistant (IRS.gov/EITCAssistant) determines if you’re eligible for the earned income credit (EIC).

The Online EIN Application (IRS.gov/EIN) helps you get an employer identification number (EIN).

The Tax Withholding Estimator (IRS.gov/W4app) makes it easier for everyone to pay the correct amount of tax during the year. The tool is a convenient, online way to check and tailor your withholding. It’s more user-friendly for taxpayers, including retirees and self-employed individuals. The features include the following.

Easy to understand language.

The ability to switch between screens, correct previous entries, and skip screens that don’t apply.

Tips and links to help you determine if you qualify for tax credits and deductions.

A progress tracker.

A self-employment tax feature.

Automatic calculation of taxable social security benefits.

The First Time Homebuyer Credit Account Look-up (IRS.gov/HomeBuyer) tool provides information on your repayments and account balance.

The Sales Tax Deduction Calculator (IRS.gov/SalesTax) figures the amount you can claim if you itemize deductions on Schedule﻿ ﻿A (Form 1040).

Getting answers to your tax questions.On IRS.gov, you can get up-to-date information on current events and changes in tax law.

IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

IRS.gov/ITA: The Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers.

IRS.gov/Forms: Find forms, instructions, and publications. You will find details on 2020 tax changes and hundreds of interactive links to help you find answers to your questions.

You may also be able to access tax law information in your electronic filing software.

Need someone to prepare your tax return?

There are various types of tax return preparers, including tax preparers, enrolled agents, certified public accountants (CPAs), attorneys, and many others who don’t have professional credentials. If you choose to have someone prepare your tax return, choose that preparer wisely. A paid tax preparer is:

Primarily responsible for the overall substantive accuracy of your return,

Required to sign the return, and

Required to include their preparer tax identification number (PTIN).

Although the tax preparer always signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return. Anyone paid to prepare tax returns for others should have a thorough understanding of tax matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Coronavirus.

Go to IRS.gov/Coronavirus for links to information on the impact of the coronavirus, as well as tax relief available for individuals and families, small and large businesses, and tax-exempt organizations.

Tax reform.

Tax reform legislation affects individuals, businesses, and tax-exempt and government entities. Go to IRS.gov/TaxReform for information and updates on how this legislation affects your taxes.

Employers can register to use Business Services Online.

The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure online W-2 filing options to CPAs, accountants, enrolled agents, and individuals who process Form W-2, Wage and Tax Statement, and Form W-2c, Corrected Wage and Tax Statement.

IRS social media.

Go to IRS.gov/SocialMedia to see the various social media tools the IRS uses to share the latest information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are paramount. We use these tools to share public information with you. Don’t post your SSN or other confidential information on social media sites. Always protect your identity when using any social networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, Spanish, and ASL.

Youtube.com/irsvideos.

Youtube.com/irsvideosmultilingua.

Youtube.com/irsvideosASL.

Watching IRS videos.

The IRS Video portal (IRSVideos.gov) contains video and audio presentations for individuals, small businesses, and tax professionals.

Online tax information in other languages.

You can find information on IRS.gov/MyLanguage if English isn’t your native language.

Free interpreter service.

Multilingual assistance, provided by the IRS, is available at Taxpayer Assistance Centers (TACs) and other IRS offices. Over-the-phone interpreter service is accessible in more than 350 languages.

Getting tax forms and publications.

Go to IRS.gov/Forms to view, download, or print all of the forms, instructions, and publications you may need. You can also download and view popular tax publications and instructions (including the Instructions for Forms 1040 and 1040-SR) on mobile devices as an eBook at IRS.gov/eBooks. Or you can go to IRS.gov/OrderForms to place an order.

Access your online account (individual taxpayers only).

Go to IRS.gov/Account to securely access information about your federal tax account.

View the amount you owe, pay online, or set up an online payment agreement.

Access your tax records online.

Review your payment history.

Go to IRS.gov/SecureAccess to review the required identity authentication process.

Using direct deposit.

The fastest way to receive a tax refund is to file electronically and choose direct deposit, which securely and electronically transfers your refund directly into your financial account. Direct deposit also avoids the possibility that your check could be lost, stolen, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their refunds. The IRS issues more than 90% of refunds in less than 21 days.

Getting a transcript of your return.

The quickest way to get a copy of your tax transcript is to go to IRS.gov/Transcripts. Click on either “Get Transcript Online” or “Get Transcript by Mail” to order a free copy of your transcript. If you prefer, you can order your transcript by calling 800﻿-﻿908﻿-﻿9946.

Reporting and resolving your tax-related identity theft issues.

Tax-related identity theft happens when someone steals your personal information to commit tax fraud. Your taxes can be affected if your SSN is used to file a fraudulent return or to claim a refund or credit.

The IRS doesn’t initiate contact with taxpayers by email, text messages, telephone calls, or social media channels to request personal or financial information. This includes requests for personal identification numbers (PINs), passwords, or similar information for credit cards, banks, or other financial accounts.

Go to IRS.gov/IdentityTheft, the IRS Identity Theft Central webpage, for information on identity theft and data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or stolen or you suspect you’re a victim of tax-related identity theft, you can learn what steps you should take.

Get an Identity Protection PIN (IP PIN). IP PINs are six-digit numbers assigned to eligible taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your SSN. To learn more, go to IRS.gov/IPPIN.

Checking on the status of your refund.

Go to IRS.gov/Refunds.

The IRS can’t issue refunds before mid-February 2021 for returns that claimed the EIC or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Download the official IRS2Go app to your mobile device to check your refund status.

Call the automated refund hotline at 800﻿-﻿829﻿-﻿1954.

Making a tax payment.

The IRS uses the latest encryption technology to ensure your electronic payments are safe and secure. You can make electronic payments online, by phone, and from a mobile device using the IRS2Go app. Paying electronically is quick, easy, and faster than mailing in a check or money order. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

Debit or Credit Card: Choose an approved payment processor to pay online, by phone, or by mobile device.

Electronic Funds Withdrawal: Offered only when filing your federal taxes using tax return preparation software or through a tax professional.

Electronic Federal Tax Payment System: Best option for businesses. Enrollment is required.

Check or Money Order: Mail your payment to the address listed on the notice or instructions.

Cash: You may be able to pay your taxes with cash at a participating retail store.

Same-Day Wire: You may be able to do same-day wire from your financial institution. Contact your financial institution for availability, cost, and cut-off times.

What if I can’t pay now?

Go to IRS.gov/Payments for more information about your options.

Apply for an online payment agreement (IRS.gov/OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

Use the Offer in Compromise Pre-Qualifier to see if you can settle your tax debt for less than the full amount you owe. For more information on the Offer in Compromise program, go to IRS.gov/OIC.

Filing an amended return.

You can now file Form 1040-X electronically with tax filing software to amend 2019 Forms 1040 and 1040-SR. To do so, you must have e-filed your original 2019 return. Amended returns for all prior years must be mailed. See Tips for taxpayers who need to file an amended tax return and go to IRS.gov/Form1040X for information and updates.

Checking the status of your amended return.

Go to IRS.gov/WMAR to track the status of Form 1040-X amended returns. Please note that it can take up to 3 weeks from the date you filed your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received.

Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Contacting your local IRS office.

Keep in mind, many questions can be answered on IRS.gov without visiting an IRS Taxpayer Assistance Center (TAC). Go to IRS.gov/LetUsHelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment, so you’ll know in advance that you can get the service you need without long wait times. Before you visit, go to IRS.gov/TACLocator to find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Their job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.

How Can You Learn About Your Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Go to TaxpayerAdvocate.IRS.gov to help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

What Can TAS Do For You?

TAS can help you resolve problems that you can’t resolve with the IRS. And their service is free. If you qualify for their assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

Your problem is causing financial difficulty for you, your family, or your business;

You face (or your business is facing) an immediate threat of adverse action; or

You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at TaxpayerAdvocate.IRS.gov/Contact-Us. You can also call them at 877﻿-﻿777﻿-﻿4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to them at IRS.gov/SAMS.

TAS for Tax Professionals

TAS can provide a variety of information for tax professionals, including tax law updates and guidance, TAS programs, and ways to let TAS know about systemic problems you’ve seen in your practice.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee for eligible taxpayers. To find a clinic near you, visit TaxpayerAdvocate.IRS.gov/about/LITC or see IRS Pub. 4134, Low Income Taxpayer Clinic List.

Index

A | B | C | D | E | F | G | H | I | K | L | M | N | O | P | R | S | T | U | W

A

Activities not for profit Hobby Expenses

Adjustments to gross income:

Armed forces reservists' travel expenses Armed Forces reservists﻿…

Performing artists Qualified performing﻿…

State or local government officials paid on fee basis Fee-basis state or﻿…

Unlawful discrimination claims Unlawful Discrimination﻿…

Administrative fees:

IRA trustees Trustee's Administrative﻿…

Adoption expenses Adoption Expenses

Amortizable bond premium Amortizable Premium﻿…, More information.

Appraisal fees Appraisal Fees

Armed forces:

Reservists, travel expenses Armed Forces reservists﻿…

Assistance (See Tax help)

B

Bank accounts:

Check-writing fees Check-Writing Fees on﻿…

Losses on deposits Loss on Deposits

Bonds:

Amortizable premium Amortizable Premium﻿…

Bribes List of Nondeductible﻿…

Burial expenses List of Nondeductible﻿…

C

Campaign contributions Political Contributions

Campaign expenses Campaign Expenses

Capital expenditures Capital Expenses

Casualty losses Casualty and Theft Losses, Casualty and Theft Losses﻿…

Check-writing fees Check-Writing Fees on﻿…

Claim of right repayments Repayments Under Claim﻿…

Clerical help, deductibility of Clerical Help and Office﻿…

Club dues Club Dues

Commissions Commissions

Commuting expenses Commuting Expenses

Computers:

Depreciation Depreciation on Home﻿…

Convenience fees Credit or Debit Card﻿…

D

Deductions Excess Deductions of﻿…

Deposits:

Losses on Loss on Deposits

Depreciation:

Computers Depreciation on Home﻿…

Disabilities, persons with:

Work-related expenses Employee with impairment-related﻿…

Dividends:

Fees to collect Fees To Collect Interest﻿…

Service charges on reinvestment plans Service Charges on Dividend﻿…

Dues:

Club Club Dues

Lobbying Dues used for lobbying

E

Educator Expenses Educator Expenses, Educator expenses.

Employee business expenses:

Form 2106 Form 2106.

Performing artists Qualified performing﻿…

Entertainers and musicians (See Performing artists)

Estates:

Federal estate tax Federal Estate Tax on﻿…

Excess deductions:

Estates and trusts Excess Deductions of﻿…

Expenses:

Adoption Adoption Expenses

Campaign Campaign Expenses

Capital Capital Expenses

Commuting Commuting Expenses

Educator Educator Expenses

Qualified Qualified expenses.

Educator Expenses Eligible educator.

Funeral and burial List of Nondeductible﻿…

Health spa Health Spa Expenses

Hobby Hobby Expenses

Home office Home Office

Impairment-related Employee with impairment-related﻿…

Investment Investment Fees and﻿…, Investment-Related Seminars

Meals Lunches With Co-Workers

Professional promotion Professional Reputation

Tax-exempt income Tax-Exempt Income Expenses

F

Federal estate tax Federal Estate Tax on﻿…

Fees:

Appraisal Appraisal Fees

Check-writing Check-Writing Fees on﻿…

IRA trustee Trustee's Administrative﻿…

Investment Fees To Collect Interest﻿…, Investment Fees and﻿…

Professional accreditation Professional Accreditation﻿…

Fines Fines or Penalties

Fines or penalties:

Deductible Fines or Penalties

Nondeductible Fines or Penalties

Form 2106:

Employee business expenses Form 2106.

Form 4562:

Depreciation and amortization Depreciation.

Funeral expenses List of Nondeductible﻿…

G

Gambling winnings and losses Gambling Losses Up to﻿…

Government employees:

State or local government officials paid on fee basis Fee-basis state or﻿…

H

Health spa Health Spa Expenses

Hobbies Hobby Expenses

Home:

Security system Home Security System

Telephone service Residential Telephone﻿…

Home office:

Expenses Home Office

Principal place of business Principal place of business

I

Impairment-related work expenses Employee with impairment-related﻿…

Income in respect of decedent:

Estate tax Federal Estate Tax on﻿…

Individual retirement arrangements (IRAs):

Trustees' fees Trustee's Administrative﻿…

Insurance:

Life insurance Life Insurance Premiums

Personal disability List of Nondeductible﻿…

Interest income:

Fees to collect Fees To Collect Interest﻿…

Investments:

Annuity, unrecovered investment in Unrecovered Investment﻿…

Deposits, losses on Loss on Deposits

Fees and expenses Investment Fees and﻿…

Seminars Investment-Related Seminars

Itemized deductions Expenses You Can Deduct

How to report How To Report

K

Kickbacks List of Nondeductible﻿…

L

Legal expenses:

Personal Personal Legal Expenses

Political campaigns Legal fees.

Production of income Legal Expenses

Unlawful discrimination claims Legal Expenses

Life insurance Life Insurance Premiums

Lobbying Lobbying Expenses, Exceptions.

Losses:

Casualties and thefts Casualty and Theft Losses, Casualty and Theft Losses﻿…

Deposits Loss on Deposits

Gambling Gambling Losses Up to﻿…

IRA Loss on IRA

Mislaid cash or property Lost or Mislaid Cash﻿…

Roth IRA Loss on IRA

M

Meal and lodging expenses:

Lunches with coworkers Lunches With Co-Workers

Working late Meals While Working﻿…

Missing children, photographs of Photographs of missing﻿…

Mutual funds:

Indirect deductions Indirect Deductions﻿…

N

Nondeductible expenses Wristwatches

Not-for-profit activities Hobby Expenses

O

Office:

Rent Clerical Help and Office﻿…

P

Partnerships:

Indirect deductions Indirect Deductions﻿…

Pass-through entities Indirect Deductions﻿…

Penalties Fines or Penalties

Performing artists Qualified performing﻿…

Work clothes Qualified performing﻿…

Personal expenses Wristwatches

Political contributions Political Contributions

Campaign expenses Campaign Expenses

Ponzi-type investment schemes Losses From Ponzi-Type﻿…

Production of income expenses Loss on IRA

Professional accreditation fees Professional Accreditation﻿…

Professional reputation and marketing Professional Reputation

Publications (See Tax help)

R

Recordkeeping requirements:

Deductions, to verify Introduction

Gambling winnings and losses Gambling Losses Up to﻿…

Home office Home Office

Relief fund contributions Relief Fund Contributions

Rent:

Office Clerical Help and Office﻿…

Safe deposit box Safe Deposit Box Rent

Repayments:

Claim of right Repayments Under Claim﻿…

Income Repayments of Income

Social Security benefits Repayments of Social﻿…

Reporting requirements:

Depreciation Depreciation.

Form 2106 Form 2106.

Impairment-related work expenses Employee with impairment-related﻿…

Itemized deductions How To Report

S

S corporations:

Indirect deductions Indirect Deductions﻿…

Safe deposit box Safe Deposit Box Rent

Security systems, home Home Security System

Seminars, investment-related Investment-Related Seminars

Service charges on dividend reinvestment plans Service Charges on Dividend﻿…

Social Security repayments Repayments of Social﻿…

State or local governments:

Officials paid on fee basis Fee-basis state or﻿…

Stockholders' meeting expenses Stockholders' Meetings

T

Tax help How To Get Tax Help

Tax-exempt income expenses Tax-Exempt Income Expenses

Taxes:

Estate tax Federal Estate Tax on﻿…

Telephones:

Residential service Residential Telephone﻿…

Theft losses Casualty and Theft Losses, Casualty and Theft Losses﻿…

Travel and transportation expenses:

Another individual, paid by taxpayer Travel Expenses for﻿…

Armed forces reservists Armed Forces reservists﻿…

Commuting Commuting Expenses

Trustees:

IRA administrative fees Trustee's Administrative﻿…

U

Unemployment benefit fund contributions Voluntary Unemployment﻿…

Unlawful discrimination claims Unlawful Discrimination﻿…, Unlawful discrimination﻿…

W

Wagering winnings and losses Gambling Losses Up to﻿…

Work:

Impairment-related expenses Employee with impairment-related﻿…

Wristwatches List of Nondeductible﻿…, Wristwatches