Department of the Treasury

Internal Revenue Service

Publication 529

(Rev. December 2020)

Cat. No. 15056O

Miscellaneous

Deductions

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Contents

Reminders ............................... 1

Introduction .............................. 1

Deductions for Unreimbursed Employee 

Expenses ............................. 2

Unreimbursed Employee Expenses ........... 2

Expenses You Can’t Deduct .................. 3

Miscellaneous Deductions Subject to the 2% 

AGI Limit ............................ 4

Nondeductible Expenses .................. 6

Expenses You Can Deduct ................... 9

How To Report ........................... 11

Example ............................. 12

How To Get Tax Help ...................... 12

Index .................................. 17

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 

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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 

Jan 04, 2021
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.

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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

2 Taxable and Nontaxable Income

3 Business Expenses

87 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.

RECORDS

 463

 525

 535

 587

 946

 Schedule A (Form 1040)

 Schedule A (Form 1040-NR)

 2106

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 

Page 2 Publication 529 (December 2020)
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:

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

2. Received from at least two of the employers wages of 

$200 or more per employer,

3. Had allowable business expenses attributable to the 

performing arts of more than 10% of gross income 

from the performing arts, and

4. 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.

Publication 529 (December 2020) Page 3
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).

Page 4 Publication 529 (December 2020)
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 

TIP

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.

Publication 529 (December 2020) Page 5
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

Page 6 Publication 529 (December 2020)
• 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:

1. Influence legislation;

2. Participate, or intervene, in any political campaign for, 

or against, any candidate for public office;

3. Attempt to influence the general public, or segments 

of the public, about elections, legislative matters, or 

referendums; or

4. 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 

Publication 529 (December 2020) Page 7
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 

Page 8 Publication 529 (December 2020)
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).

Pre-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.

CAUTION

!

Publication 529 (December 2020) Page 9
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.

These 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 

CAUTION

!

RECORDS CAUTION

!

Page 10 Publication 529 (December 2020)
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 

RECORDS

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.

CAUTION

!

Publication 529 (December 2020) Page 11
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.

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

2. You are a fee-basis state or local government official 

claiming expenses in performing that job.

3. You are an individual with a disability and are claiming 

impairment-related work expenses. See Employees 

with impairment-related work expenses, later.

4. You have travel expenses as a member of the Armed 

Forces reserves that you can deduct as an adjustment to gross income.

5. 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 

Page 12 Publication 529 (December 2020)
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 

Publication 529 (December 2020) Page 13
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.

Page 14 Publication 529 (December 2020)
• 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 

Publication 529 (December 2020) Page 15
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.

Page 16 Publication 529 (December 2020)
To help us develop a more useful index, please let us know if you have ideas for index entries.

Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

A

Activities not for profit 4

Adjustments to gross income:

Armed forces reservists' travel 

expenses 2

Performing artists 3

State or local government officials paid on 

fee basis 3

Unlawful discrimination claims 11

Administrative fees:

IRA trustees 6

Adoption expenses 6

Amortizable bond premium 9

Appraisal fees 4

Armed forces:

Reservists, travel expenses 2

Assistance (See Tax help)

B

Bank accounts:

Check-writing fees 6

Losses on deposits 5

Bonds:

Amortizable premium 9

Bribes 6

Burial expenses 6

C

Campaign contributions 8

Campaign expenses 6

Capital expenditures 6

Casualty losses 4, 9

Check-writing fees 6

Claim of right repayments 11

Clerical help, deductibility of 4

Club dues 6

Commissions 6

Commuting expenses 7

Computers:

Depreciation 4

Convenience fees 4

D

Deductions 10

Deposits:

Losses on 5

Depreciation:

Computers 4

Disabilities, persons with:

Work-related expenses 3

Dividends:

Fees to collect 4

Service charges on reinvestment plans 5

Dues:

Club 6

Lobbying 7

E

Educator Expenses 3, 12

Employee business expenses:

Form 2106 12

Performing artists 3

Entertainers and 

musicians (See Performing artists)

Estates:

Federal estate tax 10

Excess deductions:

Estates and trusts 10

Expenses:

Adoption 6

Campaign 6

Capital 6

Commuting 7

Educator 3

Qualified 3

Educator Expenses 3

Funeral and burial 6

Health spa 7

Hobby 4

Home office 11

Impairment-related 3

Investment 5, 7

Meals 8

Professional promotion 8

Tax-exempt income 8

F

Federal estate tax 10

Fees:

Appraisal 4

Check-writing 6

Investment 4, 5

IRA trustee 6

Professional accreditation 8

Fines 10

Fines or penalties:

Deductible 10

Nondeductible 7

Form 2106:

Employee business expenses 12

Form 4562:

Depreciation and amortization 12

Funeral expenses 6

G

Gambling winnings and losses 10

Government employees:

State or local government officials paid on 

fee basis 3

H

Health spa 7

Hobbies 4

Home:

Security system 7

Telephone service 8

Home office:

Expenses 11

Principal place of business 11

I

Impairment-related work expenses 3

Income in respect of decedent:

Estate tax 10

Individual retirement arrangements 

(IRAs):

Trustees' fees 6

Insurance:

Life insurance 7

Personal disability 6

Interest income:

Fees to collect 4

Investments:

Annuity, unrecovered investment in 11

Deposits, losses on 5

Fees and expenses 5

Seminars 7

Itemized deductions 9

How to report 11

K

Kickbacks 6

L

Legal expenses:

Personal 8

Political campaigns 6

Production of income 5

Unlawful discrimination claims 5

Life insurance 7

Lobbying 7, 8

Losses:

Casualties and thefts 4, 9

Deposits 5

Gambling 10

IRA 5

Mislaid cash or property 8

Roth IRA 5

M

Meal and lodging expenses:

Lunches with coworkers 8

Working late 8

Missing children, photographs of 1

Mutual funds:

Indirect deductions 5

N

Nondeductible expenses 9

Not-for-profit activities 4

O

Office:

Rent 4

P

Partnerships:

Indirect deductions 5

Pass-through entities 5

Penalties 10

Performing artists 3

Work clothes 3

Personal expenses 9

Political contributions 8

Campaign expenses 6

Ponzi-type investment schemes 11

Production of income expenses 5

Professional accreditation fees 8

Professional reputation and marketing 8

Publications (See Tax help)

R

Recordkeeping requirements:

Deductions, to verify 2

Gambling winnings and losses 10

Home office 11

Relief fund contributions 8

Rent:

Office 4

Safe deposit box 5

Publication 529 (December 2020) Page 17
Repayments:

Claim of right 11

Income 5

Social Security benefits 5

Reporting requirements:

Depreciation 12

Form 2106 12

Impairment-related work expenses 3

Itemized deductions 11

S

Safe deposit box 5

S corporations:

Indirect deductions 5

Security systems, home 7

Seminars, investment-related 7

Service charges on dividend 

reinvestment plans 5

Social Security repayments 5

State or local governments:

Officials paid on fee basis 3

Stockholders' meeting expenses 8

T

Taxes:

Estate tax 10

Tax-exempt income expenses 8

Tax help 12

Telephones:

Residential service 8

Theft losses 4, 9

Travel and transportation expenses:

Another individual, paid by taxpayer 8

Armed forces reservists 2

Commuting 7

Trustees:

IRA administrative fees 6

U

Unemployment benefit fund 

contributions 9

Unlawful discrimination claims 11, 12

W

Wagering winnings and losses 10

Work:

Impairment-related expenses 3

Wristwatches 6, 9

Page 18 Publication 529 (December 2020)