Publication 516 - U.s. Government Civilian Employees Stationed Abroad (Page 5 of 10) in pdf

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completing 3 years of continuous service

Is needed to enable you to meet minimum

Regulations (DSSR)” and click on “DSSR Table

abroad. This period is called “home leave” and

educational requirements for qualification

of Contents.” Publication 463 and Publication

can be used to take care of certain personal

in your present position,

529, Miscellaneous Deductions, provide more

matters such as medical and dental checkups,

detail on what expenses are allowable as ordi-

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Is a part of a program of study that can

buying a new wardrobe, and visiting relatives.

nary and necessary business expenses.

qualify you for a new position, or

The amounts paid for your travel, meals, and

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Impairment-related work expenses. If you

lodging while on home leave are deductible as

Is for travel as a form of education.

travel or business expenses subject to the rules

are an employee with a physical or mental disa-

These rules apply even if the education is re-

and limits discussed earlier. You must be able to

bility, you can deduct attendant-care services at

quired by your agency or it maintains or im-

verify these amounts in order to claim them.

your place of work and other expenses in con-

proves skills required in your work.

Amounts paid on behalf of your family while on

nection with work that are necessary for you to

home leave are personal living expenses and

See Publication 970, Tax Benefits for Educa-

be able to work. Attendant care includes a

are not deductible.

tion, for more information on educational ex-

reader for a blind person and a helper for a

penses.

person with a physical disability. These ex-

More information. See chapter 1 of Publica-

penses are reported on Form 2106 or 2106-EZ

Educational expenses that are not

tion 463 for more information on travel ex-

and carried to Schedule A (Form 1040). They

work related, such as costs of sending

TIP

penses.

are not subject to the 2%-of-adjusted-

children to college, are personal ex-

gross-income limit on miscellaneous itemized

Transportation Expenses

penses that you cannot deduct. However, you

deductions.

may be eligible for other tax benefits such as the

American opportunity and lifetime learning cred-

You can deduct allowable transportation ex-

Loss on conversion of U.S. dollars into for-

its; contributions to a Coverdell education sav-

penses that are directly related to your official

eign currency. The conversion of U.S. dollars

ings account or qualified tuition program;

duties. Transportation expenses include the

into foreign currency at an official rate of ex-

deduction for student loan interest; and exclu-

cost of transportation by air, rail, bus, or taxi, and

change that is not as favorable as the free mar-

sion from income of certain savings bond inter-

the cost of driving and maintaining your car.

ket rate does not result in a deductible loss.

est. These benefits are explained in Publication

They do not include expenses you have when

970.

traveling away from home overnight. Those ex-

Recordkeeping Rules

penses are deductible as travel expenses and

are discussed earlier.

Foreign service representation expenses.

If you claim a deduction for unreimbursed busi-

If you are an employee of the U.S. Foreign

ness expenses, you must keep timely and ade-

Commuting. You cannot deduct your trans-

Service and your position requires you to estab-

quate records of all your business expenses.

portation costs of going between your home and

lish and maintain favorable relations in foreign

your regular business location. These costs are

For example, you must keep records and

countries, you may receive a nontaxable allow-

personal commuting expenses.

supporting evidence to prove the following ele-

ance for representation expenses. If your ex-

If you have one or more regular business

ments about deductions for travel expenses (in-

penses are more than the allowance you

locations but must work at a temporary location,

cluding meals and lodging while away from

receive, you can deduct the excess expenses as

you can deduct the costs of commuting to that

home).

an itemized deduction on Schedule A (Form

temporary place of work.

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1040) if you meet one of the following condi-

The amount of each separate expense for

If you work at two or more places in the same

tions.

travel away from home, such as the cost

day, you can deduct your expenses of getting

of your transportation, lodging, or meals.

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You have a certificate from the Secretary

from one place of work to the other.

You may total your incidental expenses if

of State attesting that the expenses were

you list them in reasonable categories

More information. For more information on

incurred for the benefit of the United

such as daily meals, gasoline and oil, and

transportation expenses, see chapter 4 of Publi-

States, and would be reimbursable under

taxi fares.

cation 463.

appropriate legislation if the agency had

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sufficient funds for these reimbursements.

For each trip away from home, the dates

Other Employee

you left and returned and the number of

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The expenses, while specifically not reim-

Business Expenses

days spent on business.

bursable under State Department regula-

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tions, were ordinary and necessary

The destination or area of your travel, de-

You may be able to deduct other unreimbursed

business expenses incurred in the per-

scribed by the name of the city, town, or

expenses that are connected with your employ-

formance of your official duties.

similar designation.

ment.

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The business reason for your travel or the

Membership dues. You can deduct member-

To deduct any expenses for travel, en-

business benefit gained or expected to be

ship dues you pay to professional societies that

tertainment, and gifts, including those

TIP

gained from your travel.

relate to your business or profession.

certified by the Secretary of State, you

must meet the rules for recordkeeping and ac-

Subscriptions. You can deduct subscriptions

How to record your expenses. Records for

counting to your employer. These rules are ex-

to professional publications that relate to your

proof of your expenses should be kept in an

plained in Publication 463.

business or profession.

account book, diary, statement of expense, or

similar record. They should be supported by

Representation expenses. These are ex-

Educational expenses. Generally, educa-

other records, such as receipts or canceled

penses that further the interest of the United

tional expenses are considered to be personal

checks, in sufficient detail to establish the ele-

States abroad. They include certain entertain-

expenses and are not deductible. However,

ments for these expenses. You do not need to

ment, gifts, costs of official functions, and rental

under some circumstances, educational ex-

duplicate information in an account book or diary

of ceremonial dress. They generally do not in-

penses are deductible as business expenses.

that is shown on a receipt as long as your rec-

clude costs of passenger vehicles (such as cars

You can deduct educational expenses as

ords and receipts complement each other in an

or aircraft), printing or engraving, membership

business expenses if the education:

orderly manner.

fees, or amounts a principal representative must

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Maintains or improves skills needed in

pay personally to cover the usual costs of oper-

Each expense should be recorded sepa-

your present position, or

ating and maintaining an official residence.

rately in your records. However, some items can

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Chapters 300 and 400 of the Standardized

be totaled in reasonable categories. You can

Meets the express requirements of your

Regulations (Government Civilians, Foreign

make one daily entry for categories such as taxi

agency to keep your present position, sal-

Area) provide more detail on what expenses are

fares, telephone calls, meals while away from

ary, or status.

allowable as representation expenses. These

home, gas and oil, and other incidental costs of

You cannot deduct educational expenses as

regulations are available on the Internet at

www.

travel. You may record tips separately or with

business expenses if the education:

state.gov/m/a/als. Look under “Standardized

the cost of the service.

Publication 516 (April 2012)

Page 5

Publication 516 - U.s. Government Civilian Employees Stationed Abroad Page 5

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