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Federal Tax Form 2012

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Federal Tax Form 2012

Federal tax form 2012 1. Federal tax form 2012   Filing Information Table of Contents What's New Reminders Introduction Do I Have To File a Return?Individuals—In General Dependents Certain Children Under Age 19 or Full-Time Students Self-Employed Persons Aliens Who Should File Which Form Should I Use?Form 1040EZ Form 1040A Form 1040 Does My Return Have To Be on Paper?IRS e-file When Do I Have To File?Private delivery services. Federal tax form 2012 Extensions of Time To File How Do I Prepare My Return?When Do I Report My Income and Expenses? Social Security Number (SSN) Presidential Election Campaign Fund Computations Attachments Third Party Designee Signatures Paid Preparer Refunds Amount You Owe Gift To Reduce Debt Held by the Public Name and Address Where Do I File? What Happens After I File?What Records Should I Keep? Why Keep Records? Kinds of Records to Keep Basic Records How Long to Keep Records Refund Information Interest on Refunds Change of Address What If I Made a Mistake?Amended Returns and Claims for Refund Penalties Identity Theft What's New Filing status for same-sex married couple. Federal tax form 2012   If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage. Federal tax form 2012 See Publication 501 for more information. Federal tax form 2012 Additional Medicare Tax. Federal tax form 2012  Beginning in 2013, a 0. Federal tax form 2012 9% Additional Medicare Tax applies to Medicare wages, Railroad Retirement Tax Act (RRTA) compensation, and self-employment income over a threshold amount based on your filing status. Federal tax form 2012 For more information, see the Instructions for Form 1040, line 60, and Form 8959. Federal tax form 2012 Net Investment Income Tax. Federal tax form 2012  Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). Federal tax form 2012 NIIT is a 3. Federal tax form 2012 8% tax on the lesser of net investment income or the excess of your modified adjusted gross income over a threshold amount. Federal tax form 2012 For more information, see the Instructions for Form 1040, line 60, and Form 8960. Federal tax form 2012 Refundable credit for prior year minimum tax. Federal tax form 2012  The refundable portion of the credit for prior year minimum tax is no longer available. Federal tax form 2012 Who must file. Federal tax form 2012  Generally, the amount of income you can receive before you must file a return has been increased. Federal tax form 2012 See Table 1-1, Table 1-2, and Table 1-3 for the specific amounts. Federal tax form 2012 Reminders File online. Federal tax form 2012  Rather than filing a return on paper, you may be able to file electronically using IRS e-file. Federal tax form 2012 Create your own personal identification number (PIN) and file a completely paperless tax return. Federal tax form 2012 For more information, see Does My Return Have To Be on Paper , later. Federal tax form 2012 Change of address. Federal tax form 2012  If you change your address, you should notify the IRS. Federal tax form 2012 You can use Form 8822 to notify the IRS of the change. Federal tax form 2012 See Change of Address , later, under What Happens After I File. Federal tax form 2012 Enter your social security number. Federal tax form 2012  You must enter your social security number (SSN) in the spaces provided on your tax return. Federal tax form 2012 If you file a joint return, enter the SSNs in the same order as the names. Federal tax form 2012 Direct deposit of refund. Federal tax form 2012  Instead of getting a paper check, you may be able to have your refund deposited directly into your account at a bank or other financial institution. Federal tax form 2012 See Direct Deposit under Refunds, later. Federal tax form 2012 If you choose direct deposit of your refund, you may be able to split the refund among two or three accounts. Federal tax form 2012 Pay online or by phone. Federal tax form 2012  If you owe additional tax, you may be able to pay online or by phone. Federal tax form 2012 See How To Pay , later. Federal tax form 2012 Installment agreement. Federal tax form 2012  If you cannot pay the full amount due with your return, you may ask to make monthly installment payments. Federal tax form 2012 See Installment Agreement , later, under Amount You Owe. Federal tax form 2012 You may be able to apply online for a payment agreement if you owe federal tax, interest, and penalties. Federal tax form 2012 Automatic 6-month extension. Federal tax form 2012  You can get an automatic 6-month extension to file your tax return if, no later than the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Federal tax form 2012 S. Federal tax form 2012 Individual Income Tax Return. Federal tax form 2012 See Automatic Extension , later. Federal tax form 2012 Service in combat zone. Federal tax form 2012  You are allowed extra time to take care of your tax matters if you are a member of the Armed Forces who served in a combat zone, or if you served in the combat zone in support of the Armed Forces. Federal tax form 2012 See Individuals Serving in Combat Zone , later, under When Do I Have To File. Federal tax form 2012 Adoption taxpayer identification number. Federal tax form 2012  If a child has been placed in your home for purposes of legal adoption and you will not be able to get a social security number for the child in time to file your return, you may be able to get an adoption taxpayer identification number (ATIN). Federal tax form 2012 For more information, see Social Security Number (SSN) , later. Federal tax form 2012 Taxpayer identification number for aliens. Federal tax form 2012  If you or your dependent is a nonresident or resident alien who does not have and is not eligible to get a social security number, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Federal tax form 2012 For more information, see Social Security Number (SSN) , later. Federal tax form 2012 Frivolous tax submissions. Federal tax form 2012  The IRS has published a list of positions that are identified as frivolous. Federal tax form 2012 The penalty for filing a frivolous tax return is $5,000. Federal tax form 2012 Also, the $5,000 penalty will apply to other specified frivolous submissions. Federal tax form 2012 For more information, see Civil Penalties , later. Federal tax form 2012 Introduction This chapter discusses the following topics. Federal tax form 2012 Whether you have to file a return. Federal tax form 2012 Which form to use. Federal tax form 2012 How to file electronically. Federal tax form 2012 When, how, and where to file your return. Federal tax form 2012 What happens if you pay too little or too much tax. Federal tax form 2012 What records you should keep and how long you should keep them. Federal tax form 2012 How you can change a return you have already filed. Federal tax form 2012 Do I Have To File a Return? You must file a federal income tax return if you are a citizen or resident of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the following categories that apply to you. Federal tax form 2012 Individuals in general. Federal tax form 2012 (There are special rules for surviving spouses, executors, administrators, legal representatives, U. Federal tax form 2012 S. Federal tax form 2012 citizens and residents living outside the United States, residents of Puerto Rico, and individuals with income from U. Federal tax form 2012 S. Federal tax form 2012 possessions. Federal tax form 2012 ) Dependents. Federal tax form 2012 Certain children under age 19 or full-time students. Federal tax form 2012 Self-employed persons. Federal tax form 2012 Aliens. Federal tax form 2012 The filing requirements for each category are explained in this chapter. Federal tax form 2012 The filing requirements apply even if you do not owe tax. Federal tax form 2012 Even if you do not have to file a return, it may be to your advantage to do so. Federal tax form 2012 See Who Should File, later. Federal tax form 2012 File only one federal income tax return for the year regardless of how many jobs you had, how many Forms W-2 you received, or how many states you lived in during the year. Federal tax form 2012 Do not file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed. Federal tax form 2012 Individuals—In General If you are a U. Federal tax form 2012 S. Federal tax form 2012 citizen or resident, whether you must file a return depends on three factors: Your gross income, Your filing status, and Your age. Federal tax form 2012 To find out whether you must file, see Table 1-1, Table 1-2, and Table 1-3. Federal tax form 2012 Even if no table shows that you must file, you may need to file to get money back. Federal tax form 2012 (See Who Should File , later. Federal tax form 2012 ) Gross income. Federal tax form 2012   This includes all income you receive in the form of money, goods, property, and services that is not exempt from tax. Federal tax form 2012 It also includes income from sources outside the United States or from the sale of your main home (even if you can exclude all or part of it). Federal tax form 2012 Include part of your social security benefits if: You were married, filing a separate return, and you lived with your spouse at any time during 2013; or 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). Federal tax form 2012 If either (1) or (2) applies, see the instructions for Form 1040 or 1040A, or Publication 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the social security benefits you must include in gross income. Federal tax form 2012   Common types of income are discussed in Part Two of this publication. Federal tax form 2012 Community income. Federal tax form 2012   If you are married and your permanent home is in a community property state, half of any income described by state law as community income may be considered yours. Federal tax form 2012 This affects your federal taxes, including whether you must file if you do not file a joint return with your spouse. Federal tax form 2012 See Publication 555, Community Property, for more information. Federal tax form 2012 Nevada, Washington, and California domestic partners. Federal tax form 2012   A registered domestic partner in Nevada, Washington, or California generally must report half the combined community income of the individual and his or her domestic partner. Federal tax form 2012 See Publication 555. Federal tax form 2012 Self-employed individuals. Federal tax form 2012   If you are self-employed, your gross income includes the amount on line 7 of Schedule C (Form 1040), Profit or Loss From Business; line 1 of Schedule C-EZ (Form 1040), Net Profit From Business; and line 9 of Schedule F (Form 1040), Profit or Loss From Farming. Federal tax form 2012 See Self-Employed Persons , later, for more information about your filing requirements. Federal tax form 2012    If you do not report all of your self-employment income, your social security benefits may be lower when you retire. Federal tax form 2012 Filing status. Federal tax form 2012   Your filing status depends on whether you are single or married and on your family situation. Federal tax form 2012 Your filing status is determined on the last day of your tax year, which is December 31 for most taxpayers. Federal tax form 2012 See chapter 2 for an explanation of each filing status. Federal tax form 2012 Age. Federal tax form 2012   If you are 65 or older at the end of the year, you generally can have a higher amount of gross income than other taxpayers before you must file. Federal tax form 2012 See Table 1-1. Federal tax form 2012 You are considered 65 on the day before your 65th birthday. Federal tax form 2012 For example, if your 65th birthday is on January 1, 2014, you are considered 65 for 2013. Federal tax form 2012 Table 1-1. Federal tax form 2012 2013 Filing Requirements for Most Taxpayers IF your filing status is. Federal tax form 2012 . Federal tax form 2012 . Federal tax form 2012 AND at the end of 2013 you  were. Federal tax form 2012 . Federal tax form 2012 . Federal tax form 2012 * THEN file a return if  your gross income  was at least. Federal tax form 2012 . Federal tax form 2012 . Federal tax form 2012 ** single under 65 $10,000     65 or older $11,500   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   head of household under 65 $12,850     65 or older $14,350   qualifying widow(er) with dependent child under 65 $16,100   65 or older $17,300   * If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Federal tax form 2012 ** Gross income means all income you received 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). Federal tax form 2012 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). Federal tax form 2012 If (a) or (b) applies, see the Instructions for Form 1040 or 1040A or Publication 915 to figure the taxable part of social security benefits you must include in gross income. Federal tax form 2012 Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Federal tax form 2012 Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. Federal tax form 2012 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. Federal tax form 2012 *** 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. Federal tax form 2012 Surviving Spouses, Executors, Administrators, and Legal Representatives You must file a final return for a decedent (a person who died) if both of the following are true. Federal tax form 2012 You are the surviving spouse, executor, administrator, or legal representative. Federal tax form 2012 The decedent met the filing requirements at the date of death. Federal tax form 2012 For more information on rules for filing a decedent's final return, see Publication 559, Survivors, Executors, and Administrators. Federal tax form 2012 U. Federal tax form 2012 S. Federal tax form 2012 Citizens and Resident Aliens Living Abroad To determine whether you must file a return, include in your gross income any income you received abroad, including any income you can exclude under the foreign earned income exclusion. Federal tax form 2012 For information on special tax rules that may apply to you, see Publication 54, Tax Guide for U. Federal tax form 2012 S. Federal tax form 2012 Citizens and Resident Aliens Abroad. Federal tax form 2012 It is available online and at most U. Federal tax form 2012 S. Federal tax form 2012 embassies and consulates. Federal tax form 2012 See How To Get Tax Help in the back of this publication. Federal tax form 2012 Residents of Puerto Rico If you are a U. Federal tax form 2012 S. Federal tax form 2012 citizen and also a bona fide resident of Puerto Rico, you generally must file a U. Federal tax form 2012 S. Federal tax form 2012 income tax return for any year in which you meet the income requirements. Federal tax form 2012 This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico. Federal tax form 2012 If you are a bona fide resident of Puerto Rico for the entire year, your U. Federal tax form 2012 S. Federal tax form 2012 gross income does not include income from sources within Puerto Rico. Federal tax form 2012 It does, however, include any income you received for your services as an employee of the United States or a U. Federal tax form 2012 S. Federal tax form 2012 agency. Federal tax form 2012 If you receive income from Puerto Rican sources that is not subject to U. Federal tax form 2012 S. Federal tax form 2012 tax, you must reduce your standard deduction. Federal tax form 2012 As a result, the amount of income you must have before you are required to file a U. Federal tax form 2012 S. Federal tax form 2012 income tax return is lower than the applicable amount in Table 1-1 or Table 1-2. Federal tax form 2012 For more information, see Publication 570, Tax Guide for Individuals With Income From U. Federal tax form 2012 S. Federal tax form 2012 Possessions. Federal tax form 2012 Individuals With Income From U. Federal tax form 2012 S. Federal tax form 2012 Possessions If you had income from Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, or the U. Federal tax form 2012 S. Federal tax form 2012 Virgin Islands, special rules may apply when determining whether you must file a U. Federal tax form 2012 S. Federal tax form 2012 federal income tax return. Federal tax form 2012 In addition, you may have to file a return with the individual island government. Federal tax form 2012 See Publication 570 for more information. Federal tax form 2012 Dependents If you are a dependent (one who meets the dependency tests in chapter 3), see Table 1-2 to find out whether you must file a return. Federal tax form 2012 You also must file if your situation is described in Table 1-3. Federal tax form 2012 Responsibility of parent. Federal tax form 2012   Generally, a child is responsible for filing his or her own tax return and for paying any tax on the return. Federal tax form 2012 If a dependent child must file an income tax return but cannot file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child. Federal tax form 2012 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. Federal tax form 2012 ” Child's earnings. Federal tax form 2012   Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. Federal tax form 2012 This is true even if under local law the child's parent has the right to the earnings and may actually have received them. Federal tax form 2012 But if the child does not pay the tax due on this income, the parent is liable for the tax. Federal tax form 2012 Certain Children Under Age 19 or Full-Time Students If a child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends), the child was under age 19 at the end of 2013 or was a full-time student under age 24 at the end of 2013, and certain other conditions are met, a parent can elect to include the child's income on the parent's return. Federal tax form 2012 If this election is made, the child does not have to file a return. Federal tax form 2012 See Parent's Election To Report Child's Interest and Dividends in chapter 31. Federal tax form 2012 Self-Employed Persons You are self-employed if you: Carry on a trade or business as a sole proprietor, Are an independent contractor, Are a member of a partnership, or Are in business for yourself in any other way. Federal tax form 2012 Self-employment can include work in addition to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job. Federal tax form 2012 You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1). Federal tax form 2012 Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if: Your net earnings from self-employment (excluding church employee income) were $400 or more, or You had church employee income of $108. Federal tax form 2012 28 or more. Federal tax form 2012 (See Table 1-3. Federal tax form 2012 ) Use Schedule SE (Form 1040) to figure your self-employment tax. Federal tax form 2012 Self-employment tax is comparable to the social security and Medicare tax withheld from an employee's wages. Federal tax form 2012 For more information about this tax, see Publication 334, Tax Guide for Small Business. Federal tax form 2012 Employees of foreign governments or international organizations. Federal tax form 2012   If you are a U. Federal tax form 2012 S. Federal tax form 2012 citizen who works in the United States for an international organization, a foreign government, or a wholly owned instrumentality of a foreign government, and your employer is not required to withhold social security and Medicare taxes from your wages, you must include your earnings from services performed in the United States when figuring your net earnings from self-employment. Federal tax form 2012 Ministers. Federal tax form 2012   You must include income from services you performed as a minister when figuring your net earnings from self-employment, unless you have an exemption from self-employment tax. Federal tax form 2012 This also applies to Christian Science practitioners and members of a religious order who have not taken a vow of poverty. Federal tax form 2012 For more information, see Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. Federal tax form 2012 Table 1-2. Federal tax form 2012 2013 Filing Requirements for Dependents See chapter 3 to find out if someone can claim you as a dependent. Federal tax form 2012 If your parents (or someone else) can claim you as a dependent, use this table to see if you must file a return. Federal tax form 2012 (See Table 1-3 for other situations when you must file. Federal tax form 2012 ) In this table, earned income includes salaries, wages, tips, and professional fees. Federal tax form 2012 It also includes taxable scholarship and fellowship grants. Federal tax form 2012 (See Scholarships and fellowships in chapter 12. Federal tax form 2012 ) Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. Federal tax form 2012 It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust. Federal tax form 2012 Gross income is the total of your earned and unearned income. Federal tax form 2012   Single dependents—Were you either age 65 or older or blind? □ No. Federal tax form 2012 You must file a return if any of the following apply. Federal tax form 2012     • Your unearned income was more than $1,000. Federal tax form 2012     • Your earned income was more than $6,100. Federal tax form 2012     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Federal tax form 2012 □ Yes. Federal tax form 2012 You must file a return if any of the following apply. Federal tax form 2012     • Your unearned income was more than $2,500 ($4,000 if 65 or older and blind). Federal tax form 2012     • Your earned income was more than $7,600 ($9,100 if 65 or older and blind). Federal tax form 2012     • 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). Federal tax form 2012 Married dependents—Were you either age 65 or older or blind? □ No. Federal tax form 2012 You must file a return if any of the following apply. Federal tax form 2012     • Your unearned income was more than $1,000. Federal tax form 2012     • Your earned income was more than $6,100. Federal tax form 2012     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Federal tax form 2012     • Your gross income was more than the larger of:       • $1,000, or       • Your earned income (up to $5,750) plus $350. Federal tax form 2012 □ Yes. Federal tax form 2012 You must file a return if any of the following apply. Federal tax form 2012     • Your unearned income was more than $2,200 ($3,400 if 65 or older and blind). Federal tax form 2012     • Your earned income was more than $7,300 ($8,500 if 65 or older and blind). Federal tax form 2012     • Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Federal tax form 2012     • 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). Federal tax form 2012 Aliens Your status as an alien—resident, nonresident, or dual-status—determines whether and how you must file an income tax return. Federal tax form 2012 The rules used to determine your alien status are discussed in Publication 519, U. Federal tax form 2012 S. Federal tax form 2012 Tax Guide for Aliens. Federal tax form 2012 Resident alien. Federal tax form 2012   If you are a resident alien for the entire year, you must file a tax return following the same rules that apply to U. Federal tax form 2012 S. Federal tax form 2012 citizens. Federal tax form 2012 Use the forms discussed in this publication. Federal tax form 2012 Nonresident alien. Federal tax form 2012   If you are a nonresident alien, the rules and tax forms that apply to you are different from those that apply to U. Federal tax form 2012 S. Federal tax form 2012 citizens and resident aliens. Federal tax form 2012 See Publication 519 to find out if U. Federal tax form 2012 S. Federal tax form 2012 income tax laws apply to you and which forms you should file. Federal tax form 2012 Dual-status taxpayer. Federal tax form 2012   If you are a resident alien for part of the tax year and a nonresident alien for the rest of the year, you are a dual-status taxpayer. Federal tax form 2012 Different rules apply for each part of the year. Federal tax form 2012 For information on dual-status taxpayers, see Publication 519. Federal tax form 2012 Table 1-3. Federal tax form 2012 Other Situations When You Must File a 2013 Return You must file a return if any of the four conditions below apply for 2013. Federal tax form 2012 1. Federal tax form 2012   You owe any special taxes, including any of the following. Federal tax form 2012   a. Federal tax form 2012 Alternative minimum tax. Federal tax form 2012   b. Federal tax form 2012 Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. Federal tax form 2012 But if you are filing a return only because you owe this tax, you can file Form 5329 by itself. Federal tax form 2012   c. Federal tax form 2012 Household employment taxes. Federal tax form 2012 But if you are filing a return only because you owe this tax, you can file Schedule H by itself. Federal tax form 2012   d. Federal tax form 2012 Social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes. Federal tax form 2012   e. Federal tax form 2012 Recapture of first-time homebuyer credit. Federal tax form 2012   f. Federal tax form 2012 Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts. Federal tax form 2012   g. Federal tax form 2012 Recapture taxes. Federal tax form 2012 2. Federal tax form 2012   You (or your spouse, if filing jointly) received HSA, Archer MSA, or Medicare Advantage MSA distributions. Federal tax form 2012 3. Federal tax form 2012   You had net earnings from self-employment of at least $400. Federal tax form 2012 4. Federal tax form 2012   You had wages of $108. Federal tax form 2012 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes. Federal tax form 2012 Who Should File Even if you do not have to file, you should file a federal income tax return to get money back if any of the following conditions apply. Federal tax form 2012 You had federal income tax withheld or made estimated tax payments. Federal tax form 2012 You qualify for the earned income credit. Federal tax form 2012 See chapter 36 for more information. Federal tax form 2012 You qualify for the additional child tax credit. Federal tax form 2012 See chapter 34 for more information. Federal tax form 2012 You qualify for the health coverage tax credit. Federal tax form 2012 See chapter 37 for more information. Federal tax form 2012 You qualify for the American opportunity credit. Federal tax form 2012 See chapter 35 for more information. Federal tax form 2012 You qualify for the credit for federal tax on fuels. Federal tax form 2012 See chapter 37 for more information. Federal tax form 2012 Which Form Should I Use? You must use one of three forms to file your return: Form 1040EZ, Form 1040A, or Form 1040. Federal tax form 2012 (But also see Does My Return Have To Be on Paper , later. Federal tax form 2012 ) See the discussion under Form 1040 for when you must use that form. Federal tax form 2012 Form 1040EZ Form 1040EZ is the simplest form to use. Federal tax form 2012 You can use Form 1040EZ if all of the following apply. Federal tax form 2012    Your filing status is single or married filing jointly. Federal tax form 2012 If you were a nonresident alien at any time in 2013, your filing status must be married filing jointly. Federal tax form 2012 You (and your spouse if married filing a joint return) were under age 65 and not blind at the end of 2013. Federal tax form 2012 If you were born on January 1, 1949, you are considered to be age 65 at the end of 2013. Federal tax form 2012 You do not claim any dependents. Federal tax form 2012 Your taxable income is less than $100,000. Federal tax form 2012 Your income is only from wages, salaries, tips, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less. Federal tax form 2012 You do not claim any adjustments to income, such as a deduction for IRA contributions or student loan interest. Federal tax form 2012 You do not claim any credits other than the earned income credit. Federal tax form 2012 You do not owe any household employment taxes on wages you paid to a household employee. Federal tax form 2012 If you earned tips, they are included in boxes 5 and 7 of your Form W-2. Federal tax form 2012 You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005. Federal tax form 2012   You must meet all of these requirements to use Form 1040EZ. Federal tax form 2012 If you do not, you must use Form 1040A or Form 1040. Federal tax form 2012 Figuring tax. Federal tax form 2012   On Form 1040EZ, you can use only the tax table to figure your income tax. Federal tax form 2012 You cannot use Form 1040EZ to report any other tax. Federal tax form 2012 Form 1040A If you do not qualify to use Form 1040EZ, you may be able to use Form 1040A. Federal tax form 2012 You can use Form 1040A if all of the following apply. Federal tax form 2012    Your income is only from: Wages, salaries, and tips, Interest, Ordinary dividends (including Alaska Permanent Fund dividends), Capital gain distributions, IRA distributions, Pensions and annuities, Unemployment compensation, Taxable social security and railroad retirement benefits, and Taxable scholarship and fellowship grants. Federal tax form 2012 If you receive a capital gain distribution that includes unrecaptured section 1250 gain, section 1202 gain, or collectibles (28%) gain, you cannot use Form 1040A. Federal tax form 2012 You must use Form 1040. Federal tax form 2012 Your taxable income is less than $100,000. Federal tax form 2012 Your adjustments to income are for only the following items. Federal tax form 2012 Educator expenses. Federal tax form 2012 IRA deduction. Federal tax form 2012 Student loan interest deduction. Federal tax form 2012 Tuition and fees. Federal tax form 2012 You do not itemize your deductions. Federal tax form 2012 You claim only the following tax credits. Federal tax form 2012 The credit for child and dependent care expenses. Federal tax form 2012 (See chapter 32. Federal tax form 2012 ) The credit for the elderly or the disabled. Federal tax form 2012 (See chapter 33. Federal tax form 2012 ) The education credits. Federal tax form 2012 (See chapter 35. Federal tax form 2012 ) The retirement savings contribution credit. Federal tax form 2012 (See chapter 37. Federal tax form 2012 ) The child tax credit. Federal tax form 2012 (See chapter 34. Federal tax form 2012 ) The earned income credit. Federal tax form 2012 (See chapter 36. Federal tax form 2012 ) The additional child tax credit. Federal tax form 2012 (See chapter 34. Federal tax form 2012 ) You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option. Federal tax form 2012 (See Publication 525, Taxable and Nontaxable Income. Federal tax form 2012 )   You can also use Form 1040A if you received employer-provided dependent care benefits or if you owe tax from the recapture of an education credit or the alternative minimum tax. Federal tax form 2012   You must meet all these requirements to use Form 1040A. Federal tax form 2012 If you do not, you must use Form 1040. Federal tax form 2012 Form 1040 If you cannot use Form 1040EZ or Form 1040A, you must use Form 1040. Federal tax form 2012 You can use Form 1040 to report all types of income, deductions, and credits. Federal tax form 2012 You may pay less tax by filing Form 1040 because you can take itemized deductions, some adjustments to income, and credits you cannot take on Form 1040A or Form 1040EZ. Federal tax form 2012 You must use Form 1040 if any of the following apply. Federal tax form 2012    Your taxable income is $100,000 or more. Federal tax form 2012 You itemize your deductions on Schedule A. Federal tax form 2012 You had income that cannot be reported on Form 1040EZ or Form 1040A, including tax-exempt interest from private activity bonds issued after August 7, 1986. Federal tax form 2012 You claim any adjustments to gross income other than the adjustments listed earlier under Form 1040A. Federal tax form 2012 Your Form W-2, box 12, shows uncollected employee tax (social security and Medicare tax) on tips (see chapter 6) or group-term life insurance (see chapter 5). Federal tax form 2012 You received $20 or more in tips in any 1 month and did not report all of them to your employer. Federal tax form 2012 (See chapter 6. Federal tax form 2012 ) You were a bona fide resident of Puerto Rico and exclude income from sources in Puerto Rico. Federal tax form 2012 You claim any credits other than the credits listed earlier under Form 1040A. Federal tax form 2012 You owe the excise tax on insider stock compensation from an expatriated corporation. Federal tax form 2012 Your Form W-2 shows an amount in box 12 with a code Z. Federal tax form 2012 You had a qualified health savings account funding distribution from your IRA. Federal tax form 2012 You are an employee and your employer did not withhold social security and Medicare tax. Federal tax form 2012 You have to file other forms with your return to report certain exclusions, taxes, or transactions, such as Form 8959 or Form 8960. Federal tax form 2012 You are a debtor in a bankruptcy case filed after October 16, 2005. Federal tax form 2012 You must repay the first-time homebuyer credit. Federal tax form 2012 You have adjusted gross income of more than $150,000 and must reduce the dollar amount of your exemptions. Federal tax form 2012 Does My Return Have To Be on Paper? You may be able to file a paperless return using IRS e-file (electronic filing). Federal tax form 2012 If your 2013 adjusted gross income (AGI) is less than a certain amount, you are eligible for Free File. Federal tax form 2012 See your tax return instructions for details. Federal tax form 2012 If you do not qualify for Free File, then you should check out IRS. Federal tax form 2012 gov for low-cost e-file options or Free File Fillable Forms. Federal tax form 2012 IRS e-file Table 1-4 lists the benefits of IRS e-file. Federal tax form 2012 IRS e-file uses automation to replace most of the manual steps needed to process paper returns. Federal tax form 2012 As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. Federal tax form 2012 However, as with a paper return, you are responsible for making sure your return contains accurate information and is filed on time. Federal tax form 2012 Using e-file does not affect your chances of an IRS examination of your return. Federal tax form 2012 Free File Fillable Forms. Federal tax form 2012   If you do not need the help of a tax preparer, then Free File Fillable Forms may be for you. Federal tax form 2012 These forms: Do not have an income requirement so everyone is eligible, Are easy to use, Perform basic math calculations, Are available only at IRS. Federal tax form 2012 gov, and Apply only to a federal tax return. Federal tax form 2012 Electronic return signatures. Federal tax form 2012   To file your return electronically, you must sign the return electronically using a personal identification number (PIN). Federal tax form 2012 If you are filing online, you must use a Self-Select PIN. Federal tax form 2012 If you are filing electronically using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN. Federal tax form 2012 Self-Select PIN. Federal tax form 2012   The Self-Select PIN method allows you to create your own PIN. Federal tax form 2012 If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures. Federal tax form 2012   A PIN is any combination of five digits you choose except five zeros. Federal tax form 2012 If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2. Federal tax form 2012   To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2012 federal income tax return, if applicable. Federal tax form 2012 Do not use your AGI from an amended return (Form 1040X) or a math error correction made by the IRS. Federal tax form 2012 AGI is the amount shown on your 2012 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. Federal tax form 2012 If you do not have your 2012 income tax return, you can quickly request a transcript by using our automated self-service tool. Federal tax form 2012 Visit us at IRS. Federal tax form 2012 gov and click on Order a Return or Account Transcript or call 1-800-908-9946 to get a free transcript of your return. Federal tax form 2012 (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. Federal tax form 2012 The prior year PIN is the five digit PIN you used to electronically sign your 2012 return. Federal tax form 2012 ) You will also be prompted to enter your date of birth. Federal tax form 2012 Table 1-4. Federal tax form 2012 Benefits of IRS e-file • Free File allows qualified taxpayers to prepare and e-file their own tax returns for free. Federal tax form 2012 • Free File is available in English and Spanish. Federal tax form 2012 • Free File is available online 24 hours a day, 7 days a week. Federal tax form 2012 • Get your refund faster by e-filing using Direct Deposit. Federal tax form 2012 • Sign electronically with a secure self-selected PIN and file a completely paperless return. Federal tax form 2012 • Receive an acknowledgement that your return was received and accepted. Federal tax form 2012 • If you owe, you can e-file and pay electronically either online or by phone, using your bank account or a credit or debit card. Federal tax form 2012 You can also file a return early and pay the amount you owe by the due date of your return. Federal tax form 2012 • Save time by preparing and e-filing federal and state returns together. Federal tax form 2012 • IRS computers quickly and automatically check for errors or other missing information. Federal tax form 2012 • Help the environment, use less paper, and save taxpayer money—it costs less to process an e-filed return than a paper return. Federal tax form 2012 You cannot use the Self-Select PIN method if you are a first-time filer under age 16 at the end of 2013. Federal tax form 2012 If you cannot locate your prior year AGI or prior year PIN, use the Electronic Filing PIN Request. Federal tax form 2012 This can be found at IRS. Federal tax form 2012 gov. Federal tax form 2012 Click on Request an Electronic Filing PIN. Federal tax form 2012 Or you can call 1-866-704-7388. Federal tax form 2012 Practitioner PIN. Federal tax form 2012   The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN. Federal tax form 2012 The practitioner can provide you with details. Federal tax form 2012 Form 8453. Federal tax form 2012   You must send in a paper Form 8453 if you have to attach certain forms or other documents that cannot be electronically filed. Federal tax form 2012 For details, see Form 8453. Federal tax form 2012 For more details, visit www. Federal tax form 2012 irs. Federal tax form 2012 gov/efile and click on “ Individuals. Federal tax form 2012 ” Identity Protection PIN. Federal tax form 2012   If the IRS gave you an identity protection personal identification number (PIN) because you were a victim of identity theft, enter it in the spaces provided on your tax form. Federal tax form 2012 If the IRS has not given you this type of number, leave these spaces blank. Federal tax form 2012 For more information, see the Instructions for Form 1040A or Form 1040. Federal tax form 2012 Power of attorney. Federal tax form 2012   If an agent is signing your return for you, a power of attorney (POA) must be filed. Federal tax form 2012 Attach the POA to Form 8453 and file it using that form's instructions. Federal tax form 2012 See Signatures , later, for more information on POAs. Federal tax form 2012 State returns. Federal tax form 2012   In most states, you can file an electronic state return simultaneously with your federal return. Federal tax form 2012 For more information, check with your local IRS office, state tax agency, tax professional, or the IRS website at  www. Federal tax form 2012 irs. Federal tax form 2012 gov/efile. Federal tax form 2012 Refunds. Federal tax form 2012   You can have a refund check mailed to you, or you can have your refund deposited directly to your checking or savings account or split among two or three accounts. Federal tax form 2012 With e-file, your refund will be issued faster than if you filed on paper. Federal tax form 2012   As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain other federal nontax debts, such as student loans. Federal tax form 2012 See Offset against debts under Refunds, later. Federal tax form 2012 Refund inquiries. Federal tax form 2012   Information about your return will generally be available within 24 hours after the IRS receives your e-filed return. Federal tax form 2012 See Refund Information , later. Federal tax form 2012 Amount you owe. Federal tax form 2012   To avoid late-payment penalties and interest, pay your taxes in full by April 15, 2014. Federal tax form 2012 See How To Pay , later, for information on how to pay the amount you owe. Federal tax form 2012 Using Your Personal Computer You can file your tax return in a fast, easy, and convenient way using your personal computer. Federal tax form 2012 A computer with Internet access and tax preparation software are all you need. Federal tax form 2012 Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week. Federal tax form 2012 IRS approved tax preparation software is available for online use on the Internet, for download from the Internet, and in retail stores. Federal tax form 2012 For information, visit www. Federal tax form 2012 irs. Federal tax form 2012 gov/efile. Federal tax form 2012 Through Employers and Financial Institutions Some businesses offer free e-file to their employees, members, or customers. Federal tax form 2012 Others offer it for a fee. Federal tax form 2012 Ask your employer or financial institution if they offer IRS e-file as an employee, member, or customer benefit. Federal tax form 2012 Free Help With Your Return Free help in preparing your return is available nationwide from IRS-trained volunteers. Federal tax form 2012 The Volunteer Income Tax Assistance (VITA) program is designed to help low to moderate income taxpayers and the Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 or older with their tax returns. Federal tax form 2012 Many VITA sites offer free electronic filing and all volunteers will let you know about the credits and deductions you may be entitled to claim. Federal tax form 2012 To find a site near you, call 1-800-906-9887. Federal tax form 2012 Or to find the nearest AARP TaxAide site, visit AARP's website at www. Federal tax form 2012 aarp. Federal tax form 2012 org/taxaide or call 1-888-227-7669. Federal tax form 2012 For more information on these programs, go to IRS. Federal tax form 2012 gov and enter keyword “VITA” in the search box. Federal tax form 2012 Using a Tax Professional Many tax professionals electronically file tax returns for their clients. Federal tax form 2012 You may personally enter your PIN or complete Form 8879, IRS e-file Signature Authorization, to authorize the tax professional to enter your PIN on your return. Federal tax form 2012 Note. Federal tax form 2012 Tax professionals may charge a fee for IRS e-file. Federal tax form 2012 Fees can vary depending on the professional and the specific services rendered. Federal tax form 2012 When Do I Have To File? April 15, 2014, is the due date for filing your 2013 income tax return if you use the calendar year. Federal tax form 2012 For a quick view of due dates for filing a return with or without an extension of time to file (discussed later), see Table 1-5. Federal tax form 2012 Table 1-5. Federal tax form 2012 When To File Your 2013 Return For U. Federal tax form 2012 S. Federal tax form 2012 citizens and residents who file returns on a calendar year. Federal tax form 2012   For Most Taxpayers For Certain Taxpayers Outside the U. Federal tax form 2012 S. Federal tax form 2012 No extension requested April 15, 2014 June 16, 2014 Automatic extension October 15, 2014 October 15, 2014 If you use a fiscal year (a year ending on the last day of any month except December, or a 52-53-week year), your income tax return is due by the 15th day of the 4th month after the close of your fiscal year. Federal tax form 2012 When the due date for doing any act for tax purposes—filing a return, paying taxes, etc. Federal tax form 2012 —falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. Federal tax form 2012 Filing paper returns on time. Federal tax form 2012   Your paper return is filed on time if it is mailed in an envelope that is properly addressed, has enough postage, and is postmarked by the due date. Federal tax form 2012 If you send your return by registered mail, the date of the registration is the postmark date. Federal tax form 2012 The registration is evidence that the return was delivered. Federal tax form 2012 If you send a return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. Federal tax form 2012 The postmarked certified mail receipt is evidence that the return was delivered. Federal tax form 2012 Private delivery services. Federal tax form 2012   If you use a private delivery service designated by the IRS to send your return, the postmark date generally is the date the private delivery service records in its database or marks on the mailing label. Federal tax form 2012 The private delivery service can tell you how to get written proof of this date. Federal tax form 2012   For the IRS mailing address to use if you are using a private delivery service, go to IRS. Federal tax form 2012 gov and enter “private delivery service” in the search box. Federal tax form 2012   The following are designated private delivery services. Federal tax form 2012 DHL Express (DHL): Same Day Service. Federal tax form 2012 Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. Federal tax form 2012 United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Federal tax form 2012 M. Federal tax form 2012 , UPS Worldwide Express Plus, and UPS Worldwide Express. Federal tax form 2012 Filing electronic returns on time. Federal tax form 2012   If you use IRS e-file, your return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. Federal tax form 2012 An authorized electronic return transmitter is a participant in the IRS e-file program that transmits electronic tax return information directly to the IRS. Federal tax form 2012   The electronic postmark is a record of when the authorized electronic return transmitter received the transmission of your electronically filed return on its host system. Federal tax form 2012 The date and time in your time zone controls whether your electronically filed return is timely. Federal tax form 2012 Filing late. Federal tax form 2012   If you do not file your return by the due date, you may have to pay a failure-to-file penalty and interest. Federal tax form 2012 For more information, see Penalties , later. Federal tax form 2012 Also see Interest under Amount You Owe. Federal tax form 2012   If you were due a refund but you did not file a return, you generally must file within 3 years from the date the return was due (including extensions) to get that refund. Federal tax form 2012 Nonresident alien. Federal tax form 2012    If you are a nonresident alien and earn wages subject to U. Federal tax form 2012 S. Federal tax form 2012 income tax withholding, your 2013 U. Federal tax form 2012 S. Federal tax form 2012 income tax return (Form 1040NR or Form 1040NR-EZ) is due by: April 15, 2014, if you use a calendar year, or The 15th day of the 4th month after the end of your fiscal year if you use a fiscal year. Federal tax form 2012   If you do not earn wages subject to U. Federal tax form 2012 S. Federal tax form 2012 income tax withholding, your return is due by: June 16, 2014, if you use a calendar year, or The 15th day of the 6th month after the end of your fiscal year, if you use a fiscal year. Federal tax form 2012 See Publication 519 for more filing information. Federal tax form 2012 Filing for a decedent. Federal tax form 2012   If you must file a final income tax return for a taxpayer who died during the year (a decedent), the return is due by the 15th day of the 4th month after the end of the decedent's normal tax year. Federal tax form 2012 See Publication 559. Federal tax form 2012 Extensions of Time To File You may be able to get an extension of time to file your return. Federal tax form 2012 There are three types of situations where you may qualify for an extension: Automatic extensions, You are outside the United States, or You are serving in a combat zone. Federal tax form 2012 Automatic Extension If you cannot file your 2013 return by the due date, you may be able to get an automatic 6-month extension of time to file. Federal tax form 2012 Example. Federal tax form 2012 If your return is due on April 15, 2014, you will have until October 15, 2014, to file. Federal tax form 2012 If you do not pay the tax due by the regular due date (generally, April 15), you will owe interest. Federal tax form 2012 You may also be charged penalties, discussed later. Federal tax form 2012 How to get the automatic extension. Federal tax form 2012   You can get the automatic extension by: Using IRS e-file (electronic filing), or Filing a paper form. Federal tax form 2012 E-file options. Federal tax form 2012   There are two ways you can use e-file to get an extension of time to file. Federal tax form 2012 Complete Form 4868, Application for Automatic Extension of Time To File U. Federal tax form 2012 S. Federal tax form 2012 Individual Income Tax Return, to use as a worksheet. Federal tax form 2012 If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. Federal tax form 2012 If you e-file Form 4868 to the IRS, do not also send a paper Form 4868. Federal tax form 2012 E-file using your personal computer or a tax professional. Federal tax form 2012    You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically. Federal tax form 2012 You will need to provide certain information from your tax return for 2012. Federal tax form 2012 If you wish to make a payment by direct transfer from your bank account, see Pay online , under How To Pay, later in this chapter. Federal tax form 2012 E-file and pay by credit or debit card or by direct transfer from your bank account. Federal tax form 2012   You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card or by direct transfer from your bank account. Federal tax form 2012 You can do this by phone or over the Internet. Federal tax form 2012 You do not file Form 4868. Federal tax form 2012 See Pay online , under How To Pay, later in this chapter. Federal tax form 2012 Filing a paper Form 4868. Federal tax form 2012   You can get an extension of time to file by filing a paper Form 4868. Federal tax form 2012 Mail it to the address shown in the form instructions. Federal tax form 2012   If you want to make a payment with the form, make your check or money order payable to “United States Treasury. Federal tax form 2012 ” Write your SSN, daytime phone number, and “2013 Form 4868” on your check or money order. Federal tax form 2012 When to file. Federal tax form 2012   You must request the automatic extension by the due date for your return. Federal tax form 2012 You can file your return any time before the 6-month extension period ends. Federal tax form 2012 When you file your return. Federal tax form 2012   Enter any payment you made related to the extension of time to file on Form 1040, line 68. Federal tax form 2012 If you file Form 1040EZ or Form 1040A, include that payment in your total payments on Form 1040EZ, line 9, or Form 1040A, line 41. Federal tax form 2012 Also enter “Form 4868” and the amount paid in the space to the left of line 9 or line 41. Federal tax form 2012 Individuals Outside the United States You are allowed an automatic 2-month extension, without filing Form 4868, (until June 16, 2014, if you use the calendar year) to file your 2013 return and pay any federal income tax due if: You are a U. Federal tax form 2012 S. Federal tax form 2012 citizen or resident, and On the due date of your return: You are living outside the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Puerto Rico, or You are in military or naval service on duty outside the United States and  Puerto Rico. Federal tax form 2012 However, if you pay the tax due after the regular due date (generally, April 15), interest will be charged from that date until the date the tax is paid. Federal tax form 2012 If you served in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. Federal tax form 2012 See Individuals Serving in Combat Zone , later, for special rules that apply to you. Federal tax form 2012 Married taxpayers. Federal tax form 2012   If you file a joint return, only one spouse has to qualify for this automatic extension. Federal tax form 2012 If you and your spouse file separate returns, this automatic extension applies only to the spouse who qualifies. Federal tax form 2012 How to get the extension. Federal tax form 2012   To use this automatic extension, you must attach a statement to your return explaining what situation qualified you for the extension. Federal tax form 2012 (See the situations listed under (2), earlier. Federal tax form 2012 ) Extensions beyond 2 months. Federal tax form 2012   If you cannot file your return within the automatic 2-month extension period, you may be able to get an additional 4-month extension, for a total of 6 months. Federal tax form 2012 File Form 4868 and check the box on line 8. Federal tax form 2012 No further extension. Federal tax form 2012   An extension of more than 6 months will generally not be granted. Federal tax form 2012 However, if you are outside the United States and meet certain tests, you may be granted a longer extension. Federal tax form 2012 For more information, see When To File and Pay in Publication 54. Federal tax form 2012 Individuals Serving in Combat Zone The deadline for filing your tax return, paying any tax you may owe, and filing a claim for refund is automatically extended if you serve in a combat zone. Federal tax form 2012 This applies to members of the Armed Forces, as well as merchant marines serving aboard vessels under the operational control of the Department of Defense, Red Cross personnel, accredited correspondents, and civilians under the direction of the Armed Forces in support of the Armed Forces. Federal tax form 2012 Combat zone. Federal tax form 2012   For purposes of the automatic extension, the term “combat zone” includes the following areas. Federal tax form 2012 The Arabian peninsula area, effective January 17, 1991. Federal tax form 2012 The Kosovo area, effective March 24, 1999. Federal tax form 2012 Afghanistan area, effective September 19, 2001. Federal tax form 2012   See Publication 3, Armed Forces' Tax Guide, for more detailed information on the locations comprising each combat zone. Federal tax form 2012 The publication also has information about other tax benefits available to military personnel serving in a combat zone. Federal tax form 2012 Extension period. Federal tax form 2012   The deadline for filing your return, paying any tax due, and filing a claim for refund is extended for at least 180 days after the later of: The last day you are in a combat zone or the last day the area qualifies as a combat zone, or The last day of any continuous qualified hospitalization for injury from service in the combat zone. Federal tax form 2012   In addition to the 180 days, your deadline is also extended by the number of days you had left to take action with the IRS when you entered the combat zone. Federal tax form 2012 For example, you have 3½ months (January 1 – April 15) to file your tax return. Federal tax form 2012 Any days left in this period when you entered the combat zone (or the entire 3½ months if you entered it before the beginning of the year) are added to the 180 days. Federal tax form 2012 See Extension of Deadlines in Publication 3 for more information. Federal tax form 2012   The rules on the extension for filing your return also apply when you are deployed outside the United States (away from your permanent duty station) while participating in a designated contingency operation. Federal tax form 2012 How Do I Prepare My Return? This section explains how to get ready to fill in your tax return and when to report your income and expenses. Federal tax form 2012 It also explains how to complete certain sections of the form. Federal tax form 2012 You may find Table 1-6 helpful when you prepare your paper return. Federal tax form 2012 Table 1-6. Federal tax form 2012 Six Steps for Preparing Your Paper Return 1 — Get your records together for income and expenses. Federal tax form 2012 2 — Get the forms, schedules, and publications you need. Federal tax form 2012 3 — Fill in your return. Federal tax form 2012 4 — Check your return to make sure it is correct. Federal tax form 2012 5 — Sign and date your return. Federal tax form 2012 6 — Attach all required forms and schedules. Federal tax form 2012 Electronic returns. Federal tax form 2012   For information you may find useful in preparing a paperless return, see Does My Return Have To Be on Paper , earlier. Federal tax form 2012 Substitute tax forms. Federal tax form 2012   You cannot use your own version of a tax form unless it meets the requirements explained in Publication 1167, General Rules and Specifications for Substitute Forms and Schedules. Federal tax form 2012 Form W-2. Federal tax form 2012   If you were an employee, you should receive Form W-2 from your employer. Federal tax form 2012 You will need the information from this form to prepare your return. Federal tax form 2012 See Form W-2 under Credit for Withholding and Estimated Tax in chapter 4. Federal tax form 2012   Your employer is required to provide or send Form W-2 to you no later than January 31, 2014. Federal tax form 2012 If it is mailed, you should allow adequate time to receive it before contacting your employer. Federal tax form 2012 If you still do not get the form by February 15, the IRS can help you by requesting the form from your employer. Federal tax form 2012 When you request IRS help, be prepared to provide the following information. Federal tax form 2012 Your name, address (including ZIP code), and phone number. Federal tax form 2012 Your SSN. Federal tax form 2012 Your dates of employment. Federal tax form 2012 Your employer's name, address (including ZIP code), and phone number. Federal tax form 2012 Form 1099. Federal tax form 2012   If you received certain types of income, you may receive a Form 1099. Federal tax form 2012 For example, if you received taxable interest of $10 or more, the payer is required to provide or send Form 1099 to you no later than January 31, 2014 (or by February 18, 2014, if furnished by a broker). Federal tax form 2012 If it is mailed, you should allow adequate time to receive it before contacting the payer. Federal tax form 2012 If you still do not get the form by February 18 (or by March 5, 2014, if furnished by a broker), call the IRS for help. Federal tax form 2012 When Do I Report My Income and Expenses? You must figure your taxable income on the basis of a tax year. Federal tax form 2012 A “tax year” is an annual accounting period used for keeping records and reporting income and expenses. Federal tax form 2012 You must account for your income and expenses in a way that clearly shows your taxable income. Federal tax form 2012 The way you do this is called an accounting method. Federal tax form 2012 This section explains which accounting periods and methods you can use. Federal tax form 2012 Accounting Periods Most individual tax returns cover a calendar year—the 12 months from January 1 through December 31. Federal tax form 2012 If you do not use a calendar year, your accounting period is a fiscal year. Federal tax form 2012 A regular fiscal year is a 12-month period that ends on the last day of any month except December. Federal tax form 2012 A 52-53-week fiscal year varies from 52 to 53 weeks and always ends on the same day of the week. Federal tax form 2012 You choose your accounting period (tax year) when you file your first income tax return. Federal tax form 2012 It cannot be longer than 12 months. Federal tax form 2012 More information. Federal tax form 2012   For more information on accounting periods, including how to change your accounting period, see Publication 538, Accounting Periods and Methods. Federal tax form 2012 Accounting Methods Your accounting method is the way you account for your income and expenses. Federal tax form 2012 Most taxpayers use either the cash method or an accrual method. Federal tax form 2012 You choose a method when you file your first income tax return. Federal tax form 2012 If you want to change your accounting method after that, you generally must get IRS approval. Federal tax form 2012 Cash method. Federal tax form 2012   If you use this method, report all items of income in the year in which you actually or constructively receive them. Federal tax form 2012 Generally, you deduct all expenses in the year you actually pay them. Federal tax form 2012 This is the method most individual taxpayers use. Federal tax form 2012 Constructive receipt. Federal tax form 2012   Generally, you constructively receive income when it is credited to your account or set apart in any way that makes it available to you. Federal tax form 2012 You do not need to have physical possession of it. Federal tax form 2012 For example, interest credited to your bank account on December 31, 2013, is taxable income to you in 2013 if you could have withdrawn it in 2013 (even if the amount is not entered in your records or withdrawn until 2014). Federal tax form 2012 Garnisheed wages. Federal tax form 2012   If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you. Federal tax form 2012 You must include these wages in income for the year you would have received them. Federal tax form 2012 Debts paid for you. Federal tax form 2012   If another person cancels or pays your debts (but not as a gift or loan), you have constructively received the amount and generally must include it in your gross income for the year. Federal tax form 2012 See Canceled Debts in chapter 12 for more information. Federal tax form 2012 Payment to third party. Federal tax form 2012   If a third party is paid income from property you own, you have constructively received the income. Federal tax form 2012 It is the same as if you had actually received the income and paid it to the third party. Federal tax form 2012 Payment to an agent. Federal tax form 2012   Income an agent receives for you is income you constructively received in the year the agent receives it. Federal tax form 2012 If you indicate in a contract that your income is to be paid to another person, you must include the amount in your gross income when the other person receives it. Federal tax form 2012 Check received or available. Federal tax form 2012   A valid check that was made available to you before the end of the tax year is constructively received by you in that year. Federal tax form 2012 A check that was “made available to you” includes a check you have already received, but not cashed or deposited. Federal tax form 2012 It also includes, for example, your last paycheck of the year that your employer made available for you to pick up at the office before the end of the year. Federal tax form 2012 It is constructively received by you in that year whether or not you pick it up before the end of the year or wait to receive it by mail after the end of the year. Federal tax form 2012 No constructive receipt. Federal tax form 2012   There may be facts to show that you did not constructively receive income. Federal tax form 2012 Example. Federal tax form 2012 Alice Johnson, a teacher, agreed to her school board's condition that, in her absence, she would receive only the difference between her regular salary and the salary of a substitute teacher hired by the school board. Federal tax form 2012 Therefore, Alice did not constructively receive the amount by which her salary was reduced to pay the substitute teacher. Federal tax form 2012 Accrual method. Federal tax form 2012   If you use an accrual method, you generally report income when you earn it, rather than when you receive it. Federal tax form 2012 You generally deduct your expenses when you incur them, rather than when you pay them. Federal tax form 2012 Income paid in advance. Federal tax form 2012   An advance payment of income is generally included in gross income in the year you receive it. Federal tax form 2012 Your method of accounting does not matter as long as the income is available to you. Federal tax form 2012 An advance payment may include rent or interest you receive in advance and pay for services you will perform later. Federal tax form 2012   A limited deferral until the next tax year may be allowed for certain advance payments. Federal tax form 2012 See Publication 538 for specific information. Federal tax form 2012 Additional information. Federal tax form 2012   For more information on accounting methods, including how to change your accounting method, see Publication 538. Federal tax form 2012 Social Security Number (SSN) You must enter your SSN on your return. Federal tax form 2012 If you are married, enter the SSNs for both you and your spouse, whether you file jointly or separately. Federal tax form 2012 If you are filing a joint return, include the SSNs in the same order as the names. Federal tax form 2012 Use this same order in submitting other forms and documents to the IRS. Federal tax form 2012 Check that both the name and SSN on your Form 1040, W-2, and 1099 agree with your social security card. Federal tax form 2012 If they do not, certain deductions and credits on your Form 1040 may be reduced or disallowed and you may not receive credit for your social security earnings. Federal tax form 2012 If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. Federal tax form 2012 If the name or SSN on your social security card is incorrect, call the SSA at 1-800-772-1213. Federal tax form 2012 Name change. Federal tax form 2012   If you changed your name because of marriage, divorce, etc. Federal tax form 2012 , be sure to report the change to your local Social Security Administration (SSA) office before filing your return. Federal tax form 2012 This prevents delays in processing your return and issuing refunds. Federal tax form 2012 It also safeguards your future social security benefits. Federal tax form 2012 Dependent's SSN. Federal tax form 2012   You must provide the SSN of each dependent you claim, regardless of the dependent's age. Federal tax form 2012 This requirement applies to all dependents (not just your children) claimed on your tax return. Federal tax form 2012 Exception. Federal tax form 2012    If your child was born and died in 2013 and did not have an SSN, enter “DIED” in column (2) of line 6c (Form 1040 or 1040A) and include a copy of the child's birth certificate, death certificate, or hospital records. Federal tax form 2012 The document must show that the child was born alive. Federal tax form 2012 No SSN. Federal tax form 2012   File Form SS-5, Application for a Social Security Card, with your local SSA office to get an SSN for yourself or your dependent. Federal tax form 2012 It usually takes about 2 weeks to get an SSN. Federal tax form 2012 If you or your dependent is not eligible for an SSN, see Individual taxpayer identification number (ITIN) , later. Federal tax form 2012   If you are a U. Federal tax form 2012 S. Federal tax form 2012 citizen or resident alien, you must show proof of age, identity, and citizenship or alien status with your Form SS-5. Federal tax form 2012 If you are 12 or older and have never been assigned an SSN, you must appear in person with this proof at an SSA office. Federal tax form 2012   Form SS-5 is available at any SSA office, on the Internet at www. Federal tax form 2012 socialsecurity. Federal tax form 2012 gov, or by calling 1-800-772-1213. Federal tax form 2012 If you have any questions about which documents you can use as proof of age, identity, or citizenship, contact your SSA office. Federal tax form 2012   If your dependent does not have an SSN by the time your return is due, you may want to ask for an extension of time to file, as explained earlier under When Do I Have To File . Federal tax form 2012   If you do not provide a required SSN or if you provide an incorrect SSN, your tax may be increased and any refund may be reduced. Federal tax form 2012 Adoption taxpayer identification number (ATIN). Federal tax form 2012   If you are in the process of adopting a child who is a U. Federal tax form 2012 S. Federal tax form 2012 citizen or resident and cannot get an SSN for the child until the adoption is final, you can apply for an ATIN to use instead of an SSN. Federal tax form 2012    File Form W-7A, Application for Taxpayer Identification Number for Pending U. Federal tax form 2012 S. Federal tax form 2012 Adoptions, with the IRS to get an ATIN if all of the following are true. Federal tax form 2012 You have a child living with you who was placed in your home for legal adoption. Federal tax form 2012 You cannot get the child's existing SSN even though you have made a reasonable attempt to get it from the birth parents, the placement agency, and other persons. Federal tax form 2012 You cannot get an SSN for the child from the SSA because, for example, the adoption is not final. Federal tax form 2012 You are eligible to claim the child as a dependent on your tax return. Federal tax form 2012 After the adoption is final, you must apply for an SSN for the child. Federal tax form 2012 You cannot continue using the ATIN. Federal tax form 2012   See Form W-7A for more information. Federal tax form 2012 Nonresident alien spouse. Federal tax form 2012   If your spouse is a nonresident alien, your spouse must have either an SSN or an ITIN if: You file a joint return, You file a separate return and claim an exemption for your spouse, or Your spouse is filing a separate return. Federal tax form 2012 If your spouse is not eligible for an SSN, see the following discussion on ITINs. Federal tax form 2012 Individual taxpayer identification number (ITIN). Federal tax form 2012   The IRS will issue you an ITIN if you are a nonresident or resident alien and you do not have and are not eligible to get an SSN. Federal tax form 2012 This also applies to an alien spouse or dependent. Federal tax form 2012 To apply for an ITIN, file Form W-7 with the IRS. Federal tax form 2012 It usually takes about 6 to 10 weeks to get an ITIN. Federal tax form 2012 Enter the ITIN on your tax return wherever an SSN is requested. Federal tax form 2012    If you are applying for an ITIN for yourself, your spouse, or a dependent in order to file your tax return, attach your completed tax return to your Form W-7. Federal tax form 2012 See the Form W-7 instructions for how and where to file. Federal tax form 2012 You cannot e-file a return using an ITIN in the calendar year the ITIN is issued; however, you can e-file returns in the following years. Federal tax form 2012 ITIN for tax use only. Federal tax form 2012   An ITIN is for tax use only. Federal tax form 2012 It does not entitle you or your dependent to social security benefits or change the employment or immigration status of either of you under U. Federal tax form 2012 S. Federal tax form 2012 law. Federal tax form 2012 Penalty for not providing social security number. Federal tax form 2012   If you do not include your SSN or the SSN of your spouse or dependent as required, you may have to pay a penalty. Federal tax form 2012 See the discussion on Penalties , later, for more information. Federal tax form 2012 SSN on correspondence. Federal tax form 2012   If you write to the IRS about your tax account, be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in your correspondence. Federal tax form 2012 Because your SSN is used to identify your account, this helps the IRS respond to your correspondence promptly. Federal tax form 2012 Presidential Election Campaign Fund This fund helps pay for Presidential election campaigns. Federal tax form 2012 If you want $3 to go to this fund, check the box. Federal tax form 2012 If you are filing a joint return, your spouse can also have $3 go to the fund. Federal tax form 2012 If you check a box, your tax or refund will not change. Federal tax form 2012 Computations The following information may be useful in making the return easier to complete. Federal tax form 2012 Rounding off dollars. Federal tax form 2012   You can round off cents to whole dollars on your return and schedules. Federal tax form 2012 If you do round to whole dollars, you must round all amounts. Federal tax form 2012 To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. Federal tax form 2012 For example, $1. Federal tax form 2012 39 becomes $1 and $2. Federal tax form 2012 50 becomes $3. Federal tax form 2012   If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total. Federal tax form 2012 Example. Federal tax form 2012 You receive two Forms W-2: one showing wages of $5,000. Federal tax form 2012 55 and one showing wages of $18,500. Federal tax form 2012 73. Federal tax form 2012 On Form 1040, line 7, you would enter $23,501 ($5,000. Federal tax form 2012 55 + $18,500. Federal tax form 2012 73 = $23,501. Federal tax form 2012 28), not $23,502 ($5,001 + $18,501). Federal tax form 2012 Equal amounts. Federal tax form 2012   If you are asked to enter the smaller or larger of two equal amounts, enter that amount. Federal tax form 2012 Example. Federal tax form 2012 Line 1 is $500. Federal tax form 2012 Line 3 is $500. Federal tax form 2012 Line 5 asks you to enter the smaller of line 1 or 3. Federal tax form 2012 Enter $500 on line 5. Federal tax form 2012 Negative amounts. Federal tax form 2012   If you file a paper return and you need to enter a negative amount, put the amount in parentheses rather than using a minus sign. Federal tax form 2012 To combine positive and negative amounts, add all the positive amounts together and then subtract the negative amounts. Federal tax form 2012 Attachments Depending on the form you file and the items reported on your return, you may have to complete additional schedules and forms and attach them to your paper return. Federal tax form 2012 You may be able to file a paperless return using IRS e-file. Federal tax form 2012 There's nothing to attach or mail, not even your Forms W-2. Federal tax form 2012 See Does My Return Have To Be on Paper, earlier. Federal tax form 2012 Form W-2. Federal tax form 2012   Form W-2 is a statement from your employer of wages and other compensation paid to you and taxes withheld from your pay. Federal tax form 2012 You should have a Form W-2 from each employer. Federal tax form 2012 If you file a paper return, be sure to attach a copy of Form W-2 in the place indicated on the front page of your return. Federal tax form 2012 Attach it to the front page of your paper return, not to any attachments. Federal tax form 2012 For more information, see Form W-2 in chapter 4. Federal tax form 2012   If you received a Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Federal tax form 2012 , showing federal income tax withheld, and you file a paper return, attach a copy of that form in the place indicated on the front page of your return. Federal tax form 2012 Form 1040EZ. Federal tax form 2012   There are no additional schedules to file with Form 1040EZ. Federal tax form 2012 Form 1040A. Federal tax form 2012   If you file a paper return, attach any forms and schedules behind Form 1040A in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Federal tax form 2012 Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Federal tax form 2012 Do not attach items unless required to do so. Federal tax form 2012 Form 1040. Federal tax form 2012   If you file a paper return, attach any forms and schedules behind Form 1040 in order of the “Attachment Sequence Number” shown in the upper right corner of the form or schedule. Federal tax form 2012 Then arrange all other statements or attachments in the same order as the forms and schedules they relate to and attach them last. Federal tax form 2012 Do not attach items unless required to do so. Federal tax form 2012 Third Party Designee You can authorize the IRS to discuss your return with your preparer, a friend, family member, or any other person you choose. Federal tax form 2012 If you check the “Yes” box in the Third party designee area of your 2013 tax return and provide the information required, you are authorizing: The IRS to call the designee to answer any questions that arise during the processing of your return, and The designee to: Give information that is missing from your return to the IRS, Call the IRS for information about th
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There are plenty of resources available to help you make health care decisions. Be wary of websites sponsored by companies that are trying to sell you a particular treatment. It's better to contact reputable associations or visit websites run by government agencies and recognized organizations, such as the Mayo Clinic and the American Medical Association (1-800-621-8335). This information should complement, not replace, what you  receive from a doctor. Here are some sites that are generally recognized as reliable information sources:

The Federal Tax Form 2012

Federal tax form 2012 8. Federal tax form 2012   Business Expenses Table of Contents Introduction Useful Items - You may want to see: Bad DebtsAccrual method. Federal tax form 2012 Cash method. Federal tax form 2012 Car and Truck ExpensesOffice in the home. Federal tax form 2012 Methods for Deducting Car and Truck Expenses Reimbursing Your Employees for Expenses Depreciation Employees' PayFringe benefits. Federal tax form 2012 InsuranceHow to figure the deduction. Federal tax form 2012 Interest Legal and Professional FeesTax preparation fees. Federal tax form 2012 Pension Plans Rent Expense Taxes Travel, Meals, and EntertainmentTransportation. Federal tax form 2012 Taxi, commuter bus, and limousine. Federal tax form 2012 Baggage and shipping. Federal tax form 2012 Car or truck. Federal tax form 2012 Meals and lodging. Federal tax form 2012 Cleaning. Federal tax form 2012 Telephone. Federal tax form 2012 Tips. Federal tax form 2012 More information. Federal tax form 2012 Business Use of Your HomeExceptions to exclusive use. Federal tax form 2012 Other Expenses You Can Deduct Expenses You Cannot Deduct Introduction You can deduct the costs of operating your business. Federal tax form 2012 These costs are known as business expenses. Federal tax form 2012 These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year. Federal tax form 2012 To be deductible, a business expense must be both ordinary and necessary. Federal tax form 2012 An ordinary expense is one that is common and accepted in your field of business. Federal tax form 2012 A necessary expense is one that is helpful and appropriate for your business. Federal tax form 2012 An expense does not have to be indispensable to be considered necessary. Federal tax form 2012 For more information about the general rules for deducting business expenses, see chapter 1 in Publication 535, Business Expenses. Federal tax form 2012 If you have an expense that is partly for business and partly personal, separate the personal part from the business part. Federal tax form 2012 The personal part is not deductible. Federal tax form 2012 Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 535 Business Expenses 946 How To Depreciate Property See chapter 12 for information about getting publications and forms. Federal tax form 2012 Bad Debts If someone owes you money you cannot collect, you have a bad debt. Federal tax form 2012 There are two kinds of bad debts, business bad debts and nonbusiness bad debts. Federal tax form 2012 A business bad debt is generally one that comes from operating your trade or business. Federal tax form 2012 You may be able to deduct business bad debts as an expense on your business tax return. Federal tax form 2012 Business bad debt. Federal tax form 2012   A business bad debt is a loss from the worthlessness of a debt that was either of the following. Federal tax form 2012 Created or acquired in your business. Federal tax form 2012 Closely related to your business when it became partly or totally worthless. Federal tax form 2012 A debt is closely related to your business if your primary motive for incurring the debt is a business reason. Federal tax form 2012   Business bad debts are mainly the result of credit sales to customers. Federal tax form 2012 They can also be the result of loans to suppliers, clients, employees, or distributors. Federal tax form 2012 Goods and services customers have not paid for are shown in your books as either accounts receivable or notes receivable. Federal tax form 2012 If you are unable to collect any part of these accounts or notes receivable, the uncollectible part is a business bad debt. Federal tax form 2012    You can take a bad debt deduction for these accounts and notes receivable only if the amount you were owed was included in your gross income either for the year the deduction is claimed or for a prior year. Federal tax form 2012 Accrual method. Federal tax form 2012   If you use an accrual method of accounting, you normally report income as you earn it. Federal tax form 2012 You can take a bad debt deduction for an uncollectible receivable if you have included the uncollectible amount in income. Federal tax form 2012 Cash method. Federal tax form 2012   If you use the cash method of accounting, you normally report income when you receive payment. Federal tax form 2012 You cannot take a bad debt deduction for amounts owed to you that you have not received and cannot collect if you never included those amounts in income. Federal tax form 2012 More information. Federal tax form 2012   For more information about business bad debts, see chapter 10 in Publication 535. Federal tax form 2012 Nonbusiness bad debts. Federal tax form 2012   All other bad debts are nonbusiness bad debts and are deductible as short-term capital losses on Form 8949 and Schedule D (Form 1040). Federal tax form 2012 For more information on nonbusiness bad debts, see Publication 550, Investment Income and Expenses. Federal tax form 2012 Car and Truck Expenses If you use your car or truck in your business, you may be able to deduct the costs of operating and maintaining your vehicle. Federal tax form 2012 You also may be able to deduct other costs of local transportation and traveling away from home overnight on business. Federal tax form 2012 You may qualify for a tax credit for qualified plug-in electric vehicles, qualified plug-in electric drive motor vehicles, and alternative motor vehicles you place in service during the year. Federal tax form 2012 See Form 8936 and Form 8910 for more information. Federal tax form 2012 Local transportation expenses. Federal tax form 2012   Local transportation expenses include the ordinary and necessary costs of all the following. Federal tax form 2012 Getting from one workplace to another in the course of your business or profession when you are traveling within the city or general area that is your tax home. Federal tax form 2012 Tax home is defined later. Federal tax form 2012 Visiting clients or customers. Federal tax form 2012 Going to a business meeting away from your regular workplace. Federal tax form 2012 Getting from your home to a temporary workplace when you have one or more regular places of work. Federal tax form 2012 These temporary workplaces can be either within the area of your tax home or outside that area. Federal tax form 2012 Local business transportation does not include expenses you have while traveling away from home overnight. Federal tax form 2012 Those expenses are deductible as travel expenses and are discussed later under Travel, Meals, and Entertainment. Federal tax form 2012 However, if you use your car while traveling away from home overnight, use the rules in this section to figure your car expense deduction. Federal tax form 2012   Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Federal tax form 2012 It includes the entire city or general area in which your business or work is located. Federal tax form 2012 Example. Federal tax form 2012 You operate a printing business out of rented office space. Federal tax form 2012 You use your van to deliver completed jobs to your customers. Federal tax form 2012 You can deduct the cost of round-trip transportation between your customers and your print shop. Federal tax form 2012    You cannot deduct the costs of driving your car or truck between your home and your main or regular workplace. Federal tax form 2012 These costs are personal commuting expenses. Federal tax form 2012 Office in the home. Federal tax form 2012   Your workplace can be your home if you have an office in your home that qualifies as your principal place of business. Federal tax form 2012 For more information, see Business Use of Your Home, later. Federal tax form 2012 Example. Federal tax form 2012 You are a graphics designer. Federal tax form 2012 You operate your business out of your home. Federal tax form 2012 Your home qualifies as your principal place of business. Federal tax form 2012 You occasionally have to drive to your clients to deliver your completed work. Federal tax form 2012 You can deduct the cost of the round-trip transportation between your home and your clients. Federal tax form 2012 Methods for Deducting Car and Truck Expenses For local transportation or overnight travel by car or truck, you generally can use one of the following methods to figure your expenses. Federal tax form 2012 Standard mileage rate. Federal tax form 2012 Actual expenses. Federal tax form 2012 Standard mileage rate. Federal tax form 2012   You may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. Federal tax form 2012 For 2013, the standard mileage rate is 56. Federal tax form 2012 5 cents per mile. Federal tax form 2012    If you choose to use the standard mileage rate for a year, you cannot deduct your actual expenses for that year except for business-related parking fees and tolls. Federal tax form 2012 Choosing the standard mileage rate. Federal tax form 2012   If you want to use the standard mileage rate for a car or truck you own, you must choose to use it in the first year the car is available for use in your business. Federal tax form 2012 In later years, you can choose to use either the standard mileage rate or actual expenses. Federal tax form 2012   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). Federal tax form 2012 Standard mileage rate not allowed. Federal tax form 2012   You cannot use the standard mileage rate if you: Operate five or more cars at the same time, Claimed a depreciation deduction using any method other than straight line, for example, ACRS or MACRS, Claimed a section 179 deduction on the car, Claimed the special depreciation allowance on the car, Claimed actual car expenses for a car you leased, or Are a rural mail carrier who received a qualified reimbursement. Federal tax form 2012 Parking fees and tolls. Federal tax form 2012   In addition to using the standard mileage rate, you can deduct any business-related parking fees and tolls. Federal tax form 2012 (Parking fees you pay to park your car at your place of work are nondeductible commuting expenses. Federal tax form 2012 ) Actual expenses. Federal tax form 2012   If you do not choose to use the standard mileage rate, you may be able to deduct your actual car or truck expenses. Federal tax form 2012    If you qualify to use both methods, figure your deduction both ways to see which gives you a larger deduction. Federal tax form 2012   Actual car expenses include the costs of the following items. Federal tax form 2012 Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. Federal tax form 2012 You can divide your expenses based on the miles driven for each purpose. Federal tax form 2012 Example. Federal tax form 2012 You are the sole proprietor of a flower shop. Federal tax form 2012 You drove your van 20,000 miles during the year. Federal tax form 2012 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use (including commuting miles). Federal tax form 2012 You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. Federal tax form 2012 More information. Federal tax form 2012   For more information about the rules for claiming car and truck expenses, see Publication 463. Federal tax form 2012 Reimbursing Your Employees for Expenses You generally can deduct the amount you reimburse your employees for car and truck expenses. Federal tax form 2012 The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Federal tax form 2012 For details, see chapter 11 in Publication 535. Federal tax form 2012 That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Federal tax form 2012 Depreciation If property you acquire to use in your business is expected to last more than 1 year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. Federal tax form 2012 You must spread the cost over more than 1 tax year and deduct part of it each year on Schedule C. Federal tax form 2012 This method of deducting the cost of business property is called depreciation. Federal tax form 2012 The discussion here is brief. Federal tax form 2012 You will find more information about depreciation in Publication 946. Federal tax form 2012 What property can be depreciated?   You can depreciate property if it meets all the following requirements. Federal tax form 2012 It must be property you own. Federal tax form 2012 It must be used in business or held to produce income. Federal tax form 2012 You never can depreciate inventory (explained in chapter 2) because it is not held for use in your business. Federal tax form 2012 It must have a useful life that extends substantially beyond the year it is placed in service. Federal tax form 2012 It must have a determinable useful life, which means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes. Federal tax form 2012 You never can depreciate the cost of land because land does not wear out, become obsolete, or get used up. Federal tax form 2012 It must not be excepted property. Federal tax form 2012 This includes property placed in service and disposed of in the same year. Federal tax form 2012 Repairs. Federal tax form 2012    You cannot depreciate repairs and replacements that do not increase the value of your property, make it more useful, or lengthen its useful life. Federal tax form 2012 You can deduct these amounts on line 21 of Schedule C or line 2 of Schedule C-EZ. Federal tax form 2012 Depreciation method. Federal tax form 2012   The method for depreciating most business and investment property placed in service after 1986 is called the Modified Accelerated Cost Recovery System (MACRS). Federal tax form 2012 MACRS is discussed in detail in Publication 946. Federal tax form 2012 Section 179 deduction. Federal tax form 2012   You can elect to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. Federal tax form 2012 This deduction is known as the “section 179 deduction. Federal tax form 2012 ” The maximum amount you can elect to deduct during 2013 is generally $500,000 (higher limits apply to certain property). Federal tax form 2012 See IRC 179(e). Federal tax form 2012   This limit is generally reduced by the amount by which the cost of the property placed in service during the tax year exceeds $2 million. Federal tax form 2012 The total amount of depreciation (including the section 179 deduction) you can take for a passenger automobile you use in your business and first place in service in 2013 is $3,160 ($11,160 if you take the special depreciation allowance for qualified passenger automobiles placed in service in 2013). Federal tax form 2012 Special rules apply to trucks and vans. Federal tax form 2012 For more information, see Publication 946. Federal tax form 2012 It explains what property qualifies for the deduction, what limits apply to the deduction, and when and how to recapture the deduction. Federal tax form 2012    Your section 179 election for the cost of any sport utility vehicle (SUV) and certain other vehicles is limited to $25,000. Federal tax form 2012 For more information, see the Instructions for Form 4562 or Publication 946. Federal tax form 2012 Listed property. Federal tax form 2012   You must follow special rules and recordkeeping requirements when depreciating listed property. Federal tax form 2012 Listed property is any of the following. Federal tax form 2012 Most passenger automobiles. Federal tax form 2012 Most other property used for transportation. Federal tax form 2012 Any property of a type generally used for entertainment, recreation, or amusement. Federal tax form 2012 Certain computers and related peripheral equipment. Federal tax form 2012   For more information about listed property, see Publication 946. Federal tax form 2012 Form 4562. Federal tax form 2012   Use Form 4562, Depreciation and Amortization, if you are claiming any of the following. Federal tax form 2012 Depreciation on property placed in service during the current tax year. Federal tax form 2012 A section 179 deduction. Federal tax form 2012 Depreciation on any listed property (regardless of when it was placed in service). Federal tax form 2012    If you have to use Form 4562, you must file Schedule C. Federal tax form 2012 You cannot use Schedule C-EZ. Federal tax form 2012   Employees' Pay You can generally deduct on Schedule C the pay you give your employees for the services they perform for your business. Federal tax form 2012 The pay may be in cash, property, or services. Federal tax form 2012 To be deductible, your employees' pay must be an ordinary and necessary expense and you must pay or incur it in the tax year. Federal tax form 2012 In addition, the pay must meet both the following tests. Federal tax form 2012 The pay must be reasonable. Federal tax form 2012 The pay must be for services performed. Federal tax form 2012 Chapter 2 in Publication 535 explains and defines these requirements. Federal tax form 2012 You cannot deduct your own salary or any personal withdrawals you make from your business. Federal tax form 2012 As a sole proprietor, you are not an employee of the business. Federal tax form 2012 If you had employees during the year, you must use Schedule C. Federal tax form 2012 You cannot use Schedule C-EZ. Federal tax form 2012 Kinds of pay. Federal tax form 2012   Some of the ways you may provide pay to your employees are listed below. Federal tax form 2012 For an explanation of each of these items, see chapter 2 in Publication 535. Federal tax form 2012 Awards. Federal tax form 2012 Bonuses. Federal tax form 2012 Education expenses. Federal tax form 2012 Fringe benefits (discussed later). Federal tax form 2012 Loans or advances you do not expect the employee to repay if they are for personal services actually performed. Federal tax form 2012 Property you transfer to an employee as payment for services. Federal tax form 2012 Reimbursements for employee business expenses. Federal tax form 2012 Sick pay. Federal tax form 2012 Vacation pay. Federal tax form 2012 Fringe benefits. Federal tax form 2012   A fringe benefit is a form of pay for the performance of services. Federal tax form 2012 The following are examples of fringe benefits. Federal tax form 2012 Benefits under qualified employee benefit programs. Federal tax form 2012 Meals and lodging. Federal tax form 2012 The use of a car. Federal tax form 2012 Flights on airplanes. Federal tax form 2012 Discounts on property or services. Federal tax form 2012 Memberships in country clubs or other social clubs. Federal tax form 2012 Tickets to entertainment or sporting events. Federal tax form 2012   Employee benefit programs include the following. Federal tax form 2012 Accident and health plans. Federal tax form 2012 Adoption assistance. Federal tax form 2012 Cafeteria plans. Federal tax form 2012 Dependent care assistance. Federal tax form 2012 Educational assistance. Federal tax form 2012 Group-term life insurance coverage. Federal tax form 2012 Welfare benefit funds. Federal tax form 2012   You can generally deduct the cost of fringe benefits you provide on your Schedule C in whatever category the cost falls. Federal tax form 2012 For example, if you allow an employee to use a car or other property you lease, deduct the cost of the lease as a rent or lease expense. Federal tax form 2012 If you own the property, include your deduction for its cost or other basis as a section 179 deduction or a depreciation deduction. Federal tax form 2012    You may be able to exclude all or part of the fringe benefits you provide from your employees' wages. Federal tax form 2012 For more information about fringe benefits and the exclusion of benefits, see Publication 15-B, Employer's Tax Guide to Fringe Benefits. Federal tax form 2012 Insurance You can generally deduct premiums you pay for the following kinds of insurance related to your business. Federal tax form 2012 Fire, theft, flood, or similar insurance. Federal tax form 2012 Credit insurance that covers losses from business bad debts. Federal tax form 2012 Group hospitalization and medical insurance for employees, including long-term care insurance. Federal tax form 2012 Liability insurance. Federal tax form 2012 Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Federal tax form 2012 Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Federal tax form 2012 Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Federal tax form 2012 Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Federal tax form 2012 Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Federal tax form 2012 If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Federal tax form 2012 If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Federal tax form 2012 Life insurance covering your employees if you are not directly or indirectly the beneficiary under the contract. Federal tax form 2012 Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Federal tax form 2012 Nondeductible premiums. Federal tax form 2012   You cannot deduct premiums on the following kinds of insurance. Federal tax form 2012 Self-insurance reserve funds. Federal tax form 2012 You cannot deduct amounts credited to a reserve set up for self-insurance. Federal tax form 2012 This applies even if you cannot get business insurance coverage for certain business risks. Federal tax form 2012 However, your actual losses may be deductible. Federal tax form 2012 For more information, see Publication 547, Casualties, Disasters, and Thefts. Federal tax form 2012 Loss of earnings. Federal tax form 2012 You cannot deduct premiums for a policy that pays for your lost earnings due to sickness or disability. Federal tax form 2012 However, see item (8) in the previous list. Federal tax form 2012 Certain life insurance and annuities. Federal tax form 2012 For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Federal tax form 2012 You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Federal tax form 2012 A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Federal tax form 2012 For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Federal tax form 2012 The disallowance applies without regard to whom the policy covers. Federal tax form 2012 Insurance to secure a loan. Federal tax form 2012 If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Federal tax form 2012 Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Federal tax form 2012 In the event of death, the proceeds of the policy are not taxed as income even if they are used to liquidate the debt. Federal tax form 2012 Self-employed health insurance deduction. Federal tax form 2012   You may be able to deduct the amount you paid for medical and dental insurance and qualified long-term care insurance for you and your family. Federal tax form 2012 How to figure the deduction. Federal tax form 2012   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Federal tax form 2012 However, if any of the following apply, you must use the worksheet in chapter 6 of Publication 535. Federal tax form 2012 You have more than one source of income subject to self-employment tax. Federal tax form 2012 You file Form 2555 or Form 2555-EZ (relating to foreign earned income). Federal tax form 2012 You are using amounts paid for qualified long-term care insurance to figure the deduction. Federal tax form 2012 Prepayment. Federal tax form 2012   You cannot deduct expenses in advance, even if you pay them in advance. Federal tax form 2012 This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Federal tax form 2012 Example. Federal tax form 2012 In 2013, you signed a 3-year insurance contract. Federal tax form 2012 Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Federal tax form 2012 You can deduct in 2014 and 2015 the premium allocable to those years. Federal tax form 2012 More information. Federal tax form 2012   For more information about deducting insurance, see chapter 6 in Publication 535. Federal tax form 2012 Interest You can generally deduct as a business expense all interest you pay or accrue during the tax year on debts related to your business. Federal tax form 2012 Interest relates to your business if you use the proceeds of the loan for a business expense. Federal tax form 2012 It does not matter what type of property secures the loan. Federal tax form 2012 You can deduct interest on a debt only if you meet all of the following requirements. Federal tax form 2012 You are legally liable for that debt. Federal tax form 2012 Both you and the lender intend that the debt be repaid. Federal tax form 2012 You and the lender have a true debtor-creditor relationship. Federal tax form 2012 You cannot deduct on Schedule C or C-EZ the interest you paid on personal loans. Federal tax form 2012 If a loan is part business and part personal, you must divide the interest between the personal part and the business part. Federal tax form 2012 Example. Federal tax form 2012 In 2013, you paid $600 interest on a car loan. Federal tax form 2012 During 2013, you used the car 60% for business and 40% for personal purposes. Federal tax form 2012 You are claiming actual expenses on the car. Federal tax form 2012 You can only deduct $360 (60% × $600) for 2013 on Schedule C or C-EZ. Federal tax form 2012 The remaining interest of $240 is a nondeductible personal expense. Federal tax form 2012 More information. Federal tax form 2012   For more information about deducting interest, see chapter 4 in Publication 535. Federal tax form 2012 That chapter explains the following items. Federal tax form 2012 Interest you can deduct. Federal tax form 2012 Interest you cannot deduct. Federal tax form 2012 How to allocate interest between personal and business use. Federal tax form 2012 When to deduct interest. Federal tax form 2012 The rules for a below-market interest rate loan. Federal tax form 2012 (This is generally a loan on which no interest is charged or on which interest is charged at a rate below the applicable federal rate. Federal tax form 2012 ) Legal and Professional Fees Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible on Schedule C or C-EZ. Federal tax form 2012 However, you usually cannot deduct legal fees you pay to acquire business assets. Federal tax form 2012 Add them to the basis of the property. Federal tax form 2012 If the fees include payments for work of a personal nature (such as making a will), you can take a business deduction only for the part of the fee related to your business. Federal tax form 2012 The personal part of legal fees for producing or collecting taxable income, doing or keeping your job, or for tax advice may be deductible on Schedule A (Form 1040) if you itemize deductions. Federal tax form 2012 For more information, see Publication 529, Miscellaneous Deductions. Federal tax form 2012 Tax preparation fees. Federal tax form 2012   You can deduct on Schedule C or C-EZ the cost of preparing that part of your tax return relating to your business as a sole proprietor or statutory employee. Federal tax form 2012 You can deduct the remaining cost on Schedule A (Form 1040) if you itemize your deductions. Federal tax form 2012   You can also deduct on Schedule C or C-EZ the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor or statutory employee. Federal tax form 2012 Pension Plans You can set up and maintain the following small business retirement plans for yourself and your employees. Federal tax form 2012 SEP (Simplified Employee Pension) plans. Federal tax form 2012 SIMPLE (Savings Incentive Match Plan for Employees) plans. Federal tax form 2012 Qualified plans (including Keogh or H. Federal tax form 2012 R. Federal tax form 2012 10 plans). Federal tax form 2012 SEP, SIMPLE, and qualified plans offer you and your employees a tax favored way to save for retirement. Federal tax form 2012 You can deduct contributions you make to the plan for your employees on line 19 of Schedule C. Federal tax form 2012 If you are a sole proprietor, you can deduct contributions you make to the plan for yourself on line 28 of Form 1040. Federal tax form 2012 You can also deduct trustees' fees if contributions to the plan do not cover them. Federal tax form 2012 Earnings on the contributions are generally tax free until you or your employees receive distributions from the plan. Federal tax form 2012 You may also be able to claim a tax credit of 50% of the first $1,000 of qualified startup costs if you begin a new qualified defined benefit or defined contribution plan (including a 401(k) plan), SIMPLE plan, or simplified employee pension. Federal tax form 2012 Under certain plans, employees can have you contribute limited amounts of their before-tax pay to a plan. Federal tax form 2012 These amounts (and earnings on them) are generally tax free until your employees receive distributions from the plan. Federal tax form 2012 For more information on retirement plans for small business, see Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans). Federal tax form 2012 Publication 590, Individual Retirement Arrangements (IRAs), discusses other tax favored ways to save for retirement. Federal tax form 2012 Rent Expense Rent is any amount you pay for the use of property you do not own. Federal tax form 2012 In general, you can deduct rent as a business expense only if the rent is for property you use in your business. Federal tax form 2012 If you have or will receive equity in or title to the property, you cannot deduct the rent. Federal tax form 2012 Unreasonable rent. Federal tax form 2012   You cannot take a rental deduction for unreasonable rents. Federal tax form 2012 Ordinarily, the issue of reasonableness arises only if you and the lessor are related. Federal tax form 2012 Rent paid to a related person is reasonable if it is the same amount you would pay to a stranger for use of the same property. Federal tax form 2012 Rent is not unreasonable just because it is figured as a percentage of gross receipts. Federal tax form 2012   Related persons include members of your immediate family, including only brothers and sisters (either whole or half), your spouse, ancestors, and lineal descendants. Federal tax form 2012 For a list of the other related persons, see section 267 of the Internal Revenue Code. Federal tax form 2012 Rent on your home. Federal tax form 2012   If you rent your home and use part of it as your place of business, you may be able to deduct the rent you pay for that part. Federal tax form 2012 You must meet the requirements for business use of your home. Federal tax form 2012 For more information, see Business Use of Your Home , later. Federal tax form 2012 Rent paid in advance. Federal tax form 2012   Generally, rent paid in your business is deductible in the year paid or accrued. Federal tax form 2012 If you pay rent in advance, you can deduct only the amount that applies to your use of the rented property during the tax year. Federal tax form 2012 You can deduct the rest of your payment only over the period to which it applies. Federal tax form 2012 More information. Federal tax form 2012   For more information about rent, see chapter 3 in Publication 535. Federal tax form 2012 Taxes You can deduct on Schedule C or C-EZ various federal, state, local, and foreign taxes directly attributable to your business. Federal tax form 2012 Income taxes. Federal tax form 2012   You can deduct on Schedule C or C-EZ a state tax on gross income (as distinguished from net income) directly attributable to your business. Federal tax form 2012 You can deduct other state and local income taxes on Schedule A (Form 1040) if you itemize your deductions. Federal tax form 2012 Do not deduct federal income tax. Federal tax form 2012 Employment taxes. Federal tax form 2012   You can deduct the social security, Medicare, and federal unemployment (FUTA) taxes you paid out of your own funds as an employer. Federal tax form 2012 Employment taxes are discussed briefly in chapter 1. Federal tax form 2012 You can also deduct payments you made as an employer to a state unemployment compensation fund or to a state disability benefit fund. Federal tax form 2012 Deduct these payments as taxes. Federal tax form 2012 Self-employment tax. Federal tax form 2012   You can deduct one-half of your self-employment tax on line 27 of Form 1040. Federal tax form 2012 Self-employment tax is discussed in chapters 1 and 10. Federal tax form 2012 Personal property tax. Federal tax form 2012   You can deduct on Schedule C or C-EZ any tax imposed by a state or local government on personal property used in your business. Federal tax form 2012   You can also deduct registration fees for the right to use property within a state or local area. Federal tax form 2012 Example. Federal tax form 2012 May and Julius Winter drove their car 7,000 business miles out of a total of 10,000 miles. Federal tax form 2012 They had to pay $25 for their annual state license tags and $20 for their city registration sticker. Federal tax form 2012 They also paid $235 in city personal property tax on the car, for a total of $280. Federal tax form 2012 They are claiming their actual car expenses. Federal tax form 2012 Because they used the car 70% for business, they can deduct 70% of the $280, or $196, as a business expense. Federal tax form 2012 Real estate taxes. Federal tax form 2012   You can deduct on Schedule C or C-EZ the real estate taxes you pay on your business property. Federal tax form 2012 Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. Federal tax form 2012 The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. Federal tax form 2012   For more information about real estate taxes, see chapter 5 in Publication 535. Federal tax form 2012 That chapter explains special rules for deducting the following items. Federal tax form 2012 Taxes for local benefits, such as those for sidewalks, streets, water mains, and sewer lines. Federal tax form 2012 Real estate taxes when you buy or sell property during the year. Federal tax form 2012 Real estate taxes if you use an accrual method of accounting and choose to accrue real estate tax related to a definite period ratably over that period. Federal tax form 2012 Sales tax. Federal tax form 2012   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. Federal tax form 2012 If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. Federal tax form 2012 If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. Federal tax form 2012 If the property is depreciable, add the sales tax to the basis for depreciation. Federal tax form 2012 For information on the basis of property, see Publication 551, Basis of Assets. Federal tax form 2012    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. Federal tax form 2012 Do not include these taxes in gross receipts or sales. Federal tax form 2012 Excise taxes. Federal tax form 2012   You can deduct on Schedule C or C-EZ all excise taxes that are ordinary and necessary expenses of carrying on your business. Federal tax form 2012 Excise taxes are discussed briefly in chapter 1. Federal tax form 2012 Fuel taxes. Federal tax form 2012   Taxes on gasoline, diesel fuel, and other motor fuels you use in your business are usually included as part of the cost of the fuel. Federal tax form 2012 Do not deduct these taxes as a separate item. Federal tax form 2012   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. Federal tax form 2012 For more information, see Publication 510, Excise Taxes. Federal tax form 2012 Travel, Meals, and Entertainment This section briefly explains the kinds of travel and entertainment expenses you can deduct on Schedule C or C-EZ. Federal tax form 2012 Table 8-1. Federal tax form 2012 When Are Entertainment Expenses Deductible? (Note. Federal tax form 2012 The following is a summary of the rules for deducting entertainment expenses. Federal tax form 2012 For more details about these rules, see Publication 463. Federal tax form 2012 ) General rule You can deduct ordinary and necessary expenses to entertain a client, customer, or employee if the expenses meet the directly-related test or the associated test. Federal tax form 2012 Definitions Entertainment includes any activity generally considered to provide entertainment, amusement, or recreation, and includes meals provided to a customer or client. Federal tax form 2012 An ordinary expense is one that is common and accepted in your field of business, trade, or profession. Federal tax form 2012 A necessary expense is one that is helpful and appropriate, although not necessarily required, for your business. Federal tax form 2012 Tests to be met Directly-related test Entertainment took place in a clear business setting, or Main purpose of entertainment was the active conduct of business, and You did engage in business with the person during the entertainment period, and You had more than a general expectation of getting income or some other specific business benefit. Federal tax form 2012   Associated test Entertainment is associated with your trade or business, and Entertainment directly precedes or follows a substantial business discussion. Federal tax form 2012 Other rules You cannot deduct the cost of your meal as an entertainment expense if you are claiming the meal as a travel expense. Federal tax form 2012 You cannot deduct expenses that are lavish or extravagant under the circumstances. Federal tax form 2012 You generally can deduct only 50% of your unreimbursed entertainment expenses. Federal tax form 2012 Travel expenses. Federal tax form 2012   These are the ordinary and necessary expenses of traveling away from home for your business. Federal tax form 2012 You are traveling away from home if both the following conditions are met. Federal tax form 2012 Your duties require you to be away from the general area of your tax home (defined later) substantially longer than an ordinary day's work. Federal tax form 2012 You need to get sleep or rest to meet the demands of your work while away from home. Federal tax form 2012 Generally, your tax home is your regular place of business, regardless of where you maintain your family home. Federal tax form 2012 It includes the entire city or general area in which your business is located. Federal tax form 2012 See Publication 463 for more information. Federal tax form 2012   The following is a brief discussion of the expenses you can deduct. Federal tax form 2012 Transportation. Federal tax form 2012   You can deduct the cost of travel by airplane, train, bus, or car between your home and your business destination. Federal tax form 2012 Taxi, commuter bus, and limousine. Federal tax form 2012   You can deduct fares for these and other types of transportation between the airport or station and your hotel, or between the hotel and your work location away from home. Federal tax form 2012 Baggage and shipping. Federal tax form 2012   You can deduct the cost of sending baggage and sample or display material between your regular and temporary work locations. Federal tax form 2012 Car or truck. Federal tax form 2012   You can deduct the costs of operating and maintaining your vehicle when traveling away from home on business. Federal tax form 2012 You can deduct actual expenses or the standard mileage rate (discussed earlier under Car and Truck Expenses), as well as business-related tolls and parking. Federal tax form 2012 If you rent a car while away from home on business, you can deduct only the business-use portion of the expenses. Federal tax form 2012 Meals and lodging. Federal tax form 2012   You can deduct the cost of meals and lodging if your business trip is overnight or long enough that you need to stop for sleep or rest to properly perform your duties. Federal tax form 2012 In most cases, you can deduct only 50% of your meal expenses. Federal tax form 2012 Cleaning. Federal tax form 2012   You can deduct the costs of dry cleaning and laundry while on your business trip. Federal tax form 2012 Telephone. Federal tax form 2012   You can deduct the cost of business calls while on your business trip, including business communication by fax machine or other communication devices. Federal tax form 2012 Tips. Federal tax form 2012   You can deduct the tips you pay for any expense in this list. Federal tax form 2012 More information. Federal tax form 2012   For more information about travel expenses, see Publication 463. Federal tax form 2012 Entertainment expenses. Federal tax form 2012   You may be able to deduct business-related entertainment expenses for entertaining a client, customer, or employee. Federal tax form 2012 In most cases, you can deduct only 50% of these expenses. Federal tax form 2012   The following are examples of entertainment expenses. Federal tax form 2012 Entertaining guests at nightclubs, athletic clubs, theaters, or sporting events. Federal tax form 2012 Providing meals, a hotel suite, or a car to business customers or their families. Federal tax form 2012 To be deductible, the expenses must meet the rules listed in Table 8-1. Federal tax form 2012 For details about these rules, see Publication 463. Federal tax form 2012 Reimbursing your employees for expenses. Federal tax form 2012   You generally can deduct the amount you reimburse your employees for travel and entertainment expenses. Federal tax form 2012 The reimbursement you deduct and the manner in which you deduct it depend in part on whether you reimburse the expenses under an accountable plan or a nonaccountable plan. Federal tax form 2012 For details, see chapter 11 in Publication 535. Federal tax form 2012 That chapter explains accountable and nonaccountable plans and tells you whether to report the reimbursement on your employee's Form W-2, Wage and Tax Statement. Federal tax form 2012 Business Use of Your Home To deduct expenses related to the part of your home used for business, you must meet specific requirements. Federal tax form 2012 Even then, your deduction may be limited. Federal tax form 2012 To qualify to claim expenses for business use of your home, you must meet the following tests. Federal tax form 2012 Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use , later), Regular, For your business, and The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your business, or A separate structure (not attached to your home) you use in connection with your business. Federal tax form 2012 Exclusive use. Federal tax form 2012   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. Federal tax form 2012 The area used for business can be a room or other separately identifiable space. Federal tax form 2012 The space does not need to be marked off by a permanent partition. Federal tax form 2012   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. Federal tax form 2012 Example. Federal tax form 2012 You are an attorney and use a den in your home to write legal briefs and prepare clients' tax returns. Federal tax form 2012 Your family also uses the den for recreation. Federal tax form 2012 The den is not used exclusively in your profession, so you cannot claim a business deduction for its use. Federal tax form 2012 Exceptions to exclusive use. Federal tax form 2012   You do not have to meet the exclusive use test if you use part of your home in either of the following ways. Federal tax form 2012 For the storage of inventory or product samples. Federal tax form 2012 As a daycare facility. Federal tax form 2012 For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). Federal tax form 2012 Regular use. Federal tax form 2012   To qualify under the regular use test, you must use a specific area of your home for business on a continuing basis. Federal tax form 2012 You do not meet the test if your business use of the area is only occasional or incidental, even if you do not use that area for any other purpose. Federal tax form 2012 Principal place of business. Federal tax form 2012   You can have more than one business location, including your home, for a single trade or business. Federal tax form 2012 To qualify to deduct the expenses for the business use of your home under the principal place of business test, your home must be your principal place of business for that business. Federal tax form 2012 To determine your principal place of business, you must consider all the facts and circumstances. Federal tax form 2012   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. Federal tax form 2012 You use it exclusively and regularly for administrative or management activities of your business. Federal tax form 2012 You have no other fixed location where you conduct substantial administrative or management activities of your business. Federal tax form 2012   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. Federal tax form 2012 The relative importance of the activities performed at each location. Federal tax form 2012 If the relative importance factor does not determine your principal place of business, you can also consider the time spent at each location. Federal tax form 2012   If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. Federal tax form 2012 However, for other ways to qualify to deduct home office expenses, see Publication 587. Federal tax form 2012 Deduction limit. Federal tax form 2012   If your gross income from the business use of your home equals or exceeds your total business expenses (including depreciation), you can deduct all your business expenses related to the use of your home. Federal tax form 2012 If your gross income from the business use is less than your total business expenses, your deduction for certain expenses for the business use of your home is limited. Federal tax form 2012   Your deduction of otherwise nondeductible expenses, such as insurance, utilities, and depreciation (with depreciation taken last), allocable to the business is limited to the gross income from the business use of your home minus the sum of the following. Federal tax form 2012 The business part of expenses you could deduct even if you did not use your home for business (such as mortgage interest, real estate taxes, and casualty and theft losses that are allowable as itemized deductions on Schedule A (Form 1040)). Federal tax form 2012 The business expenses that relate to the business activity in the home (for example, business phone, supplies, and depreciation on equipment), but not to the use of the home itself. Federal tax form 2012 Do not include in (2) above your deduction for one-half of your self-employment tax. Federal tax form 2012   Use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. Federal tax form 2012 New simplified method. Federal tax form 2012    The IRS now provides a simplified method to determine your expenses for business use of your home. Federal tax form 2012 The simplified method is an alternative to calculating and substantiating actual expenses. Federal tax form 2012 In most cases, you will figure your deduction by multiplying $5 by the area of your home used for a qualified business use. Federal tax form 2012 The area you use to figure your deduction is limited to 300 square feet. Federal tax form 2012 For more information, see the Instructions for Schedule C. Federal tax form 2012 More information. Federal tax form 2012   For more information on deducting expenses for the business use of your home, see Publication 587. Federal tax form 2012 Other Expenses You Can Deduct You may also be able to deduct the following expenses. Federal tax form 2012 See Publication 535 to find out whether you can deduct them. Federal tax form 2012 Advertising. Federal tax form 2012 Bank fees. Federal tax form 2012 Donations to business organizations. Federal tax form 2012 Education expenses. Federal tax form 2012 Energy efficient commercial buildings deduction expenses. Federal tax form 2012 Impairment-related expenses. Federal tax form 2012 Interview expense allowances. Federal tax form 2012 Licenses and regulatory fees. Federal tax form 2012 Moving machinery. Federal tax form 2012 Outplacement services. Federal tax form 2012 Penalties and fines you pay for late performance or nonperformance of a contract. Federal tax form 2012 Repairs that keep your property in a normal efficient operating condition. Federal tax form 2012 Repayments of income. Federal tax form 2012 Subscriptions to trade or professional publications. Federal tax form 2012 Supplies and materials. Federal tax form 2012 Utilities. Federal tax form 2012 Expenses You Cannot Deduct You usually cannot deduct the following as business expenses. Federal tax form 2012 For more information, see Publication 535. Federal tax form 2012 Bribes and kickbacks. Federal tax form 2012 Charitable contributions. Federal tax form 2012 Demolition expenses or losses. Federal tax form 2012 Dues to business, social, athletic, luncheon, sporting, airline, and hotel clubs. Federal tax form 2012 Lobbying expenses. Federal tax form 2012 Penalties and fines you pay to a governmental agency or instrumentality because you broke the law. Federal tax form 2012 Personal, living, and family expenses. Federal tax form 2012 Political contributions. Federal tax form 2012 Repairs that add to the value of your property or significantly increase its life. Federal tax form 2012 Prev  Up  Next   Home   More Online Publications