2020 Publication 535 - IRS tax forms

1 's New for 's New for 1. Deducting Business 2. Employees' 3. Rent 4. 5. 6. 7. Costs You Can Deduct or 8. 9. 10. Business Bad 11. Other 12. How To Get Tax Taxpayer Advocate Service (TAS) Is Here To Help Publication discusses common business expenses and explains what is and is not de-ductible. The general rules for deducting busi-ness expenses are discussed in the opening chapter. The chapters that follow cover specific expenses and list other publications and forms you may Section references within this publica-tion are to the Internal Revenue Code and regu-lation references are to the Income Tax Regula-tions under the and suggestions.

2 We welcome your comments about this Publication and your suggestions for future can send us comments through Or you can write to the Internal Revenue Service, Tax forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax forms , instructions, and publi-cations. Do not send tax questions, tax returns, or payments to the above answers to your tax questions.

3 If you have a tax question not answered by this Publication or the How To Get Tax Help section Department of the TreasuryInternal Revenue ServicePublication 535 Cat. No. 15065 ZBusiness ExpensesFor use in preparing2020 ReturnsGet forms and other information faster and easier at: (English) (Espa ol) ( ) ( ) (Pусский) (Ti ngVi t) Userid: CPMS chema: tipxLeadpct: 100%Pt. size: 8 Draft Ok to PrintAH XSL/XMLF ileid: .. tions/P535/2020/A/XML/Cycle01/source(Ini t. & Date) _____Page 1 of 56 13:21 - 11-Feb-2021 The type and rule above prints on all proofs including departmental reproduction proofs.

4 MUST be removed before 11, 2021at the end of this Publication , go to the IRS In-teractive Tax Assistant page at where you can find topics using the search feature or by viewing the categories tax forms , instructions, and pub-lications. Visit to download current and prior-year forms , instructions, and tax forms , instructions, and publications. Go to to order current forms , instructions, and publica-tions; call 800-829- 3676 to order prior-year forms and instructions.

5 The IRS will process your order for forms and publications as soon as possible. Do not resubmit requests you've al-ready sent us. You can get forms and publica-tions faster DevelopmentsFor the latest information about developments related to Pub. 535, such as legislation enacted after it was published, go to 's New for 2020 The following items highlight some changes in the tax law for (COVID-19) related employ-ment tax credits. The Families First Coronavirus Response Act (FFCRA), enacted on March 18, 2020, provides certain employers with tax credits that reimburse them for the cost of provid-ing paid sick and family leave wages to their employees for leave related to COVID-19.

6 The Coronavirus Aid, Relief, and Eco-nomic Security Act (CARES Act), enacted on March 27, 2020, provides eligible em-ployers with an employee retention tax credit if they keep employees on their pay-roll, despite experiencing economic hard-ship related to more information, see chapter , television, and live theatrical produc-tion costs. The election to expense certain costs of qualified film, television, and live theat-rical productions has been extended to include costs of productions that begin before January 1, 2026.

7 For more information, see chapter mileage rate. For tax year 2020, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is cents per mile. For more information, see chapter 's New for 2021 The following item highlights a change in the tax law for mileage rate. For tax year 2021, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56 cents per following reminders and other items may help you file your tax e-file (Electronic Filing)You can file your tax returns electronically using an IRS e-file option.

8 The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. You can use one of the following IRS e-file options. Use an authorized IRS e-file provider. Use a personal computer. Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) details on these fast filing methods, see your income tax 1099-MISC. File form 1099-MISC, Mis-cellaneous Income, for each person to whom you have paid during the year in the course of your trade or business at least $600 in rents, prizes and awards, other income payments, medical and health care payments, and crop in-surance proceeds.

9 See the Instructions for forms 1099-MISC and 1099-NEC for more in-formation and additional reporting 1099-NEC. File form 1099-NEC, Non-employee Compensation, for each person to whom you have paid during the year in the course of your trade or business at least $600 in services (including parts and materials), who is not your employee. See the Instructions for forms 1099-MISC and 1099-NEC for more in-formation and additional reporting Economy Tax Center. The IRS Gig Econ-omy Tax Center on can help people in this growing area meet their tax obligations through more streamlined gig economy is also known as the shar-ing, on-demand, or access economy.

10 It usually includes businesses that operate an app or website to connect people to provide services to customers. While there are many types of gig economy businesses, ride-sharing and home rentals are two of the most Gig Economy Tax Center streamlines various resources, making it easier for taxpay-ers to find information about the tax implications for the companies that provide the services and the individuals who perform them. It offers tips and resources on a variety of topics including: Filing requirements; Making quarterly estimated income tax payments; Paying self-employment taxes; Paying FICA, Medicare, and Additional Medicare taxes; Deductible business expenses; and Special rules for reporting vacation home more information, go to the Gig Economy Tax Center at of missing children.