Here's a look at some of the notable ways they diverge in how they treat individual tax filers. 1. When the individual provisions expire Senate:  Most expire in 2025. House:  Most are permanent. 2. The mandate to buy health insurance Senate:  Eliminates it by reducing the penalty to $0. House:  Preserves it. 3. Tax brackets and rates Senate:  Keeps seven tax brackets but changes, and -- in most instances -- lowers the rates. The new rates would be: 10%, 12%, 22%, 24%, 32%, 35%, 38.5%. House:  Calls for four brackets: 12%, 25%, 35% and 39.6%. 4. Standard deduction Senate:  Raises it to $12,000 from $6,350 for single filers; to $18,000 from $9,350 for heads of household; to $24,000 from $12,700 for joint filers. House:  Raises it to $12,200 for single filers; to $18,300 for heads of household; to $24,400 for joint filers. 5. Child tax credit Senate:  Increases it to $2,000 from $1,000, but   the additional $1,...

Travel expenses defined.   For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense doesn’t have to be required to be considered necessary. You will find examples of deductible travel expenses in  Table 1-1 , later. Traveling Away From Home You are traveling away from home if: Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work, and You need to sleep or rest to meet the demands of your work while away from home. This rest requirement isn’t satisfied by merely napping in your car. You don’t have to be away from your tax home for a whole day or from dusk to dawn as long as your relief from dut...

Home Office Deduction 中文  |  한국어  |  TiếngViệt  |  Pусский If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes.  Simplified Option For taxable years starting on, or after, January 1, 2013 (filed beginning in 2014), you now have a  simpler option  for computing the business use of your home (IRS Revenue Procedure 2013-13, January 15, 2013). The standard method has some calculation, allocation, and substantiation requirements that are complex and burdensome for small business owners. This new simplified option can significantly reduce recordkeeping burden by allowing a qualified taxpayer to multiply a prescribed rate by the allowable square footage of the office in lieu of determining actual expenses. Regular Method Taxpayers using the regular method (required for t...