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2013 1040 Ez Form

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2013 1040 Ez Form

2013 1040 ez form 8. 2013 1040 ez form   Amortization Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: How To Deduct Amortization Starting a BusinessBusiness Start-Up Costs Costs of Organizing a Corporation Costs of Organizing a Partnership How To Amortize Getting a Lease Section 197 IntangiblesSection 197 Intangibles Defined Assets That Are Not Section 197 Intangibles Safe Harbor for Creative Property Costs Anti-Churning Rules Incorrect Amount of Amortization Deducted Disposition of Section 197 Intangibles Reforestation Costs Geological and Geophysical Costs Pollution Control FacilitiesNew identifiable treatment facility. 2013 1040 ez form Research and Experimental Costs Optional Write-off of Certain Tax Preferences Introduction Amortization is a method of recovering (deducting) certain capital costs over a fixed period of time. 2013 1040 ez form It is similar to the straight line method of depreciation. 2013 1040 ez form The various amortizable costs covered in this chapter are included in the list below. 2013 1040 ez form However, this chapter does not discuss amortization of bond premium. 2013 1040 ez form For information on that topic, see chapter 3 of Publication 550, Investment Income and Expenses. 2013 1040 ez form Topics - This chapter discusses: Deducting amortization Amortizing costs of starting a business Amortizing costs of getting a lease Amortizing costs of section 197 intangibles Amortizing reforestation costs Amortizing costs of geological and geophysical costs Amortizing costs of pollution control facilities Amortizing costs of research and experimentation Amortizing costs of certain tax preferences Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 946 How To Depreciate Property Form (and Instructions) 4562 Depreciation and Amortization 4626 Alternative Minimum Tax—Corporations 6251 Alternative Minimum Tax—Individuals See chapter 12 for information about getting publications and forms. 2013 1040 ez form How To Deduct Amortization To deduct amortization that begins during the current tax year, complete Part VI of Form 4562 and attach it to your income tax return. 2013 1040 ez form To report amortization from previous years, in addition to amortization that begins in the current year, list on Form 4562 each item separately. 2013 1040 ez form For example, in 2012, you began to amortize a lease. 2013 1040 ez form In 2013, you began to amortize a second lease. 2013 1040 ez form Report amortization from the new lease on line 42 of your 2013 Form 4562. 2013 1040 ez form Report amortization from the 2012 lease on line 43 of your 2013 Form 4562. 2013 1040 ez form If you do not have any new amortizable expenses for the current year, you are not required to complete Form 4562 (unless you are claiming depreciation). 2013 1040 ez form Report the current year's deduction for amortization that began in a prior year directly on the “Other deduction” or “Other expense line” of your return. 2013 1040 ez form Starting a Business When you start a business, treat all eligible costs you incur before you begin operating the business as capital expenditures which are part of your basis in the business. 2013 1040 ez form Generally, you recover costs for particular assets through depreciation deductions. 2013 1040 ez form However, you generally cannot recover other costs until you sell the business or otherwise go out of business. 2013 1040 ez form For a discussion on how to treat these costs, see If your attempt to go into business is unsuccessful under Capital Expenses in chapter 1. 2013 1040 ez form For costs paid or incurred after September 8, 2008, you can deduct a limited amount of start-up and organizational costs. 2013 1040 ez form The costs that are not deducted currently can be amortized ratably over a 180-month period. 2013 1040 ez form The amortization period starts with the month you begin operating your active trade or business. 2013 1040 ez form You are not required to attach a statement to make this election. 2013 1040 ez form You can choose to forgo this election by affirmatively electing to capitalize your start-up costs on your income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. 2013 1040 ez form Once made, the election to either amortize or capitalize start-up costs is irrevocable and applies to all start-up costs that are related to your trade or business. 2013 1040 ez form See Regulations sections 1. 2013 1040 ez form 195-1, 1. 2013 1040 ez form 248-1, and 1. 2013 1040 ez form 709-1. 2013 1040 ez form For costs paid or incurred after October 22, 2004, and before September 9, 2008, you can elect to deduct a limited amount of business start-up and organizational costs in the year your active trade or business begins. 2013 1040 ez form Any costs not deducted can be amortized ratably over a 180-month period, beginning with the month you begin business. 2013 1040 ez form If the election is made, you must attach any statement required by Regulations sections 1. 2013 1040 ez form 195-1(b), 1. 2013 1040 ez form 248-1(c), and 1. 2013 1040 ez form 709-1(c), as in effect before September 9, 2008. 2013 1040 ez form Note. 2013 1040 ez form You can apply the provisions of Regulations sections 1. 2013 1040 ez form 195-1, 1. 2013 1040 ez form 248-1, and 1. 2013 1040 ez form 709-1 to all business start-up and organizational costs paid or incurred after October 22, 2004, provided the period of limitations on assessment has not expired for the year of the election. 2013 1040 ez form Otherwise, the provisions under Regulations sections 1. 2013 1040 ez form 195-1(b), 1. 2013 1040 ez form 248-1(c), and 1. 2013 1040 ez form 709-1(c), as in effect before September 9, 2008, will apply. 2013 1040 ez form For costs paid or incurred before October 23, 2004, you can elect to amortize business start-up and organization costs over an amortization period of 60 months or more. 2013 1040 ez form See How To Make the Election , later. 2013 1040 ez form The cost must qualify as one of the following. 2013 1040 ez form A business start-up cost. 2013 1040 ez form An organizational cost for a corporation. 2013 1040 ez form An organizational cost for a partnership. 2013 1040 ez form Business Start-Up Costs Start-up costs are amounts paid or incurred for: (a) creating an active trade or business; or (b) investigating the creation or acquisition of an active trade or business. 2013 1040 ez form Start-up costs include amounts paid or incurred in connection with an existing activity engaged in for profit; and for the production of income in anticipation of the activity becoming an active trade or business. 2013 1040 ez form Qualifying costs. 2013 1040 ez form   A start-up cost is amortizable if it meets both of the following tests. 2013 1040 ez form It is a cost you could deduct if you paid or incurred it to operate an existing active trade or business (in the same field as the one you entered into). 2013 1040 ez form It is a cost you pay or incur before the day your active trade or business begins. 2013 1040 ez form   Start-up costs include amounts paid for the following: An analysis or survey of potential markets, products, labor supply, transportation facilities, etc. 2013 1040 ez form Advertisements for the opening of the business. 2013 1040 ez form Salaries and wages for employees who are being trained and their instructors. 2013 1040 ez form Travel and other necessary costs for securing prospective distributors, suppliers, or customers. 2013 1040 ez form Salaries and fees for executives and consultants, or for similar professional services. 2013 1040 ez form Nonqualifying costs. 2013 1040 ez form   Start-up costs do not include deductible interest, taxes, or research and experimental costs. 2013 1040 ez form See Research and Experimental Costs , later. 2013 1040 ez form Purchasing an active trade or business. 2013 1040 ez form   Amortizable start-up costs for purchasing an active trade or business include only investigative costs incurred in the course of a general search for or preliminary investigation of the business. 2013 1040 ez form These are costs that help you decide whether to purchase a business. 2013 1040 ez form Costs you incur in an attempt to purchase a specific business are capital expenses that you cannot amortize. 2013 1040 ez form Example. 2013 1040 ez form On June 1st, you hired an accounting firm and a law firm to assist you in the potential purchase of XYZ, Inc. 2013 1040 ez form They researched XYZ's industry and analyzed the financial projections of XYZ, Inc. 2013 1040 ez form In September, the law firm prepared and submitted a letter of intent to XYZ, Inc. 2013 1040 ez form The letter stated that a binding commitment would result only after a purchase agreement was signed. 2013 1040 ez form The law firm and accounting firm continued to provide services including a review of XYZ's books and records and the preparation of a purchase agreement. 2013 1040 ez form On October 22nd, you signed a purchase agreement with XYZ, Inc. 2013 1040 ez form All amounts paid or incurred to investigate the business before October 22nd are amortizable investigative costs. 2013 1040 ez form Amounts paid on or after that date relate to the attempt to purchase the business and therefore must be capitalized. 2013 1040 ez form Disposition of business. 2013 1040 ez form   If you completely dispose of your business before the end of the amortization period, you can deduct any remaining deferred start-up costs. 2013 1040 ez form However, you can deduct these deferred start-up costs only to the extent they qualify as a loss from a business. 2013 1040 ez form Costs of Organizing a Corporation Amounts paid to organize a corporation are the direct costs of creating the corporation. 2013 1040 ez form Qualifying costs. 2013 1040 ez form   To qualify as an organizational cost, it must be: For the creation of the corporation, Chargeable to a capital account (see chapter 1), Amortized over the life of the corporation if the corporation had a fixed life, and Incurred before the end of the first tax year in which the corporation is in business. 2013 1040 ez form   A corporation using the cash method of accounting can amortize organizational costs incurred within the first tax year, even if it does not pay them in that year. 2013 1040 ez form   Examples of organizational costs include: The cost of temporary directors. 2013 1040 ez form The cost of organizational meetings. 2013 1040 ez form State incorporation fees. 2013 1040 ez form The cost of legal services. 2013 1040 ez form Nonqualifying costs. 2013 1040 ez form   The following items are capital expenses that cannot be amortized: Costs for issuing and selling stock or securities, such as commissions, professional fees, and printing costs. 2013 1040 ez form Costs associated with the transfer of assets to the corporation. 2013 1040 ez form Costs of Organizing a Partnership The costs to organize a partnership are the direct costs of creating the partnership. 2013 1040 ez form Qualifying costs. 2013 1040 ez form   A partnership can amortize an organizational cost only if it meets all the following tests. 2013 1040 ez form It is for the creation of the partnership and not for starting or operating the partnership trade or business. 2013 1040 ez form It is chargeable to a capital account (see chapter 1). 2013 1040 ez form It could be amortized over the life of the partnership if the partnership had a fixed life. 2013 1040 ez form It is incurred by the due date of the partnership return (excluding extensions) for the first tax year in which the partnership is in business. 2013 1040 ez form However, if the partnership uses the cash method of accounting and pays the cost after the end of its first tax year, see Cash method partnership under How To Amortize, later. 2013 1040 ez form It is for a type of item normally expected to benefit the partnership throughout its entire life. 2013 1040 ez form   Organizational costs include the following fees. 2013 1040 ez form Legal fees for services incident to the organization of the partnership, such as negotiation and preparation of the partnership agreement. 2013 1040 ez form Accounting fees for services incident to the organization of the partnership. 2013 1040 ez form Filing fees. 2013 1040 ez form Nonqualifying costs. 2013 1040 ez form   The following costs cannot be amortized. 2013 1040 ez form The cost of acquiring assets for the partnership or transferring assets to the partnership. 2013 1040 ez form The cost of admitting or removing partners, other than at the time the partnership is first organized. 2013 1040 ez form The cost of making a contract concerning the operation of the partnership trade or business including a contract between a partner and the partnership. 2013 1040 ez form The costs for issuing and marketing interests in the partnership such as brokerage, registration, and legal fees and printing costs. 2013 1040 ez form These “syndication fees” are capital expenses that cannot be depreciated or amortized. 2013 1040 ez form Liquidation of partnership. 2013 1040 ez form   If a partnership is liquidated before the end of the amortization period, the unamortized amount of qualifying organizational costs can be deducted in the partnership's final tax year. 2013 1040 ez form However, these costs can be deducted only to the extent they qualify as a loss from a business. 2013 1040 ez form How To Amortize Deduct start-up and organizational costs in equal amounts over the applicable amortization period (discussed earlier). 2013 1040 ez form You can choose an amortization period for start-up costs that is different from the period you choose for organizational costs, as long as both are not less than the applicable amortization period. 2013 1040 ez form Once you choose an amortization period, you cannot change it. 2013 1040 ez form To figure your deduction, divide your total start-up or organizational costs by the months in the amortization period. 2013 1040 ez form The result is the amount you can deduct for each month. 2013 1040 ez form Cash method partnership. 2013 1040 ez form   A partnership using the cash method of accounting can deduct an organizational cost only if it has been paid by the end of the tax year. 2013 1040 ez form However, any cost the partnership could have deducted as an organizational cost in an earlier tax year (if it had been paid that year) can be deducted in the tax year of payment. 2013 1040 ez form How To Make the Election To elect to amortize start-up or organizational costs, you must complete and attach Form 4562 to your return for the first tax year you are in business. 2013 1040 ez form You may also be required to attach an accompanying statement (described later) to your return. 2013 1040 ez form For start-up or organizational costs paid or incurred after September 8, 2008, an accompanying statement is not required. 2013 1040 ez form Generally, for start-up or organizational costs paid or incurred before September 9, 2008, and after October 22, 2004, unless you choose to apply Regulations sections 1. 2013 1040 ez form 195-1, 1. 2013 1040 ez form 248-1, and 1. 2013 1040 ez form 709-1, you must also attach an accompanying statement to elect to amortize the costs. 2013 1040 ez form If you have both start-up and organizational costs, attach a separate statement (if required) to your return for each type of cost. 2013 1040 ez form See Starting a Business , earlier, for more information. 2013 1040 ez form Generally, you must file the return by the due date (including any extensions). 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form For more information, see the instructions for Part VI of Form 4562. 2013 1040 ez form You can choose to forgo the election to amortize by affirmatively electing to capitalize your start-up or organizational costs on your income tax return filed by the due date (including extensions) for the tax year in which the active trade or business begins. 2013 1040 ez form Note. 2013 1040 ez form The election to either amortize or capitalize start-up or organizational costs is irrevocable and applies to all start-up and organizational costs that are related to the trade or business. 2013 1040 ez form If your business is organized as a corporation or partnership, only the corporation or partnership can elect to amortize its start-up or organizational costs. 2013 1040 ez form A shareholder or partner cannot make this election. 2013 1040 ez form You, as a shareholder or partner, cannot amortize any costs you incur in setting up your corporation or partnership. 2013 1040 ez form Only the corporation or partnership can amortize these costs. 2013 1040 ez form However, you, as an individual, can elect to amortize costs you incur to investigate an interest in an existing partnership. 2013 1040 ez form These costs qualify as business start-up costs if you acquire the partnership interest. 2013 1040 ez form Start-up costs election statement. 2013 1040 ez form   If you elect to amortize your start-up costs, attach a separate statement (if required) that contains the following information. 2013 1040 ez form A description of the business to which the start-up costs relate. 2013 1040 ez form A description of each start-up cost incurred. 2013 1040 ez form The month your active business began (or was acquired). 2013 1040 ez form The number of months in your amortization period (which is generally 180 months). 2013 1040 ez form Filing the statement early. 2013 1040 ez form   You can elect to amortize your start-up costs by filing the statement with a return for any tax year before the year your active business begins. 2013 1040 ez form If you file the statement early, the election becomes effective in the month of the tax year your active business begins. 2013 1040 ez form Revised statement. 2013 1040 ez form   You can file a revised statement to include any start-up costs not included in your original statement. 2013 1040 ez form However, you cannot include on the revised statement any cost you previously treated on your return as a cost other than a start-up cost. 2013 1040 ez form You can file the revised statement with a return filed after the return on which you elected to amortize your start-up costs. 2013 1040 ez form Organizational costs election statement. 2013 1040 ez form   If you elect to amortize your corporation's or partnership's organizational costs, attach a separate statement (if required) that contains the following information. 2013 1040 ez form A description of each cost. 2013 1040 ez form The amount of each cost. 2013 1040 ez form The date each cost was incurred. 2013 1040 ez form The month your corporation or partnership began active business (or acquired the business). 2013 1040 ez form The number of months in your amortization period (which is generally 180 months). 2013 1040 ez form Partnerships. 2013 1040 ez form   The statement prepared for a cash basis partnership must also indicate the amount paid before the end of the year for each cost. 2013 1040 ez form   You do not need to separately list any partnership organizational cost that is less than $10. 2013 1040 ez form Instead, you can list the total amount of these costs with the dates the first and last costs were incurred. 2013 1040 ez form   After a partnership makes the election to amortize organizational costs, it can later file an amended return to include additional organizational costs not included in the partnership's original return and statement. 2013 1040 ez form Getting a Lease If you get a lease for business property, you may recover the cost of acquiring the lease by amortizing it over the term of the lease. 2013 1040 ez form The term of the lease for amortization purposes generally includes all renewal options (and any other period for which you and the lessor reasonably expect the lease to be renewed). 2013 1040 ez form However, renewal periods are not included if 75% or more of the cost of acquiring the lease is for the term of the lease remaining on the acquisition date (not including any period for which you may choose to renew, extend, or continue the lease). 2013 1040 ez form For more information on the costs of getting a lease, see Cost of Getting a Lease in  chapter 3. 2013 1040 ez form How to amortize. 2013 1040 ez form   Enter your deduction in Part VI of Form 4562 if you are deducting amortization that begins during the current year, or on the appropriate line of your tax return if you are not otherwise required to file Form 4562. 2013 1040 ez form Section 197 Intangibles Generally, you may amortize the capitalized costs of “section 197 intangibles” (defined later) ratably over a 15-year period. 2013 1040 ez form You must amortize these costs if you hold the section 197 intangibles in connection with your trade or business or in an activity engaged in for the production of income. 2013 1040 ez form You may not be able to amortize section 197 intangibles acquired in a transaction that did not result in a significant change in ownership or use. 2013 1040 ez form See Anti-Churning Rules, later. 2013 1040 ez form Your amortization deduction each year is the applicable part of the intangible's adjusted basis (for purposes of determining gain), figured by amortizing it ratably over 15 years (180 months). 2013 1040 ez form The 15-year period begins with the later of: The month the intangible is acquired, or The month the trade or business or activity engaged in for the production of income begins. 2013 1040 ez form You cannot deduct amortization for the month you dispose of the intangible. 2013 1040 ez form If you pay or incur an amount that increases the basis of an amortizable section 197 intangible after the 15-year period begins, amortize it over the remainder of the 15-year period beginning with the month the basis increase occurs. 2013 1040 ez form You are not allowed any other depreciation or amortization deduction for an amortizable section 197 intangible. 2013 1040 ez form Tax-exempt use property subject to a lease. 2013 1040 ez form   The amortization period for any section 197 intangible leased under a lease agreement entered into after March 12, 2004, to a tax-exempt organization, governmental unit, or foreign person or entity (other than a partnership), shall not be less than 125 percent of the lease term. 2013 1040 ez form Cost attributable to other property. 2013 1040 ez form   The rules for section 197 intangibles do not apply to any amount that is included in determining the cost of property that is not a section 197 intangible. 2013 1040 ez form For example, if the cost of computer software is not separately stated from the cost of hardware or other tangible property and you consistently treat it as part of the cost of the hardware or other tangible property, these rules do not apply. 2013 1040 ez form Similarly, none of the cost of acquiring real property held for the production of rental income is considered the cost of goodwill, going concern value, or any other section 197 intangible. 2013 1040 ez form Section 197 Intangibles Defined The following assets are section 197 intangibles and must be amortized over 180 months: Goodwill; Going concern value; Workforce in place; Business books and records, operating systems, or any other information base, including lists or other information concerning current or prospective customers; A patent, copyright, formula, process, design, pattern, know-how, format, or similar item; A customer-based intangible; A supplier-based intangible; Any item similar to items (3) through (7); A license, permit, or other right granted by a governmental unit or agency (including issuances and renewals); A covenant not to compete entered into in connection with the acquisition of an interest in a trade or business; Any franchise, trademark, or trade name; and A contract for the use of, or a term interest in, any item in this list. 2013 1040 ez form You cannot amortize any of the intangibles listed in items (1) through (8) that you created rather than acquired unless you created them in acquiring assets that make up a trade or business or a substantial part of a trade or business. 2013 1040 ez form Goodwill. 2013 1040 ez form   This is the value of a trade or business based on expected continued customer patronage due to its name, reputation, or any other factor. 2013 1040 ez form Going concern value. 2013 1040 ez form   This is the additional value of a trade or business that attaches to property because the property is an integral part of an ongoing business activity. 2013 1040 ez form It includes value based on the ability of a business to continue to function and generate income even though there is a change in ownership (but does not include any other section 197 intangible). 2013 1040 ez form It also includes value based on the immediate use or availability of an acquired trade or business, such as the use of earnings during any period in which the business would not otherwise be available or operational. 2013 1040 ez form Workforce in place, etc. 2013 1040 ez form   This includes the composition of a workforce (for example, its experience, education, or training). 2013 1040 ez form It also includes the terms and conditions of employment, whether contractual or otherwise, and any other value placed on employees or any of their attributes. 2013 1040 ez form   For example, you must amortize the part of the purchase price of a business that is for the existence of a highly skilled workforce. 2013 1040 ez form Also, you must amortize the cost of acquiring an existing employment contract or relationship with employees or consultants. 2013 1040 ez form Business books and records, etc. 2013 1040 ez form   This includes the intangible value of technical manuals, training manuals or programs, data files, and accounting or inventory control systems. 2013 1040 ez form It also includes the cost of customer lists, subscription lists, insurance expirations, patient or client files, and lists of newspaper, magazine, radio, and television advertisers. 2013 1040 ez form Patents, copyrights, etc. 2013 1040 ez form   This includes package design, computer software, and any interest in a film, sound recording, videotape, book, or other similar property, except as discussed later under Assets That Are Not Section 197 Intangibles . 2013 1040 ez form Customer-based intangible. 2013 1040 ez form   This is the composition of market, market share, and any other value resulting from the future provision of goods or services because of relationships with customers in the ordinary course of business. 2013 1040 ez form For example, you must amortize the part of the purchase price of a business that is for the existence of the following intangibles. 2013 1040 ez form A customer base. 2013 1040 ez form A circulation base. 2013 1040 ez form An undeveloped market or market growth. 2013 1040 ez form Insurance in force. 2013 1040 ez form A mortgage servicing contract. 2013 1040 ez form An investment management contract. 2013 1040 ez form Any other relationship with customers involving the future provision of goods or services. 2013 1040 ez form   Accounts receivable or other similar rights to income for goods or services provided to customers before the acquisition of a trade or business are not section 197 intangibles. 2013 1040 ez form Supplier-based intangible. 2013 1040 ez form   A supplier-based intangible is the value resulting from the future acquisitions, (through contract or other relationships with suppliers in the ordinary course of business) of goods or services that you will sell or use. 2013 1040 ez form The amount you pay or incur for supplier-based intangibles includes, for example, any portion of the purchase price of an acquired trade or business that is attributable to the existence of a favorable relationship with persons providing distribution services (such as a favorable shelf or display space or a retail outlet), or the existence of favorable supply contracts. 2013 1040 ez form Do not include any amount required to be paid for the goods or services to honor the terms of the agreement or other relationship. 2013 1040 ez form Also, see Assets That Are Not Section 197 Intangibles below. 2013 1040 ez form Government-granted license, permit, etc. 2013 1040 ez form   This is any right granted by a governmental unit or an agency or instrumentality of a governmental unit. 2013 1040 ez form For example, you must amortize the capitalized costs of acquiring (including issuing or renewing) a liquor license, a taxicab medallion or license, or a television or radio broadcasting license. 2013 1040 ez form Covenant not to compete. 2013 1040 ez form   Section 197 intangibles include a covenant not to compete (or similar arrangement) entered into in connection with the acquisition of an interest in a trade or business, or a substantial portion of a trade or business. 2013 1040 ez form An interest in a trade or business includes an interest in a partnership or a corporation engaged in a trade or business. 2013 1040 ez form   An arrangement that requires the former owner to perform services (or to provide property or the use of property) is not similar to a covenant not to compete to the extent the amount paid under the arrangement represents reasonable compensation for those services or for that property or its use. 2013 1040 ez form Franchise, trademark, or trade name. 2013 1040 ez form   A franchise, trademark, or trade name is a section 197 intangible. 2013 1040 ez form You must amortize its purchase or renewal costs, other than certain contingent payments that you can deduct currently. 2013 1040 ez form For information on currently deductible contingent payments, see chapter 11. 2013 1040 ez form Professional sports franchise. 2013 1040 ez form   A franchise engaged in professional sports and any intangible assets acquired in connection with acquiring the franchise (including player contracts) is a section 197 intangible amortizable over a 15-year period. 2013 1040 ez form Contract for the use of, or a term interest in, a section 197 intangible. 2013 1040 ez form   Section 197 intangibles include any right under a license, contract, or other arrangement providing for the use of any section 197 intangible. 2013 1040 ez form It also includes any term interest in any section 197 intangible, whether the interest is outright or in trust. 2013 1040 ez form Assets That Are Not Section 197 Intangibles The following assets are not section 197 intangibles. 2013 1040 ez form Any interest in a corporation, partnership, trust, or estate. 2013 1040 ez form Any interest under an existing futures contract, foreign currency contract, notional principal contract, interest rate swap, or similar financial contract. 2013 1040 ez form Any interest in land. 2013 1040 ez form Most computer software. 2013 1040 ez form (See Computer software , later. 2013 1040 ez form ) Any of the following assets not acquired in connection with the acquisition of a trade or business or a substantial part of a trade or business. 2013 1040 ez form An interest in a film, sound recording, video tape, book, or similar property. 2013 1040 ez form A right to receive tangible property or services under a contract or from a governmental agency. 2013 1040 ez form An interest in a patent or copyright. 2013 1040 ez form Certain rights that have a fixed duration or amount. 2013 1040 ez form (See Rights of fixed duration or amount , later. 2013 1040 ez form ) An interest under either of the following. 2013 1040 ez form An existing lease or sublease of tangible property. 2013 1040 ez form A debt that was in existence when the interest was acquired. 2013 1040 ez form A right to service residential mortgages unless the right is acquired in connection with the acquisition of a trade or business or a substantial part of a trade or business. 2013 1040 ez form Certain transaction costs incurred by parties to a corporate organization or reorganization in which any part of a gain or loss is not recognized. 2013 1040 ez form Intangible property that is not amortizable under the rules for section 197 intangibles can be depreciated if it meets certain requirements. 2013 1040 ez form You generally must use the straight line method over its useful life. 2013 1040 ez form For certain intangibles, the depreciation period is specified in the law and regulations. 2013 1040 ez form For example, the depreciation period for computer software that is not a section 197 intangible is generally 36 months. 2013 1040 ez form For more information on depreciating intangible property, see Intangible Property under What Method Can You Use To Depreciate Your Property? in chapter 1 of Publication 946. 2013 1040 ez form Computer software. 2013 1040 ez form   Section 197 intangibles do not include the following types of computer software. 2013 1040 ez form Software that meets all the following requirements. 2013 1040 ez form It is, or has been, readily available for purchase by the general public. 2013 1040 ez form It is subject to a nonexclusive license. 2013 1040 ez form It has not been substantially modified. 2013 1040 ez form This requirement is considered met if the cost of all modifications is not more than the greater of 25% of the price of the publicly available unmodified software or $2,000. 2013 1040 ez form Software that is not acquired in connection with the acquisition of a trade or business or a substantial part of a trade or business. 2013 1040 ez form Computer software defined. 2013 1040 ez form   Computer software includes all programs designed to cause a computer to perform a desired function. 2013 1040 ez form It also includes any database or similar item that is in the public domain and is incidental to the operation of qualifying software. 2013 1040 ez form Rights of fixed duration or amount. 2013 1040 ez form   Section 197 intangibles do not include any right under a contract or from a governmental agency if the right is acquired in the ordinary course of a trade or business (or in an activity engaged in for the production of income) but not as part of a purchase of a trade or business and either: Has a fixed life of less than 15 years, or Is of a fixed amount that, except for the rules for section 197 intangibles, would be recovered under a method similar to the unit-of-production method of cost recovery. 2013 1040 ez form However, this does not apply to the following intangibles. 2013 1040 ez form Goodwill. 2013 1040 ez form Going concern value. 2013 1040 ez form A covenant not to compete. 2013 1040 ez form A franchise, trademark, or trade name. 2013 1040 ez form A customer-related information base, customer-based intangible, or similar item. 2013 1040 ez form Safe Harbor for Creative Property Costs If you are engaged in the trade or business of film production, you may be able to amortize the creative property costs for properties not set for production within 3 years of the first capitalized transaction. 2013 1040 ez form You may amortize these costs ratably over a 15-year period beginning on the first day of the second half of the tax year in which you properly write off the costs for financial accounting purposes. 2013 1040 ez form If, during the 15-year period, you dispose of the creative property rights, you must continue to amortize the costs over the remainder of the 15-year period. 2013 1040 ez form Creative property costs include costs paid or incurred to acquire and develop screenplays, scripts, story outlines, motion picture production rights to books and plays, and other similar properties for purposes of potential future film development, production, and exploitation. 2013 1040 ez form Amortize these costs using the rules of Revenue Procedure 2004-36. 2013 1040 ez form For more information, see Revenue Procedure 2004-36, 2004-24 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 1063, available at  www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2004-24_IRB/ar16. 2013 1040 ez form html. 2013 1040 ez form A change in the treatment of creative property costs is a change in method of accounting. 2013 1040 ez form Anti-Churning Rules Anti-churning rules prevent you from amortizing most section 197 intangibles if the transaction in which you acquired them did not result in a significant change in ownership or use. 2013 1040 ez form These rules apply to goodwill and going concern value, and to any other section 197 intangible that is not otherwise depreciable or amortizable. 2013 1040 ez form Under the anti-churning rules, you cannot use 15-year amortization for the intangible if any of the following conditions apply. 2013 1040 ez form You or a related person (defined later) held or used the intangible at any time from July 25, 1991, through August 10, 1993. 2013 1040 ez form You acquired the intangible from a person who held it at any time during the period in (1) and, as part of the transaction, the user did not change. 2013 1040 ez form You granted the right to use the intangible to a person (or a person related to that person) who held or used it at any time during the period in (1). 2013 1040 ez form This applies only if the transaction in which you granted the right and the transaction in which you acquired the intangible are part of a series of related transactions. 2013 1040 ez form See Related person , later, for more information. 2013 1040 ez form Exceptions. 2013 1040 ez form   The anti-churning rules do not apply in the following situations. 2013 1040 ez form You acquired the intangible from a decedent and its basis was stepped up to its fair market value. 2013 1040 ez form The intangible was amortizable as a section 197 intangible by the seller or transferor you acquired it from. 2013 1040 ez form This exception does not apply if the transaction in which you acquired the intangible and the transaction in which the seller or transferor acquired it are part of a series of related transactions. 2013 1040 ez form The gain-recognition exception, discussed later, applies. 2013 1040 ez form Related person. 2013 1040 ez form   For purposes of the anti-churning rules, the following are related persons. 2013 1040 ez form An individual and his or her brothers, sisters, half-brothers, half-sisters, spouse, ancestors (parents, grandparents, etc. 2013 1040 ez form ), and lineal descendants (children, grandchildren, etc. 2013 1040 ez form ). 2013 1040 ez form A corporation and an individual who owns, directly or indirectly, more than 20% of the value of the corporation's outstanding stock. 2013 1040 ez form Two corporations that are members of the same controlled group as defined in section 1563(a) of the Internal Revenue Code, except that “more than 20%” is substituted for “at least 80%” in that definition and the determination is made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. 2013 1040 ez form (For an exception, see section 1. 2013 1040 ez form 197-2(h)(6)(iv) of the regulations. 2013 1040 ez form ) A trust fiduciary and a corporation if more than 20% of the value of the corporation's outstanding stock is owned, directly or indirectly, by or for the trust or grantor of the trust. 2013 1040 ez form The grantor and fiduciary, and the fiduciary and beneficiary, of any trust. 2013 1040 ez form The fiduciaries of two different trusts, and the fiduciaries and beneficiaries of two different trusts, if the same person is the grantor of both trusts. 2013 1040 ez form The executor and beneficiary of an estate. 2013 1040 ez form A tax-exempt educational or charitable organization and a person who directly or indirectly controls the organization (or whose family members control it). 2013 1040 ez form A corporation and a partnership if the same persons own more than 20% of the value of the outstanding stock of the corporation and more than 20% of the capital or profits interest in the partnership. 2013 1040 ez form Two S corporations, and an S corporation and a regular corporation, if the same persons own more than 20% of the value of the outstanding stock of each corporation. 2013 1040 ez form Two partnerships if the same persons own, directly or indirectly, more than 20% of the capital or profits interests in both partnerships. 2013 1040 ez form A partnership and a person who owns, directly or indirectly, more than 20% of the capital or profits interests in the partnership. 2013 1040 ez form Two persons who are engaged in trades or businesses under common control (as described in section 41(f)(1) of the Internal Revenue Code). 2013 1040 ez form When to determine relationship. 2013 1040 ez form   Persons are treated as related if the relationship existed at the following time. 2013 1040 ez form In the case of a single transaction, immediately before or immediately after the transaction in which the intangible was acquired. 2013 1040 ez form In the case of a series of related transactions (or a series of transactions that comprise a qualified stock purchase under section 338(d)(3) of the Internal Revenue Code), immediately before the earliest transaction or immediately after the last transaction. 2013 1040 ez form Ownership of stock. 2013 1040 ez form   In determining whether an individual directly or indirectly owns any of the outstanding stock of a corporation, the following rules apply. 2013 1040 ez form Rule 1. 2013 1040 ez form   Stock directly or indirectly owned by or for a corporation, partnership, estate, or trust is considered owned proportionately by or for its shareholders, partners, or beneficiaries. 2013 1040 ez form Rule 2. 2013 1040 ez form   An individual is considered to own the stock directly or indirectly owned by or for his or her family. 2013 1040 ez form Family includes only brothers and sisters, half-brothers and half-sisters, spouse, ancestors, and lineal descendants. 2013 1040 ez form Rule 3. 2013 1040 ez form   An individual owning (other than by applying Rule 2) any stock in a corporation is considered to own the stock directly or indirectly owned by or for his or her partner. 2013 1040 ez form Rule 4. 2013 1040 ez form   For purposes of applying Rule 1, 2, or 3, treat stock constructively owned by a person under Rule 1 as actually owned by that person. 2013 1040 ez form Do not treat stock constructively owned by an individual under Rule 2 or 3 as owned by the individual for reapplying Rule 2 or 3 to make another person the constructive owner of the stock. 2013 1040 ez form Gain-recognition exception. 2013 1040 ez form   This exception to the anti-churning rules applies if the person you acquired the intangible from (the transferor) meets both of the following requirements. 2013 1040 ez form That person would not be related to you (as described under Related person , earlier) if the 20% test for ownership of stock and partnership interests were replaced by a 50% test. 2013 1040 ez form That person chose to recognize gain on the disposition of the intangible and pay income tax on the gain at the highest tax rate. 2013 1040 ez form See chapter 2 in Publication 544 for information on making this choice. 2013 1040 ez form   If this exception applies, the anti-churning rules apply only to the amount of your adjusted basis in the intangible that is more than the gain recognized by the transferor. 2013 1040 ez form Notification. 2013 1040 ez form   If the person you acquired the intangible from chooses to recognize gain under the rules for this exception, that person must notify you in writing by the due date of the return on which the choice is made. 2013 1040 ez form Anti-abuse rule. 2013 1040 ez form   You cannot amortize any section 197 intangible acquired in a transaction for which the principal purpose was either of the following. 2013 1040 ez form To avoid the requirement that the intangible be acquired after August 10, 1993. 2013 1040 ez form To avoid any of the anti-churning rules. 2013 1040 ez form More information. 2013 1040 ez form   For more information about the anti-churning rules, including additional rules for partnerships, see Regulations section 1. 2013 1040 ez form 197-2(h). 2013 1040 ez form Incorrect Amount of Amortization Deducted If you later discover that you deducted an incorrect amount for amortization for a section 197 intangible in any year, you may be able to make a correction for that year by filing an amended return. 2013 1040 ez form See Amended Return , next. 2013 1040 ez form If you are not allowed to make the correction on an amended return, you can change your accounting method to claim the correct amortization. 2013 1040 ez form See Changing Your Accounting Method , later. 2013 1040 ez form Amended Return If you deducted an incorrect amount for amortization, you can file an amended return to correct the following. 2013 1040 ez form A mathematical error made in any year. 2013 1040 ez form A posting error made in any year. 2013 1040 ez form An amortization deduction for a section 197 intangible for which you have not adopted a method of accounting. 2013 1040 ez form When to file. 2013 1040 ez form   If an amended return is allowed, you must file it by the later of the following dates. 2013 1040 ez form 3 years from the date you filed your original return for the year in which you did not deduct the correct amount. 2013 1040 ez form (A return filed early is considered filed on the due date. 2013 1040 ez form ) 2 years from the time you paid your tax for that year. 2013 1040 ez form Changing Your Accounting Method Generally, you must get IRS approval to change your method of accounting. 2013 1040 ez form File Form 3115, Application for Change in Accounting Method, to request a change to a permissible method of accounting for amortization. 2013 1040 ez form The following are examples of a change in method of accounting for amortization. 2013 1040 ez form A change in the amortization method, period of recovery, or convention of an amortizable asset. 2013 1040 ez form A change in the accounting for amortizable assets from a single asset account to a multiple asset account (pooling), or vice versa. 2013 1040 ez form A change in the accounting for amortizable assets from one type of multiple asset account to a different type of multiple asset account. 2013 1040 ez form Changes in amortization that are not a change in method of accounting include the following: A change in computing amortization in the tax year in which your use of the asset changes. 2013 1040 ez form An adjustment in the useful life of an amortizable asset. 2013 1040 ez form Generally, the making of a late amortization election or the revocation of a timely valid amortization election. 2013 1040 ez form Any change in the placed-in-service date of an amortizable asset. 2013 1040 ez form See Regulations section 1. 2013 1040 ez form 446-1(e)(2)(ii)(a) for more information and examples. 2013 1040 ez form Automatic approval. 2013 1040 ez form   In some instances, you may be able to get automatic approval from the IRS to change your method of accounting for amortization. 2013 1040 ez form For a list of automatic accounting method changes, see the Instructions for Form 3115. 2013 1040 ez form Also see the Instructions for Form 3115 for more information on getting approval, automatic approval procedures, and a list of exceptions to the automatic approval process. 2013 1040 ez form For more information, see Revenue Procedure 2006-12, as modified by Revenue Procedure 2006-37, and Revenue Procedure 2008-52, as amplified, clarified, and modified by Revenue Procedure 2009-39, as clarified and modified by Revenue Procedure 2011-14, as modified and amplified by Revenue Procedure 2011-22, as modified by Revenue Procedure 2012-39, or any successor. 2013 1040 ez form See Revenue Procedure 2006-12, 2006-3 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 310, available at  www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2006-03_IRB/ar14. 2013 1040 ez form html. 2013 1040 ez form  See Revenue Procedure 2006-37, 2006-38 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 499, available at  www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2006-38_IRB/ar10. 2013 1040 ez form html. 2013 1040 ez form  See Revenue Procedure 2008-52, 2008-36 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 587, available at www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2008-36_IRB/ar09. 2013 1040 ez form html. 2013 1040 ez form  See Revenue Procedure 2009-39, 2009-38 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 371, available at  www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2009-38_IRB/ar08. 2013 1040 ez form html. 2013 1040 ez form  See Revenue Procedure 2011-14, 2011-4 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 330, available at  www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2011-04_IRB/ar08. 2013 1040 ez form html. 2013 1040 ez form  See Revenue Procedure 2011-22, 2011-18 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 737, available at  www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2011-18_IRB/ar08. 2013 1040 ez form html. 2013 1040 ez form Also, see Revenue Procedure 2012-39, 2012-41 I. 2013 1040 ez form R. 2013 1040 ez form B. 2013 1040 ez form 470 available at www. 2013 1040 ez form irs. 2013 1040 ez form gov/irb/2012-41_IRB/index. 2013 1040 ez form html. 2013 1040 ez form Disposition of Section 197 Intangibles A section 197 intangible is treated as depreciable property used in your trade or business. 2013 1040 ez form If you held the intangible for more than 1 year, any gain on its disposition, up to the amount of allowable amortization, is ordinary income (section 1245 gain). 2013 1040 ez form If multiple section 197 intangibles are disposed of in a single transaction or a series of related transactions, treat all of the section 197 intangibles as if they were a single asset for purposes of determining the amount of gain that is ordinary income. 2013 1040 ez form Any remaining gain, or any loss, is a section 1231 gain or loss. 2013 1040 ez form If you held the intangible 1 year or less, any gain or loss on its disposition is an ordinary gain or loss. 2013 1040 ez form For more information on ordinary or capital gain or loss on business property, see chapter 3 in Publication 544. 2013 1040 ez form Nondeductible loss. 2013 1040 ez form   You cannot deduct any loss on the disposition or worthlessness of a section 197 intangible that you acquired in the same transaction (or series of related transactions) as other section 197 intangibles you still have. 2013 1040 ez form Instead, increase the adjusted basis of each remaining amortizable section 197 intangible by a proportionate part of the nondeductible loss. 2013 1040 ez form Figure the increase by multiplying the nondeductible loss on the disposition of the intangible by the following fraction. 2013 1040 ez form The numerator is the adjusted basis of each remaining intangible on the date of the disposition. 2013 1040 ez form The denominator is the total adjusted bases of all remaining amortizable section 197 intangibles on the date of the disposition. 2013 1040 ez form Covenant not to compete. 2013 1040 ez form   A covenant not to compete, or similar arrangement, is not considered disposed of or worthless before you dispose of your entire interest in the trade or business for which you entered into the covenant. 2013 1040 ez form Nonrecognition transfers. 2013 1040 ez form   If you acquire a section 197 intangible in a nonrecognition transfer, you are treated as the transferor with respect to the part of your adjusted basis in the intangible that is not more than the transferor's adjusted basis. 2013 1040 ez form You amortize this part of the adjusted basis over the intangible's remaining amortization period in the hands of the transferor. 2013 1040 ez form Nonrecognition transfers include transfers to a corporation, partnership contributions and distributions, like-kind exchanges, and involuntary conversions. 2013 1040 ez form   In a like-kind exchange or involuntary conversion of a section 197 intangible, you must continue to amortize the part of your adjusted basis in the acquired intangible that is not more than your adjusted basis in the exchanged or converted intangible over the remaining amortization period of the exchanged or converted intangible. 2013 1040 ez form Amortize over a new 15-year period the part of your adjusted basis in the acquired intangible that is more than your adjusted basis in the exchanged or converted intangible. 2013 1040 ez form Example. 2013 1040 ez form You own a section 197 intangible you have amortized for 4 full years. 2013 1040 ez form It has a remaining unamortized basis of $30,000. 2013 1040 ez form You exchange the asset plus $10,000 for a like-kind section 197 intangible. 2013 1040 ez form The nonrecognition provisions of like-kind exchanges apply. 2013 1040 ez form You amortize $30,000 of the $40,000 adjusted basis of the acquired intangible over the 11 years remaining in the original 15-year amortization period for the transferred asset. 2013 1040 ez form You amortize the other $10,000 of adjusted basis over a new 15-year period. 2013 1040 ez form For more information, see Regulations section 1. 2013 1040 ez form 197-2(g). 2013 1040 ez form Reforestation Costs You can elect to deduct a limited amount of reforestation costs paid or incurred during the tax year. 2013 1040 ez form See Reforestation Costs in chapter 7. 2013 1040 ez form You can elect to amortize the qualifying costs that are not deducted currently over an 84-month period. 2013 1040 ez form There is no limit on the amount of your amortization deduction for reforestation costs paid or incurred during the tax year. 2013 1040 ez form The election to amortize reforestation costs incurred by a partnership, S corporation, or estate must be made by the partnership, corporation, or estate. 2013 1040 ez form A partner, shareholder, or beneficiary cannot make that election. 2013 1040 ez form A partner's or shareholder's share of amortizable costs is figured under the general rules for allocating items of income, loss, deduction, etc. 2013 1040 ez form , of a partnership or S corporation. 2013 1040 ez form The amortizable costs of an estate are divided between the estate and the income beneficiary based on the income of the estate allocable to each. 2013 1040 ez form Qualifying costs. 2013 1040 ez form   Reforestation costs are the direct costs of planting or seeding for forestation or reforestation. 2013 1040 ez form Qualifying costs include only those costs you must capitalize and include in the adjusted basis of the property. 2013 1040 ez form They include costs for the following items. 2013 1040 ez form Site preparation. 2013 1040 ez form Seeds or seedlings. 2013 1040 ez form Labor. 2013 1040 ez form Tools. 2013 1040 ez form Depreciation on equipment used in planting and seeding. 2013 1040 ez form Qualifying costs do not include costs for which the government reimburses you under a cost-sharing program, unless you include the reimbursement in your income. 2013 1040 ez form Qualified timber property. 2013 1040 ez form   Qualified timber property is property that contains trees in significant commercial quantities. 2013 1040 ez form It can be a woodlot or other site that you own or lease. 2013 1040 ez form The property qualifies only if it meets all of the following requirements. 2013 1040 ez form It is located in the United States. 2013 1040 ez form It is held for the growing and cutting of timber you will either use in, or sell for use in, the commercial production of timber products. 2013 1040 ez form It consists of at least one acre planted with tree seedlings in the manner normally used in forestation or reforestation. 2013 1040 ez form Qualified timber property does not include property on which you have planted shelter belts or ornamental trees, such as Christmas trees. 2013 1040 ez form Amortization period. 2013 1040 ez form   The 84-month amortization period starts on the first day of the first month of the second half of the tax year you incur the costs (July 1 for a calendar year taxpayer), regardless of the month you actually incur the costs. 2013 1040 ez form You can claim amortization deductions for no more than 6 months of the first and last (eighth) tax years of the period. 2013 1040 ez form Life tenant and remainderman. 2013 1040 ez form   If one person holds the property for life with the remainder going to another person, the life tenant is entitled to the full amortization for qualifying reforestation costs incurred by the life tenant. 2013 1040 ez form Any remainder interest in the property is ignored for amortization purposes. 2013 1040 ez form Recapture. 2013 1040 ez form   If you dispose of qualified timber property within 10 years after the tax year you incur qualifying reforestation expenses, report any gain as ordinary income up to the amortization you took. 2013 1040 ez form See chapter 3 of Publication 544 for more information. 2013 1040 ez form How to make the election. 2013 1040 ez form   To elect to amortize qualifying reforestation costs, complete Part VI of Form 4562 and attach a statement that contains the following information. 2013 1040 ez form A description of the costs and the dates you incurred them. 2013 1040 ez form A description of the type of timber being grown and the purpose for which it is grown. 2013 1040 ez form Attach a separate statement for each property for which you amortize reforestation costs. 2013 1040 ez form   Generally, you must make the election on a timely filed return (including extensions) for the tax year in which you incurred the costs. 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Attach Form 4562 and the statement to the amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2” on Form 4562. 2013 1040 ez form File the amended return at the same address you filed the original return. 2013 1040 ez form Revoking the election. 2013 1040 ez form   You must get IRS approval to revoke your election to amortize qualifying reforestation costs. 2013 1040 ez form Your application to revoke the election must include your name, address, the years for which your election was in effect, and your reason for revoking it. 2013 1040 ez form Please provide your daytime telephone number (optional), in case we need to contact you. 2013 1040 ez form You, or your duly authorized representative, must sign the application and file it at least 90 days before the due date (without extensions) for filing your income tax return for the first tax year for which your election is to end. 2013 1040 ez form    Send the application to: Internal Revenue Service Associate Chief Counsel Passthroughs and Special Industries CC:PSI:6 1111 Constitution Ave. 2013 1040 ez form NW, IR-5300 Washington, DC 20224 Geological and Geophysical Costs You can amortize the cost of geological and geophysical expenses paid or incurred in connection with oil and gas exploration or development within the United States. 2013 1040 ez form These costs can be amortized ratably over a 24-month period beginning on the mid-point of the tax year in which the expenses were paid or incurred. 2013 1040 ez form For major integrated oil companies (as defined in section 167(h)(5)), these costs must be amortized ratably over a 5-year period for costs paid or incurred after May 17, 2006 (a 7-year period for costs paid or incurred after December 19, 2007). 2013 1040 ez form If you retire or abandon the property during the amortization period, no amortization deduction is allowed in the year of retirement or abandonment. 2013 1040 ez form Pollution Control Facilities You can elect to amortize the cost of a certified pollution control facility over 60 months. 2013 1040 ez form However, see Atmospheric pollution control facilities for an exception. 2013 1040 ez form The cost of a pollution control facility that is not eligible for amortization can be depreciated under the regular rules for depreciation. 2013 1040 ez form Also, you can claim a special depreciation allowance on a certified pollution control facility that is qualified property even if you elect to amortize its cost. 2013 1040 ez form You must reduce its cost (amortizable basis) by the amount of any special allowance you claim. 2013 1040 ez form See chapter 3 of Publication 946. 2013 1040 ez form A certified pollution control facility is a new identifiable treatment facility used in connection with a plant or other property in operation before 1976, to reduce or control water or atmospheric pollution or contamination. 2013 1040 ez form The facility must do so by removing, changing, disposing, storing, or preventing the creation or emission of pollutants, contaminants, wastes, or heat. 2013 1040 ez form The facility must be certified by state and federal certifying authorities. 2013 1040 ez form The facility must not significantly increase the output or capacity, extend the useful life, or reduce the total operating costs of the plant or other property. 2013 1040 ez form Also, it must not significantly change the nature of the manufacturing or production process or facility. 2013 1040 ez form The federal certifying authority will not certify your property to the extent it appears you will recover (over the property's useful life) all or part of its cost from the profit based on its operation (such as through sales of recovered wastes). 2013 1040 ez form The federal certifying authority will describe the nature of the potential cost recovery. 2013 1040 ez form You must then reduce the amortizable basis of the facility by this potential recovery. 2013 1040 ez form New identifiable treatment facility. 2013 1040 ez form   A new identifiable treatment facility is tangible depreciable property that is identifiable as a treatment facility. 2013 1040 ez form It does not include a building and its structural components unless the building is exclusively a treatment facility. 2013 1040 ez form Atmospheric pollution control facilities. 2013 1040 ez form   Certain atmospheric pollution control facilities can be amortized over 84 months. 2013 1040 ez form To qualify, the following must apply. 2013 1040 ez form The facility must be acquired and placed in service after April 11, 2005. 2013 1040 ez form If acquired, the original use must begin with you after April 11, 2005. 2013 1040 ez form The facility must be used in connection with an electric generation plant or other property placed in operation after December 31, 1975, that is primarily coal fired. 2013 1040 ez form If you construct, reconstruct, or erect the facility, only the basis attributable to the construction, reconstruction, or erection completed after April 11, 2005, qualifies. 2013 1040 ez form Basis reduction for corporations. 2013 1040 ez form   A corporation must reduce the amortizable basis of a pollution control facility by 20% before figuring the amortization deduction. 2013 1040 ez form More information. 2013 1040 ez form   For more information on the amortization of pollution control facilities, see Code sections 169 and 291(c) and the related regulations. 2013 1040 ez form Research and Experimental Costs You can elect to amortize your research and experimental costs, deduct them as current business expenses, or write them off over a 10-year period (see Optional write-off method below). 2013 1040 ez form If you elect to amortize these costs, deduct them in equal amounts over 60 months or more. 2013 1040 ez form The amortization period begins the month you first receive an economic benefit from the costs. 2013 1040 ez form For a definition of “research and experimental costs” and information on deducting them as current business expenses, see chapter 7. 2013 1040 ez form Optional write-off method. 2013 1040 ez form   Rather than amortize these costs or deduct them as a current expense, you have the option of deducting (writing off) research and experimental costs ratably over a 10-year period beginning with the tax year in which you incurred the costs. 2013 1040 ez form For more information, see Optional Write-off of Certain Tax Preferences , later, and section 59(e) of the Internal Revenue Code. 2013 1040 ez form Costs you can amortize. 2013 1040 ez form   You can amortize costs chargeable to a capital account (see chapter 1) if you meet both of the following requirements. 2013 1040 ez form You paid or incurred the costs in your trade or business. 2013 1040 ez form You are not deducting the costs currently. 2013 1040 ez form How to make the election. 2013 1040 ez form   To elect to amortize research and experimental costs, complete Part VI of Form 4562 and attach it to your income tax return. 2013 1040 ez form Generally, you must file the return by the due date (including extensions). 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Attach Form 4562 to the amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2” on Form 4562. 2013 1040 ez form File the amended return at the same address you filed the original return. 2013 1040 ez form   Your election is binding for the year it is made and for all later years unless you obtain approval from the IRS to change to a different method. 2013 1040 ez form Optional Write-off of Certain Tax Preferences You can elect to amortize certain tax preference items over an optional period beginning in the tax year in which you incurred the costs. 2013 1040 ez form If you make this election, there is no AMT adjustment. 2013 1040 ez form The applicable costs and the optional recovery periods are as follows: Circulation costs — 3 years, Intangible drilling and development costs — 60 months, Mining exploration and development costs — 10 years, and Research and experimental costs — 10 years. 2013 1040 ez form How to make the election. 2013 1040 ez form   To elect to amortize qualifying costs over the optional recovery period, complete Part VI of Form 4562 and attach a statement containing the following information to your return for the tax year in which the election begins: Your name, address, and taxpayer identification number; and The type of cost and the specific amount of the cost for which you are making the election. 2013 1040 ez form   Generally, the election must be made on a timely filed return (including extensions) for the tax year in which you incurred the costs. 2013 1040 ez form However, if you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). 2013 1040 ez form Attach Form 4562 to the amended return and write “Filed pursuant to section 301. 2013 1040 ez form 9100-2” on Form 4562. 2013 1040 ez form File the amended return at the same address you filed the original return. 2013 1040 ez form Revoking the election. 2013 1040 ez form   You must obtain consent from the IRS to revoke your election. 2013 1040 ez form Your request to revoke the election must be submitted to the IRS in the form of a letter ruling before the end of the tax year in which the optional recovery period ends. 2013 1040 ez form The request must contain all of the information necessary to demonstrate the rare and unusual circumstances that would justify granting revocation. 2013 1040 ez form If the request for revocation is approved, any unamortized costs are deductible in the year the revocation is effective. 2013 1040 ez form Prev  Up  Next   Home   More Online Publications
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The 2013 1040 Ez Form

2013 1040 ez form Publication 501 - Main Content Table of Contents Who Must FileSelf-employed persons. 2013 1040 ez form Filing Requirements for Most Taxpayers Dependents Other Situations Who Should File Filing StatusMarital Status Single Married Filing Jointly Married Filing Separately Head of Household Qualifying Widow(er) With Dependent Child ExemptionsForm 1040EZ filers. 2013 1040 ez form Form 1040A filers. 2013 1040 ez form Form 1040 filers. 2013 1040 ez form More information. 2013 1040 ez form Personal Exemptions Exemptions for Dependents Qualifying Child Qualifying Relative Phaseout of Exemptions Social Security Numbers for DependentsBorn and died in 2013. 2013 1040 ez form Taxpayer identification numbers for aliens. 2013 1040 ez form Taxpayer identification numbers for adoptees. 2013 1040 ez form Standard DeductionStandard Deduction Amount Standard Deduction for Dependents Who Should Itemize How To Get Tax HelpLow Income Taxpayer Clinics Who Must File If you are a U. 2013 1040 ez form S. 2013 1040 ez form citizen or resident alien, whether you must file a federal income tax return depends on your gross income, your filing status, your age, and whether you are a dependent. 2013 1040 ez form For details, see Table 1 and Table 2. 2013 1040 ez form You also must file if one of the situations described in Table 3 applies. 2013 1040 ez form The filing requirements apply even if you owe no tax. 2013 1040 ez form Table 1. 2013 1040 ez form 2013 Filing Requirements Chart for Most Taxpayers IF your filing status is. 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form AND at the end of 2013 you were. 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form * THEN file a return if your gross income was at least. 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form ** single under 65  $10,000 65 or older $11,500 head of household under 65 $12,850 65 or older $14,350 married, filing jointly*** under 65 (both spouses) $20,000 65 or older (one spouse) $21,200 65 or older (both spouses) $22,400 married, filing separately any age  $3,900 qualifying widow(er) with dependent child under 65 $16,100 65 or older $17,300 * If you were born before January 2, 1949, you are considered to be 65 or older at the end of 2013. 2013 1040 ez form ** Gross income means all income you receive in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). 2013 1040 ez form Do not include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2013 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). 2013 1040 ez form If (a) or (b) applies, see the Form 1040 instructions to figure the taxable part of social security benefits you must include in gross income. 2013 1040 ez form Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. 2013 1040 ez form Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. 2013 1040 ez form But in figuring gross income, do not reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9. 2013 1040 ez form *** If you did not live with your spouse at the end of 2013 (or on the date your spouse died) and your gross income was at least $3,900, you must file a return regardless of your age. 2013 1040 ez form You may have to pay a penalty if you are required to file a return but fail to do so. 2013 1040 ez form If you willfully fail to file a return, you may be subject to criminal prosecution. 2013 1040 ez form For information on what form to use — Form 1040EZ, Form 1040A, or Form 1040 — see the instructions for your tax return. 2013 1040 ez form Gross income. 2013 1040 ez form    Gross income is all income you receive in the form of money, goods, property, and services that is not exempt from tax. 2013 1040 ez form If you are married and live with your spouse in a community property state, half of any income defined by state law as community income may be considered yours. 2013 1040 ez form For a list of community property states, see Community property states under Married Filing Separately, later. 2013 1040 ez form Self-employed persons. 2013 1040 ez form    If you are self-employed in a business that provides services (where products are not a factor), your gross income from that business is the gross receipts. 2013 1040 ez form If you are self-employed in a business involving manufacturing, merchandising, or mining, your gross income from that business is the total sales minus the cost of goods sold. 2013 1040 ez form In either case, you must add any income from investments and from incidental or outside operations or sources. 2013 1040 ez form    You must file Form 1040 if you owe any self-employment tax. 2013 1040 ez form Filing status. 2013 1040 ez form    Your filing status generally depends on whether you are single or married. 2013 1040 ez form Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. 2013 1040 ez form Filing status is discussed in detail later in this publication. 2013 1040 ez form Age. 2013 1040 ez form    Age is a factor in determining if you must file a return only if you are 65 or older at the end of your tax year. 2013 1040 ez form For 2013, you are 65 or older if you were born before January 2, 1949. 2013 1040 ez form Filing Requirements for Most Taxpayers You must file a return if your gross income for the year was at least the amount shown on the appropriate line in Table 1. 2013 1040 ez form Dependents should see Table 2 instead. 2013 1040 ez form Deceased Persons You must file an income tax return for a decedent (a person who died) if both of the following are true. 2013 1040 ez form You are the surviving spouse, executor, administrator, or legal representative. 2013 1040 ez form The decedent met the filing requirements described in this publication at the time of his or her death. 2013 1040 ez form For more information, see Final Income Tax Return for Decedent — Form 1040 in Publication 559. 2013 1040 ez form Table 2. 2013 1040 ez form 2013 Filing Requirements for Dependents See Exemptions for Dependents to find out if you are a dependent. 2013 1040 ez form If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. 2013 1040 ez form  In this table, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. 2013 1040 ez form It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. 2013 1040 ez form Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. 2013 1040 ez form Gross income is the total of your unearned and earned income. 2013 1040 ez form If your gross income was $3,900 or more, you usually cannot be claimed as a dependent unless you are a qualifying child. 2013 1040 ez form For details, see Exemptions for Dependents. 2013 1040 ez form Single dependents—Were you either age 65 or older or blind? □ No. 2013 1040 ez form You must file a return if any of the following apply. 2013 1040 ez form Your unearned income was more than $1,000. 2013 1040 ez form Your earned income was more than $6,100. 2013 1040 ez form Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750) plus $350. 2013 1040 ez form     □ Yes. 2013 1040 ez form You must file a return if any of the following apply. 2013 1040 ez form Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). 2013 1040 ez form Your earned income was more than $7,600 ($9,100 if 65 or older and blind). 2013 1040 ez form Your gross income was more than the larger of—  $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). 2013 1040 ez form     Married dependents—Were you either age 65 or older or blind? □ No. 2013 1040 ez form You must file a return if any of the following apply. 2013 1040 ez form Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 2013 1040 ez form Your unearned income was more than $1,000. 2013 1040 ez form Your earned income was more than $6,100. 2013 1040 ez form Your gross income was more than the larger of— $1,000, or Your earned income (up to $5,750 plus $350. 2013 1040 ez form     □ Yes. 2013 1040 ez form You must file a return if any of the following apply. 2013 1040 ez form Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. 2013 1040 ez form Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). 2013 1040 ez form Your earned income was more than $7,300 ($8,500 if 65 or older and blind). 2013 1040 ez form Your gross income was more than the larger of— $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). 2013 1040 ez form     U. 2013 1040 ez form S. 2013 1040 ez form Citizens or Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you earned or received abroad, including any income you can exclude under the foreign earned income exclusion. 2013 1040 ez form For more information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. 2013 1040 ez form S. 2013 1040 ez form Citizens and Resident Aliens Abroad. 2013 1040 ez form Residents of Puerto Rico If you are a U. 2013 1040 ez form S. 2013 1040 ez form citizen and also a bona fide resident of Puerto Rico, you generally must file a U. 2013 1040 ez form S. 2013 1040 ez form income tax return for any year in which you meet the income requirements. 2013 1040 ez form This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. 2013 1040 ez form If you are a bona fide resident of Puerto Rico for the whole year, your U. 2013 1040 ez form S. 2013 1040 ez form gross income does not include income from sources within Puerto Rico. 2013 1040 ez form It does, however, include any income you received for your services as an employee of the United States or any U. 2013 1040 ez form S. 2013 1040 ez form agency. 2013 1040 ez form If you receive income from Puerto Rican sources that is not subject to U. 2013 1040 ez form S. 2013 1040 ez form tax, you must reduce your standard deduction, which reduces the amount of income you can have before you must file a U. 2013 1040 ez form S. 2013 1040 ez form income tax return. 2013 1040 ez form For more information, see Publication 570, Tax Guide for Individuals With Income From U. 2013 1040 ez form S. 2013 1040 ez form Possessions. 2013 1040 ez form Individuals With Income From U. 2013 1040 ez form S. 2013 1040 ez form Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. 2013 1040 ez form S. 2013 1040 ez form Virgin Islands, special rules may apply when determining whether you must file a U. 2013 1040 ez form S. 2013 1040 ez form federal income tax return. 2013 1040 ez form In addition, you may have to file a return with the individual possession government. 2013 1040 ez form See Publication 570 for more information. 2013 1040 ez form Dependents A person who is a dependent may still have to file a return. 2013 1040 ez form It depends on his or her earned income, unearned income, and gross income. 2013 1040 ez form For details, see Table 2. 2013 1040 ez form A dependent must also file if one of the situations described in Table 3 applies. 2013 1040 ez form Responsibility of parent. 2013 1040 ez form    If a dependent child must file an income tax return but cannot file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. 2013 1040 ez form If the child cannot sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child. 2013 1040 ez form ” Earned income. 2013 1040 ez form    Earned income includes salaries, wages, professional fees, and other amounts received as pay for work you actually perform. 2013 1040 ez form Earned income (only for purposes of filing requirements and the standard deduction) also includes any part of a scholarship that you must include in your gross income. 2013 1040 ez form See chapter 1 of Publication 970, Tax Benefits for Education, for more information on taxable and nontaxable scholarships. 2013 1040 ez form Child's earnings. 2013 1040 ez form    Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. 2013 1040 ez form This is true even if under local law the child's parent has the right to the earnings and may actually have received them. 2013 1040 ez form But if the child does not pay the tax due on this income, the parent is liable for the tax. 2013 1040 ez form Unearned income. 2013 1040 ez form    Unearned income includes income such as interest, dividends, and capital gains. 2013 1040 ez form Trust distributions of interest, dividends, capital gains, and survivor annuities are also considered unearned income. 2013 1040 ez form Election to report child's unearned income on parent's return. 2013 1040 ez form    You may be able to include your child's interest and dividend income on your tax return. 2013 1040 ez form If you do this, your child will not have to file a return. 2013 1040 ez form To make this election, all of the following conditions must be met. 2013 1040 ez form Your child was under age 19 (or under age 24 if a student) at the end of 2013. 2013 1040 ez form (A child born on January 1, 1995, is considered to be age 19 at the end of 2013; you cannot make the election for this child unless the child was a student. 2013 1040 ez form Similarly, a child born on January 1, 1990, is considered to be age 24 at the end of 2013; you cannot make the election for this child. 2013 1040 ez form ) Your child had gross income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). 2013 1040 ez form The interest and dividend income was less than $10,000. 2013 1040 ez form Your child is required to file a return for 2013 unless you make this election. 2013 1040 ez form Your child does not file a joint return for 2013. 2013 1040 ez form No estimated tax payment was made for 2013 and no 2012 overpayment was applied to 2013 under your child's name and social security number. 2013 1040 ez form No federal income tax was withheld from your child's income under the backup withholding rules. 2013 1040 ez form You are the parent whose return must be used when making the election to report your child's unearned income. 2013 1040 ez form   For more information, see Form 8814 and Parent's Election To Report Child's Interest and Dividends in Publication 929. 2013 1040 ez form Other Situations You may have to file a tax return even if your gross income is less than the amount shown in Table 1 or Table 2 for your filing status. 2013 1040 ez form See Table 3 for those other situations when you must file. 2013 1040 ez form Table 3. 2013 1040 ez form Other Situations When You Must File a 2013 Return If any of the four conditions listed below applied to you for 2013, you must file a return. 2013 1040 ez form 1. 2013 1040 ez form You owe any special taxes, including any of the following. 2013 1040 ez form   a. 2013 1040 ez form Alternative minimum tax. 2013 1040 ez form (See Form 6251. 2013 1040 ez form )   b. 2013 1040 ez form Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. 2013 1040 ez form (See Publication 590, Individual Retirement Arrangements (IRAs), and Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans. 2013 1040 ez form ) But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. 2013 1040 ez form   c. 2013 1040 ez form Social security or Medicare tax on tips you did not report to your employer (see Publication 531, Reporting Tip Income) or on wages you received from an employer who did not withhold these taxes (see Form 8919). 2013 1040 ez form   d. 2013 1040 ez form Write-in taxes, including uncollected social security, Medicare, or railroad retirement tax on tips you reported to your employer or on group-term life insurance and additional tax on health savings accounts. 2013 1040 ez form (See Publication 531, Publication 969, and the Form 1040 instructions for line 60. 2013 1040 ez form )   e. 2013 1040 ez form Household employment taxes. 2013 1040 ez form But if you are filing a return only because you owe these taxes, you can file Schedule H (Form 1040) by itself. 2013 1040 ez form   f. 2013 1040 ez form Recapture taxes. 2013 1040 ez form (See the Form 1040 instructions for lines 44, 59b, and 60. 2013 1040 ez form ) 2. 2013 1040 ez form You (or your spouse if filing jointly) received Archer MSA, Medicare Advantage MSA, or health savings account distributions. 2013 1040 ez form 3. 2013 1040 ez form You had net earnings from self-employment of at least $400. 2013 1040 ez form (See Schedule SE (Form 1040) and its instructions. 2013 1040 ez form ) 4. 2013 1040 ez form You had wages of $108. 2013 1040 ez form 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. 2013 1040 ez form (See Schedule SE (Form 1040) and its instructions. 2013 1040 ez form ) Who Should File Even if you do not have to file, you should file a tax return if you can get money back. 2013 1040 ez form For example, you should file if one of the following applies. 2013 1040 ez form You had income tax withheld from your pay. 2013 1040 ez form You made estimated tax payments for the year or had any of your overpayment for last year applied to this year's estimated tax. 2013 1040 ez form You qualify for the earned income credit. 2013 1040 ez form See Publication 596, Earned Income Credit (EIC), for more information. 2013 1040 ez form You qualify for the additional child tax credit. 2013 1040 ez form See the instructions for the tax form you file (Form 1040 or 1040A) for more information. 2013 1040 ez form You qualify for the refundable American opportunity education credit. 2013 1040 ez form See Form 8863, Education Credits. 2013 1040 ez form You qualify for the health coverage tax credit. 2013 1040 ez form For information about this credit, see Form 8885, Health Coverage Tax Credit. 2013 1040 ez form You qualify for the credit for federal tax on fuels. 2013 1040 ez form See Form 4136, Credit for Federal Tax Paid on Fuels. 2013 1040 ez form Form 1099-B received. 2013 1040 ez form    Even if you are not required to file a return, you should consider filing if all of the following apply. 2013 1040 ez form You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement). 2013 1040 ez form The amount in box 2a of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you. 2013 1040 ez form Box 3 of Form 1099-B (or substitute statement) is blank. 2013 1040 ez form In this case, filing a return may keep you from getting a notice from the IRS. 2013 1040 ez form Filing Status You must determine your filing status before you can determine whether you must file a tax return, your standard deduction (discussed later), and your tax. 2013 1040 ez form You also use your filing status to determine whether you are eligible to claim certain other deductions and credits. 2013 1040 ez form There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er) With Dependent Child. 2013 1040 ez form If more than one filing status applies to you, choose the one that will give you the lowest tax. 2013 1040 ez form Marital Status In general, your filing status depends on whether you are considered unmarried or married. 2013 1040 ez form Unmarried persons. 2013 1040 ez form    You are considered unmarried for the whole year if, on the last day of your tax year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree. 2013 1040 ez form   State law governs whether you are married or legally separated under a divorce or separate maintenance decree. 2013 1040 ez form Divorced persons. 2013 1040 ez form    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year. 2013 1040 ez form Divorce and remarriage. 2013 1040 ez form    If you obtain a divorce for the sole purpose of filing tax returns as unmarried individuals, and at the time of divorce you intend to and do, in fact, remarry each other in the next tax year, you and your spouse must file as married individuals in both years. 2013 1040 ez form Annulled marriages. 2013 1040 ez form    If you obtain a court decree of annulment, which holds that no valid marriage ever existed, you are considered unmarried even if you filed joint returns for earlier years. 2013 1040 ez form You must file amended returns (Form 1040X) claiming single or head of household status for all tax years that are affected by the annulment and not closed by the statute of limitations for filing a tax return. 2013 1040 ez form Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. 2013 1040 ez form If you filed your original tax return early (for example, March 1), your return is considered filed on the due date (generally April 15). 2013 1040 ez form However, if you had an extension to file (for example, until October 15) but you filed earlier and we received it on July 1, your return is considered filed on July 1. 2013 1040 ez form Head of household or qualifying widow(er) with dependent child. 2013 1040 ez form    If you are considered unmarried, you may be able to file as a head of household or as a qualifying widow(er) with a dependent child. 2013 1040 ez form See Head of Household and Qualifying Widow(er) With Dependent Child to see if you qualify. 2013 1040 ez form Married persons. 2013 1040 ez form    If you are considered married, you and your spouse can file a joint return or separate returns. 2013 1040 ez form Considered married. 2013 1040 ez form    You are considered married for the whole year if, on the last day of your tax year, you and your spouse meet any one of the following tests. 2013 1040 ez form You are married and living together. 2013 1040 ez form You are living together in a common law marriage recognized in the state where you now live or in the state where the common law marriage began. 2013 1040 ez form You are married and living apart but not legally separated under a decree of divorce or separate maintenance. 2013 1040 ez form You are separated under an interlocutory (not final) decree of divorce. 2013 1040 ez form Same-sex marriage. 2013 1040 ez form    For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. 2013 1040 ez form The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. 2013 1040 ez form However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. 2013 1040 ez form   The word “state” as used here includes the District of Columbia, Puerto Rico, and U. 2013 1040 ez form S. 2013 1040 ez form territories and possessions. 2013 1040 ez form It means any domestic jurisdiction that has the legal authority to sanction marriages. 2013 1040 ez form The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. 2013 1040 ez form   If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. 2013 1040 ez form However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status, as explained later. 2013 1040 ez form   For more details, see Answers to Frequently Asked Questions For Individuals of the Same Sex Who Are Married Under State Law on IRS. 2013 1040 ez form gov. 2013 1040 ez form Spouse died during the year. 2013 1040 ez form    If your spouse died during the year, you are considered married for the whole year for filing status purposes. 2013 1040 ez form   If you did not remarry before the end of the tax year, you can file a joint return for yourself and your deceased spouse. 2013 1040 ez form For the next 2 years, you may be entitled to the special benefits described later under Qualifying Widow(er) With Dependent Child . 2013 1040 ez form   If you remarried before the end of the tax year, you can file a joint return with your new spouse. 2013 1040 ez form Your deceased spouse's filing status is married filing separately for that year. 2013 1040 ez form Married persons living apart. 2013 1040 ez form    If you live apart from your spouse and meet certain tests, you may be able to file as head of household even if you are not divorced or legally separated. 2013 1040 ez form If you qualify to file as head of household instead of as married filing separately, your standard deduction will be higher. 2013 1040 ez form Also, your tax may be lower, and you may be able to claim the earned income credit. 2013 1040 ez form See Head of Household , later. 2013 1040 ez form Single Your filing status is single if you are considered unmarried and you do not qualify for another filing status. 2013 1040 ez form To determine your marital status, see Marital Status , earlier. 2013 1040 ez form Widow(er). 2013 1040 ez form    Your filing status may be single if you were widowed before January 1, 2013, and did not remarry before the end of 2013. 2013 1040 ez form You may, however, be able to use another filing status that will give you a lower tax. 2013 1040 ez form See Head of Household and Qualifying Widow(er) With Dependent Child , later, to see if you qualify. 2013 1040 ez form How to file. 2013 1040 ez form    You can file Form 1040. 2013 1040 ez form If you have taxable income of less than $100,000, you may be able to file Form 1040A. 2013 1040 ez form If, in addition, you have no dependents, are under 65 and not blind, and meet other requirements, you can file Form 1040EZ. 2013 1040 ez form If you file Form 1040A or Form 1040, show your filing status as single by checking the box on line 1. 2013 1040 ez form Use the Single column of the Tax Table, or Section A of the Tax Computation Worksheet, to figure your tax. 2013 1040 ez form Married Filing Jointly You can choose married filing jointly as your filing status if you are considered married and both you and your spouse agree to file a joint return. 2013 1040 ez form On a joint return, you and your spouse report your combined income and deduct your combined allowable expenses. 2013 1040 ez form You can file a joint return even if one of you had no income or deductions. 2013 1040 ez form If you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. 2013 1040 ez form Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses. 2013 1040 ez form If you and your spouse each have income, you may want to figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). 2013 1040 ez form You can choose the method that gives the two of you the lower combined tax. 2013 1040 ez form How to file. 2013 1040 ez form    If you file as married filing jointly, you can use Form 1040. 2013 1040 ez form If you and your spouse have taxable income of less than $100,000, you may be able to file Form 1040A. 2013 1040 ez form If, in addition, you and your spouse have no dependents, are both under 65 and not blind, and meet other requirements, you can file Form 1040EZ. 2013 1040 ez form If you file Form 1040 or Form 1040A, show this filing status by checking the box on line 2. 2013 1040 ez form Use the Married filing jointly column of the Tax Table, or Section B of the Tax Computation Worksheet, to figure your tax. 2013 1040 ez form Spouse died. 2013 1040 ez form    If your spouse died during the year, you are considered married for the whole year and can choose married filing jointly as your filing status. 2013 1040 ez form See Spouse died during the year , under Married persons, earlier. 2013 1040 ez form   If your spouse died in 2014 before filing a 2013 return, you can choose married filing jointly as your filing status on your 2013 return. 2013 1040 ez form Divorced persons. 2013 1040 ez form    If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose married filing jointly as your filing status. 2013 1040 ez form Filing a Joint Return Both you and your spouse must include all of your income, exemptions, and deductions on your joint return. 2013 1040 ez form Accounting period. 2013 1040 ez form    Both of you must use the same accounting period, but you can use different accounting methods. 2013 1040 ez form Joint responsibility. 2013 1040 ez form    Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. 2013 1040 ez form This means that if one spouse does not pay the tax due, the other may have to. 2013 1040 ez form Or, if one spouse does not report the correct tax, both spouses may be responsible for any additional taxes assessed by the IRS. 2013 1040 ez form One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse. 2013 1040 ez form   You may want to file separately if: You believe your spouse is not reporting all of his or her income, or You do not want to be responsible for any taxes due if your spouse does not have enough tax withheld or does not pay enough estimated tax. 2013 1040 ez form Divorced taxpayer. 2013 1040 ez form    You may be held jointly and individually responsible for any tax, interest, and penalties due on a joint return filed before your divorce. 2013 1040 ez form This responsibility may apply even if your divorce decree states that your former spouse will be responsible for any amounts due on previously filed joint returns. 2013 1040 ez form Relief from joint responsibility. 2013 1040 ez form    In some cases, one spouse may be relieved of joint responsibility for tax, interest, and penalties on a joint return for items of the other spouse that were incorrectly reported on the joint return. 2013 1040 ez form You can ask for relief no matter how small the liability. 2013 1040 ez form   There are three types of relief available. 2013 1040 ez form Innocent spouse relief. 2013 1040 ez form Separation of liability (available only to joint filers who are divorced, widowed, legally separated, or who have not lived together for the 12 months ending on the date the election for this relief is filed). 2013 1040 ez form Equitable relief. 2013 1040 ez form    You must file Form 8857, Request for Innocent Spouse Relief, to request relief from joint responsibility. 2013 1040 ez form Publication 971, Innocent Spouse Relief, explains the kinds of relief and who may qualify for them. 2013 1040 ez form Signing a joint return. 2013 1040 ez form    For a return to be considered a joint return, both spouses generally must sign the return. 2013 1040 ez form Spouse died before signing. 2013 1040 ez form    If your spouse died before signing the return, the executor or administrator must sign the return for your spouse. 2013 1040 ez form If neither you nor anyone else has been appointed as executor or administrator, you can sign the return for your spouse and enter “Filing as surviving spouse” in the area where you sign the return. 2013 1040 ez form Spouse away from home. 2013 1040 ez form    If your spouse is away from home, you should prepare the return, sign it, and send it to your spouse to sign so it can be filed on time. 2013 1040 ez form Injury or disease prevents signing. 2013 1040 ez form    If your spouse cannot sign because of injury or disease and tells you to sign for him or her, you can sign your spouse's name in the proper space on the return followed by the words “By (your name), Husband (or Wife). 2013 1040 ez form ” Be sure to also sign in the space provided for your signature. 2013 1040 ez form Attach a dated statement, signed by you, to the return. 2013 1040 ez form The statement should include the form number of the return you are filing, the tax year, and the reason your spouse cannot sign, and should state that your spouse has agreed to your signing for him or her. 2013 1040 ez form Signing as guardian of spouse. 2013 1040 ez form    If you are the guardian of your spouse who is mentally incompetent, you can sign the return for your spouse as guardian. 2013 1040 ez form Spouse in combat zone. 2013 1040 ez form    You can sign a joint return for your spouse if your spouse cannot sign because he or she is serving in a combat zone (such as the Persian Gulf area, Serbia, Montenegro, Albania, or Afghanistan), even if you do not have a power of attorney or other statement. 2013 1040 ez form Attach a signed statement to your return explaining that your spouse is serving in a combat zone. 2013 1040 ez form For more information on special tax rules for persons who are serving in a combat zone, or who are in missing status as a result of serving in a combat zone, see Publication 3, Armed Forces' Tax Guide. 2013 1040 ez form Other reasons spouse cannot sign. 2013 1040 ez form    If your spouse cannot sign the joint return for any other reason, you can sign for your spouse only if you are given a valid power of attorney (a legal document giving you permission to act for your spouse). 2013 1040 ez form Attach the power of attorney (or a copy of it) to your tax return. 2013 1040 ez form You can use Form 2848. 2013 1040 ez form Nonresident alien or dual-status alien. 2013 1040 ez form    Generally, a married couple cannot file a joint return if either one is a nonresident alien at any time during the tax year. 2013 1040 ez form However, if one spouse was a nonresident alien or dual-status alien who was married to a U. 2013 1040 ez form S. 2013 1040 ez form citizen or resident alien at the end of the year, the spouses can choose to file a joint return. 2013 1040 ez form If you do file a joint return, you and your spouse are both treated as U. 2013 1040 ez form S. 2013 1040 ez form residents for the entire tax year. 2013 1040 ez form See chapter 1 of Publication 519. 2013 1040 ez form Married Filing Separately You can choose married filing separately as your filing status if you are married. 2013 1040 ez form This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. 2013 1040 ez form If you and your spouse do not agree to file a joint return, you must use this filing status unless you qualify for head of household status, discussed later. 2013 1040 ez form You may be able to choose head of household filing status if you are considered unmarried because you live apart from your spouse and meet certain tests (explained later, under Head of Household ). 2013 1040 ez form This can apply to you even if you are not divorced or legally separated. 2013 1040 ez form If you qualify to file as head of household, instead of as married filing separately, your tax may be lower, you may be able to claim the earned income credit and certain other credits, and your standard deduction will be higher. 2013 1040 ez form The head of household filing status allows you to choose the standard deduction even if your spouse chooses to itemize deductions. 2013 1040 ez form See Head of Household , later, for more information. 2013 1040 ez form You will generally pay more combined tax on separate returns than you would on a joint return for the reasons listed under Special Rules, later. 2013 1040 ez form However, unless you are required to file separately, you should figure your tax both ways (on a joint return and on separate returns). 2013 1040 ez form This way you can make sure you are using the filing status that results in the lowest combined tax. 2013 1040 ez form When figuring the combined tax of a married couple, you may want to consider state taxes as well as federal taxes. 2013 1040 ez form How to file. 2013 1040 ez form    If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. 2013 1040 ez form You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person. 2013 1040 ez form   You can file Form 1040. 2013 1040 ez form If your taxable income is less than $100,000, you may be able to file Form 1040A. 2013 1040 ez form Select this filing status by checking the box on line 3 of either form. 2013 1040 ez form Enter your spouse's full name and SSN or ITIN in the spaces provided. 2013 1040 ez form If your spouse does not have and is not required to have an SSN or ITIN, enter “NRA” in the space for your spouse's SSN. 2013 1040 ez form Use the Married filing separately column of the Tax Table or Section C of the Tax Computation Worksheet to figure your tax. 2013 1040 ez form Special Rules If you choose married filing separately as your filing status, the following special rules apply. 2013 1040 ez form Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for. 2013 1040 ez form Your tax rate generally is higher than on a joint return. 2013 1040 ez form Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return. 2013 1040 ez form You cannot take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). 2013 1040 ez form If you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. 2013 1040 ez form See Joint Return Test in Publication 503, Child and Dependent Care Expenses, for more information. 2013 1040 ez form You cannot take the earned income credit. 2013 1040 ez form You cannot take the exclusion or credit for adoption expenses in most cases. 2013 1040 ez form You cannot take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction. 2013 1040 ez form You cannot exclude any interest income from qualified U. 2013 1040 ez form S. 2013 1040 ez form savings bonds you used for higher education expenses. 2013 1040 ez form If you lived with your spouse at any time during the tax year: You cannot claim the credit for the elderly or the disabled, and You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received. 2013 1040 ez form The following credits and deductions are reduced at income levels half those for a joint return: The child tax credit, The retirement savings contributions credit, The deduction for personal exemptions, and Itemized deductions. 2013 1040 ez form Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return). 2013 1040 ez form If your spouse itemizes deductions, you cannot claim the standard deduction. 2013 1040 ez form If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return. 2013 1040 ez form Adjusted gross income (AGI) limits. 2013 1040 ez form    If your AGI on a separate return is lower than it would have been on a joint return, you may be able to deduct a larger amount for certain deductions that are limited by AGI, such as medical expenses. 2013 1040 ez form Individual retirement arrangements (IRAs). 2013 1040 ez form    You may not be able to deduct all or part of your contributions to a traditional IRA if you or your spouse were covered by an employee retirement plan at work during the year. 2013 1040 ez form Your deduction is reduced or eliminated if your income is more than a certain amount. 2013 1040 ez form This amount is much lower for married individuals who file separately and lived together at any time during the year. 2013 1040 ez form For more information, see How Much Can You Deduct? in chapter 1 of Publication 590. 2013 1040 ez form Rental activity losses. 2013 1040 ez form    If you actively participated in a passive rental real estate activity that produced a loss, you generally can deduct the loss from your nonpassive income up to $25,000. 2013 1040 ez form This is called a special allowance. 2013 1040 ez form However, married persons filing separate returns who lived together at any time during the year cannot claim this special allowance. 2013 1040 ez form Married persons filing separate returns who lived apart at all times during the year are each allowed a $12,500 maximum special allowance for losses from passive real estate activities. 2013 1040 ez form See Rental Activities in Publication 925, Passive Activity and At-Risk Rules. 2013 1040 ez form Community property states. 2013 1040 ez form    If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin and file separately, your income may be considered separate income or community income for income tax purposes. 2013 1040 ez form See Publication 555, Community Property. 2013 1040 ez form Joint Return After Separate Returns You can change your filing status from a separate return to a joint return by filing an amended return using Form 1040X. 2013 1040 ez form You generally can change to a joint return any time within 3 years from the due date of the separate return or returns. 2013 1040 ez form This does not include any extensions. 2013 1040 ez form A separate return includes a return filed by you or your spouse claiming married filing separately, single, or head of household filing status. 2013 1040 ez form Separate Returns After Joint Return Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return. 2013 1040 ez form Exception. 2013 1040 ez form    A personal representative for a decedent can change from a joint return elected by the surviving spouse to a separate return for the decedent. 2013 1040 ez form The personal representative has 1 year from the due date (including extensions) of the return to make the change. 2013 1040 ez form See Publication 559 for more information on filing income tax returns for a decedent. 2013 1040 ez form Head of Household You may be able to file as head of household if you meet all the following requirements. 2013 1040 ez form You are unmarried or considered unmarried on the last day of the year. 2013 1040 ez form See Marital Status , earlier, and Considered Unmarried , later. 2013 1040 ez form You paid more than half the cost of keeping up a home for the year. 2013 1040 ez form A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). 2013 1040 ez form However, if the qualifying person is your dependent parent, he or she does not have to live with you. 2013 1040 ez form See Special rule for parent , later, under Qualifying Person. 2013 1040 ez form If you qualify to file as head of household, your tax rate usually will be lower than the rates for single or married filing separately. 2013 1040 ez form You will also receive a higher standard deduction than if you file as single or married filing separately. 2013 1040 ez form How to file. 2013 1040 ez form    If you file as head of household, you can use Form 1040. 2013 1040 ez form If you have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. 2013 1040 ez form Indicate your choice of this filing status by checking the box on line 4 of either form. 2013 1040 ez form Use the Head of a household column of the Tax Table or Section D of the Tax Computation Worksheet to figure your tax. 2013 1040 ez form Considered Unmarried To qualify for head of household status, you must be either unmarried or considered unmarried on the last day of the year. 2013 1040 ez form You are considered unmarried on the last day of the tax year if you meet all the following tests. 2013 1040 ez form You file a separate return (defined earlier under Joint Return After Separate Returns ). 2013 1040 ez form You paid more than half the cost of keeping up your home for the tax year. 2013 1040 ez form Your spouse did not live in your home during the last 6 months of the tax year. 2013 1040 ez form Your spouse is considered to live in your home even if he or she is temporarily absent due to special circumstances. 2013 1040 ez form See Temporary absences , later. 2013 1040 ez form Your home was the main home of your child, stepchild, or foster child for more than half the year. 2013 1040 ez form (See Home of qualifying person , later, for rules applying to a child's birth, death, or temporary absence during the year. 2013 1040 ez form ) You must be able to claim an exemption for the child. 2013 1040 ez form However, you meet this test if you cannot claim the exemption only because the noncustodial parent can claim the child using the rules described later in Children of divorced or separated parents (or parents who live apart) under Qualifying Child or in Support Test for Children of Divorced or Separated Parents (or Parents Who Live Apart) under Qualifying Relative. 2013 1040 ez form The general rules for claiming an exemption for a dependent are explained later under Exemptions for Dependents . 2013 1040 ez form If you were considered married for part of the year and lived in a community property state (listed earlier under Married Filing Separately), special rules may apply in determining your income and expenses. 2013 1040 ez form See Publication 555 for more information. 2013 1040 ez form Nonresident alien spouse. 2013 1040 ez form    You are considered unmarried for head of household purposes if your spouse was a nonresident alien at any time during the year and you do not choose to treat your nonresident spouse as a resident alien. 2013 1040 ez form However, your spouse is not a qualifying person for head of household purposes. 2013 1040 ez form You must have another qualifying person and meet the other tests to be eligible to file as a head of household. 2013 1040 ez form Choice to treat spouse as resident. 2013 1040 ez form    You are considered married if you choose to treat your spouse as a resident alien. 2013 1040 ez form See chapter 1 of Publication 519. 2013 1040 ez form Keeping Up a Home To qualify for head of household status, you must pay more than half of the cost of keeping up a home for the year. 2013 1040 ez form You can determine whether you paid more than half of the cost of keeping up a home by using Worksheet 1. 2013 1040 ez form Worksheet 1. 2013 1040 ez form Cost of Keeping Up a Home         Amount You  Paid Total  Cost Property taxes $ $ Mortgage interest expense     Rent     Utility charges     Repairs/maintenance     Property insurance     Food consumed on the premises     Other household expenses     Totals $ $       Minus total amount you paid   ()       Amount others paid   $       If the total amount you paid is more than the amount others paid, you meet the requirement of paying more than half the cost of keeping up the home. 2013 1040 ez form Costs you include. 2013 1040 ez form    Include in the cost of keeping up a home expenses such as rent, mortgage interest, real estate taxes, insurance on the home, repairs, utilities, and food eaten in the home. 2013 1040 ez form   If you used payments you received under Temporary Assistance for Needy Families (TANF) or other public assistance programs to pay part of the cost of keeping up your home, you cannot count them as money you paid. 2013 1040 ez form However, you must include them in the total cost of keeping up your home to figure if you paid over half the cost. 2013 1040 ez form Costs you do not include. 2013 1040 ez form    Do not include the cost of clothing, education, medical treatment, vacations, life insurance, or transportation. 2013 1040 ez form Also, do not include the rental value of a home you own or the value of your services or those of a member of your household. 2013 1040 ez form Qualifying Person See Table 4 to see who is a qualifying person. 2013 1040 ez form Any person not described in Table 4 is not a qualifying person. 2013 1040 ez form Example 1—child. 2013 1040 ez form Your unmarried son lived with you all year and was 18 years old at the end of the year. 2013 1040 ez form He did not provide more than half of his own support and does not meet the tests to be a qualifying child of anyone else. 2013 1040 ez form As a result, he is your qualifying child (see Qualifying Child , later) and, because he is single, your qualifying person for head of household purposes. 2013 1040 ez form Example 2—child who is not qualifying person. 2013 1040 ez form The facts are the same as in Example 1 except your son was 25 years old at the end of the year and his gross income was $5,000. 2013 1040 ez form Because he does not meet the age test (explained later under Qualifying Child), your son is not your qualifying child. 2013 1040 ez form Because he does not meet the gross income test (explained later under Qualifying Relative), he is not your qualifying relative. 2013 1040 ez form As a result, he is not your qualifying person for head of household purposes. 2013 1040 ez form Example 3—girlfriend. 2013 1040 ez form Your girlfriend lived with you all year. 2013 1040 ez form Even though she may be your qualifying relative if the gross income and support tests (explained later) are met, she is not your qualifying person for head of household purposes because she is not related to you in one of the ways listed under Relatives who do not have to live with you . 2013 1040 ez form See Table 4. 2013 1040 ez form Example 4—girlfriend's child. 2013 1040 ez form The facts are the same as in Example 3 except your girlfriend's 10-year-old son also lived with you all year. 2013 1040 ez form He is not your qualifying child and, because he is your girlfriend's qualifying child, he is not your qualifying relative (see Not a Qualifying Child Test , later). 2013 1040 ez form As a result, he is not your qualifying person for head of household purposes. 2013 1040 ez form Home of qualifying person. 2013 1040 ez form    Generally, the qualifying person must live with you for more than half of the year. 2013 1040 ez form Special rule for parent. 2013 1040 ez form    If your qualifying person is your father or mother, you may be eligible to file as head of household even if your father or mother does not live with you. 2013 1040 ez form However, you must be able to claim an exemption for your father or mother. 2013 1040 ez form Also, you must pay more than half the cost of keeping up a home that was the main home for the entire year for your father or mother. 2013 1040 ez form   You are keeping up a main home for your father or mother if you pay more than half the cost of keeping your parent in a rest home or home for the elderly. 2013 1040 ez form Death or birth. 2013 1040 ez form    You may be eligible to file as head of household even if the qualifying person who qualifies you for this filing status is born or dies during the year. 2013 1040 ez form To qualify you for head of household filing status, the qualifying person (as defined in Table 4) must be one of the following. 2013 1040 ez form Your qualifying child or qualifying relative who lived with you for more than half the part of the year he or she was alive. 2013 1040 ez form Your parent for whom you paid, for the entire part of the year he or she was alive, more than half the cost of keeping up the home he or she lived in. 2013 1040 ez form Example. 2013 1040 ez form You are unmarried. 2013 1040 ez form Your mother, for whom you can claim an exemption, lived in an apartment by herself. 2013 1040 ez form She died on September 2. 2013 1040 ez form The cost of the upkeep of her apartment for the year until her death was $6,000. 2013 1040 ez form You paid $4,000 and your brother paid $2,000. 2013 1040 ez form Your brother made no other payments towards your mother's support. 2013 1040 ez form Your mother had no income. 2013 1040 ez form Because you paid more than half of the cost of keeping up your mother's apartment from January 1 until her death, and you can claim an exemption for her, you can file as a head of household. 2013 1040 ez form Temporary absences. 2013 1040 ez form    You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, or military service. 2013 1040 ez form It must be reasonable to assume the absent person will return to the home after the temporary absence. 2013 1040 ez form You must continue to keep up the home during the absence. 2013 1040 ez form Kidnapped child. 2013 1040 ez form    You may be eligible to file as head of household even if the child who is your qualifying person has been kidnapped. 2013 1040 ez form You can claim head of household filing status if all the following statements are true. 2013 1040 ez form The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. 2013 1040 ez form In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. 2013 1040 ez form You would have qualified for head of household filing status if the child had not been kidnapped. 2013 1040 ez form   This treatment applies for all years until the earliest of: The year the child is returned, The year there is a determination that the child is dead, or The year the child would have reached age 18. 2013 1040 ez form Qualifying Widow(er) With Dependent Child If your spouse died in 2013, you can use married filing jointly as your filing status for 2013 if you otherwise qualify to use that status. 2013 1040 ez form The year of death is the last year for which you can file jointly with your deceased spouse. 2013 1040 ez form See Married Filing Jointly , earlier. 2013 1040 ez form You may be eligible to use qualifying widow(er) with dependent child as your filing status for 2 years following the year your spouse died. 2013 1040 ez form For example, if your spouse died in 2012 and you have not remarried, you may be able to use this filing status for 2013 and 2014. 2013 1040 ez form The rules for using this filing status are explained in detail here. 2013 1040 ez form This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). 2013 1040 ez form It does not entitle you to file a joint return. 2013 1040 ez form How to file. 2013 1040 ez form    If you file as a qualifying widow(er) with dependent child, you can use Form 1040. 2013 1040 ez form If you also have taxable income of less than $100,000 and meet certain other conditions, you may be able to file Form 1040A. 2013 1040 ez form Check the box on line 5 of either form. 2013 1040 ez form Use the Married filing jointly column of the Tax Table or Section B of the Tax Computation Worksheet to figure your tax. 2013 1040 ez form Table 4. 2013 1040 ez form Who Is a Qualifying Person Qualifying You To File as Head of Household?1 See the text of this publication for the other requirements you must meet to claim head of household filing status. 2013 1040 ez form IF the person is your . 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form   AND . 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form   THEN that person is . 2013 1040 ez form . 2013 1040 ez form . 2013 1040 ez form qualifying child (such as a son, daughter, or grandchild who lived with you more than half the year and meets certain other tests)2   he or she is single   a qualifying person, whether or not you can claim an exemption for the person. 2013 1040 ez form   he or she is married and you can claim an exemption for him or her   a qualifying person. 2013 1040 ez form   he or she is married and you cannot claim an exemption for him or her   not a qualifying person. 2013 1040 ez form 3 qualifying relative4 who is your father or mother   you can claim an exemption for him or her5   a qualifying person. 2013 1040 ez form 6   you cannot claim an exemption for him or her   not a qualifying person. 2013 1040 ez form qualifying relative4 other than your father or mother (such as a grandparent, brother, or sister who meets certain tests). 2013 1040 ez form   he or she lived with you more than half the year, and he or she is related to you in one of the ways listed under Relatives who do not have to live with you , later, and you can claim an exemption for him or her5   a qualifying person. 2013 1040 ez form   he or she did not live with you more than half the year   not a qualifying person. 2013 1040 ez form   he or she is not related to you in one of the ways listed under Relatives who do not have to live with you , later, and is your qualifying relative only because he or she lived with you all year as a member of your household   not a qualifying person. 2013 1040 ez form   you cannot claim an exemption for him or her   not a qualifying person. 2013 1040 ez form 1 A person cannot qualify more than one taxpayer to use the head of household filing status for the year. 2013 1040 ez form 2 The term “qualifying child” is defined under Exemptions for Dependents, later. 2013 1040 ez form Note: If you are a noncustodial parent, the term “qualifying child” for head of household filing status does not include a child who is your qualifying child for exemption purposes only because of the rules described under Children of divorced or separated parents (or parents who live apart) under Qualifying Child, later. 2013 1040 ez form If you are the custodial parent and those rules apply, the child generally is your qualifying child for head of household filing status even though the child is not a qualifying child for whom you can claim an exemption. 2013 1040 ez form 3 This person is a qualifying person if the only reason you cannot claim the exemption is that you can be claimed as a dependent on someone else's return. 2013 1040 ez form 4 The term “qualifying relative” is defined under Exemptions for Dependents, later. 2013 1040 ez form 5 If you can claim an exemption for a person only because of a multiple support agreement, that person is not a qualifying person. 2013 1040 ez form See Multiple Support Agreement . 2013 1040 ez form 6 See Special rule for parent . 2013 1040 ez form Eligibility rules. 2013 1040 ez form    You are eligible to file your 2013 return as a qualifying widow(er) with dependent child if you meet all the following tests. 2013 1040 ez form You were entitled to file a joint return with your spouse for the year your spouse died. 2013 1040 ez form It does not matter whether you actually filed a joint return. 2013 1040 ez form Your spouse died in 2011 or 2012 and you did not remarry before the end of 2013. 2013 1040 ez form You have a child or stepchild for whom you can claim an exemption. 2013 1040 ez form This does not include a foster child. 2013 1040 ez form This child lived in your home all year, except for temporary absences. 2013 1040 ez form See Temporary absences , earlier, under Head of Household. 2013 1040 ez form There are also exceptions, described later, for a child who was born or died during the year and for a kidnapped child. 2013 1040 ez form You paid more than half the cost of keeping up a home for the year. 2013 1040 ez form See Keeping Up a Home , earlier, under Head of Household. 2013 1040 ez form Example. 2013 1040 ez form John's wife died in 2011. 2013 1040 ez form John has not remarried. 2013 1040 ez form He has continued during 2012 and 2013 to keep up a home for himself and his child, who lives with him and for whom he can claim an exemption. 2013 1040 ez form For 2011 he was entitled to file a joint return for himself and his deceased wife. 2013 1040 ez form For 2012 and 2013, he can file as a qualifying widower with a dependent child. 2013 1040 ez form After 2013, he can file as head of household if he qualifies. 2013 1040 ez form Death or birth. 2013 1040 ez form    You may be eligible to file as a qualifying widow(er) with dependent child if the child who qualifies you for this filing status is born or dies during the year. 2013 1040 ez form You must have provided more than half of the cost of keeping up a home that was the child's main home during the entire part of the year he or she was alive. 2013 1040 ez form Kidnapped child. 2013 1040 ez form    You may be eligible to file as a qualifying widow(er) with dependent child even if the child who qualifies you for this filing status has been kidnapped. 2013 1040 ez form You can claim qualifying widow(er) with dependent child filing status if all the following statements are true. 2013 1040 ez form The child is presumed by law enforcement authorities to have been kidnapped by someone who is not a member of your family or the child's family. 2013 1040 ez form In the year of the kidnapping, the child lived with you for more than half the part of the year before the kidnapping. 2013 1040 ez form You would have qualified for qualifying widow(er) with dependent child filing status if the child had not been kidnapped. 2013 1040 ez form As mentioned earlier, this filing status is available for only 2 years following the year your spouse died. 2013 1040 ez form Exemptions Exemptions reduce your taxable income. 2013 1040 ez form You can deduct $3,900 for each exemption you claim in 2013. 2013 1040 ez form If you are entitled to two exemptions for 2013, you can deduct $7,800 ($3,900 × 2). 2013 1040 ez form But you may lose the benefit of part or all of your exemptions if your adjusted gross income is above a certain amount. 2013 1040 ez form See Phaseout of Exemptions , later. 2013 1040 ez form Types of exemptions. 2013 1040 ez form    There are two types of exemptions you may be able to take: Personal exemptions for yourself and your spouse, and Exemptions for dependents (dependency exemptions). 2013 1040 ez form While each is worth the same amount ($3,900 for 2013), different rules, discussed later, apply to each type. 2013 1040 ez form Dependent cannot claim a personal exemption. 2013 1040 ez form    If you are entitled to claim an exemption for a dependent (such as your child), that dependent cannot claim a personal exemption on his or her own tax return. 2013 1040 ez form How to claim exemptions. 2013 1040 ez form    How you claim an exemption on your tax return depends on which form you file. 2013 1040 ez form Form 1040EZ filers. 2013 1040 ez form    If you file Form 1040EZ, the exemption amount is combined with the standard deduction and entered on line 5. 2013 1040 ez form Form 1040A filers. 2013 1040 ez form    If you file Form 1040A, complete lines 6a through 6d. 2013 1040 ez form The total number of exemptions you can claim is the total in the box on line 6d. 2013 1040 ez form Also complete line 26. 2013 1040 ez form Form 1040 filers. 2013 1040 ez form    If you file Form 1040, complete lines 6a through 6d. 2013 1040 ez form The total number of exemptions you can claim is the total in the box on line 6d. 2013 1040 ez form Also complete line 42. 2013 1040 ez form If your adjusted gross income is more than $150,000, see Phaseout of Exemptions , later. 2013 1040 ez form U. 2013 1040 ez form S. 2013 1040 ez form citizen or resident alien. 2013 1040 ez form    If you are a U. 2013 1040 ez form S. 2013 1040 ez form citizen, U. 2013 1040 ez form S. 2013 1040 ez form resident alien, U. 2013 1040 ez form S. 2013 1040 ez form national (defined later) or a resident of Canada or Mexico, you may qualify for any of the exemptions discussed here. 2013 1040 ez form Nonresident aliens. 2013 1040 ez form    Generally, if you are a nonresident alien (other than a resident of Canada or Mexico, or certain residents of India or Korea), you can qualify for only one personal exemption for yourself. 2013 1040 ez form You cannot claim exemptions for a spouse or dependents. 2013 1040 ez form   These restrictions do not apply if you are a nonresident alien married to a U. 2013 1040 ez form S. 2013 1040 ez form citizen or resident alien and have chosen to be treated as a resident of the United States. 2013 1040 ez form More information. 2013 1040 ez form    For more information on exemptions if you are a nonresident alien, see chapter 5 in Publication 519. 2013 1040 ez form Dual-status taxpayers. 2013 1040 ez form    If you have been both a nonresident alien and a resident alien in the same tax year, you should see Publication 519 for information on determining your exemptions. 2013 1040 ez form Personal Exemptions You are generally allowed one exemption for yourself. 2013 1040 ez form If you are married, you may be allowed one exemption for your spouse. 2013 1040 ez form These are called personal exemptions. 2013 1040 ez form Your Own Exemption You can take one exemption for yourself unless you can be claimed as a dependent by another taxpayer. 2013 1040 ez form If another taxpayer is entitled to claim you as a dependent, you cannot take an exemption for yourself even if the other taxpayer does not actually claim you as a dependent. 2013 1040 ez form Your Spouse's Exemption Your spouse is never considered your dependent. 2013 1040 ez form Joint return. 2013 1040 ez form    On a joint return, you can claim one exemption for yourself and one for your spouse. 2013 1040 ez form Separate return. 2013 1040 ez form    If you file a separate return, you can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer. 2013 1040 ez form This is true even if the other taxpayer does not actually claim your spouse as a dependent. 2013 1040 ez form You can claim an exemption for your spouse even if he or she is a nonresident alien; in that case, your spouse must have no gross income for U. 2013 1040 ez form S. 2013 1040 ez form tax purposes and satisfy the other conditions listed above. 2013 1040 ez form Head of household. 2013 1040 ez form    If you qualify for head of household filing status because you are considered unmarried, you can claim an exemption for your spouse if the conditions described in the preceding paragraph are satisfied. 2013 1040 ez form   To claim the exemption for your spouse, check the box on line 6b of Form 1040 or Form 1040A and enter the name of your spouse in the space to the right of the box. 2013 1040 ez form Enter the SSN or ITIN of your spouse in the space provided at the top of Form 1040 or Form 1040A. 2013 1040 ez form Death of spouse. 2013 1040 ez form    If your spouse died during the year and you file a joint return for yourself and your deceased spouse, you generally can claim your spouse's exemption under the rules just explained in Joint return . 2013 1040 ez form If you file a separate return for the year, you may be able to claim your spouse's exemption under the rules just described in Separate return . 2013 1040 ez form   If you remarried during the year, you cannot take an exemption for your deceased spouse. 2013 1040 ez form   If you are a surviving spouse without gross income and you remarry in the year your spouse died, you can be claimed as an exemption on both the final separate return of your deceased spouse and the separate return of your new spouse for that year. 2013 1040 ez form If you file a joint return with your new spouse, you can be claimed as an exemption only on that return. 2013 1040 ez form Divorced or separated spouse. 2013 1040 ez form    If you obtained a final decree of divorce or separate maintenance during the year, you cannot take your former spouse's exemption. 2013 1040 ez form This rule applies even if you provided all of your former spouse's support. 2013 1040 ez form Exemptions for Dependents You are allowed one exemption for each person you can claim as a dependent. 2013 1040 ez form You can claim an exemption for a dependent even if your dependent files a return. 2013 1040 ez form The term “dependent” means: A qualifying child, or A qualifying relative. 2013 1040 ez form The terms “ qualifying child ” and “ qualifying relative ” are defined later. 2013 1040 ez form You can claim an exemption for a qualifying child or qualifying relative only if these three tests are met. 2013 1040 ez form Dependent taxpayer test. 2013 1040 ez form Joint return test. 2013 1040 ez form Citizen or resident test. 2013 1040 ez form These three tests are explained in detail later. 2013 1040 ez form All the requirements for claiming an exemption for a dependent are summarized in Table 5. 2013 1040 ez form Table 5. 2013 1040 ez form Overview of the Rules for Claiming an Exemption for a Dependent This table is only an overview of the rules. 2013 1040 ez form For details, see the rest of this publication. 2013 1040 ez form You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer. 2013 1040 ez form   You cannot claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. 2013 1040 ez form   You cannot claim a person as a dependent unless that person is a U. 2013 1040 ez form S. 2013 1040 ez form citizen, U. 2013 1040 ez form S. 2013 1040 ez form resident alien, U. 2013 1040 ez form S. 2013 1040 ez form national, or a resident of Canada or Mexico. 2013 1040 ez form 1  You cannot claim a person as a dependent unless that person is your qualifying child or qualifying relative. 2013 1040 ez form   Tests To Be a Qualifying Child Tests To Be a Qualifying Relative The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them. 2013 1040 ez form   The child must be (a) under age 19 at the end of the year and younger than you (or your spouse if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse if filing jointly), or (c) any age if permanently and totally disabled. 2013 1040 ez form   The child must have lived with you for more than half of the year. 2013 1040 ez form 2  The child must not have provided more than half of his or her own support for the year. 2013 1040 ez form   The child is not filing a joint return for the year (unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid). 2013 1040 ez form  If the child meets the rules to be a qualifying child of more than one person, only one person can actually treat the child as a qualifying child. 2013 1040 ez form See the Special Rule for Qualifying Child of More Than One Person described later to find out which person is the person entitled to claim the child as a qualifying child. 2013 1040 ez form The person cannot be your qualifying child or the qualifying child of any other taxpayer. 2013 1040 ez form   The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you , or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). 2013 1040 ez form   The person's gross income for the year must be less than $3,900. 2013 1040 ez form 3  You must provide more than half of the person's total support for the year. 2013 1040 ez form 4  1 There is an exception for certain adopted children. 2013 1040 ez form 2 There are exceptions for temporary absences, children who were born or died during the year, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2013 1040 ez form 3 There is an exception if the person is disabled and has income from a sheltered workshop. 2013 1040 ez form 4 There are exceptions for multiple support agreements, children of divorced or separated parents (or parents who live apart), and kidnapped children. 2013 1040 ez form Dependent not allowed a personal exemption. 2013 1040 ez form If you can claim an exemption for your dependent, the dependent cannot claim his or her own personal exemption on his or her own tax return. 2013 1040 ez form This is true even if you do not claim the dependent's exemption on your return. 2013 1040 ez form It is also true if the dependent's exemption on your return is reduced or eliminated under the phaseout rule described under Phaseout of Exemptions, later. 2013 1040 ez form Housekeepers, maids, or servants. 2013 1040 ez form    If these people work for you, you cannot claim exemptions for them. 2013 1040 ez form Child tax credit. 2013 1040 ez form    You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. 2013 1040 ez form For more information, see the instructions for the tax form you file (Form 1040 or 1040A). 2013 1040 ez form Dependent Taxpayer Test If you can be claimed as a dependent by another person, you cannot claim anyone else as a dependent. 2013 1040 ez form Even if you have a qualifying child or qualifying relative, you cannot claim that person as a dependent. 2013 1040 ez form If you are filing a joint return and your spouse can be claimed as a dependent by someone else, you and your spouse cannot claim any dependents on your joint return. 2013 1040 ez form Joint Return Test You generally cannot claim a married person as a dependent if he or she files a joint return. 2013 1040 ez form Exception. 2013 1040 ez form    You can claim an exemption for a person who files a joint return if that person and his or her spouse file the joint return only to claim a refund of income tax withheld or estimated tax paid. 2013 1040 ez form Example 1—child files joint return. 2013 1040 ez form You supported your 18-year-old daughter, and she lived with you all year while her husband was in the Armed Forces. 2013 1040 ez form He earned $25,000 for the year. 2013 1040 ez form The couple files a joint return. 2013 1040 ez form You cannot take an exemption for your daughter. 2013 1040 ez form Example 2—child files joint return only as claim for refund of withheld tax. 2013 1040 ez form Your 18-year-old son and his 17-year-old wife had $800 of wages from part-time jobs and no other income. 2013 1040 ez form Neither is required to file a tax return. 2013 1040 ez form They do not have a child. 2013 1040 ez form Taxes were taken out of their pay so they file a joint return only to get a refund of the withheld taxes. 2013 1040 ez form The exception to the joint return test applies, so you are not disqualified from claiming an exemption for each of them just because they file a joint return. 2013 1040 ez form You can claim exemptions for each of them if all the other tests to do so are met. 2013 1040 ez form Example 3—child files joint return to claim American opportunity credit. 2013 1040 ez form The facts are the same as in Example 2 except no taxes were taken out of your son's pay. 2013 1040 ez form He and his wife are not required to file a tax return. 2013 1040 ez form However, they file a joint return to claim an American opportunity credit of $124 and get a refund of that amount. 2013 1040 ez form Because claiming the American opportunity credit is their reason for filing the return, they are not filing it only to get a refund of income