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File Free State Tax

File free state tax Index Symbols 1231 property sale, Sale of property interest. File free state tax 401(k) plans, Elective Deferrals Excess contributions, Excess Contributions 403(b) plans, Elective Deferrals Limit for, Limit for tax-sheltered annuities. File free state tax 457 plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under section 457 plans. File free state tax 501(c)(18)(D) plans, Elective Deferrals Contributions, Section 501(c)(18)(D) contributions. File free state tax 501(c)(3) organizations, Student loans. File free state tax 529 program, Qualified tuition program (QTP). File free state tax 83(b) election, How to make the choice. File free state tax A Academic health centers Meals and lodging when teaching and research organization, Academic health center. File free state tax Accelerated death benefits, Accelerated Death Benefits Accident insurance, Accident or Health Plan Accidental death benefits, Accidental death benefits. File free state tax Accrual method taxpayers, Prepaid income. File free state tax Accrued leave payment At time of retirement or resignation, Accrued leave payment. File free state tax Disability retirement, Accrued leave payment. File free state tax Activity not for profit, Activity not for profit. File free state tax Adoption Employer assistance, Adoption Assistance Advance commissions, Miscellaneous Compensation Aircraft, Flights on employer-provided aircraft. File free state tax Airlines No-additional-cost services, No-Additional-Cost Services Valuation of flights on employer-provided aircraft, Flights on employer-provided aircraft. File free state tax Alaska Permanent Fund dividend, Alaska Permanent Fund dividend. File free state tax Alien status, waiver of, Waiver of alien status. File free state tax Aliens Nonresident, Nonresident aliens. File free state tax Alimony, Alimony. File free state tax Alternative minimum tax (AMT) Recoveries, refiguring of, Subject to alternative minimum tax. File free state tax Stock options, Alternative minimum tax (AMT). File free state tax Annuities Charitable gift, Charitable gift annuities. File free state tax Railroad retirement, Railroad retirement annuities. File free state tax Tax-sheltered, Limit for tax-sheltered annuities. File free state tax Archer MSAs, Archer MSA contributions. File free state tax , Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File free state tax Armed forces, Military Combat zone bonus, Veterans' benefits. File free state tax Disability, Disability. File free state tax Disability pensions, Military and Government Disability Pensions Health professions scholarship, Tuition Reduction Military action as cause of disability injuries, Terrorist attack or military action. File free state tax Qualified reservist distribution, Qualified reservist distribution (QRD). File free state tax Rehabilitative program payments, Veterans' benefits. File free state tax Retirement pay, Military retirement pay. File free state tax Veterans benefits, Veterans' benefits. File free state tax Assistance (see Tax help) Athletic facilities, employer-provided, Athletic Facilities Automobile (see Vehicle, employer-provided) Awards (see Damages from lawsuits) B Babysitting, Babysitting. File free state tax Back pay, award for, Back pay awards. File free state tax Backup withholding Barter exchange transactions, Backup withholding. File free state tax Bankruptcy Canceled debt not deemed to be income, Excluded debt. File free state tax Barter income, Bartering Below-market loans, Below-market loans. File free state tax Bequest for services, Bequest for services. File free state tax Bicycle, Transportation Fringe benefit, Qualified bicycle commuting. File free state tax Black lung benefit payments, Black lung benefit payments. File free state tax Bonuses, Bonuses and awards. File free state tax , Employee awards or bonuses. File free state tax Breach of contract Damages as income, Court awards and damages. File free state tax Bribes, Bribes. File free state tax Business expenses Reimbursements, Allowances and reimbursements. File free state tax Business income, Business and Investment Income, More information. File free state tax C Cafeteria plans, Cafeteria plans. File free state tax Campaign contributions, Campaign contributions. File free state tax Campus lodging, Qualified campus lodging. File free state tax , Moving Expense Reimbursements Cancellation of debt, Canceled Debts Cancellation of sales contracts, Canceled sales contract. File free state tax Capital gains Recoveries, Capital gains. File free state tax , Capital gains. File free state tax Capital gains or losses Employee stock option plans (ESOPs), Option granted at a discount. 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File free state tax Chronic illness, Chronically ill individual. File free state tax Accelerated death benefits paid to, Exclusion for chronic illness. File free state tax Citizens outside U. File free state tax S. File free state tax Exclusion of foreign income, Reminders Civil Rights Act of 1964, Title VII Back pay and damages for emotional distress under, Court awards and damages. File free state tax Clergy, Clergy Coal, Coal and iron ore. File free state tax Colleges and universities Faculty lodging, Faculty lodging. File free state tax Scholarships and fellowships, Scholarships and fellowships. File free state tax Commissions Advance, Miscellaneous Compensation Commuter highway vehicles, Transportation Compensation Employee, Employee Compensation Miscellaneous, Miscellaneous Compensation Unemployment, Unemployment compensation. File free state tax Workers', Workers' Compensation Compensatory damages, Other compensation. File free state tax , Court awards and damages. File free state tax Constructive receipt of income, Constructively received income. File free state tax Copyrights Infringement damages, Court awards and damages. File free state tax Royalties, Copyrights and patents. File free state tax Corporate directors, Corporate director. File free state tax Cost-of-living allowances, Government cost-of-living allowances. File free state tax Court awards, Court awards and damages. File free state tax (see also Damages from lawsuits) Credit card Insurance, Credit card insurance. File free state tax Credits Recoveries, refiguring of unused credits, Unused tax credits. File free state tax , Unused tax credits. File free state tax Currency transactions, foreign, Foreign currency transactions. File free state tax D Damages from lawsuits, Court awards and damages. File free state tax Back pay awards, Back pay awards. File free state tax Breach of contract, Court awards and damages. File free state tax Compensatory damages, Other compensation. File free state tax , Court awards and damages. File free state tax Emotional distress under Title VII, Civil Rights Act of 1964, Court awards and damages. File free state tax Punitive damages, Court awards and damages. File free state tax Daycare providers, Childcare providers. File free state tax (see also Childcare providers) Food program payments to, Food program payments to daycare providers. File free state tax De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Death benefits, Proceeds not received in installments. File free state tax (see also Life insurance) Accelerated, Accelerated Death Benefits Debts Canceled, Canceled Debts Excluded debt, Excluded debt. File free state tax Nonrecourse debts, Mortgage relief upon sale or other disposition. File free state tax Recourse, Mortgage relief upon sale or other disposition. File free state tax Stockholder's, Stockholder debt. File free state tax Deduction Costs of discrimination suits, Deduction for costs involved in unlawful discrimination suits. File free state tax Deferred compensation Nonqualified plans, Nonqualified deferred compensation plans. File free state tax , Nonqualified deferred compensation plans of nonqualified entities. File free state tax Dependent care benefits, Dependent Care Benefits Depletion allowance, Depletion. File free state tax Differential wage payments, Differential wage payments. File free state tax Armed forces, Differential wage payments. File free state tax Directors' fees, Corporate director. File free state tax Disability Military, Disability. File free state tax Pensions, Disability Pensions Workers' compensation, Disability pension. File free state tax Person with, Persons with disabilities. File free state tax Unemployment compensation, paid as substitute for, Types of unemployment compensation. File free state tax Disaster relief Disaster mitigation payments, Disaster mitigation payments. File free state tax Disaster Relief and Emergency Assistance Act Grants, Disaster relief grants. File free state tax Unemployment benefits, Unemployment Benefits Mitigation payments, Reminders Payments, Disaster relief payments. File free state tax Discounts Employee discounts, Employee Discounts Employee stock purchase plans, Option granted at a discount. File free state tax Mortgage loan for early payment, Discounted mortgage loan. File free state tax Dividends Restricted stock, Dividends received on restricted stock. File free state tax Divorced taxpayers Stock options exercised incident to divorce, Tax form. File free state tax Down payment assistance, Down payment assistance. File free state tax E Educational assistance Employer-provided, Educational Assistance Scholarships and fellowships, Scholarships and fellowships. File free state tax Educational institutions Faculty lodging, Faculty lodging. File free state tax Elderly persons Nutrition Program for the Elderly, Nutrition Program for the Elderly. File free state tax Tax Counseling for the Elderly, Volunteer tax counseling. File free state tax Election precinct officials, Election precinct official. File free state tax Elective deferrals, Elective Deferrals Catch-up contributions, Catch-up contributions. File free state tax , Catch-up contributions. File free state tax Excess annual additions, Excess Annual Additions Excess contributions, Excess Contributions Excess deferrals, Excess deferrals. File free state tax Increased limit for last 3 years prior to retirement age, Increased limit. File free state tax Limit on, Elective Deferrals Reporting by employer, Reporting by employer. File free state tax Emergency Homeowners' Loan Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. File free state tax Emotional distress damages, Emotional distress. File free state tax Employee achievement awards, Employee achievement award. File free state tax Employee awards or bonuses, Employee awards or bonuses. File free state tax Employee compensation, Employee Compensation, Inherited property not substantially vested. File free state tax Fringe benefits, Fringe Benefits, Special valuation rules. File free state tax Restricted property, Restricted Property, Inherited property not substantially vested. File free state tax Retirement plan contributions, Retirement Plan Contributions Stock options, Stock Options, Statutory Stock Options Employee discounts, Employee Discounts Employee stock purchase plans, Statutory Stock Options, Employee stock purchase plan. File free state tax Employer, foreign, Foreign Employer Employer-owned life insurance, Employer-owned life insurance contract. File free state tax Employer-provided Educational assistance, Educational Assistance Vehicles, Employer-provided vehicles. File free state tax Employment Abroad, Employment abroad. File free state tax Agency fees, Employment agency fees. File free state tax Contracts Severance pay for cancellation of, Severance pay. File free state tax Endowment proceeds, Endowment Contract Proceeds Energy Assistance, Payments to reduce cost of winter energy. File free state tax Conservation Subsidies, Energy conservation subsidies. File free state tax Utility rebates, Utility rebates. File free state tax Estate income, Estate and trust income. File free state tax Estimated tax Unemployment compensation, Tax withholding. File free state tax Excess Annual additions, Excess Annual Additions Contributions, Excess Contributions Deferrals, Excess deferrals. File free state tax Expected inheritance, Expected inheritance. File free state tax Expenses paid by another, Expenses paid by another. File free state tax Exxon Valdez settlement, Exxon Valdez settlement income. File free state tax Eligible retirement plan, Contributions to eligible retirement plan. File free state tax Income averaging, Income averaging. File free state tax Legal expenses, Legal expenses. File free state tax Reporting requirement-statement, Statement. File free state tax F Faculty lodging, Faculty lodging. File free state tax Fair market value (FMV), Fair market value. File free state tax Stock options, Grant of option. File free state tax Farming Qualified farm debt, cancellation of, Excluded debt. File free state tax Federal employees Accrued leave payment, Accrued leave payment. File free state tax Cost-of-living allowances, Government cost-of-living allowances. File free state tax Disability pensions, Military and Government Disability Pensions Thrift Savings Plan for, Elective Deferrals Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). File free state tax Federal income tax Refunds, Federal income tax refund. File free state tax Fees for services, Fees for services. File free state tax Financial counseling fees, Financial Counseling Fees Fellowships, Scholarships and fellowships. File free state tax FICA withholding Foreign employers, U. File free state tax S. File free state tax citizens working for in U. File free state tax S. File free state tax , Social security and Medicare taxes. File free state tax Paid by employer, Social security and Medicare taxes paid by employer. File free state tax Fiduciaries Fees for services, Fees for services. File free state tax , Personal representatives. File free state tax Financial counseling fees, Financial Counseling Fees (see also Retirement planning services) Fitness programs Employer-provided, Athletic Facilities Flights Employer-provided aircraft, Flights on employer-provided aircraft. File free state tax No-additional-cost services, No-Additional-Cost Services Food benefits Daycare providers, food program payments to, Food program payments to daycare providers. File free state tax Nutrition Program for the Elderly, Nutrition Program for the Elderly. File free state tax Foreign Currency transactions, Foreign currency transactions. File free state tax Employment, Foreign Employer Governments, employees of, Employees of international organizations or foreign governments. File free state tax Income, Reminders Service, Service-connected disability. File free state tax Form 1040 Excess contributions to elective deferrals, Excess Contributions Recoveries, Where to report. File free state tax Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040 or 1040A, Schedule B Restricted stock dividends, Stock you chose to include in your income. File free state tax Form 1040, Schedule A Outplacement services, deduction for, Outplacement services. File free state tax Repayment of commissions paid in advance, Advance commissions and other earnings. File free state tax Form 1040, Schedule C Bartering, Bartering Childcare providers to use, Childcare providers. File free state tax Personal property rental, reporting income from, Reporting business income and expenses. File free state tax Royalties, Royalties Form 1040, Schedule C-EZ Bartering, Bartering Childcare Providers to use, Childcare providers. File free state tax Personal property rental, reporting income from, Reporting business income and expenses. File free state tax Royalties, Royalties Form 1040, Schedule D Stock options, Sale of the stock. File free state tax Stock options reported on, Statutory Stock Options Form 1040, Schedule E Partner's return, Partner's return. File free state tax Royalties, Royalties Form 1040A Recoveries, Where to report. File free state tax Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1040EZ Recoveries, Where to report. File free state tax Unemployment compensation, Unemployment Benefits Wages from Form W-2, Employee Compensation Form 1041 Estates and trusts, Estate and trust income. File free state tax Form 1041, Schedule K-1 Beneficiary's share of income, deductions, credits, etc. File free state tax , Estate and trust income. File free state tax Form 1065 Partnership return, Partnership return. File free state tax Form 1065, Schedule K-1 Partner's share of income, Schedule K-1 (Form 1065). File free state tax , Partnership Income Form 1098 Mortgage interest statement, Mortgage interest refund. File free state tax Form 1099-B Barter exchange transactions, Form 1099-B from barter exchange. File free state tax , Backup withholding. File free state tax Form 1099-C Cancellation of debt, Form 1099-C. File free state tax Form 1099-DIV Restricted stock dividends, Stock you chose to include in your income. File free state tax Form 1099-G State tax refunds, State tax refund. File free state tax Unemployment compensation, Unemployment Benefits Form 1099-MISC Services totaling $600 or more, Fees for services. File free state tax Stock options exercised incident to divorce, Tax form. File free state tax Form 1099-R Charitable gift annuities, Charitable gift annuities. File free state tax Excess annual additions, Excess Annual Additions Excess deferral amounts, Excess distributed to you. File free state tax Surrender of life insurance policy for cash, Surrender of policy for cash. File free state tax Form 1120-POL Political organizations, Campaign contributions. File free state tax Form 1120S S corporation return, S corporation return. File free state tax Form 1120S, Schedule K-1 Shareholder's share of income, credits, deductions, etc. File free state tax , Schedule K-1 (Form 1120S). File free state tax Form 2441 Child and dependent care expenses, Dependent Care Benefits Form 4255 Recapture of investment credit, Amounts Recovered for Credits Form 6251 Alternative minimum tax, Alternative minimum tax (AMT). File free state tax Form 8839 Adoption assistance, Adoption Assistance Form 8853 Accelerated death benefits, Form 8853. File free state tax Archer MSAs and long-term care insurance contracts, Archer MSA contributions. File free state tax Form 8919 Uncollected social security and Medicare tax on wages, Employee Compensation Form RRB-1099 Railroad retirement board payments, Form RRB-1099. File free state tax Form SSA-1099 Social security benefit statement, Form SSA-1099. File free state tax Form W-2 501(c)(18)(D) contributions, Section 501(c)(18)(D) contributions. File free state tax Accrued leave payment at time of retirement or resignation, Accrued leave payment. File free state tax Back pay awards, Back pay awards. File free state tax Bonuses or awards, Bonuses and awards. File free state tax Elective deferrals, reporting by employer, Reporting by employer. File free state tax Failure to receive from employer, Employee Compensation Fringe benefits reported on, Form W-2. File free state tax Stock options from employers, Tax form. File free state tax Wage and tax statement, Employee Compensation Form W-2G Gambling winnings, Form W-2G. File free state tax Form W-4V Unemployment compensation, voluntary withholding request, Tax withholding. File free state tax Form W-9 Request for taxpayer identification number, Backup withholding. File free state tax Foster care, Foster care providers. File free state tax Foster Grandparent Program, National Senior Service Corps programs. File free state tax Found property, Found property. File free state tax Free tax services, Free help with your tax return. File free state tax Fringe benefits, Fringe Benefits, Special valuation rules. File free state tax Accident and health insurance, Accident or Health Plan Adoption, employer assistance, Adoption Assistance Athletic facilities, Athletic Facilities Commuter highway vehicles, Transportation De minimis benefits, De Minimis (Minimal) Benefits, Meals and Lodging Dependent care benefits, Dependent Care Benefits Educational assistance, Educational Assistance Employee discounts, Employee Discounts Faculty lodging, Faculty lodging. File free state tax Financial counseling fees, Financial Counseling Fees Holiday gifts, Holiday gifts. File free state tax Meals and lodging, Meals and Lodging Moving expenses (see Moving expenses) No-additional-cost services, No-Additional-Cost Services Parking, Transportation Retirement planning (see Retirement planning services) Transit pass, Transportation, Transit pass. File free state tax Tuition reduction, Tuition Reduction Valuation of, Valuation of Fringe Benefits, Special valuation rules. File free state tax Vehicle, Employer-provided vehicles. File free state tax Working condition benefits, Working Condition Benefits Frozen deposits Interest on, Interest on frozen deposits. File free state tax G Gambling winnings and losses, Gambling winnings. File free state tax Gas Royalties from, Oil, gas, and minerals. File free state tax Gifts, Gifts and inheritances. File free state tax Holiday gifts from employer, Holiday gifts. File free state tax Government employees (see Federal employees; State employees) Grantor trusts, Grantor trust. File free state tax Group-term life insurance Worksheets, Figuring the taxable cost. File free state tax , Worksheet 1. File free state tax Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Gulf oil spill, Reminders, Gulf oil spill. File free state tax H HAMP Home affordable modification program Pay-for-performance success payments, Home Affordable Modification Program (HAMP). File free state tax Hardest Hit Fund Program, Hardest Hit Fund and Emergency Homeowners' Loan Program. File free state tax Health Flexible spending arrangement, Health flexible spending arrangement (health FSA). File free state tax Insurance, Accident or Health Plan Reimbursement arrangement, Health reimbursement arrangement (HRA). File free state tax Savings account, Health savings accounts (HSA). File free state tax Help (see Tax help) Highly compensated employees Excess contributions to elective deferrals, Excess Contributions Historic preservation grants, Historic preservation grants. File free state tax Hobby losses, Hobby losses. File free state tax Holding period requirement, Holding period requirement. File free state tax Holiday gifts, Holiday gifts. File free state tax Holocaust victims restitution, Holocaust victims restitution. File free state tax Home, sale of, Sale of home. File free state tax Host or hostess, Host or Hostess Hotels No-additional-cost services, No-Additional-Cost Services Housing (see Lodging) I Illegal activities, Illegal activities. File free state tax Incentive stock options (ISOs), Statutory Stock Options, Incentive stock options (ISOs). File free state tax Income Assigned, Assignment of income. File free state tax Business and investment, Business and Investment Income, More information. File free state tax Constructive receipt of, Constructively received income. File free state tax Estate and trust, Estate and trust income. File free state tax Foreign employers, Foreign Employer Illegal, Illegal activities. File free state tax Miscellaneous, Miscellaneous Income Other, Other Income Partnership, Partnership Income Prepaid, Prepaid income. File free state tax S corporation, S Corporation Income Indian fishing rights, Indian fishing rights. File free state tax Indian money account, Indian money account litigation settlement. File free state tax Individual retirement arrangements (IRAs) Deduction, Benefits may affect your IRA deduction. File free state tax Inherited IRA, Inherited pension or IRA. File free state tax Inheritance, Gifts and inheritances. File free state tax IRA, Inherited pension or IRA. File free state tax Property not substantially vested, Inherited property not substantially vested. File free state tax Injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. File free state tax Insurance Credit card, Credit card insurance. File free state tax Health, Accident or Health Plan Life (see Life insurance) Long-term care (see Long-term care insurance) Interest Canceled debt including, Interest included in canceled debt. File free state tax Frozen deposits, Interest on frozen deposits. File free state tax Mortgage refunds, Mortgage interest refund. File free state tax Option on insurance, Interest option on insurance. File free state tax Recovery amounts, Interest on recovery. File free state tax Savings bond, Interest on qualified savings bonds. File free state tax State and local government obligations, Interest on state and local government obligations. File free state tax Interference with business operations Damages as income, Court awards and damages. File free state tax International organizations, employees of, Foreign Employer Interview expenses, Job interview expenses. File free state tax Investment counseling fees, Financial Counseling Fees (see also Retirement planning services) Investment income, Business and Investment Income, More information. File free state tax IRAs (see Individual retirement arrangements (IRAs)) Iron ore, Coal and iron ore. File free state tax Itemized deductions Limited, Itemized deductions limited. File free state tax Recoveries, Recoveries, Itemized Deduction Recoveries J Job interview expenses, Job interview expenses. File free state tax Joint returns Social security benefits or railroad retirement payments, Joint return. File free state tax Joint state/local tax return Recoveries, Joint state or local income tax return. File free state tax Jury duty pay, Jury duty. File free state tax K Kickbacks, Kickbacks. File free state tax L Labor unions Convention expenses, reimbursed, Reimbursed union convention expenses. File free state tax Dues, Union benefits and dues. File free state tax Strike and lockout benefits, Strike and lockout benefits. File free state tax Unemployment benefits paid from, Payments by a union. File free state tax Last day of tax year, income received on, Constructively received income. File free state tax Leave (see Accrued leave payment) Length-of-service awards, Employee achievement award. File free state tax Life insurance Employer-owned, Employer-owned life insurance contract. File free state tax Proceeds, Life Insurance Proceeds Surrender of policy for cash, Surrender of policy for cash. File free state tax Loans, Discounted mortgage loan. File free state tax (see also Mortgage) Below-market, Below-market loans. File free state tax Student, Student loans. File free state tax Lockout benefits, Strike and lockout benefits. File free state tax Lodging Campus lodging, Qualified campus lodging. File free state tax , Moving Expense Reimbursements Clergy, Housing Employer-paid or reimbursed, Meals and Lodging Faculty lodging, Faculty lodging. File free state tax Replacement housing payments, Replacement housing payments. File free state tax Long-term care insurance, Long-term care coverage. File free state tax , Long-Term Care Insurance Contracts Lotteries and raffles, Lotteries and raffles. File free state tax Lump-sum distributions Survivor benefits, Lump-sum payments. File free state tax M Manufacturer incentive payments, Manufacturer incentive payments. File free state tax Meals Employer-paid or reimbursed, Meals and Lodging Nutrition Program for the Elderly, Nutrition Program for the Elderly. File free state tax Medical Care reimbursements, Reimbursement for medical care. File free state tax Savings accounts, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File free state tax Medicare Advantage MSAs, Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File free state tax Benefits, Medicare. File free state tax Tax paid by employer, Social security and Medicare taxes paid by employer. File free state tax Medicare tax (see Social security and Medicare taxes) Military (see Armed forces) Minerals Royalties from, Oil, gas, and minerals. File free state tax Miscellaneous Compensation, Miscellaneous Compensation Income, Miscellaneous Income Missing children, photographs of, Reminders Mortgage Assistance payment (under sec. File free state tax 235 of National Housing Act), Mortgage assistance payments under section 235 of the National Housing Act. File free state tax Discounted loan, Discounted mortgage loan. File free state tax Interest refund, Mortgage interest refund. File free state tax Qualified principal residence indebtedness, Qualified principal residence indebtedness (QPRI). File free state tax Relief, Mortgage relief upon sale or other disposition. File free state tax Motor vehicle, employer-provided, Employer-provided vehicles. File free state tax Moving expenses Reimbursements, Allowances and reimbursements. File free state tax , Moving expense reimbursements. File free state tax MSAs (Medical savings accounts), Medical savings accounts (Archer MSAs and Medicare Advantage MSAs). File free state tax N National Health Service Corps Scholarship Program, Tuition Reduction National Oceanic and Atmospheric Administration, Service-connected disability. File free state tax National Senior Service Corps, National Senior Service Corps programs. File free state tax No-additional-cost services, No-Additional-Cost Services No-fault car insurance Disability benefits under, Other compensation. File free state tax Nobel prize, Pulitzer, Nobel, and similar prizes. File free state tax Nonrecourse debt, Mortgage relief upon sale or other disposition. File free state tax Nonstatutory stock options, Nonstatutory Stock Options Nontaxable income, Introduction Not-for-profit activities, Activity not for profit. File free state tax Notary fees, Notary public. File free state tax Notes received for services, Note received for services. File free state tax Nutrition Program for the Elderly, Nutrition Program for the Elderly. File free state tax O Oil Royalties from, Oil, gas, and minerals. File free state tax Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). File free state tax Options, stock, Stock Options, Statutory Stock Options Outplacement services, Outplacement services. File free state tax Overseas work, Reminders P Parking fees Employer-paid or reimbursed, Transportation, Qualified parking. File free state tax Partner and partnership income, Partnership Income Patents Infringement damages, Court awards and damages. File free state tax Royalties, Copyrights and patents. File free state tax Peace Corps, Peace Corps. File free state tax Pensions Clergy, Pension. File free state tax Disability pensions, Disability Pensions Inherited pensions, Inherited pension or IRA. File free state tax Military, Military retirement pay. File free state tax Personal property Rental income and expense, Rents From Personal Property Sale of, Sale of personal items. File free state tax Personal representatives (see Fiduciaries) Prepaid income, Prepaid income. File free state tax Price reduced after purchase, Price reduced after purchase. File free state tax Prizes and awards, Bonuses and awards. File free state tax , Prizes and awards. File free state tax Achievement awards, Employee achievement award. File free state tax Employee awards or bonuses, Employee awards or bonuses. File free state tax Length-of-service awards, Employee achievement award. File free state tax Pulitzer, Nobel, and similar prizes, Pulitzer, Nobel, and similar prizes. File free state tax Safety achievement, Employee achievement award. File free state tax Scholarship prizes, Prizes. File free state tax Profit-sharing plan, Retirement and profit-sharing plans. File free state tax Public assistance benefits, Welfare and Other Public Assistance Benefits Public Health Service, Service-connected disability. File free state tax Public safety officers killed in line of duty, Public safety officer killed in the line of duty. File free state tax Public transportation passes, employer-provided, Transportation, Transit pass. File free state tax Publications (see Tax help) Pulitzer prize, Pulitzer, Nobel, and similar prizes. File free state tax Punitive damages, Court awards and damages. File free state tax Q Qualified joint venture, Reminders Qualified tuition program (QTP), Qualified tuition program (QTP). File free state tax R Raffles, Lotteries and raffles. File free state tax Railroad Retirement annuities, Railroad retirement annuities. File free state tax Retirement benefits, Social security and equivalent railroad retirement benefits. File free state tax Sick pay, Railroad sick pay. File free state tax Unemployment compensation benefits, Types of unemployment compensation. File free state tax Real estate Qualified real property business debt, cancellation of, Excluded debt. File free state tax Rebates Cash, Cash rebates. File free state tax Utility, Utility rebates. File free state tax Recovery of amounts previously deducted, Recoveries, Standard deduction for earlier years. File free state tax Itemized deductions, Recoveries, Itemized Deduction Recoveries Non-itemized deductions, Non-Itemized Deduction Recoveries Unused tax credits, refiguring of, Unused tax credits. File free state tax , Unused tax credits. File free state tax Refunds Federal income tax, Federal income tax refund. File free state tax Mortgage interest, Mortgage interest refund. File free state tax State tax, State tax refund. File free state tax Rehabilitative program payments, Veterans' benefits. File free state tax Reimbursements Business expenses, Allowances and reimbursements. File free state tax Casualty losses, Casualty insurance and other reimbursements. File free state tax Meals and lodging, Meals and Lodging Medical expenses, Reimbursement for medical care. File free state tax Moving expenses, Allowances and reimbursements. File free state tax , Moving expense reimbursements. File free state tax Related party transactions Stock option transfer, Transfer in non-arm's-length transaction. File free state tax Religious order members, Members of Religious Orders Rental income and expenses Personal property rental, Rents From Personal Property Reporting of, Reporting business income and expenses. File free state tax Repayments, Repayments, Year of deduction (or credit). File free state tax Repossession, Canceled sales contract. File free state tax Restricted property, Restricted Property, Inherited property not substantially vested. File free state tax Retired Senior Volunteer Program (RSVP), National Senior Service Corps programs. File free state tax Retirement Settlement, Reminders Retirement planning services, Financial Counseling Fees, Retirement Planning Services Retirement plans, Military retirement pay. File free state tax (see also Pensions) Automatic contribution arrangements, Qualified automatic contribution arrangements. File free state tax Contributions, Retirement Plan Contributions, Excess Annual Additions, Statutory Stock Options Elective deferrals (see Elective deferrals) Rewards, Rewards. File free state tax Roth contributions, Designated Roth contributions. File free state tax Royalties, Royalties S S corporations, S Corporation Income Safety achievement awards, Employee achievement award. File free state tax Salary reduction simplified employee pension plans (see SARSEPs) Sale of home, Sale of home. File free state tax Sales contracts Cancellation of, Canceled sales contract. File free state tax SARSEPs, Elective Deferrals Excess contributions, Excess Contributions Savings bonds, Interest on qualified savings bonds. File free state tax Savings incentive match plans for employees (see SIMPLE plans) Scholarships and fellowships, Scholarships and fellowships. File free state tax Self-employed persons U. File free state tax S. File free state tax citizens working for foreign employers in U. File free state tax S. File free state tax treated as, Social security and Medicare taxes. File free state tax Senior Companion Program, National Senior Service Corps programs. File free state tax Service Corps of Retired Executives (SCORE), Service Corps of Retired Executives (SCORE). File free state tax Severance pay, Severance pay. File free state tax Outplacement services, Outplacement services. File free state tax Sick pay, Sick pay. File free state tax Sickness and injury benefits, Sickness and Injury Benefits, Reimbursement for medical care. File free state tax SIMPLE plans, Elective Deferrals Limit for deferrals under, Limit for deferrals under SIMPLE plans. File free state tax Smallpox vaccine injuries, Smallpox vaccine injuries. File free state tax Social security and Medicare taxes Foreign employers, U. File free state tax S. File free state tax citizens working for in U. File free state tax S. File free state tax , Social security and Medicare taxes. File free state tax Paid by employer, Social security and Medicare taxes paid by employer. File free state tax Social security benefits, Social security and equivalent railroad retirement benefits. File free state tax Standard deduction Recoveries, Standard deduction limit. File free state tax , Standard deduction for earlier years. File free state tax State employees Unemployment benefits paid to, State employees. File free state tax State or local governments Interest on obligations of, Interest on state and local government obligations. File free state tax State or local taxes Refunds, State tax refund. File free state tax Statutory stock option holding period, Sale of the stock. File free state tax Stock appreciation rights, Stock appreciation rights. File free state tax Stock options, Stock Options, Statutory Stock Options Stock options, nonstatutory Exercise or transfer, Exercise or transfer of option. File free state tax Grant, Grant of option. File free state tax Sale, Sale of the stock. File free state tax Stock options, statutory Exercise, Exercise of option. File free state tax Grant, Grant of option. File free state tax Sale, Sale of the stock. File free state tax Stockholder debts, Stockholder debt. File free state tax Stolen property, Stolen property. File free state tax Strike benefits, Strike and lockout benefits. File free state tax Student loans Cancellation of debt, Student loans. File free state tax Substantial risk of forfeiture, Substantial risk of forfeiture. File free state tax Substantially vested property, Substantially vested. File free state tax Supplemental security income (SSI) payments, Social security and equivalent railroad retirement benefits. File free state tax Supplemental unemployment benefits, Supplemental unemployment benefits. File free state tax Surviving spouse Life insurance proceeds paid to, Surviving spouse. File free state tax Survivor benefits, Survivor Benefits T Tables and figures Group-term life insurance (Table 1), Group-Term Life Insurance Tax benefit rule, Tax benefit rule. File free state tax Tax Counseling for the Elderly, Volunteer tax counseling. File free state tax Tax help, How To Get Tax Help Tax-sheltered annuity plans (403(b) plans), Elective Deferrals Limit for, Limit for tax-sheltered annuities. File free state tax Terminal illness, Exclusion for terminal illness. File free state tax Terrorist attacks Disability payments for injuries from, Terrorist attack or military action. File free state tax Victims of, tax relief, Reminders Thrift Savings Plan, Elective Deferrals Title VII, Civil Rights Act of 1964 Back pay and damages for emotional distress under, Court awards and damages. File free state tax Tour guides, free tours for, Free tour. File free state tax Trade Act of 1974 Trade readjustment allowances under, Types of unemployment compensation. File free state tax , Repayment of benefits. File free state tax Transferable property, Transferable property. File free state tax Transit passes, Transportation, Transit pass. File free state tax Travel agencies Free tour to organizer of group of tourists, Free tour. File free state tax Travel and transportation expenses Free tours from travel agencies, Free tour. File free state tax Fringe benefits, Transportation Reimbursements, Allowances and reimbursements. File free state tax School children, transporting of, Transporting school children. File free state tax Trusts Grantor trusts, Grantor trust. File free state tax Income, Estate and trust income. File free state tax Tuition program, qualified (QTP), Qualified tuition program (QTP). File free state tax Tuition reduction, Tuition Reduction U Unemployment compensation, Unemployment Benefits Unions (see Labor unions) Unlawful discrimination suits Deduction for costs, Deduction for costs involved in unlawful discrimination suits. File free state tax V VA payments, VA payments. File free state tax Valuation Fringe benefits, Valuation of Fringe Benefits, Special valuation rules. File free state tax Stock options, Nonstatutory Stock Options Vehicle Commuter highway, Commuter highway vehicle. File free state tax Employer-provided, Employer-provided vehicles. File free state tax Veterans benefits, Veterans' benefits. File free state tax Disability compensation, Retroactive VA determination. File free state tax Retroactive VA determination, Retroactive VA determination. File free state tax Special statute of limitations. File free state tax , Special statute of limitations. File free state tax Viatical settlements, Viatical settlement. File free state tax Volunteer work, Volunteers Tax counseling (Volunteer Income Tax Assistance Program), Volunteer tax counseling. File free state tax Volunteers in Service to America (VISTA), Volunteers in Service to America (VISTA). File free state tax W W-2 form (see Form W-2) Welfare benefits, Welfare and Other Public Assistance Benefits Whistleblower, Whistleblower's award. File free state tax Winter energy payments, Payments to reduce cost of winter energy. File free state tax Withholding Barter exchange transactions, Backup withholding. File free state tax Unemployment compensation, Tax withholding. File free state tax Work-training programs, Work-training program. File free state tax Workers' compensation, Workers' Compensation Working condition benefits, Working Condition Benefits Worksheets Group-term life insurance (Worksheet 1), Figuring the taxable cost. File free state tax , Worksheet 1. File free state tax Figuring the Cost of Group-Term Life Insurance To Include in Income—Illustrated Prev  Up     Home   More Online Publications
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Understanding your CP276B Notice

We didn't receive the correct amount of tax deposits. We normally charge a Federal Tax Deposit penalty when this happens. We decided not to do so this time.

Printable samples of this notice (PDF)

Tax publications you may find useful

How to get help

Calling the toll free number listed on the top right corner of your notice is the fastest way to get your questions answered.

You can also authorize someone (such as an accountant) to contact the IRS on your behalf using this Power of Attorney and Declaration of Representative (Form 2848).
 


What you need to do

  • Review your records to see if you are paying your current payroll taxes on time.
  • Correct the copy of your tax return and the tax liability schedule that you kept for your records.

You may want to...


Answers to Common Questions

Do I have to reply to this notice?
No, but you should check your records to see why your tax deposits were incorrect.

How do I know whether I should make monthly or semiweekly payroll tax deposits?
Go back and look at the total tax liability for the four quarters before the quarter ending in June of last year if you file a quarterly return. Annual return filers should go back and look at the total tax liability of the year before their previous filing year.

For either a quarterly or an annual filer, a total tax liability of $50,000 or less means you can make your federal payroll tax deposits monthly. A tax liability greater than $50,000 means you have to make semiweekly payroll tax deposits.

When are my payroll tax deposits due?
The following table shows the schedule for semiweekly payroll tax deposits:

When Then
The payroll tax liability period is Saturday, Sunday, Monday, and Tuesday Make the tax deposit by the following Friday.
The payroll tax liability period is Wednesday, Thursday, and Friday Make the tax deposit by the following Wednesday.
A holiday falls on a weekday after the payroll tax liability period and before or on the normal deposit day Extend the deposit due date one business day for each day of holiday.

Monthly payroll tax depositors must make their tax deposits by the fifteenth of each month. When the fifteenth falls on a Saturday, a Sunday, or a legal holiday, tax deposits are due on the next business day.

Do I have to make my payroll tax deposits electronically?
Normally, yes. However, you may send your payment in with your tax return when your tax liability is $2,500 or less. If you file a quarterly tax return, another time when you may send in your payment with your return is when:

  • Your tax liabilities never totaled $100,000 or more in a deposit period, and
  • Your tax liability in the preceding quarter was $2,500 or less.

Tips for next time you file

Report each tax liability (not your deposits) on the tax liability schedule.

Make sure that that the amount on your tax liability schedule matches the payroll tax amount on your tax return.

Do not list negative amounts on your tax liability schedule.


Understanding your notice

Reading your notice
Your notice may look different from the sample because the information contained in your notice is tailored to your situation.

Notice CP276B, Page 1

Notice CP276B, Page 2

Page Last Reviewed or Updated: 27-Jan-2014

The File Free State Tax

File free state tax 4. File free state tax   Communications and Air Transportation Taxes Table of Contents Uncollected Tax Report Communications TaxLocal-only service. File free state tax Private communication service. File free state tax Exemptions Credits or Refunds Air Transportation TaxesTransportation of Persons by Air International Air Travel Facilities Transportation of Property by Air Special Rules on Transportation Taxes Excise taxes are imposed on amounts paid for certain facilities and services. File free state tax If you receive any payment on which tax is imposed, you are required to collect the tax, file returns, and pay the tax over to the government. File free state tax If you fail to collect and pay over the taxes, you may be liable for the trust fund recovery penalty. File free state tax See chapter 14, later. File free state tax Uncollected Tax Report A separate report is required to be filed by collecting agents of communications services and air transportation taxes if the person from whom the facilities or services tax (the tax) is required to be collected (the taxpayer) refuses to pay the tax, or it is impossible for the collecting agent to collect the tax. File free state tax The report must contain the name and address of the taxpayer, the type of facility provided or service rendered, the amount paid for the facility or service (the amount on which the tax is based), and the date paid. File free state tax Regular method taxpayers. File free state tax   For regular method taxpayers, the report must be filed by the due date of the Form 720 on which the tax would have been reported. File free state tax Alternative method taxpayers. File free state tax   For alternative method taxpayers, the report must be filed by the due date of the Form 720 that includes an adjustment to the separate account for the uncollected tax. File free state tax See Alternative method in  chapter 11. File free state tax Where to file. File free state tax    Do not file the uncollected tax report with Form 720. File free state tax Instead, mail the report to: Internal Revenue Service Excise Tax Program SE:S:SP:EX MS C9-109 5000 Ellin Rd. File free state tax  Lanham, MD 20706 Communications Tax A 3% tax is imposed on amounts paid for local telephone service and teletypewriter exchange service. File free state tax Local telephone service. File free state tax   This includes access to a local telephone system and the privilege of telephonic quality communication with most people who are part of the system. File free state tax Local telephone service also includes any facility or services provided in connection with this service. File free state tax The tax applies to lease payments for certain customer premises equipment (CPE) even though the lessor does not also provide access to a local telecommunications system. File free state tax Local-only service. File free state tax   Local-only service is local telephone service as described above, provided under a plan that does not include long distance telephone service or that separately states the charge for local service on the bill to customers. File free state tax Local-only service also includes any facility or services provided in connection with this service, even though these services and facilities may also be used with long-distance service. File free state tax Private communication service. File free state tax   Private communication service is not local telephone service. File free state tax Private communication service includes accessory-type services provided in connection with a Centrex, PBX, or other similar system for dual use accessory equipment. File free state tax However, the charge for the service must be stated separately from the charge for the basic system, and the accessory must function, in whole or in part, in connection with intercommunication among the subscriber's stations. File free state tax Teletypewriter exchange service. File free state tax   This includes access from a teletypewriter or other data station to a teletypewriter exchange system and the privilege of intercommunication by that station with most persons having teletypewriter or other data stations in the same exchange system. File free state tax Figuring the tax. File free state tax   The tax is based on the sum of all charges for local telephone service included in the bill. File free state tax However, if the bill groups individual items for billing and tax purposes, the tax is based on the sum of the individual items within that group. File free state tax The tax on the remaining items not included in any group is based on the charge for each item separately. File free state tax Do not include in the tax base state or local sales or use taxes that are separately stated on the taxpayer's bill. File free state tax Exemptions Payments for certain services or payments from certain users are exempt from the communications tax. File free state tax Nontaxable service. File free state tax   Nontaxable service means bundled service and long distance service. File free state tax Nontaxable service also includes pre-paid telephone cards and pre-paid cellular service. File free state tax Bundled service. File free state tax   Bundled service is local and long distance service provided under a plan that does not separately state the charge for the local telephone service. File free state tax Bundled service includes plans that provide both local and long distance service for either a flat monthly fee or a charge that varies with the elapsed transmission time for which the service is used. File free state tax Telecommunications companies provide bundled service for both landlines and wireless (cellular) service. File free state tax If Voice over Internet Protocol service provides both local and long distance service and the charges are not separately stated, such service is bundled service. File free state tax   The method for sending or receiving a call, such as on a landline telephone, wireless (cellular), or some other method, does not affect whether a service is local-only or bundled. File free state tax Long distance service. File free state tax   Long distance service is telephonic quality communication with persons whose telephones are outside the local telephone system of the caller. File free state tax Pre-paid telephone cards (PTC). File free state tax   A PTC will be treated as bundled service unless a PTC expressly states it is for local-only service. File free state tax Generally, the person responsible for collecting the tax is the carrier who transfers the PTC to the transferee. File free state tax The transferee is the first person that is not a carrier to whom a PTC is transferred by the carrier. File free state tax The transferee is the person liable for the tax and is eligible to request a credit or refund. File free state tax For more information, see Regulations section 49. File free state tax 4251-4. File free state tax   The holder is the person that purchases a PTC to use and not to resell. File free state tax Holders are not liable for the tax and cannot request a credit or refund. File free state tax Pre-paid cellular telephones. File free state tax   Rules similar to the PTC rules described above apply to pre-paid cellular telephones. File free state tax The transferee is the person eligible to request the credit or refund. File free state tax Installation charges. File free state tax   The tax does not apply to payments received for the installation of any instrument, wire, pole, switchboard, apparatus, or equipment. File free state tax However, the tax does apply to payments for the repair or replacement of those items incidental to ordinary maintenance. File free state tax Answering services. File free state tax   The tax does not apply to amounts paid for a private line, an answering service, and a one-way paging or message service if they do not provide access to a local telephone system and the privilege of telephonic communication as part of the local telephone system. File free state tax Mobile radio telephone service. File free state tax   The tax does not apply to payments for a two-way radio service that does not provide access to a local telephone system. File free state tax Coin-operated telephones. File free state tax   The tax for local telephone service does not apply to payments made for services by inserting coins in public coin-operated telephones. File free state tax But the tax applies if the coin-operated telephone service is furnished for a guaranteed amount. File free state tax Figure the tax on the amount paid under the guarantee plus any fixed monthly or other periodic charge. File free state tax Telephone-operated security systems. File free state tax   The tax does not apply to amounts paid for telephones used only to originate calls to a limited number of telephone stations for security entry into a building. File free state tax In addition, the tax does not apply to any amounts paid for rented communication equipment used in the security system. File free state tax News services. File free state tax   The tax on teletypewriter exchange service does not apply to charges for the following news services. File free state tax Services dealing exclusively with the collection or dissemination of news for or through the public press or radio or television broadcasting. File free state tax Services used exclusively in the collection or dissemination of news by a news ticker service furnishing a general news service similar to that of the public press. File free state tax This exemption applies to payments received for messages from one member of the news media to another member (or to or from their bona fide correspondents). File free state tax For the exemption to apply, the charge for these services must be billed in writing to the person paying for the service and that person must certify in writing that the services are used for an exempt purpose. File free state tax Services not exempted. File free state tax   The tax applies to amounts paid by members of the news media for local telephone service. File free state tax International organizations and the American Red Cross. File free state tax   The tax does not apply to communication services furnished to an international organization or to the American National Red Cross. File free state tax Nonprofit hospitals. File free state tax   The tax does not apply to telephone services furnished to income tax-exempt nonprofit hospitals for their use. File free state tax Also, the tax does not apply to amounts paid by these hospitals to provide local telephone service in the homes of their personnel who must be reached during their off-duty hours. File free state tax Nonprofit educational organizations. File free state tax   The tax does not apply to payments received for services and facilities furnished to a nonprofit educational organization for its use. File free state tax A nonprofit educational organization is one that satisfies all the following requirements. File free state tax It normally maintains a regular faculty and curriculum. File free state tax It normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on. File free state tax It is exempt from income tax under section 501(a). File free state tax This includes a school operated by an organization exempt under section 501(c)(3) if the school meets the above qualifications. File free state tax Qualified blood collector organizations. File free state tax   The tax does not apply to telephone services furnished to qualified blood collector organizations for their use. File free state tax A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered with the IRS, and Registered by the Food and Drug Administration to collect blood. File free state tax Federal, state, and local government. File free state tax   The tax does not apply to communication services provided to the government of the United States, the government of any state or its political subdivisions, the District of Columbia, or the United Nations. File free state tax Treat an Indian tribal government as a state for the exemption from the communications tax only if the services involve the exercise of an essential tribal government function. File free state tax Exemption certificate. File free state tax   Any form of exemption certificate will be acceptable if it includes all the information required by the Internal Revenue Code and Regulations. File free state tax See Regulations section 49. File free state tax 4253-11. File free state tax File the certificate with the provider of the communication services. File free state tax An exemption certificate is not required for nontaxable services. File free state tax   The following users that are exempt from the communications tax do not have to file an annual exemption certificate after they have filed the initial certificate to claim an exemption from the communications tax. File free state tax The American National Red Cross and other international organizations. File free state tax Nonprofit hospitals. File free state tax Nonprofit educational organizations. File free state tax Qualified blood collector organizations. File free state tax State and local governments. File free state tax   The federal government does not have to file any exemption certificate. File free state tax   All other organizations must furnish exemption certificates when required. File free state tax Credits or Refunds If tax is collected and paid over for nontaxable services, or for certain services or users exempt from the communications tax, the collector or taxpayer may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. File free state tax Alternatively, the person who paid the tax may claim a refund. File free state tax For more information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. File free state tax Collectors. File free state tax   The collector may request a credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. File free state tax These requirements also apply to nontaxable service refunds. File free state tax Collectors using the regular method for deposits. File free state tax   Collectors using the regular method for deposits must use Form 720X to request a credit or refund if the collector has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. File free state tax Collectors using the alternative method for deposits. File free state tax   Collectors using the alternative method for deposits must adjust their separate accounts for the credit or refund if it has repaid the tax to the person from whom the tax was collected, or obtained the consent of that person to the allowance of the credit or refund. File free state tax For more information, see the Instructions for Form 720. File free state tax Air Transportation Taxes Taxes are imposed on amounts paid for: Transportation of persons by air, Use of international air travel facilities, and Transportation of property by air. File free state tax Transportation of Persons by Air The tax on transportation of persons by air is made up of the: Percentage tax, and Domestic-segment tax. File free state tax Percentage tax. File free state tax   A tax of 7. File free state tax 5% applies to amounts paid for taxable transportation of persons by air. File free state tax Amounts paid for transportation include charges for layover or waiting time and movement of aircraft in deadhead service. File free state tax Mileage awards. File free state tax   The percentage tax may apply to an amount paid (in cash or in kind) to an air carrier (or any related person) for the right to provide mileage awards for, or other reductions in the cost of, any transportation of persons by air. File free state tax For example, this applies to mileage awards purchased by credit card companies, telephone companies, restaurants, hotels, and other businesses. File free state tax   Generally, the percentage tax does not apply to amounts paid for mileage awards where the mileage awards cannot, under any circumstances, be redeemed for air transportation that is subject to the tax. File free state tax Until regulations are issued, the following rules apply to mileage awards. File free state tax Amounts paid for mileage awards that cannot be redeemed for taxable transportation beginning and ending in the United States are not subject to the tax. File free state tax For this rule, mileage awards issued by a foreign air carrier are considered to be usable only on that foreign air carrier and thus not redeemable for taxable transportation beginning and ending in the United States. File free state tax Therefore, amounts paid to a foreign air carrier for mileage awards are not subject to the tax. File free state tax Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are not subject to the tax to the extent those miles will be awarded in connection with the purchase of taxable transportation. File free state tax Amounts paid by an air carrier to a domestic air carrier for mileage awards that can be redeemed for taxable transportation are subject to the tax to the extent those miles will not be awarded in connection with the purchase of taxable transportation. File free state tax Domestic-segment tax. File free state tax   The domestic-segment tax is a flat dollar amount for each segment of taxable transportation for which an amount is paid. File free state tax However, see Rural airports, later. File free state tax A segment is a single takeoff and a single landing. File free state tax The amount of the domestic-segment tax is in the Instructions for Form 720. File free state tax Charter flights. File free state tax    If an aircraft is chartered, the domestic-segment tax for each segment of taxable transportation is figured by multiplying the tax by the number of passengers transported on the aircraft. File free state tax Rural airports. File free state tax   The domestic-segment tax does not apply to a segment to or from a rural airport. File free state tax An airport is a rural airport for a calendar year if fewer than 100,000 commercial passengers departed from the airport by air during the second preceding calendar year (the 100,000 passenger rule), and one of the following is true: The airport is not located within 75 miles of another airport from which 100,000 or more commercial passengers departed during the second preceding calendar year, The airport was receiving essential air service subsidies as of August 5, 1997, or The airport is not connected by paved roads to another airport. File free state tax   To apply the 100,000 passenger rule to any airport described in (3) above, only count commercial passengers departing from the airport by air on flight segments of at least 100 miles. File free state tax   An updated list of rural airports can be found on the Department of Transportation website at www. File free state tax dot. File free state tax gov and enter the phrase “Essential Air Service” in the search box. File free state tax Taxable transportation. File free state tax   Taxable transportation is transportation by air that meets either of the following tests. File free state tax It begins and ends either in the United States or at any place in Canada or Mexico not more than 225 miles from the nearest point on the continental United States boundary (this is the 225-mile zone). File free state tax It is directly or indirectly from one port or station in the United States to another port or station in the United States, but only if it is not a part of uninterrupted international air transportation, discussed later. File free state tax Round trip. File free state tax   A round trip is considered two separate trips. File free state tax The first trip is from the point of departure to the destination. File free state tax The second trip is the return trip from that destination. File free state tax Uninterrupted international air transportation. File free state tax   This means transportation entirely by air that does not begin and end in the United States or in the 225-mile zone if there is not more than a 12-hour scheduled interval between arrival and departure at any station in the United States. File free state tax For a special rule that applies to military personnel, see Exemptions, later. File free state tax Transportation between the continental U. File free state tax S. File free state tax and Alaska or Hawaii. File free state tax   This transportation is partially exempt from the tax on transportation of persons by air. File free state tax The tax does not apply to the part of the trip between the point at which the route of transportation leaves or enters the continental United States (or a port or station in the 225-mile zone) and the point at which it enters or leaves Hawaii or Alaska. File free state tax Leaving or entering occurs when the route of the transportation passes over either the United States border or a point 3 nautical miles (3. File free state tax 45 statute miles) from low tide on the coast line, or when it leaves a port or station in the 225-mile zone. File free state tax Therefore, this transportation is subject to the percentage tax on the part of the trip in U. File free state tax S. File free state tax airspace, the domestic-segment tax for each domestic segment, and the tax on the use of international air travel facilities, discussed later. File free state tax Transportation within Alaska or Hawaii. File free state tax   The tax on transportation of persons by air applies to the entire fare paid in the case of flights between any of the Hawaiian Islands, and between any ports or stations in the Aleutian Islands or other ports or stations elsewhere in Alaska. File free state tax The tax applies even though parts of the flights may be over international waters or over Canada, if no point on the direct line of transportation between the ports or stations is more than 225 miles from the United States (Hawaii or Alaska). File free state tax Package tours. File free state tax   The air transportation taxes apply to “complimentary” air transportation furnished solely to participants in package holiday tours. File free state tax The amount paid for these package tours includes a charge for air transportation even though it may be advertised as “free. File free state tax ” This rule also applies to the tax on the use of international air travel facilities, discussed later. File free state tax Liability for tax. File free state tax   The person paying for taxable transportation is liable for the tax and, ordinarily, the person receiving the payment collects the tax, files the returns, and pays the tax over to the government. File free state tax However, if payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation provided for under that order must collect the tax. File free state tax    A travel agency that is an independent broker and sells tours on aircraft that it charters must collect the transportation tax, file the returns, and pay the tax over to the government. File free state tax However, a travel agency that sells tours as the agent of an airline must collect the tax and remit it to the airline for the filing of returns and for the payment of the tax over to the government. File free state tax An independent third party that is not under the airline's supervision or control, but is acting on behalf of, and receiving compensation from, a passenger, is not required to collect the tax and pay it to the government. File free state tax For more information on resellers of air transportation, see Revenue Ruling 2006-52. File free state tax You can find Revenue Ruling 2006-52 on page 761 of I. File free state tax R. File free state tax B. File free state tax 2006-43 at www. File free state tax irs. File free state tax gov/pub/irs-irbs/irb06-43. File free state tax pdf. File free state tax   The fact that the aircraft does not use public or commercial airports in taking off and landing has no effect on the tax. File free state tax But see Certain helicopter uses, later. File free state tax   For taxable transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. File free state tax   If the tax is not paid when payment for the transportation is made, the air carrier providing the initial segment of the transportation that begins or ends in the United States becomes liable for the tax. File free state tax Exemptions. File free state tax   The tax on transportation of persons by air does not apply in the following situations. File free state tax See also Special Rules on Transportation Taxes, later. File free state tax Military personnel on international trips. File free state tax   When traveling in uniform at their own expense, United States military personnel on authorized leave are deemed to be traveling in uninterrupted international air transportation (defined earlier) even if the scheduled interval between arrival and departure at any station in the United States is actually more than 12 hours. File free state tax However, such personnel must buy their tickets within 12 hours after landing at the first domestic airport and accept the first available accommodation of the type called for by their tickets. File free state tax The trip must begin or end outside the United States and the 225-mile zone. File free state tax Certain helicopter uses. File free state tax   The tax does not apply to air transportation by helicopter if the helicopter is used for any of the following purposes. File free state tax Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. File free state tax Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). File free state tax Providing emergency medical transportation. File free state tax   However, during a use described in items (1) or (2), the tax applies if the helicopter takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. File free state tax For item (1), treat each flight segment as a separate flight. File free state tax Fixed-wing aircraft uses. File free state tax   The tax does not apply to air transportation by fixed-wing aircraft if the fixed-wing aircraft is used for any of the following purposes. File free state tax Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). File free state tax Providing emergency medical transportation. File free state tax The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. File free state tax   However, during a use described in item (1), the tax applies if the fixed-wing aircraft takes off from, or lands at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise uses services provided under section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. File free state tax Skydiving. File free state tax   The tax does not apply to any air transportation exclusively for the purpose of skydiving. File free state tax Seaplanes. File free state tax   The tax does not apply to any air transportation by seaplane for any segment consisting of a takeoff from, and a landing on, water if the places where the takeoff and landing occur are not receiving financial assistance from the Airport and Airways Trust Fund. File free state tax Bonus tickets. File free state tax   The tax does not apply to free bonus tickets issued by an airline company to its customers who have satisfied all requirements to qualify for the bonus tickets. File free state tax However, the tax applies to amounts paid by customers for advance bonus tickets when customers have traveled insufficient mileage to fully qualify for the free advance bonus tickets. File free state tax International Air Travel Facilities A tax per person is imposed (whether in or outside the United States) for international flights that begin or end in the United States. File free state tax However, for a domestic segment that begins or ends in Alaska or Hawaii, a reduced tax per person applies only to departures. File free state tax This tax does not apply if all the transportation is subject to the percentage tax, discussed earlier. File free state tax It also doesn't apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. File free state tax See the Instructions for Form 720 for the tax rates. File free state tax Transportation of Property by Air A tax of 6. File free state tax 25% is imposed on amounts paid (whether in or outside the United States) for transportation of property by air. File free state tax The fact that the aircraft may not use public or commercial airports in taking off and landing has no effect on the tax. File free state tax The tax applies only to amounts paid to a person engaged in the business of transporting property by air for hire. File free state tax The tax applies only to transportation (including layover time and movement of aircraft in deadhead service) that begins and ends in the United States. File free state tax Thus, the tax does not apply to transportation of property by air that begins or ends outside the United States. File free state tax Exemptions. File free state tax   The tax on transportation of property by air does not apply in the following situations. File free state tax See also Special Rules on Transportation Taxes, later. File free state tax Cropdusting and firefighting service. File free state tax   The tax does not apply to amounts paid for cropdusting or aerial firefighting service. File free state tax Exportation. File free state tax    The tax does not apply to payments for transportation of property by air in the course of exportation (including to United States possessions) by continuous movement, as evidenced by the execution of Form 1363, Export Exemption Certificate. File free state tax See Form 1363 for more information. File free state tax Certain helicopter and fixed-wing air ambulance uses. File free state tax   The tax does not apply to amounts paid for the use of helicopters in construction to set heating and air conditioning units on roofs of buildings, to dismantle tower cranes, and to aid in construction of power lines and ski lifts. File free state tax   The tax also does not apply to air transportation by helicopter or fixed-wing aircraft for the purpose of providing emergency medical services. File free state tax The fixed-wing aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. File free state tax Skydiving. File free state tax   The tax does not apply to any air transportation exclusively for the purpose of skydiving. File free state tax Excess baggage. File free state tax    The tax does not apply to excess baggage accompanying a passenger on an aircraft operated on an established line. File free state tax Surtax on fuel used in a fractional ownership program aircraft. File free state tax   The tax does not apply if the surtax on fuel used in a fractional ownership program aircraft (discussed earlier) is imposed. File free state tax Alaska and Hawaii. File free state tax   For transportation of property to and from Alaska and Hawaii, the tax in general does not apply to the portion of the transportation that is entirely outside the continental United States (or the 225-mile zone if the aircraft departs from or arrives at an airport in the 225-mile zone). File free state tax But the tax applies to flights between ports or stations in Alaska and the Aleutian Islands, as well as between ports or stations in Hawaii. File free state tax The tax applies even though parts of the flights may be over international waters or over Canada, if no point on a line drawn from where the route of transportation leaves the United States (Alaska) to where it reenters the United States (Alaska) is more than 225 miles from the United States. File free state tax Liability for tax. File free state tax   The person paying for taxable transportation is liable for the tax and, ordinarily, the person engaged in the business of transporting property by air for hire receives the payment, collects the tax, files the returns, and pays the tax over to the government. File free state tax   If tax is not paid when a payment is made outside the United States, the person furnishing the last segment of taxable transportation collects the tax from the person to whom the property is delivered in the United States. File free state tax Special Rules on Transportation Taxes In certain circumstances, special rules apply to the taxes on transportation of persons and property by air. File free state tax Aircraft used by affiliated corporations. File free state tax   The taxes do not apply to payments received by one member of an affiliated group of corporations from another member for services furnished in connection with the use of an aircraft. File free state tax However, the aircraft must be owned or leased by a member of the affiliated group and cannot be available for hire by a nonmember of the affiliated group. File free state tax Determine whether an aircraft is available for hire by a nonmember of an affiliated group on a flight-by-flight basis. File free state tax   For this rule, an affiliated group of corporations is any group of corporations connected with a common parent corporation through 80% or more of stock ownership. File free state tax Small aircraft. File free state tax   The taxes do not apply to transportation furnished by an aircraft having a maximum certificated takeoff weight of 6,000 pounds or less. File free state tax However, the taxes do apply if the aircraft is operated on an established line. File free state tax “Operated on an established line” means the aircraft operates with some degree of regularity between definite points. File free state tax However, it does not include any time an aircraft is being operated on a flight that is solely for sightseeing. File free state tax   Consider an aircraft to be operated on an established line if it is operated on a charter basis between two cities also served by that carrier on a regularly scheduled basis. File free state tax   Also, the taxes apply if the aircraft is jet-powered, regardless of its maximum certificated takeoff weight or whether or not it is operated on an established line. File free state tax Mixed load of persons and property. File free state tax   If a single amount is paid for air transportation of persons and property, the payment must be allocated between the amount subject to the tax on transportation of persons and the amount subject to the tax on transportation of property. File free state tax The allocation must be reasonable and supported by adequate records. File free state tax Credits or refunds. File free state tax   If tax is collected and paid over for air transportation that is not taxable air transportation, the collector may claim a credit or refund if it has repaid the tax to the person from whom the tax was collected or obtained the consent of that person to the allowance of the credit or refund. File free state tax Alternatively, the person who paid the tax may claim a refund. File free state tax For information on how to file for credits or refunds, see the Instructions for Form 720 or Form 8849. File free state tax Prev  Up  Next   Home   More Online Publications