Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

Filing your taxes with paper mail can be difficult and it could take weeks for your refund to arrive. IRS e-file is easy, fast and secure. There is no paperwork going to the IRS so tax refunds can be processed in as little as 7 days with direct deposit. As you prepare your taxes online, you can see your tax refund in real time.

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

File Past Taxes For Free

Free Tax Preparation LocationsIrs Gov 2010 Tax FormsIrs Gov Free File Federal State TaxesAmending A 2011 Tax ReturnHow To File Past Tax ReturnsFree Turbo TaxAmend Federal Tax Return1040 Tax Form 2010Free 1040ezTurbotax 2011 Download2006 Income Tax FormsIrs Forms For 2009Turbotax 2011 Tax PreparationWhere Can I File Back Taxes OnlineAmend 2011 Tax Return OnlineIrs 1040ez 2013Tax Forms 20121040ez2012Turbotax Premier Federal & State Returns Plus Federal E File 2013I Need To File My 2011 Federal TaxesFile A 1040x Online For FreeWhere To File 1040xInstructions For Filing An Amended Tax ReturnIrsFree Tax Fiing1040ez Worksheet Line FFiling 1040ez OnlineEz FormsOhio State Tax Forms 20112012 Income Tax Software1040x Tax FormsIrs Forms 1040Myfreetaxes ComTax Returns For StudentsTurbotax Deluxe 2010File State Taxes OnlyTax Return 2012Irs 1040x InstructionsFile 2011 State Taxes Online FreeH&r Block Efile

File Past Taxes For Free

File past taxes for free 3. File past taxes for free   Reporting Rental Income, Expenses, and Losses Table of Contents Which Forms To UseSchedule E (Form 1040) Schedule C (Form 1040), Profit or Loss From Business Qualified Joint Venture Limits on Rental LossesAt-Risk Rules Passive Activity Limits Casualties and Thefts Example Figuring the net income or loss for a residential rental activity may involve more than just listing the income and deductions on Schedule E (Form 1040). File past taxes for free There are activities which do not qualify to use Schedule E, such as when the activity is not engaged in to make a profit or when you provide substantial services in conjunction with the property. File past taxes for free There are also the limitations which may need to be applied if you have a net loss on Schedule E. File past taxes for free There are two: (1) the limitation based on the amount of investment you have at risk in your rental activity, and (2) the special limits imposed on passive activities. File past taxes for free You may also have a gain or loss related to your rental property from a casualty or theft. File past taxes for free This is considered separately from the income and expense information you report on Schedule E. File past taxes for free Which Forms To Use The basic form for reporting residential rental income and expenses is Schedule E (Form 1040). File past taxes for free However, do not use that schedule to report a not-for-profit activity. File past taxes for free See Not Rented for Profit , in chapter 4. File past taxes for free There are also other rental situations in which forms other than Schedule E would be used. File past taxes for free Schedule E (Form 1040) If you rent buildings, rooms, or apartments, and provide basic services such as heat and light, trash collection, etc. File past taxes for free , you normally report your rental income and expenses on Schedule E, Part I. File past taxes for free List your total income, expenses, and depreciation for each rental property. File past taxes for free Be sure to enter the number of fair rental and personal use days on line 2. File past taxes for free If you have more than three rental or royalty properties, complete and attach as many Schedules E as are needed to list the properties. File past taxes for free Complete lines 1 and 2 for each property. File past taxes for free However, fill in lines 23a through 26 on only one Schedule E. File past taxes for free On Schedule E, page 1, line 18, enter the depreciation you are claiming for each property. File past taxes for free To find out if you need to attach Form 4562, see Form 4562 , later. File past taxes for free If you have a loss from your rental real estate activity, you also may need to complete one or both of the following forms. File past taxes for free Form 6198, At-Risk Limitations. File past taxes for free See At-Risk Rules , later. File past taxes for free Also see Publication 925. File past taxes for free Form 8582, Passive Activity Loss Limitations. File past taxes for free See Passive Activity Limits , later. File past taxes for free Page 2 of Schedule E is used to report income or loss from partnerships, S corporations, estates, trusts, and real estate mortgage investment conduits. File past taxes for free If you need to use page 2 of Schedule E, be sure to use page 2 of the same Schedule E you used to enter your rental activity on page 1. File past taxes for free Also, include the amount from line 26 (Part I) in the “Total income or (loss)” on line 41 (Part V). File past taxes for free Form 4562. File past taxes for free   You must complete and attach Form 4562 for rental activities only if you are claiming: Depreciation, including the special depreciation allowance, on property placed in service during 2013; Depreciation on listed property (such as a car), regardless of when it was placed in service; or Any other car expenses, including the standard mileage rate or lease expenses. File past taxes for free Otherwise, figure your depreciation on your own worksheet. File past taxes for free You do not have to attach these computations to your return, but you should keep them in your records for future reference. File past taxes for free   See Publication 946 for information on preparing Form 4562. File past taxes for free Schedule C (Form 1040), Profit or Loss From Business Generally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer. File past taxes for free Providing substantial services. File past taxes for free   If you provide substantial services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service, you report your rental income and expenses on Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business. File past taxes for free Use Form 1065, U. File past taxes for free S. File past taxes for free Return of Partnership Income, if your rental activity is a partnership (including a partnership with your spouse unless it is a qualified joint venture). File past taxes for free Substantial services do not include the furnishing of heat and light, cleaning of public areas, trash collection, etc. File past taxes for free For information, see Publication 334, Tax Guide for Small Business. File past taxes for free Also, you may have to pay self-employment tax on your rental income using Schedule SE (Form 1040), Self-Employment Tax. File past taxes for free For a discussion of “substantial services,” see Real Estate Rents in Publication 334, chapter 5. File past taxes for free Qualified Joint Venture If you and your spouse each materially participate (see Material participation under Passive Activity Limits, later) as the only members of a jointly owned and operated real estate business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership. File past taxes for free This election, in most cases, will not increase the total tax owed on the joint return, but it does give each of you credit for social security earnings on which retirement benefits are based and for Medicare coverage if your rental income is subject to self-employment tax. File past taxes for free If you make this election, you must report rental real estate income on Schedule E (or Schedule C if you provide substantial services). File past taxes for free You will not be required to file Form 1065 for any year the election is in effect. File past taxes for free Rental real estate income generally is not included in net earnings from self-employment subject to self-employment tax and generally is subject to the passive activity limits. File past taxes for free If you and your spouse filed a Form 1065 for the year prior to the election, the partnership terminates at the end of the tax year immediately preceding the year the election takes effect. File past taxes for free For more information on qualified joint ventures, go to IRS. File past taxes for free gov and enter “qualified joint venture” in the search box. File past taxes for free Limits on Rental Losses If you have a loss from your rental real estate activity, two sets of rules may limit the amount of loss you can deduct. File past taxes for free You must consider these rules in the order shown below. File past taxes for free Both are discussed in this section. File past taxes for free At-risk rules. File past taxes for free These rules are applied first if there is investment in your rental real estate activity for which you are not at risk. File past taxes for free This applies only if the real property was placed in service after 1986. File past taxes for free Passive activity limits. File past taxes for free Generally, rental real estate activities are considered passive activities and losses are not deductible unless you have income from other passive activities to offset them. File past taxes for free However, there are exceptions. File past taxes for free At-Risk Rules You may be subject to the at-risk rules if you have: A loss from an activity carried on as a trade or business or for the production of income, and Amounts invested in the activity for which you are not fully at risk. File past taxes for free Losses from holding real property (other than mineral property) placed in service before 1987 are not subject to the at-risk rules. File past taxes for free In most cases, any loss from an activity subject to the at-risk rules is allowed only to the extent of the total amount you have at risk in the activity at the end of the tax year. File past taxes for free You are considered at risk in an activity to the extent of cash and the adjusted basis of other property you contributed to the activity and certain amounts borrowed for use in the activity. File past taxes for free Any loss that is disallowed because of the at-risk limits is treated as a deduction from the same activity in the next tax year. File past taxes for free See Publication 925 for a discussion of the at-risk rules. File past taxes for free Form 6198. File past taxes for free   If you are subject to the at-risk rules, file Form 6198, At-Risk Limitations, with your tax return. File past taxes for free Passive Activity Limits In most cases, all rental real estate activities (except those of certain real estate professionals, discussed later) are passive activities. File past taxes for free For this purpose, a rental activity is an activity from which you receive income mainly for the use of tangible property, rather than for services. File past taxes for free For a discussion of activities that are not considered rental activities, see Rental Activities in Publication 925. File past taxes for free Deductions or losses from passive activities are limited. File past taxes for free You generally cannot offset income, other than passive income, with losses from passive activities. File past taxes for free Nor can you offset taxes on income, other than passive income, with credits resulting from passive activities. File past taxes for free Any excess loss or credit is carried forward to the next tax year. File past taxes for free Exceptions to the rules for figuring passive activity limits for personal use of a dwelling unit and for rental real estate with active participation are discussed later. File past taxes for free For a detailed discussion of these rules, see Publication 925. File past taxes for free Real estate professionals. File past taxes for free   If you are a real estate professional, complete line 43 of Schedule E. File past taxes for free      You qualify as a real estate professional for the tax year if you meet both of the following requirements. File past taxes for free More than half of the personal services you perform in all trades or businesses during the tax year are performed in real property trades or businesses in which you materially participate. File past taxes for free You perform more than 750 hours of services during the tax year in real property trades or businesses in which you materially participate. File past taxes for free If you qualify as a real estate professional, rental real estate activities in which you materially participated are not passive activities. File past taxes for free For purposes of determining whether you materially participated in your rental real estate activities, each interest in rental real estate is a separate activity unless you elect to treat all your interests in rental real estate as one activity. File past taxes for free   Do not count personal services you perform as an employee in real property trades or businesses unless you are a 5% owner of your employer. File past taxes for free You are a 5% owner if you own (or are considered to own) more than 5% of your employer's outstanding stock, or capital or profits interest. File past taxes for free   Do not count your spouse's personal services to determine whether you met the requirements listed earlier to qualify as a real estate professional. File past taxes for free However, you can count your spouse's participation in an activity in determining if you materially participated. File past taxes for free Real property trades or businesses. File past taxes for free   A real property trade or business is a trade or business that does any of the following with real property. File past taxes for free Develops or redevelops it. File past taxes for free Constructs or reconstructs it. File past taxes for free Acquires it. File past taxes for free Converts it. File past taxes for free Rents or leases it. File past taxes for free Operates or manages it. File past taxes for free Brokers it. File past taxes for free Choice to treat all interests as one activity. File past taxes for free   If you were a real estate professional and had more than one rental real estate interest during the year, you can choose to treat all the interests as one activity. File past taxes for free You can make this choice for any year that you qualify as a real estate professional. File past taxes for free If you forgo making the choice for one year, you can still make it for a later year. File past taxes for free   If you make the choice, it is binding for the tax year you make it and for any later year that you are a real estate professional. File past taxes for free This is true even if you are not a real estate professional in any intervening year. File past taxes for free (For that year, the exception for real estate professionals will not apply in determining whether your activity is subject to the passive activity rules. File past taxes for free )   See the Instructions for Schedule E for information about making this choice. File past taxes for free Material participation. File past taxes for free   Generally, you materially participated in an activity for the tax year if you were involved in its operations on a regular, continuous, and substantial basis during the year. File past taxes for free For details, see Publication 925 or the Instructions for Schedule C. File past taxes for free Participating spouse. File past taxes for free   If you are married, determine whether you materially participated in an activity by also counting any participation in the activity by your spouse during the year. File past taxes for free Do this even if your spouse owns no interest in the activity or files a separate return for the year. File past taxes for free Form 8582. File past taxes for free    You may have to complete Form 8582 to figure the amount of any passive activity loss for the current tax year for all activities and the amount of the passive activity loss allowed on your tax return. File past taxes for free See Form 8582 not required , later in this chapter, to determine if you must complete Form 8582. File past taxes for free   If you are required to complete Form 8582 and are also subject to the at-risk rules, include the amount from Form 6198, line 21 (deductible loss) in column (b) of Form 8582, Worksheet 1 or 3, as required. File past taxes for free Exception for Personal Use of Dwelling Unit If you used the rental property as a home during the year, any income, deductions, gain, or loss allocable to such use shall not be taken into account for purposes of the passive activity loss limitation. File past taxes for free Instead, follow the rules explained in chapter 5, Personal Use of Dwelling Unit (Including Vacation Home). File past taxes for free Exception for Rental Real Estate With Active Participation If you or your spouse actively participated in a passive rental real estate activity, you may be able to deduct up to $25,000 of loss from the activity from your nonpassive income. File past taxes for free This special allowance is an exception to the general rule disallowing losses in excess of income from passive activities. File past taxes for free Similarly, you may be able to offset credits from the activity against the tax on up to $25,000 of nonpassive income after taking into account any losses allowed under this exception. File past taxes for free Example. File past taxes for free Jane is single and has $40,000 in wages, $2,000 of passive income from a limited partnership, and $3,500 of passive loss from a rental real estate activity in which she actively participated. File past taxes for free $2,000 of Jane's $3,500 loss offsets her passive income. File past taxes for free The remaining $1,500 loss can be deducted from her $40,000 wages. File past taxes for free The special allowance is not available if you were married, lived with your spouse at any time during the year, and are filing a separate return. File past taxes for free Active participation. File past taxes for free   You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. File past taxes for free Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions. File past taxes for free Example. File past taxes for free Mike is single and had the following income and losses during the tax year:   Salary $42,300     Dividends 300     Interest 1,400     Rental loss (4,000)   The rental loss was from the rental of a house Mike owned. File past taxes for free Mike had advertised and rented the house to the current tenant himself. File past taxes for free He also collected the rents, which usually came by mail. File past taxes for free All repairs were either made or contracted out by Mike. File past taxes for free Although the rental loss is from a passive activity, because Mike actively participated in the rental property management he can use the entire $4,000 loss to offset his other income. File past taxes for free Maximum special allowance. File past taxes for free   The maximum special allowance is: $25,000 for single individuals and married individuals filing a joint return for the tax year, $12,500 for married individuals who file separate returns for the tax year and lived apart from their spouses at all times during the tax year, and $25,000 for a qualifying estate reduced by the special allowance for which the surviving spouse qualified. File past taxes for free   If your modified adjusted gross income (MAGI) is $100,000 or less ($50,000 or less if married filing separately), you can deduct your loss up to the amount specified above. File past taxes for free If your MAGI is more than $100,000 (more than $50,000 if married filing separately), your special allowance is limited to 50% of the difference between $150,000 ($75,000 if married filing separately) and your MAGI. File past taxes for free   Generally, if your MAGI is $150,000 or more ($75,000 or more if you are married filing separately), there is no special allowance. File past taxes for free Modified adjusted gross income (MAGI). File past taxes for free   This is your adjusted gross income from Form 1040, U. File past taxes for free S. File past taxes for free Individual Income Tax Return, line 38, or Form 1040NR, U. File past taxes for free S. File past taxes for free Nonresident Alien Income Tax Return, line 37, figured without taking into account: The taxable amount of social security or equivalent tier 1 railroad retirement benefits, The deductible contributions to traditional individual retirement accounts (IRAs) and section 501(c)(18) pension plans, The exclusion from income of interest from Series EE and I U. File past taxes for free S. File past taxes for free savings bonds used to pay higher educational expenses, The exclusion of amounts received under an employer's adoption assistance program, Any passive activity income or loss included on Form 8582, Any rental real estate loss allowed to real estate professionals, Any overall loss from a publicly traded partnership (see Publicly Traded Partnerships (PTPs) in the Instructions for Form 8582), The deduction allowed for one-half of self-employment tax, The deduction allowed for interest paid on student loans, The deduction for qualified tuition and related fees, and The domestic production activities deduction (see the Instructions for Form 8903). File past taxes for free Form 8582 not required. File past taxes for free   Do not complete Form 8582 if you meet all of the following conditions. File past taxes for free Your only passive activities were rental real estate activities in which you actively participated. File past taxes for free Your overall net loss from these activities is $25,000 or less ($12,500 or less if married filing separately and you lived apart from your spouse all year). File past taxes for free If married filing separately, you lived apart from your spouse all year. File past taxes for free You have no prior year unallowed losses from these (or any other passive) activities. File past taxes for free You have no current or prior year unallowed credits from passive activities. File past taxes for free Your MAGI is $100,000 or less ($50,000 or less if married filing separately and you lived apart from your spouse all year). File past taxes for free You do not hold any interest in a rental real estate activity as a limited partner or as a beneficiary of an estate or a trust. File past taxes for free   If you meet all of the conditions listed above, your rental real estate activities are not limited by the passive activity rules and you do not have to complete Form 8582. File past taxes for free On lines 23a through 23e of your Schedule E, enter the applicable amounts. File past taxes for free Casualties and Thefts As a result of a casualty or theft, you may have a loss related to your rental property. File past taxes for free You may be able to deduct the loss on your income tax return. File past taxes for free Casualty. File past taxes for free   This is the damage, destruction, or loss of property resulting from an identifiable event that is sudden, unexpected, or unusual. File past taxes for free Such events include a storm, fire, or earthquake. File past taxes for free Theft. File past taxes for free   This is defined as the unlawful taking and removing of your money or property with the intent to deprive you of it. File past taxes for free Gain from casualty or theft. File past taxes for free   It is also possible to have a gain from a casualty or theft if you receive money, including insurance, that is more than your adjusted basis in the property. File past taxes for free Generally, you must report this gain. File past taxes for free However, under certain circumstances, you may defer paying tax by choosing to postpone reporting the gain. File past taxes for free To do this, you generally must buy replacement property within 2 years after the close of the first tax year in which any part of your gain is realized. File past taxes for free In certain circumstances, the replacement period can be greater than 2 years; see Replacement Period in Publication 547 for more information. File past taxes for free The cost of the replacement property must be equal to or more than the net insurance or other payment you received. File past taxes for free More information. File past taxes for free   For information on business and nonbusiness casualty and theft losses, see Publication 547. File past taxes for free How to report. File past taxes for free    If you had a casualty or theft that involved property used in your rental activity, figure the net gain or loss in Section B of Form 4684, Casualties and Thefts. File past taxes for free Follow the Instructions for Form 4684 for where to carry your net gain or loss. File past taxes for free Example In February 2008, Marie Pfister bought a rental house for $135,000 (house $120,000 and land $15,000) and immediately began renting it out. File past taxes for free In 2013, she rented it all 12 months for a monthly rental fee of $1,125. File past taxes for free In addition to her rental income of $13,500 (12 x $1,125), Marie had the following expenses. File past taxes for free Mortgage interest $8,000 Fire insurance (1-year policy) 250 Miscellaneous repairs 400 Real estate taxes imposed and paid 500 Maintenance 200 Marie depreciates the residential rental property under MACRS GDS. File past taxes for free This means using the straight line method over a recovery period of 27. File past taxes for free 5 years. File past taxes for free She uses Table 2-2d to find her depreciation percentage. File past taxes for free Because she placed the property in service in February 2008, she continues to use that row of Table 2-2d. File past taxes for free For year 6, the rate is 3. File past taxes for free 636%. File past taxes for free Marie figures her net rental income or loss for the house as follows: Total rental income received  ($1,125 × 12) $13,500 Minus: Expenses     Mortgage interest $8,000   Fire insurance 250   Miscellaneous repairs 400   Real estate taxes 500   Maintenance 200   Total expenses 9,350 Balance $4,150 Minus: Depreciation ($120,000 x 3. File past taxes for free 636%) 4,363 Net rental (loss) for house ($213)       Marie had a net loss for the year. File past taxes for free Because she actively participated in her passive rental real estate activity and her loss was less than $25,000, she can deduct the loss on her return. File past taxes for free Marie also meets all of the requirements for not having to file Form 8582. File past taxes for free She uses Schedule E, Part I, to report her rental income and expenses. File past taxes for free She enters her income, expenses, and depreciation for the house in the column for Property A and enters her loss on line 22. File past taxes for free Form 4562 is not required. File past taxes for free Prev  Up  Next   Home   More Online Publications
Español

Types of Loans

There are different types of loans. Some are secured loans. This mean that your property and things you own are used as collateral, and if you cannot pay back the loan, the lender will take your collateral to get their money back. Other types of loans, unsecured loans, don’t use property as collateral. Lenders consider these as more risky than secured loans, so they charge a higher interest rate for them. Most credit cards are unsecured loans, although some consumers have secured credit cards. Two very common secured loans are home equity and installment loans.

Home-Equity Loans

A home equity loan could be a smart way to pay off high-interest debt or pay for home repairs. But consider carefully before taking out a home equity loan. If you are unable to make payments on time, you could lose your home.

Home equity loans can either be a revolving line of credit or a lump sum. Revolving credit lets you withdraw funds when you need them. A lump sum is a one-time closed-end loan, for a particular purpose, such as remodeling or tuition. Apply for a home equity loan through a bank or credit union first. These loans are likely to cost less than those offered by finance companies.

Installment Loans


Before you sign an agreement for a loan to buy a house, a car or other large purchase, make sure you fully understand all the lender's terms and conditions, including:

  • The dollar amount you are borrowing.
  • The payment amounts and when they are due.
  • The total finance charge, the total of all the interest and fees you must pay to get the loan.
  • The Annual Percentage Rate (APR), the rate of interest you will pay over the full term of the loan.
  • Penalties for late payments.
  • What the lender will do if you can't pay back the loan.
  • Penalties if you pay the loan back early

The Truth in Lending Act requires lenders to give you this information so you can compare different offers.

Payday and Tax Refund Loans

Payday loans are illegal in some states. Recent changes in the law for payday lenders have also made payday loans illegal for members of the military. With a typical payday loan, you might write a personal check for $115 to borrow $100 for two weeks, until payday. The annual percentage rate (APR) in this example is 390 percent! If you can repay the loan quickly, it may not appear such a bad deal. But if you can't pay off the loan quickly, that relatively small loan can grow into a large amount of debt. At 390 percent, a $100 loan will become $490 in a year and $2,401 in two years.

Another high cost way to borrow money is a tax refund loan. This type of credit lets you get an advance on a tax refund for a fee. APRs as high as 774% have been reported. If you are short of cash, avoid both of these loans by asking for more time to pay a bill or seeking a traditional loan. Even a cash advance on your credit card may cost less.

The File Past Taxes For Free

File past taxes for free 5. File past taxes for free   Table and Worksheets for the Self-Employed Table of Contents Community property laws. File past taxes for free As discussed in chapters 2 and 4, if you are self-employed, you must use the rate table or rate worksheet and deduction worksheet to figure your deduction for contributions you made for yourself to a SEP-IRA or qualified plan. File past taxes for free First, use either the rate table or rate worksheet to find your reduced contribution rate. File past taxes for free Then complete the deduction worksheet to figure your deduction for contributions. File past taxes for free The table and the worksheets in chapter 5 apply only to self-employed individuals who have only one defined contribution plan, such as a profit-sharing plan. File past taxes for free A SEP plan is treated as a profit-sharing plan. File past taxes for free However, do not use this worksheet for SARSEPs. File past taxes for free Rate table for self-employed. File past taxes for free   If your plan's contribution rate is a whole percentage (for example, 12% rather than 12½%), you can use the table on the next page to find your reduced contribution rate. File past taxes for free Otherwise, use the rate worksheet provided below. File past taxes for free   First, find your plan contribution rate (the contribution rate stated in your plan) in Column A of the table. File past taxes for free Then read across to the rate under Column B. File past taxes for free Enter the rate from Column B in step 4 of the Deduction Worksheet for Self-Employed on this page. File past taxes for free    Example. File past taxes for free You are a sole proprietor with no employees. File past taxes for free If your plan's contribution rate is 10% of a participant's compensation, your rate is 0. File past taxes for free 090909. File past taxes for free Enter this rate in step 4 of the Deduction Worksheet for Self-Employed on this page. File past taxes for free Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. File past taxes for free For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. File past taxes for free       *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. File past taxes for free       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. File past taxes for free     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27             Step 3           Net earnings from self-employment. File past taxes for free Subtract step 2 from step 1     Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed     Step 5           Multiply step 3 by step 4     Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate)     Step 7           Enter the smaller of step 5 or step 6     Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. File past taxes for free         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. File past taxes for free       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. File past taxes for free Do not enter more than $17,500     Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. File past taxes for free         • Otherwise, skip steps 16 through 18 and go to step 19. File past taxes for free       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. File past taxes for free Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. File past taxes for free     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17. File past taxes for free     Step 21           Subtract step 20 from step 19. File past taxes for free This is your maximum deductible contribution. File past taxes for free                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. File past taxes for free   Rate worksheet for self-employed. File past taxes for free   If your plan's contribution rate is not a whole percentage (for example, 10½%), you cannot use the Rate Table for Self-Employed. File past taxes for free Use the following worksheet instead. File past taxes for free Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. File past taxes for free 105)   2) Rate in line 1 plus 1 (for example, 0. File past taxes for free 105 + 1 = 1. File past taxes for free 105)   3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. File past taxes for free 105 ÷ 1. File past taxes for free 105 = 0. File past taxes for free 095)   Figuring your deduction. File past taxes for free   Now that you have your self-employed rate from either the rate table or rate worksheet, you can figure your maximum deduction for contributions for yourself by completing the Deduction Worksheet for Self-Employed. File past taxes for free Community property laws. File past taxes for free   If you reside in a community property state and you are married and filing a separate return, disregard community property laws for step 1 of the Deduction Worksheet for Self-Employed. File past taxes for free Enter on step 1 the total net profit you actually earned. File past taxes for free Rate Table for Self-Employed Column A  If the plan contri- bution rate is: (shown as %) Column B  Your rate is: (shown as decimal) 1 . File past taxes for free 009901 2 . File past taxes for free 019608 3 . File past taxes for free 029126 4 . File past taxes for free 038462 5 . File past taxes for free 047619 6 . File past taxes for free 056604 7 . File past taxes for free 065421 8 . File past taxes for free 074074 9 . File past taxes for free 082569 10 . File past taxes for free 090909 11 . File past taxes for free 099099 12 . File past taxes for free 107143 13 . File past taxes for free 115044 14 . File past taxes for free 122807 15 . File past taxes for free 130435 16 . File past taxes for free 137931 17 . File past taxes for free 145299 18 . File past taxes for free 152542 19 . File past taxes for free 159664 20 . File past taxes for free 166667 21 . File past taxes for free 173554 22 . File past taxes for free 180328 23 . File past taxes for free 186992 24 . File past taxes for free 193548 25* . File past taxes for free 200000* *The deduction for annual employer contributions (other than elective deferrals) to a SEP plan, a profit-sharing plan, or a money purchase plan cannot be more than 20% of your net earnings (figured without deducting contributions for yourself) from the business that has the plan. File past taxes for free Example. File past taxes for free You are a sole proprietor with no employees. File past taxes for free The terms of your plan provide that you contribute 8½% (. File past taxes for free 085) of your compensation to your plan. File past taxes for free Your net profit from line 31, Schedule C (Form 1040) is $200,000. File past taxes for free You have no elective deferrals or catch-up contributions. File past taxes for free Your self-employment tax deduction on line 27 of Form 1040 is $9,728. File past taxes for free See the filled-in portions of both Schedule SE (Form 1040), Self-Employment Income, and Form 1040, later. File past taxes for free You figure your self-employed rate and maximum deduction for employer contributions you made for yourself as follows. File past taxes for free Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. File past taxes for free For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. File past taxes for free $200,000     *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. File past taxes for free       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. File past taxes for free     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27 9,728           Step 3           Net earnings from self-employment. File past taxes for free Subtract step 2 from step 1 190,272   Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed 0. File past taxes for free 078   Step 5           Multiply step 3 by step 4 14,841   Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate) 21,675   Step 7           Enter the smaller of step 5 or step 6 14,841   Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. File past taxes for free         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. File past taxes for free       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. File past taxes for free Do not enter more than $17,500 N/A   Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. File past taxes for free         • Otherwise, skip steps 16 through 18 and go to step 19. File past taxes for free       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. File past taxes for free Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. File past taxes for free     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17     Step 21           Subtract step 20 from step 19. File past taxes for free This is your maximum deductible contribution $14,841                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. File past taxes for free   See the filled-in Deduction Worksheet for Self-Employed on this page. File past taxes for free Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. File past taxes for free 105) 0. File past taxes for free 085 2) Rate in line 1 plus 1 (for example, 0. File past taxes for free 105 + 1 = 1. File past taxes for free 105) 1. File past taxes for free 085 3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. File past taxes for free 105 ÷ 1. File past taxes for free 105 = 0. File past taxes for free 095) 0. File past taxes for free 078 This image is too large to be displayed in the current screen. File past taxes for free Please click the link to view the image. File past taxes for free Portion of Form 1040 and Portion of Schedule SE Prev  Up  Next   Home   More Online Publications