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1040x Forms

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1040x Forms

1040x forms Index Symbols 403(b) plans Defined, Tax-sheltered annuity plan. 1040x forms Loans from, without tax consequences, Exception for qualified plan, 403(b) plan, and government plan loans. 1040x forms Simplified Method to be used, Who must use the Simplified Method. 1040x forms 5% owners, 5% owners. 1040x forms A Age 70, Age 70½. 1040x forms Alimony (see Qualified domestic relations orders (QDROs)) Annuities 5% rate on early distributions, 5% rate on certain early distributions from deferred annuity contracts. 1040x forms Defined, Annuity. 1040x forms Fixed-period, Fixed-period annuities. 1040x forms , Fixed-period annuity. 1040x forms Guaranteed payments, Guaranteed payments. 1040x forms Joint and survivor annuities, Joint and survivor annuities. 1040x forms Minimum distributions from, Minimum distributions from an annuity plan. 1040x forms Payments under, Annuity payments. 1040x forms Qualified plan annuity starting before November 19, 1996, Qualified plan annuity starting before November 19, 1996. 1040x forms Rollovers, Annuity contracts. 1040x forms (see also Rollovers) Single-life, Annuities for a single life. 1040x forms , Single-life annuity. 1040x forms Starting date of, Annuity starting date defined. 1040x forms , Who must use the Simplified Method. 1040x forms , Annuity starting before November 19, 1996. 1040x forms , Annuity starting date. 1040x forms Before November 19, 1996, Annuity starting before November 19, 1996. 1040x forms Distribution on or after, Distribution On or After Annuity Starting Date Transfers of contracts, Transfers of Annuity Contracts Types of, Types of pensions and annuities. 1040x forms Variable annuities, Variable annuities. 1040x forms , Variable Annuities, Death benefits. 1040x forms Assistance (see Tax help) B Beneficiaries, Survivors and Beneficiaries C Capital gains Lump-sum distributions, Capital Gain Treatment Cash withdrawals (see Nonperiodic payments) Child support (see Qualified domestic relations orders (QDROs)) Corrective distributions of excess plan contributions, Corrective distributions of excess plan contributions. 1040x forms Costs Investment in the contract, Cost (Investment in the Contract) Lump-sum distribution, determination for, Cost. 1040x forms D Death benefits, Death benefits. 1040x forms Death of employee, Distributions after the employee's death. 1040x forms , Survivors of employees. 1040x forms Death of retiree, Survivors of retirees. 1040x forms Deductible voluntary employee contributions, Deductible voluntary employee contributions. 1040x forms Defined contribution plans, Defined contribution plan. 1040x forms Designated Roth accounts Costs, Designated Roth accounts. 1040x forms Defined, Designated Roth account. 1040x forms Qualified distributions, Designated Roth accounts. 1040x forms Rollovers, Designated Roth accounts. 1040x forms Disability pensions, Disability pensions. 1040x forms , Disability Pensions Distributions, Examples (see also Rollovers) Beginning date for, Required beginning date. 1040x forms Early distributions and penalty tax, Payment to you option. 1040x forms , Tax on Early Distributions Employer securities, Distributions of employer securities. 1040x forms Loans treated as, Loans Treated as Distributions Lump-sum, Distributions of employer securities. 1040x forms , Lump-Sum Distributions, Examples Minimum required, Recapture tax for changes in distribution method under equal payment exception. 1040x forms Nonperiodic, taxation of, Taxation of Nonperiodic Payments Periodic, taxation of, Taxation of Periodic Payments Public safety employees, Qualified public safety employees. 1040x forms Qualified reservist, Qualified reservist distributions. 1040x forms U. 1040x forms S. 1040x forms savings bonds, Distribution of U. 1040x forms S. 1040x forms savings bonds. 1040x forms Dividends, Taxation of Nonperiodic Payments E Early withdrawal from deferred interest account Penalty tax on, Payment to you option. 1040x forms , Tax on Early Distributions Employer securities, distributions of, Distributions of employer securities. 1040x forms Estate tax, Reduction for federal estate tax. 1040x forms Deduction, Estate tax deduction. 1040x forms Estimated tax, Estimated tax. 1040x forms Excess accumulation, tax on, Recapture tax for changes in distribution method under equal payment exception. 1040x forms Excess plan contributions, corrective distributions of, Corrective distributions of excess plan contributions. 1040x forms F Figuring taxable amount, Figuring the Taxable Amount, Distribution of U. 1040x forms S. 1040x forms savings bonds. 1040x forms Fixed-period annuities, Fixed-period annuities. 1040x forms , Fixed-period annuity. 1040x forms Foreign employment contributions, Foreign employment contributions. 1040x forms Form 4972, Lump-Sum Distributions W-4P, Choosing no withholding. 1040x forms Form 1040/1040A Rollovers, How to report. 1040x forms Form 1040X Changing your mind on lump-sum treatment, Changing your mind. 1040x forms Form 1099-INT U. 1040x forms S. 1040x forms savings bonds distributions, Distribution of U. 1040x forms S. 1040x forms savings bonds. 1040x forms Form 1099-R 10-year tax option for lump-sum distribution, 10-Year Tax Option Corrected form, Introduction Corrective distributions of excess plan contributions, Corrective distributions of excess plan contributions. 1040x forms Exceptions to tax, Exceptions to tax. 1040x forms Investment in the contract, Cost (Investment in the Contract) Loan treated as distribution from plan, Reporting by plan. 1040x forms Rollovers, How to report. 1040x forms Tax-free exchanges, Tax-free exchange reported on Form 1099-R. 1040x forms Form 4972 10-year tax option for lump-sum distribution, 10-Year Tax Option Lump-sum distributions, Lump-Sum Distributions, Electing optional lump-sum treatment. 1040x forms Form 5329 Recapture tax, Recapture tax for changes in distribution method under equal payment exception. 1040x forms Special additional taxes (penalty taxes), Special Additional Taxes, Exceptions to tax. 1040x forms Form RRB-1099-R, Form RRB-1099-R. 1040x forms Form W-4P Withholding from retirement plan payments, Choosing no withholding. 1040x forms , Nonperiodic distributions. 1040x forms Form W-4V Voluntary withholding request for social security or railroad retirement benefits, Withholding Tax and Estimated Tax Free tax services, Free help with your tax return. 1040x forms Frozen deposits, Frozen deposits. 1040x forms Fully taxable payments, Fully Taxable Payments G General Rule, Partly Taxable Payments, General Rule Death of retiree under, Survivors of retirees. 1040x forms Investment in the contract, determination of, Cost (Investment in the Contract) Guaranteed payments, Guaranteed payments. 1040x forms H Help (see Tax help) Home purchase Loans from qualified plans for, Exception for qualified plan, 403(b) plan, and government plan loans. 1040x forms I In-plan Roth rollovers, In-plan Roth rollovers. 1040x forms Individual retirement accounts Minimum distributions from, Minimum distributions from an individual account plan. 1040x forms Rollovers, Rollovers (see also Rollovers) Interest deduction Denial on loan from plan, Denial of interest deduction. 1040x forms J Joint and survivor annuities, Joint and survivor annuities. 1040x forms L Loans treated as distributions, Loans Treated as Distributions Local government employees Section 457 plans, Section 457 Deferred Compensation Plans Losses Lump-sum distribution, Losses. 1040x forms Lump-sum distributions, Distributions of employer securities. 1040x forms , Lump-Sum Distributions, Examples 10-year tax option, 10-Year Tax Option Capital gain treatment, Capital Gain Treatment Defined, Lump-Sum Distributions Election of, Changing your mind. 1040x forms Form 4972, Lump-Sum Distributions M Minimum required distributions, Recapture tax for changes in distribution method under equal payment exception. 1040x forms Missing children, photographs of, Reminders Multiple annuitants, Multiple annuitants. 1040x forms Multiple-lives annuities, Multiple-lives annuity. 1040x forms N Net Investment Income Tax, Net investment income tax. 1040x forms , Distribution Before Annuity Starting Date From a Nonqualified Plan Net unrealized appreciation (NUA), Net unrealized appreciation (NUA). 1040x forms Deferring tax on, Distributions of employer securities. 1040x forms Nonperiodic payments Loan treated as, Loans Treated as Distributions Taxation of, Taxation of Nonperiodic Payments Nonqualified plans Distribution before annuity start date, Distribution Before Annuity Starting Date From a Nonqualified Plan General Rule to be used, Who must use the General Rule. 1040x forms Loans treated as distributions from, Effect on investment in the contract. 1040x forms Nonresident aliens Railroad retirement, Nonresident aliens. 1040x forms P Partial rollovers, Partial rollovers. 1040x forms Partly taxable payments, Partly Taxable Payments Penalty taxes Early distributions, Tax on Early Distributions Excess accumulation, Tax on Excess Accumulation Pensions Defined, Pension. 1040x forms Disability pensions, Disability pensions. 1040x forms , Disability Pensions Types of, Types of pensions and annuities. 1040x forms Periodic payments Taxation of, Taxation of Periodic Payments Withholding tax, Periodic payments. 1040x forms Public safety officers insurance premiums, Insurance Premiums for Retired Public Safety Officers Public school employees Tax-sheltered annuity plans for (see 403(b) plans) Publications (see Tax help) Q Qualified domestic relations orders (QDROs), Qualified domestic relations order (QDRO). 1040x forms , Qualified domestic relations order (QDRO). 1040x forms Alternate payee under and lump-sum distribution, Alternate payee under qualified domestic relations order. 1040x forms Qualified employee annuities Defined, Qualified employee annuity. 1040x forms Simplified Method to be used, Who must use the Simplified Method. 1040x forms Qualified employee plans Defined, Qualified employee plan. 1040x forms Simplified Method to be used, Who must use the Simplified Method. 1040x forms Qualified plans, Who must use the General Rule. 1040x forms (see also specific type of plan ) Distribution before annuity starting date, Distribution Before Annuity Starting Date From a Qualified Plan General Rule, Who must use the General Rule. 1040x forms Loans from, without tax consequences, Exception for qualified plan, 403(b) plan, and government plan loans. 1040x forms Rollovers, Qualified retirement plan. 1040x forms Qualified settlement income Exxon Valdez litigation settlement, Qualified settlement income. 1040x forms R Railroad retirement benefits, Railroad Retirement Benefits, Repayment of benefits received in an earlier year. 1040x forms Taxability of, Withholding Tax and Estimated Tax Recapture tax Changes in distribution method, Recapture tax for changes in distribution method under equal payment exception. 1040x forms Reemployment, Reemployment. 1040x forms Related employers and related plans, Related employers and related plans. 1040x forms Repayment of loan within 5 years, Exception for qualified plan, 403(b) plan, and government plan loans. 1040x forms Required beginning date, Required beginning date. 1040x forms Required distributions, minimum, Recapture tax for changes in distribution method under equal payment exception. 1040x forms Retirement bonds, Retirement bonds. 1040x forms Rollovers, Rollovers, Choosing the right option. 1040x forms 20% tax rate on distribution, Eligible rollover distribution. 1040x forms Comparison of direct payment vs. 1040x forms direct rollover (Table 1), Choosing the right option. 1040x forms Direct rollover to another qualified plan, Eligible rollover distribution. 1040x forms , Direct rollover option. 1040x forms In-plan Roth, In-plan Roth rollovers. 1040x forms Nonspouse beneficiary, Rollovers by nonspouse beneficiary. 1040x forms Nontaxable amounts, Rollover of nontaxable amounts. 1040x forms Notice to recipients of eligible rollover distribution, Written explanation to recipients. 1040x forms Property and cash distributed, Property and cash distributed. 1040x forms Roth IRAs, Rollovers to Roth IRAs. 1040x forms Substitution of other property, Rollovers of property. 1040x forms Surviving spouse making, Rollover by surviving spouse. 1040x forms S Section 457 deferred compensation plans, Section 457 Deferred Compensation Plans Securities of employer, distributions of, Distributions of employer securities. 1040x forms Self-employed persons' rollovers, Rollovers Simplified Method, Partly Taxable Payments, Simplified Method Death of retiree under, Survivors of retirees. 1040x forms How to use, How to use the Simplified Method. 1040x forms Investment in the contract, determination of, Cost (Investment in the Contract) Not allowed, Who cannot use the Simplified Method. 1040x forms Single-sum in connection with start of payments, Single-sum in connection with the start of annuity payments. 1040x forms Single-life annuities, Annuities for a single life. 1040x forms , Single-life annuity. 1040x forms Social security, tax on, Withholding Tax and Estimated Tax State employees Section 457 plans, Section 457 Deferred Compensation Plans State insurer delinquency proceedings, State insurer delinquency proceedings. 1040x forms Surviving spouse Distribution rules for, Distributions after the employee's death. 1040x forms Rollovers by, Rollover by surviving spouse. 1040x forms T Tables Comparison of direct payment vs. 1040x forms direct rollover (Table 1), Choosing the right option. 1040x forms Tax help, How To Get Tax Help Tax-free exchanges, Tax-free exchange. 1040x forms Ten percent tax for early withdrawal, Payment to you option. 1040x forms , Tax on Early Distributions Ten-year tax option, 10-Year Tax Option Time for making rollover, Time for making rollover. 1040x forms Transfers of annuity contracts, Transfers of Annuity Contracts TTY/TDD information, How To Get Tax Help U U. 1040x forms S. 1040x forms savings bonds Distribution of, Distribution of U. 1040x forms S. 1040x forms savings bonds. 1040x forms V Variable annuities, Variable annuities. 1040x forms , Variable Annuities Voluntary employee contributions, Deductible voluntary employee contributions. 1040x forms W Withdrawals, Withdrawals. 1040x forms Employees withdrawing contributions, Plans that permitted withdrawal of employee contributions. 1040x forms Withholding, Withholding Tax and Estimated Tax 10% rate used, Nonperiodic distributions. 1040x forms 20% of eligible rollover, Withholding requirements. 1040x forms , Payment to you option. 1040x forms , 20% Mandatory withholding. 1040x forms Periodic payments, Periodic payments. 1040x forms Railroad retirement, Tax withholding. 1040x forms Worksheets Simplified Method, How to use the Simplified Method. 1040x forms Worksheet A, illustrated, Worksheet A. 1040x forms Simplified Method Worksheet for Bill Smith Worksheet A, Simplified Method, Worksheet A. 1040x forms Simplified Method Prev  Up     Home   More Online Publications
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The 1040x Forms

1040x forms 22. 1040x forms   Taxes Table of Contents IntroductionIndian tribal government. 1040x forms Useful Items - You may want to see: Tests To Deduct Any Tax Income TaxesState and Local Income Taxes Foreign Income Taxes General Sales TaxesMotor vehicles. 1040x forms Real Estate TaxesReal estate taxes for prior years. 1040x forms Examples. 1040x forms Form 1099-S. 1040x forms Real Estate-Related Items You Cannot Deduct Personal Property Taxes Taxes and Fees You Cannot Deduct Where To Deduct Introduction This chapter discusses which taxes you can deduct if you itemize deductions on Schedule A (Form 1040). 1040x forms It also explains which taxes you can deduct on other schedules or forms and which taxes you cannot deduct. 1040x forms This chapter covers the following topics. 1040x forms Income taxes (federal, state, local, and foreign). 1040x forms General sales taxes (state and local). 1040x forms Real estate taxes (state, local, and foreign). 1040x forms Personal property taxes (state and local). 1040x forms Taxes and fees you cannot deduct. 1040x forms Use Table 22-1 as a guide to determine which taxes you can deduct. 1040x forms The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. 1040x forms Business taxes. 1040x forms   You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. 1040x forms For information on these taxes, see Publication 535, Business Expenses. 1040x forms State or local taxes. 1040x forms   These are taxes imposed by the 50 states, U. 1040x forms S. 1040x forms possessions, or any of their political subdivisions (such as a county or city), or by the District of Columbia. 1040x forms Indian tribal government. 1040x forms   An Indian tribal government recognized by the Secretary of the Treasury as performing substantial government functions will be treated as a state for purposes of claiming a deduction for taxes. 1040x forms Income taxes, real estate taxes, and personal property taxes imposed by that Indian tribal government (or by any of its subdivisions that are treated as political subdivisions of a state) are deductible. 1040x forms General sales taxes. 1040x forms   These are taxes imposed at one rate on retail sales of a broad range of classes of items. 1040x forms Foreign taxes. 1040x forms   These are taxes imposed by a foreign country or any of its political subdivisions. 1040x forms Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 530 Tax Information for Homeowners Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule E (Form 1040) Supplemental Income and Loss 1116 Foreign Tax Credit Tests To Deduct Any Tax The following two tests must be met for you to deduct any tax. 1040x forms The tax must be imposed on you. 1040x forms You must pay the tax during your tax year. 1040x forms The tax must be imposed on you. 1040x forms   In general, you can deduct only taxes imposed on you. 1040x forms   Generally, you can deduct property taxes only if you are an owner of the property. 1040x forms If your spouse owns the property and pays the real estate taxes, the taxes are deductible on your spouse's separate return or on your joint return. 1040x forms You must pay the tax during your tax year. 1040x forms   If you are a cash basis taxpayer, you can deduct only those taxes you actually paid during your tax year. 1040x forms If you pay your taxes by check, the day you mail or deliver the check is the date of payment, provided the check is honored by the financial institution. 1040x forms If you use a pay-by-phone account (such as a credit card or electronic funds withdrawal), the date reported on the statement of the financial institution showing when payment was made is the date of payment. 1040x forms If you contest a tax liability and are a cash basis taxpayer, you can deduct the tax only in the year you actually pay it (or transfer money or other property to provide for satisfaction of the contested liability). 1040x forms See Publication 538, Accounting Periods and Methods, for details. 1040x forms    If you use an accrual method of accounting, see Publication 538 for more information. 1040x forms Income Taxes This section discusses the deductibility of state and local income taxes (including employee contributions to state benefit funds) and foreign income taxes. 1040x forms State and Local Income Taxes You can deduct state and local income taxes. 1040x forms However, you can elect to deduct state and local general sales taxes instead of state and local income taxes. 1040x forms See General Sales Taxes , later. 1040x forms Exception. 1040x forms    You cannot deduct state and local income taxes you pay on income that is exempt from federal income tax, unless the exempt income is interest income. 1040x forms For example, you cannot deduct the part of a state's income tax that is on a cost-of-living allowance exempt from federal income tax. 1040x forms What To Deduct Your deduction may be for withheld taxes, estimated tax payments, or other tax payments as follows. 1040x forms Withheld taxes. 1040x forms   You can deduct state and local income taxes withheld from your salary in the year they are withheld. 1040x forms Your Form(s) W-2 will show these amounts. 1040x forms Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. 1040x forms Estimated tax payments. 1040x forms   You can deduct estimated tax payments you made during the year to a state or local government. 1040x forms However, you must have a reasonable basis for making the estimated tax payments. 1040x forms Any estimated state or local tax payments that are not made in good faith at the time of payment are not deductible. 1040x forms For example, you made an estimated state income tax payment. 1040x forms However, the estimate of your state tax liability shows that you will get a refund of the full amount of your estimated payment. 1040x forms You had no reasonable basis to believe you had any additional liability for state income taxes and you cannot deduct the estimated tax payment. 1040x forms Refund applied to taxes. 1040x forms   You can deduct any part of a refund of prior-year state or local income taxes that you chose to have credited to your 2013 estimated state or local income taxes. 1040x forms    Do not reduce your deduction by either of the following items. 1040x forms Any state or local income tax refund (or credit) you expect to receive for 2013. 1040x forms Any refund of (or credit for) prior-year state and local income taxes you actually received in 2013. 1040x forms   However, part or all of this refund (or credit) may be taxable. 1040x forms See Refund (or credit) of state or local income taxes , later. 1040x forms Separate federal returns. 1040x forms   If you and your spouse file separate state, local, and federal income tax returns, you each can deduct on your federal return only the amount of your own state and local income tax that you paid during the tax year. 1040x forms Joint state and local returns. 1040x forms   If you and your spouse file joint state and local returns and separate federal returns, each of you can deduct on your separate federal return a part of the total state and local income taxes paid during the tax year. 1040x forms You can deduct only the amount of the total taxes that is proportionate to your gross income compared to the combined gross income of you and your spouse. 1040x forms However, you cannot deduct more than the amount you actually paid during the year. 1040x forms You can avoid this calculation if you and your spouse are jointly and individually liable for the full amount of the state and local income taxes. 1040x forms If so, you and your spouse can deduct on your separate federal returns the amount you each actually paid. 1040x forms Joint federal return. 1040x forms   If you file a joint federal return, you can deduct the total of the state and local income taxes both of you paid. 1040x forms Contributions to state benefit funds. 1040x forms    As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. 1040x forms For example, certain states require employees to make contributions to state funds providing disability or unemployment insurance benefits. 1040x forms Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5. 1040x forms Alaska Unemployment Compensation Fund. 1040x forms California Nonoccupational Disability Benefit Fund. 1040x forms New Jersey Nonoccupational Disability Benefit Fund. 1040x forms New Jersey Unemployment Compensation Fund. 1040x forms New York Nonoccupational Disability Benefit Fund. 1040x forms Pennsylvania Unemployment Compensation Fund. 1040x forms Rhode Island Temporary Disability Benefit Fund. 1040x forms Washington State Supplemental Workmen's Compensation Fund. 1040x forms    Employee contributions to private or voluntary disability plans are not deductible. 1040x forms Refund (or credit) of state or local income taxes. 1040x forms   If you receive a refund of (or credit for) state or local income taxes in a year after the year in which you paid them, you may have to include the refund in income on Form 1040, line 10, in the year you receive it. 1040x forms This includes refunds resulting from taxes that were overwithheld, applied from a prior year return, not figured correctly, or figured again because of an amended return. 1040x forms If you did not itemize your deductions in the previous year, do not include the refund in income. 1040x forms If you deducted the taxes in the previous year, include all or part of the refund on Form 1040, line 10, in the year you receive the refund. 1040x forms For a discussion of how much to include, see Recoveries in chapter 12. 1040x forms Foreign Income Taxes Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. 1040x forms S. 1040x forms possession. 1040x forms However, you cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. 1040x forms S. 1040x forms tax under the foreign earned income exclusion or the foreign housing exclusion. 1040x forms For information on these exclusions, see Publication 54, Tax Guide for U. 1040x forms S. 1040x forms Citizens and Resident Aliens Abroad. 1040x forms For information on the foreign tax credit, see Publication 514. 1040x forms General Sales Taxes You can elect to deduct state and local general sales taxes, instead of state and local income taxes, as an itemized deduction on Schedule A (Form 1040), line 5b. 1040x forms You can use either your actual expenses or the state and local sales tax tables to figure your sales tax deduction. 1040x forms Actual expenses. 1040x forms   Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) if the tax rate was the same as the general sales tax rate. 1040x forms However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. 1040x forms If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. 1040x forms If you use the actual expenses method, you must have receipts to show the general sales taxes paid. 1040x forms Do not include sales taxes paid on items used in your trade or business. 1040x forms Motor vehicles. 1040x forms   For purposes of this section, motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. 1040x forms This also includes sales taxes on a leased motor vehicle, but not on vehicles used in your trade or business. 1040x forms Optional sales tax tables. 1040x forms   Instead of using your actual expenses, you can figure your state and local general sales tax deduction using the state and local sales tax tables in the Instructions for Schedule A (Form 1040). 1040x forms You may also be able to add the state and local general sales taxes paid on certain specified items. 1040x forms   Your applicable table amount is based on the state where you live, your income, and the number of exemptions claimed on your tax return. 1040x forms Your income is your adjusted gross income plus any nontaxable items such as the following. 1040x forms Tax-exempt interest. 1040x forms Veterans' benefits. 1040x forms Nontaxable combat pay. 1040x forms Workers' compensation. 1040x forms Nontaxable part of social security and railroad retirement benefits. 1040x forms Nontaxable part of IRA, pension, or annuity distributions, excluding rollovers. 1040x forms Public assistance payments. 1040x forms If you lived in different states during the same tax year, you must prorate your applicable table amount for each state based on the days you lived in each state. 1040x forms See the Instructions for Schedule A (Form 1040), line 5, for details. 1040x forms Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real property levied for the general public welfare. 1040x forms You can deduct these taxes only if they are based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority. 1040x forms Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. 1040x forms They also do not include itemized charges for services (such as trash collection) assessed against specific property or certain people, even if the charge is paid to the taxing authority. 1040x forms For more information about taxes and charges that are not deductible, see Real Estate-Related Items You Cannot Deduct , later. 1040x forms Tenant-shareholders in a cooperative housing corporation. 1040x forms   Generally, if you are a tenant-stockholder in a cooperative housing corporation, you can deduct the amount paid to the corporation that represents your share of the real estate taxes the corporation paid or incurred for your dwelling unit. 1040x forms The corporation should provide you with a statement showing your share of the taxes. 1040x forms For more information, see Special Rules for Cooperatives in Publication 530. 1040x forms Division of real estate taxes between buyers and sellers. 1040x forms   If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. 1040x forms   The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. 1040x forms The seller is treated as paying the taxes up to, but not including, the date of sale. 1040x forms The buyer is treated as paying the taxes beginning with the date of sale. 1040x forms This applies regardless of the lien dates under local law. 1040x forms Generally, this information is included on the settlement statement provided at the closing. 1040x forms    If you (the seller) cannot deduct taxes until they are paid because you use the cash method of accounting, and the buyer of your property is personally liable for the tax, you are considered to have paid your part of the tax at the time of the sale. 1040x forms This lets you deduct the part of the tax to the date of sale even though you did not actually pay it. 1040x forms However, you must also include the amount of that tax in the selling price of the property. 1040x forms The buyer must include the same amount in his or her cost of the property. 1040x forms   You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. 1040x forms Worksheet 22-1. 1040x forms Figuring Your Real Estate Tax Deduction 1. 1040x forms Enter the total real estate taxes for the real property tax year   2. 1040x forms Enter the number of days in the real property tax year that you owned the property   3. 1040x forms Divide line 2 by 365 (for leap years, divide line 2 by 366) . 1040x forms 4. 1040x forms Multiply line 1 by line 3. 1040x forms This is your deduction. 1040x forms Enter it on Schedule A (Form 1040), line 6   Note. 1040x forms Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. 1040x forms Your total deduction is the sum of the line 4 amounts for all of the properties. 1040x forms Real estate taxes for prior years. 1040x forms   Do not divide delinquent taxes between the buyer and seller if the taxes are for any real property tax year before the one in which the property is sold. 1040x forms Even if the buyer agrees to pay the delinquent taxes, the buyer cannot deduct them. 1040x forms The buyer must add them to the cost of the property. 1040x forms The seller can deduct these taxes paid by the buyer. 1040x forms However, the seller must include them in the selling price. 1040x forms Examples. 1040x forms   The following examples illustrate how real estate taxes are divided between buyer and seller. 1040x forms Example 1. 1040x forms Dennis and Beth White's real property tax year for both their old home and their new home is the calendar year, with payment due August 1. 1040x forms The tax on their old home, sold on May 7, was $620. 1040x forms The tax on their new home, bought on May 3, was $732. 1040x forms Dennis and Beth are considered to have paid a proportionate share of the real estate taxes on the old home even though they did not actually pay them to the taxing authority. 1040x forms On the other hand, they can claim only a proportionate share of the taxes they paid on their new property even though they paid the entire amount. 1040x forms Dennis and Beth owned their old home during the real property tax year for 126 days (January 1 to May 6, the day before the sale). 1040x forms They figure their deduction for taxes on their old home as follows. 1040x forms Worksheet 22-1. 1040x forms Figuring Your Real Estate Tax Deduction — Taxes on Old Home 1. 1040x forms Enter the total real estate taxes for the real property tax year $620 2. 1040x forms Enter the number of days in the real property tax year that you owned the property 126 3. 1040x forms Divide line 2 by 365 (for leap years, divide line 2 by 366) . 1040x forms 3452 4. 1040x forms Multiply line 1 by line 3. 1040x forms This is your deduction. 1040x forms Enter it on Schedule A (Form 1040), line 6 $214 Since the buyers of their old home paid all of the taxes, Dennis and Beth also include the $214 in the selling price of the old home. 1040x forms (The buyers add the $214 to their cost of the home. 1040x forms ) Dennis and Beth owned their new home during the real property tax year for 243 days (May 3 to December 31, including their date of purchase). 1040x forms They figure their deduction for taxes on their new home as follows. 1040x forms Worksheet 22-1. 1040x forms Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. 1040x forms Enter the total real estate taxes for the real property tax year $732 2. 1040x forms Enter the number of days in the real property tax year that you owned the property 243 3. 1040x forms Divide line 2 by 365 (for leap years, divide line 2 by 366) . 1040x forms 6658 4. 1040x forms Multiply line 1 by line 3. 1040x forms This is your deduction. 1040x forms Enter it on Schedule A (Form 1040), line 6 $487 Since Dennis and Beth paid all of the taxes on the new home, they add $245 ($732 paid less $487 deduction) to their cost of the new home. 1040x forms (The sellers add this $245 to their selling price and deduct the $245 as a real estate tax. 1040x forms ) Dennis and Beth's real estate tax deduction for their old and new homes is the sum of $214 and $487, or $701. 1040x forms They will enter this amount on Schedule A (Form 1040), line 6. 1040x forms Example 2. 1040x forms George and Helen Brown bought a new home on May 3, 2013. 1040x forms Their real property tax year for the new home is the calendar year. 1040x forms Real estate taxes for 2012 were assessed in their state on January 1, 2013. 1040x forms The taxes became due on May 31, 2013, and October 31, 2013. 1040x forms The Browns agreed to pay all taxes due after the date of purchase. 1040x forms Real estate taxes for 2012 were $680. 1040x forms They paid $340 on May 31, 2013, and $340 on October 31, 2013. 1040x forms These taxes were for the 2012 real property tax year. 1040x forms The Browns cannot deduct them since they did not own the property until 2013. 1040x forms Instead, they must add $680 to the cost of their new home. 1040x forms In January 2014, the Browns receive their 2013 property tax statement for $752, which they will pay in 2014. 1040x forms The Browns owned their new home during the 2013 real property tax year for 243 days (May 3 to December 31). 1040x forms They will figure their 2014 deduction for taxes as follows. 1040x forms Worksheet 22-1. 1040x forms Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. 1040x forms Enter the total real estate taxes for the real property tax year $752 2. 1040x forms Enter the number of days in the real property tax year that you owned the property 243 3. 1040x forms Divide line 2 by 365 (for leap years, divide line 2 by 366) . 1040x forms 6658 4. 1040x forms Multiply line 1 by line 3. 1040x forms This is your deduction. 1040x forms Claim it on Schedule A (Form 1040), line 6 $501 The remaining $251 ($752 paid less $501 deduction) of taxes paid in 2014, along with the $680 paid in 2013, is added to the cost of their new home. 1040x forms Because the taxes up to the date of sale are considered paid by the seller on the date of sale, the seller is entitled to a 2013 tax deduction of $931. 1040x forms This is the sum of the $680 for 2012 and the $251 for the 122 days the seller owned the home in 2013. 1040x forms The seller must also include the $931 in the selling price when he or she figures the gain or loss on the sale. 1040x forms The seller should contact the Browns in January 2014 to find out how much real estate tax is due for 2013. 1040x forms Form 1099-S. 1040x forms   For certain sales or exchanges of real estate, the person responsible for closing the sale (generally the settlement agent) prepares Form 1099-S, Proceeds From Real Estate Transactions, to report certain information to the IRS and to the seller of the property. 1040x forms Box 2 of Form 1099-S is for the gross proceeds from the sale and should include the portion of the seller's real estate tax liability that the buyer will pay after the date of sale. 1040x forms The buyer includes these taxes in the cost basis of the property, and the seller both deducts this amount as a tax paid and includes it in the sales price of the property. 1040x forms   For a real estate transaction that involves a home, any real estate tax the seller paid in advance but that is the liability of the buyer appears on Form 1099-S, box 5. 1040x forms The buyer deducts this amount as a real estate tax, and the seller reduces his or her real estate tax deduction (or includes it in income) by the same amount. 1040x forms See Refund (or rebate) , later. 1040x forms Taxes placed in escrow. 1040x forms   If your monthly mortgage payment includes an amount placed in escrow (put in the care of a third party) for real estate taxes, you may not be able to deduct the total amount placed in escrow. 1040x forms You can deduct only the real estate tax that the third party actually paid to the taxing authority. 1040x forms If the third party does not notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. 1040x forms Tenants by the entirety. 1040x forms   If you and your spouse held property as tenants by the entirety and you file separate federal returns, each of you can deduct only the taxes each of you paid on the property. 1040x forms Divorced individuals. 1040x forms   If your divorce or separation agreement states that you must pay the real estate taxes for a home owned by you and your spouse, part of your payments may be deductible as alimony and part as real estate taxes. 1040x forms See Taxes and insurance in chapter 18 for more information. 1040x forms Ministers' and military housing allowances. 1040x forms   If you are a minister or a member of the uniformed services and receive a housing allowance that you can exclude from income, you still can deduct all of the real estate taxes you pay on your home. 1040x forms Refund (or rebate). 1040x forms   If you received a refund or rebate in 2013 of real estate taxes you paid in 2013, you must reduce your deduction by the amount refunded to you. 1040x forms If you received a refund or rebate in 2013 of real estate taxes you deducted in an earlier year (either as an itemized deduction or an increase to your standard deduction), you generally must include the refund or rebate in income in the year you receive it. 1040x forms However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. 1040x forms For more information, see Recoveries in chapter 12. 1040x forms Table 22-1. 1040x forms Which Taxes Can You Deduct? Type of Tax You Can Deduct You Cannot Deduct Fees and Charges Fees and charges that are expenses of your trade or business or of producing income. 1040x forms Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Cannot Deduct ). 1040x forms     Fines and penalties. 1040x forms Income Taxes State and local income taxes. 1040x forms Federal income taxes. 1040x forms   Foreign income taxes. 1040x forms     Employee contributions to state funds listed under Contributions to state benefit funds . 1040x forms Employee contributions to private or voluntary disability plans. 1040x forms     State and local general sales taxes if you choose to deduct state and local income taxes. 1040x forms General Sales Taxes State and local general sales taxes, including compensating use taxes. 1040x forms State and local income taxes if you choose to deduct state and local general sales taxes. 1040x forms Other Taxes Taxes that are expenses of your trade or business. 1040x forms Federal excise taxes, such as tax on gasoline, that are not expenses of your trade or business or of producing income. 1040x forms   Taxes on property producing rent or royalty income. 1040x forms Per capita taxes. 1040x forms   Occupational taxes. 1040x forms See chapter 28. 1040x forms     One-half of self-employment tax paid. 1040x forms   Personal Property Taxes State and local personal property taxes. 1040x forms Customs duties that are not expenses of your trade or business or of producing income. 1040x forms Real Estate Taxes State and local real estate taxes. 1040x forms Real estate taxes that are treated as imposed on someone else (see Division of real estate taxes between buyers and sellers ). 1040x forms   Foreign real estate taxes. 1040x forms Taxes for local benefits (with exceptions). 1040x forms See Real Estate-Related Items You Cannot Deduct . 1040x forms   Tenant's share of real estate taxes paid by  cooperative housing corporation. 1040x forms Trash and garbage pickup fees (with exceptions). 1040x forms See Real Estate-Related Items You Cannot Deduct . 1040x forms     Rent increase due to higher real estate taxes. 1040x forms     Homeowners' association charges. 1040x forms Real Estate-Related Items You Cannot Deduct Payments for the following items generally are not deductible as real estate taxes. 1040x forms Taxes for local benefits. 1040x forms Itemized charges for services (such as trash and garbage pickup fees). 1040x forms Transfer taxes (or stamp taxes). 1040x forms Rent increases due to higher real estate taxes. 1040x forms Homeowners' association charges. 1040x forms Taxes for local benefits. 1040x forms   Deductible real estate taxes generally do not include taxes charged for local benefits and improvements tending to increase the value of your property. 1040x forms These include assessments for streets, sidewalks, water mains, sewer lines, public parking facilities, and similar improvements. 1040x forms You should increase the basis of your property by the amount of the assessment. 1040x forms   Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits. 1040x forms If only a part of the taxes is for maintenance, repair, or interest, you must be able to show the amount of that part to claim the deduction. 1040x forms If you cannot determine what part of the tax is for maintenance, repair, or interest, none of it is deductible. 1040x forms    Taxes for local benefits may be included in your real estate tax bill. 1040x forms If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. 1040x forms You should use the rules above to determine if the local benefit tax is deductible. 1040x forms Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. 1040x forms Itemized charges for services. 1040x forms    An itemized charge for services assessed against specific property or certain people is not a tax, even if the charge is paid to the taxing authority. 1040x forms For example, you cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged to each homeowner for trash collection), or A flat fee charged for a single service provided by your government (such as a $30 charge for mowing your lawn because it was allowed to grow higher than permitted under your local ordinance). 1040x forms    You must look at your real estate tax bill to determine if any nondeductible itemized charges, such as those listed above, are included in the bill. 1040x forms If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. 1040x forms Exception. 1040x forms   Service charges used to maintain or improve services (such as trash collection or police and fire protection) are deductible as real estate taxes if: The fees or charges are imposed at a like rate against all property in the taxing jurisdiction, The funds collected are not earmarked; instead, they are commingled with general revenue funds, and Funds used to maintain or improve services are not limited to or determined by the amount of these fees or charges collected. 1040x forms Transfer taxes (or stamp taxes). 1040x forms   Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. 1040x forms If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. 1040x forms If paid by the buyer, they are included in the cost basis of the property. 1040x forms Rent increase due to higher real estate taxes. 1040x forms   If your landlord increases your rent in the form of a tax surcharge because of increased real estate taxes, you cannot deduct the increase as taxes. 1040x forms Homeowners' association charges. 1040x forms   These charges are not deductible because they are imposed by the homeowners' association, rather than the state or local government. 1040x forms Personal Property Taxes Personal property tax is deductible if it is a state or local tax that is: Charged on personal property, Based only on the value of the personal property, and Charged on a yearly basis, even if it is collected more or less than once a year. 1040x forms A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. 1040x forms For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways. 1040x forms If the tax is partly based on value and partly based on other criteria, it may qualify in part. 1040x forms Example. 1040x forms Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. 1040x forms You paid $32 based on the value ($1,500) and weight (3,400 lbs. 1040x forms ) of your car. 1040x forms You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. 1040x forms The remaining $17 ($. 1040x forms 50 × 34), based on the weight, is not deductible. 1040x forms Taxes and Fees You Cannot Deduct Many federal, state, and local government taxes are not deductible because they do not fall within the categories discussed earlier. 1040x forms Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them. 1040x forms See Table 22-1. 1040x forms Taxes and fees that are generally not deductible include the following items. 1040x forms Employment taxes. 1040x forms This includes social security, Medicare, and railroad retirement taxes withheld from your pay. 1040x forms However, one-half of self-employment tax you pay is deductible. 1040x forms In addition, the social security and other employment taxes you pay on the wages of a household worker may be included in medical expenses that you can deduct or child care expenses that allow you to claim the child and dependent care credit. 1040x forms For more information, see chapters 21 and 32. 1040x forms Estate, inheritance, legacy, or succession taxes. 1040x forms However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. 1040x forms In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. 1040x forms For more information, see Publication 559, Survivors, Executors, and Administrators. 1040x forms Federal income taxes. 1040x forms This includes income taxes withheld from your pay. 1040x forms Fines and penalties. 1040x forms You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits. 1040x forms Gift taxes. 1040x forms License fees. 1040x forms You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees). 1040x forms Per capita taxes. 1040x forms You cannot deduct state or local per capita taxes. 1040x forms Many taxes and fees other than those listed above are also nondeductible, unless they are ordinary and necessary expenses of a business or income producing activity. 1040x forms For other nondeductible items, see Real Estate-Related Items You Cannot Deduct , earlier. 1040x forms Where To Deduct You deduct taxes on the following schedules. 1040x forms State and local income taxes. 1040x forms    These taxes are deducted on Schedule A (Form 1040), line 5, even if your only source of income is from business, rents, or royalties. 1040x forms Check box a on line 5. 1040x forms General sales taxes. 1040x forms   Sales taxes are deducted on Schedule A (Form 1040), line 5. 1040x forms You must check box b on line 5. 1040x forms If you elect to deduct sales taxes, you cannot deduct state and local income taxes on Schedule A (Form 1040), line 5, box a. 1040x forms Foreign income taxes. 1040x forms   Generally, income taxes you pay to a foreign country or U. 1040x forms S. 1040x forms possession can be claimed as an itemized deduction on Schedule A (Form 1040), line 8, or as a credit against your U. 1040x forms S. 1040x forms income tax on Form 1040, line 47. 1040x forms To claim the credit, you may have to complete and attach Form 1116. 1040x forms For more information, see chapter 37, the Form 1040 instructions, or Publication 514. 1040x forms Real estate taxes and personal property taxes. 1040x forms    Real estate and personal property taxes are deducted on Schedule A (Form 1040), lines 6 and 7, respectively, unless they are paid on property used in your business, in which case they are deducted on Schedule C, Schedule C-EZ, or Schedule F (Form 1040). 1040x forms Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). 1040x forms Self-employment tax. 1040x forms    Deduct one-half of your self-employment tax on Form 1040, line 27. 1040x forms Other taxes. 1040x forms    All other deductible taxes are deducted on Schedule A (Form 1040), line 8. 1040x forms Prev  Up  Next   Home   More Online Publications