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

Filing State Taxes Free Online

Do State Taxes Online FreeFiling 2011 Tax Return In 2013Hr Block Free Tax FilingAmending Taxes After FilingTurbo Tax FilingFiling Taxes For 2013How To File 1040x Amended Return2011 Tax Form 1040Taxact Login Tax Return Taxact Login Page1080ezFree E-file 20121040 EsReturn SoftwareAmending 2011 Tax ReturnFiling Tax AmendmentWho Can File A 1040ezCan I Still File 2012 Taxes OnlineFree State Tax DownloadsHrblock OnlineHow To File An Amended Tax ReturnPast Year TaxesCan I File My 1040x Online1040ez Instructions 2012Amended Tax Return FormTaxes On UnemploymentWhere Can I Get A 2012 Tax FormE File State Taxes OnlyWhere To Get A 1040x FormFile A 1040x Amended Return2012 Income TaxesIrs Gov 2012 Tax FormsAmending A 2010 Tax ReturnHttps Www Freefilefillableforms Com Ffa Freefileforms HtmFree Tax Filing 2010Senior TaxesAmending Tax ReturnsIrs Form 1040x 2010Tax Form For College StudentsFree Tax Filing H&r BlockWww Freefilefillableforms Com

Filing State Taxes Free Online

Filing state taxes free online 6. Filing state taxes free online   Basis of Assets Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Cost BasisReal Property Allocating the Basis Uniform Capitalization Rules Adjusted BasisIncreases to Basis Decreases to Basis Basis Other Than CostTaxable Exchanges Involuntary Conversions Nontaxable Exchanges Property Received as a Gift Property Transferred From a Spouse Inherited Property Property Distributed From a Partnership or Corporation Introduction Your basis is the amount of your investment in property for tax purposes. Filing state taxes free online Use basis to figure the gain or loss on the sale, exchange, or other disposition of property. Filing state taxes free online Also use basis to figure depreciation, amortization, depletion, and casualty losses. Filing state taxes free online If you use property for both business or investment purposes and for personal purposes, you must allocate the basis based on the use. Filing state taxes free online Only the basis allocated to the business or investment use of the property can be depreciated. Filing state taxes free online Your original basis in property is adjusted (increased or decreased) by certain events. Filing state taxes free online For example, if you make improvements to the property, increase your basis. Filing state taxes free online If you take deductions for depreciation, or casualty losses, or claim certain credits, reduce your basis. Filing state taxes free online Keep accurate records of all items that affect the basis of your assets. Filing state taxes free online For information on keeping records, see chapter 1. Filing state taxes free online Topics - This chapter discusses: Cost basis Adjusted basis Basis other than cost Useful Items - You may want to see: Publication 535 Business Expenses 544 Sales and Other Dispositions of Assets 551 Basis of Assets 946 How To Depreciate Property See chapter 16 for information about getting publications and forms. Filing state taxes free online Cost Basis The basis of property you buy is usually its cost. Filing state taxes free online Cost is the amount you pay in cash, debt obligations, other property, or services. Filing state taxes free online Your cost includes amounts you pay for sales tax, freight, installation, and testing. Filing state taxes free online The basis of real estate and business assets will include other items, discussed later. Filing state taxes free online Basis generally does not include interest payments. Filing state taxes free online However, see Carrying charges and Capitalized interest in chapter 4 of Publication 535. Filing state taxes free online You also may have to capitalize (add to basis) certain other costs related to buying or producing property. Filing state taxes free online Under the uniform capitalization rules, discussed later, you may have to capitalize direct costs and certain indirect costs of producing property. Filing state taxes free online Loans with low or no interest. Filing state taxes free online   If you buy property on a time-payment plan that charges little or no interest, the basis of your property is your stated purchase price minus the amount considered to be unstated interest. Filing state taxes free online You generally have unstated interest if your interest rate is less than the applicable federal rate. Filing state taxes free online See the discussion of unstated interest in Publication 537, Installment Sales. Filing state taxes free online Real Property Real property, also called real estate, is land and generally anything built on, growing on, or attached to land. Filing state taxes free online If you buy real property, certain fees and other expenses you pay are part of your cost basis in the property. Filing state taxes free online Some of these expenses are discussed next. Filing state taxes free online Lump sum purchase. Filing state taxes free online   If you buy improvements, such as buildings, and the land on which they stand for a lump sum, allocate your cost basis between the land and improvements. Filing state taxes free online Allocate the cost basis according to the respective fair market values (FMVs) of the land and improvements at the time of purchase. Filing state taxes free online Figure the basis of each asset by multiplying the lump sum by a fraction. Filing state taxes free online The numerator is the FMV of that asset and the denominator is the FMV of the whole property at the time of purchase. Filing state taxes free online Fair market value (FMV). Filing state taxes free online   FMV is the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all necessary facts. Filing state taxes free online Sales of similar property on or about the same date may help in figuring the FMV of the property. Filing state taxes free online If you are not certain of the FMV of the land and improvements, you can allocate the basis according to their assessed values for real estate tax purposes. Filing state taxes free online Real estate taxes. Filing state taxes free online   If you pay the real estate taxes the seller owed on real property you bought, and the seller did not reimburse you, treat those taxes as part of your basis. Filing state taxes free online   If you reimburse the seller for taxes the seller paid for you, you generally can deduct that amount as a tax expense. Filing state taxes free online Whether or not you reimburse the seller, do not include that amount in the basis of your property. Filing state taxes free online Settlement costs. Filing state taxes free online   Your basis includes the settlement fees and closing costs for buying the property. Filing state taxes free online See Publication 551 for a detailed list of items you can and cannot include in basis. Filing state taxes free online   Do not include fees and costs for getting a loan on the property. Filing state taxes free online Also, do not include amounts placed in escrow for the future payment of items such as taxes and insurance. Filing state taxes free online Points. Filing state taxes free online   If you pay points to get a loan (including a mortgage, second mortgage, or line-of-credit), do not add the points to the basis of the related property. Filing state taxes free online You may be able to deduct the points currently or over the term of the loan. Filing state taxes free online For more information about deducting points, see Points in chapter 4 of Publication 535. Filing state taxes free online Assumption of a mortgage. Filing state taxes free online   If you buy property and assume (or buy the property subject to) an existing mortgage, your basis includes the amount you pay for the property plus the amount you owe on the mortgage. Filing state taxes free online Example. Filing state taxes free online If you buy a farm for $100,000 cash and assume a mortgage of $400,000, your basis is $500,000. Filing state taxes free online Constructing assets. Filing state taxes free online   If you build property or have assets built for you, your expenses for this construction are part of your basis. Filing state taxes free online Some of these expenses include the following costs: Land, Labor and materials, Architect's fees, Building permit charges, Payments to contractors, Payments for rental equipment, and Inspection fees. Filing state taxes free online   In addition, if you use your own employees, farm materials, and equipment to build an asset, do not deduct the following expenses. Filing state taxes free online You must capitalize them (include them in the asset's basis). Filing state taxes free online Employee wages paid for the construction work, reduced by any employment credits allowed. Filing state taxes free online Depreciation on equipment you own while it is used in the construction. Filing state taxes free online Operating and maintenance costs for equipment used in the construction. Filing state taxes free online The cost of business supplies and materials used in the construction. Filing state taxes free online    Do not include the value of your own labor, or any other labor you did not pay for, in the basis of any property you construct. Filing state taxes free online Allocating the Basis In some instances, the rules for determining basis apply to a group of assets acquired in the same transaction or to property that consists of separate items. Filing state taxes free online To determine the basis of these assets or separate items, there must be an allocation of basis. Filing state taxes free online Group of assets acquired. Filing state taxes free online   If you buy multiple assets for a lump sum, allocate the amount you pay among the assets. Filing state taxes free online Use this allocation to figure your basis for depreciation and gain or loss on a later disposition of any of these assets. Filing state taxes free online You and the seller may agree in the sales contract to a specific allocation of the purchase price among the assets. Filing state taxes free online If this allocation is based on the value of each asset and you and the seller have adverse tax interests, the allocation generally will be accepted. Filing state taxes free online Farming business acquired. Filing state taxes free online   If you buy a group of assets that makes up a farming business, there are special rules you must use to allocate the purchase price among the assets. Filing state taxes free online Generally, reduce the purchase price by any cash received. Filing state taxes free online Allocate the remaining purchase price to the other business assets received in proportion to (but not more than) their FMV and in a certain order. Filing state taxes free online See Trade or Business Acquired under Allocating the Basis in Publication 551 for more information. Filing state taxes free online Transplanted embryo. Filing state taxes free online   If you buy a cow that is pregnant with a transplanted embryo, allocate to the basis of the cow the part of the purchase price equal to the FMV of the cow without the implant. Filing state taxes free online Allocate the rest of the purchase price to the basis of the calf. Filing state taxes free online Neither the cost allocated to the cow nor the cost allocated to the calf is deductible as a current business expense. Filing state taxes free online Uniform Capitalization Rules Under the uniform capitalization rules, you must include certain direct and indirect costs in the basis of property you produce or in your inventory costs, rather than claim them as a current deduction. Filing state taxes free online You recover these costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Filing state taxes free online Generally, you are subject to the uniform capitalization rules if you do any of the following: Produce real or tangible personal property, or Acquire property for resale. Filing state taxes free online However, this rule does not apply to personal property if your average annual gross receipts for the 3-tax-year period ending with the year preceding the current tax year are $10 million or less. Filing state taxes free online You produce property if you construct, build, install, manufacture, develop, improve, or create the property. Filing state taxes free online You are not subject to the uniform capitalization rules if the property is produced for personal use. Filing state taxes free online In a farming business, you produce property if you raise or grow any agricultural or horticultural commodity, including plants and animals. Filing state taxes free online Plants. Filing state taxes free online   A plant produced in a farming business includes the following items: A fruit, nut, or other crop-bearing tree; An ornamental tree; A vine; A bush; Sod; and The crop or yield of a plant that will have more than one crop or yield. Filing state taxes free online Animals. Filing state taxes free online   An animal produced in a farming business includes any stock, poultry or other bird, and fish or other sea life. Filing state taxes free online The direct and indirect costs of producing plants or animals include preparatory costs and preproductive period costs. Filing state taxes free online Preparatory costs include the acquisition costs of the seed, seedling, plant, or animal. Filing state taxes free online For plants, preproductive period costs include the costs of items such as irrigation, pruning, frost protection, spraying, and harvesting. Filing state taxes free online For animals, preproductive period costs include the costs of items such as feed, maintaining pasture or pen areas, breeding, veterinary services, and bedding. Filing state taxes free online Exceptions. Filing state taxes free online   In a farming business, the uniform capitalization rules do not apply to: Any animal, Any plant with a preproductive period of 2 years or less, or Any costs of replanting certain plants lost or damaged due to casualty. Filing state taxes free online   Exceptions (1) and (2) do not apply to a corporation, partnership, or tax shelter required to use an accrual method of accounting. Filing state taxes free online See Accrual Method Required under Accounting Methods in chapter 2. Filing state taxes free online   In addition, you can elect not to use the uniform capitalization rules for plants with a preproductive period of more than 2 years. Filing state taxes free online If you make this election, special rules apply. Filing state taxes free online This election cannot be made by a corporation, partnership, or tax shelter required to use an accrual method of accounting. Filing state taxes free online This election also does not apply to any costs incurred for the planting, cultivation, maintenance, or development of any citrus or almond grove (or any part thereof) within the first 4 years the trees were planted. Filing state taxes free online    If you elect not to use the uniform capitalization rules, you must use the alternative depreciation system for all property used in any of your farming businesses and placed in service in any tax year during which the election is in effect. Filing state taxes free online See chapter 7, for additional information on depreciation. Filing state taxes free online Example. Filing state taxes free online You grow trees that have a preproductive period of more than 2 years. Filing state taxes free online The trees produce an annual crop. Filing state taxes free online You are an individual and the uniform capitalization rules apply to your farming business. Filing state taxes free online You must capitalize the direct costs and an allocable part of indirect costs incurred due to the production of the trees. Filing state taxes free online You are not required to capitalize the costs of producing the annual crop because its preproductive period is 2 years or less. Filing state taxes free online Preproductive period of more than 2 years. Filing state taxes free online   The preproductive period of plants grown in commercial quantities in the United States is based on their nationwide weighted average preproductive period. Filing state taxes free online Plants producing the crops or yields shown in Table 6-1 have a nationwide weighted average preproductive period of more than 2 years. Filing state taxes free online Other plants (not shown in Table 6-1) may also have a nationwide weighted average preproductive period of more than 2 years. Filing state taxes free online More information. Filing state taxes free online   For more information on the uniform capitalization rules that apply to property produced in a farming business, see Regulations section 1. Filing state taxes free online 263A-4. Filing state taxes free online Table 6-1. Filing state taxes free online Plants With a Preproductive Period of More Than 2 Years Plants producing the following crops or yields have a nationwide weighted average preproductive period of more than 2 years. Filing state taxes free online Almonds Apples Apricots Avocados Blueberries Cherries Chestnuts Coffee beans Currants Dates Figs Grapefruit Grapes Guavas Kiwifruit Kumquats Lemons Limes Macadamia nuts Mangoes Nectarines Olives Oranges Peaches Pears Pecans Persimmons Pistachio nuts Plums Pomegranates Prunes Tangelos Tangerines Tangors Walnuts Adjusted Basis Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the cost basis or basis other than cost (discussed later) of the property. Filing state taxes free online The adjustments to the original basis are increases or decreases to the cost basis or other basis which result in the adjusted basis of the property. Filing state taxes free online Increases to Basis Increase the basis of any property by all items properly added to a capital account. Filing state taxes free online These include the cost of any improvements having a useful life of more than 1 year. Filing state taxes free online The following costs increase the basis of property. Filing state taxes free online The cost of extending utility service lines to property. Filing state taxes free online Legal fees, such as the cost of defending and perfecting title. Filing state taxes free online Legal fees for seeking a decrease in an assessment levied against property to pay for local improvements. Filing state taxes free online Assessments for items such as paving roads and building ditches that increase the value of the property assessed. Filing state taxes free online Do not deduct these expenses as taxes. Filing state taxes free online However, you can deduct as taxes amounts assessed for maintenance or repairs, or for meeting interest charges related to the improvements. Filing state taxes free online If you make additions or improvements to business property, depreciate the basis of each addition or improvement as separate depreciable property using the rules that would apply to the original property if you had placed it in service at the same time you placed the addition or improvement in service. Filing state taxes free online See chapter 7. Filing state taxes free online Deducting vs. Filing state taxes free online capitalizing costs. Filing state taxes free online   Do not add to your basis costs you can deduct as current expenses. Filing state taxes free online For example, amounts paid for incidental repairs or maintenance are deductible as business expenses and are not added to basis. Filing state taxes free online However, you can elect either to deduct or to capitalize certain other costs. Filing state taxes free online See chapter 7 in Publication 535. Filing state taxes free online Decreases to Basis The following are some items that reduce the basis of property. Filing state taxes free online Section 179 deduction. Filing state taxes free online Deductions previously allowed or allowable for amortization, depreciation, and depletion. Filing state taxes free online Alternative motor vehicle credit. Filing state taxes free online See Form 8910. Filing state taxes free online Alternative fuel vehicle refueling property credit. Filing state taxes free online See Form 8911. Filing state taxes free online Residential energy efficient property credits. Filing state taxes free online See Form 5695. Filing state taxes free online Investment credit (part or all) taken. Filing state taxes free online Casualty and theft losses and insurance reimbursements. Filing state taxes free online Payments you receive for granting an easement. Filing state taxes free online Exclusion from income of subsidies for energy conservation measures. Filing state taxes free online Certain canceled debt excluded from income. Filing state taxes free online Rebates from a manufacturer or seller. Filing state taxes free online Patronage dividends received from a cooperative association as a result of a purchase of property. Filing state taxes free online See Patronage Dividends in chapter 3. Filing state taxes free online Gas-guzzler tax. Filing state taxes free online See Form 6197. Filing state taxes free online Some of these items are discussed next. Filing state taxes free online For a more detailed list of items that decrease basis, see section 1016 of the Internal Revenue Code and Publication 551. Filing state taxes free online Depreciation and section 179 deduction. Filing state taxes free online   The adjustments you must make to the basis of the property if you take the section 179 deduction or depreciate the property are explained next. Filing state taxes free online For more information on these deductions, see chapter 7. Filing state taxes free online Section 179 deduction. Filing state taxes free online   If you take the section 179 expense deduction for all or part of the cost of qualifying business property, decrease the basis of the property by the deduction. Filing state taxes free online Depreciation. Filing state taxes free online   Decrease the basis of property by the depreciation you deducted or could have deducted on your tax returns under the method of depreciation you chose. Filing state taxes free online If you took less depreciation than you could have under the method chosen, decrease the basis by the amount you could have taken under that method. Filing state taxes free online If you did not take a depreciation deduction, reduce the basis by the full amount of the depreciation you could have taken. Filing state taxes free online   If you deducted more depreciation than you should have, decrease your basis by the amount you should have deducted plus the part of the excess depreciation you deducted that actually reduced your tax liability for any year. Filing state taxes free online   See chapter 7 for information on figuring the depreciation you should have claimed. Filing state taxes free online   In decreasing your basis for depreciation, take into account the amount deducted on your tax returns as depreciation and any depreciation you must capitalize under the uniform capitalization rules. Filing state taxes free online Casualty and theft losses. Filing state taxes free online   If you have a casualty or theft loss, decrease the basis of the property by any insurance or other reimbursement. Filing state taxes free online Also, decrease it by any deductible loss not covered by insurance. Filing state taxes free online See chapter 11 for information about figuring your casualty or theft loss. Filing state taxes free online   You must increase your basis in the property by the amount you spend on clean-up costs (such as debris removal) and repairs that restore the property to its pre-casualty condition. Filing state taxes free online To make this determination, compare the repaired property to the property before the casualty. Filing state taxes free online Easements. Filing state taxes free online   The amount you receive for granting an easement is usually considered to be proceeds from the sale of an interest in the real property. Filing state taxes free online It reduces the basis of the affected part of the property. Filing state taxes free online If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain. Filing state taxes free online See Easements and rights-of-way in chapter 3. Filing state taxes free online Exclusion from income of subsidies for energy conservation measures. Filing state taxes free online   You can exclude from gross income any subsidy you received from a public utility company for the purchase or installation of an energy conservation measure for a dwelling unit. Filing state taxes free online Reduce the basis of the property by the excluded amount. Filing state taxes free online Canceled debt excluded from income. Filing state taxes free online   If a debt you owe is canceled or forgiven, other than as a gift or bequest, you generally must include the canceled amount in your gross income for tax purposes. Filing state taxes free online A debt includes any indebtedness for which you are liable or which attaches to property you hold. Filing state taxes free online   You can exclude your canceled debt from income if the debt is any of the following. Filing state taxes free online Debt canceled in a bankruptcy case or when you are insolvent. Filing state taxes free online Qualified farm debt. Filing state taxes free online Qualified real property business debt (provided you are not a C corporation). Filing state taxes free online Qualified principal residence indebtedness. Filing state taxes free online Discharge of certain indebtedness of a qualified individual because of Midwestern disasters. Filing state taxes free online If you exclude canceled debt described in (1) or (2), you may have to reduce the basis of your depreciable and nondepreciable property. Filing state taxes free online If you exclude canceled debt described in (3), you must only reduce the basis of your depreciable property by the excluded amount. Filing state taxes free online   For more information about canceled debt in a bankruptcy case, see Publication 908, Bankruptcy Tax Guide. Filing state taxes free online For more information about insolvency and canceled debt that is qualified farm debt or qualified principal residence indebtedness, see chapter 3. Filing state taxes free online For more information about qualified real property business debt, see Publication 334, Tax Guide for Small Business. Filing state taxes free online For more information about canceled debt in Midwestern disaster areas, see Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas. Filing state taxes free online Basis Other Than Cost There are times when you cannot use cost as basis. Filing state taxes free online In these situations, the fair market value or the adjusted basis of property may be used. Filing state taxes free online Examples are discussed next. Filing state taxes free online Property changed from personal to business or rental use. Filing state taxes free online   When you hold property for personal use and then change it to business use or use it to produce rent, you must figure its basis for depreciation. Filing state taxes free online An example of changing property from personal to business use would be changing the use of your pickup truck that you originally purchased for your personal use to use in your farming business. Filing state taxes free online   The basis for depreciation is the lesser of: The FMV of the property on the date of the change, or Your adjusted basis on the date of the change. Filing state taxes free online   If you later sell or dispose of this property, the basis you use will depend on whether you are figuring a gain or loss. Filing state taxes free online The basis for figuring a gain is your adjusted basis in the property when you sell the property. Filing state taxes free online Figure the basis for a loss starting with the smaller of your adjusted basis or the FMV of the property at the time of the change to business or rental use. Filing state taxes free online Then make adjustments (increases and decreases) for the period after the change in the property's use, as discussed earlier under Adjusted Basis . Filing state taxes free online Property received for services. Filing state taxes free online   If you receive property for services, include the property's FMV in income. Filing state taxes free online The amount you include in income becomes your basis. Filing state taxes free online If the services were performed for a price agreed on beforehand, it will be accepted as the FMV of the property if there is no evidence to the contrary. Filing state taxes free online Example. Filing state taxes free online George Smith is an accountant and also operates a farming business. Filing state taxes free online George agreed to do some accounting work for his neighbor in exchange for a dairy cow. Filing state taxes free online The accounting work and the cow are each worth $1,500. Filing state taxes free online George must include $1,500 in income for his accounting services. Filing state taxes free online George's basis in the cow is $1,500. Filing state taxes free online Taxable Exchanges A taxable exchange is one in which the gain is taxable, or the loss is deductible. Filing state taxes free online A taxable gain or deductible loss also is known as a recognized gain or loss. Filing state taxes free online A taxable exchange occurs when you receive cash or get property that is not similar or related in use to the property exchanged. Filing state taxes free online If you receive property in exchange for other property in a taxable exchange, the basis of the property you receive is usually its FMV at the time of the exchange. Filing state taxes free online Example. Filing state taxes free online You trade a tract of farmland with an adjusted basis of $2,000 for a tractor that has an FMV of $6,000. Filing state taxes free online You must report a taxable gain of $4,000 for the land. Filing state taxes free online The tractor has a basis of $6,000. Filing state taxes free online Involuntary Conversions If you receive property as a result of an involuntary conversion, such as a casualty, theft, or condemnation, figure the basis of the replacement property you receive using the basis of the converted property. Filing state taxes free online Similar or related property. Filing state taxes free online   If the replacement property is similar or related in service or use to the converted property, the replacement property's basis is the same as the old property's basis on the date of the conversion. Filing state taxes free online However, make the following adjustments. Filing state taxes free online Decrease the basis by the following amounts. Filing state taxes free online Any loss you recognize on the involuntary conversion. Filing state taxes free online Any money you receive that you do not spend on similar property. Filing state taxes free online Increase the basis by the following amounts. Filing state taxes free online Any gain you recognize on the involuntary conversion. Filing state taxes free online Any cost of acquiring the replacement property. Filing state taxes free online Money or property not similar or related. Filing state taxes free online   If you receive money or property not similar or related in service or use to the converted property and you buy replacement property similar or related in service or use to the converted property, the basis of the replacement property is its cost decreased by the gain not recognized on the involuntary conversion. Filing state taxes free online Allocating the basis. Filing state taxes free online   If you buy more than one piece of replacement property, allocate your basis among the properties based on their respective costs. Filing state taxes free online Basis for depreciation. Filing state taxes free online   Special rules apply in determining and depreciating the basis of MACRS property acquired in an involuntary conversion. Filing state taxes free online For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Filing state taxes free online For more information about involuntary conversions, see chapter 11. Filing state taxes free online Nontaxable Exchanges A nontaxable exchange is an exchange in which you are not taxed on any gain and you cannot deduct any loss. Filing state taxes free online A nontaxable gain or loss also is known as an unrecognized gain or loss. Filing state taxes free online If you receive property in a nontaxable exchange, its basis is usually the same as the basis of the property you transferred. Filing state taxes free online Like-Kind Exchanges The exchange of property for the same kind of property is the most common type of nontaxable exchange. Filing state taxes free online For an exchange to qualify as a like-kind exchange, you must hold for business or investment purposes both the property you transfer and the property you receive. Filing state taxes free online There must also be an exchange of like-kind property. Filing state taxes free online For more information, see Like-Kind Exchanges in  chapter 8. Filing state taxes free online The basis of the property you receive generally is the same as the adjusted basis of the property you gave up. Filing state taxes free online Example 1. Filing state taxes free online You traded a truck you used in your farming business for a new smaller truck to use in farming. Filing state taxes free online The adjusted basis of the old truck was $10,000. Filing state taxes free online The FMV of the new truck is $30,000. Filing state taxes free online Because this is a nontaxable exchange, you do not recognize any gain, and your basis in the new truck is $10,000, the same as the adjusted basis of the truck you traded. Filing state taxes free online Example 2. Filing state taxes free online You trade a field cultivator (adjusted basis of $8,000) for a planter (FMV of $9,000). Filing state taxes free online You use both the field cultivator and the planter in your farming business. Filing state taxes free online The basis of the planter you receive is $8,000, the same as the field cultivator traded Exchange expenses. Filing state taxes free online   Exchange expenses generally are the closing costs that you pay. Filing state taxes free online They include such items as brokerage commissions, attorney fees, and deed preparation fees. Filing state taxes free online Add them to the basis of the like-kind property you receive. Filing state taxes free online Property plus cash. Filing state taxes free online   If you trade property in a like-kind exchange and also pay money, the basis of the property you receive is the adjusted basis of the property you gave up plus the money you paid. Filing state taxes free online Example. Filing state taxes free online You trade in a truck (adjusted basis of $3,000) for another truck (FMV of $7,500) and pay $4,000. Filing state taxes free online Your basis in the new truck is $7,000 (the $3,000 adjusted basis of the old truck plus the $4,000 cash). Filing state taxes free online Special rules for related persons. Filing state taxes free online   If a like-kind exchange takes place directly or indirectly between related persons and either party disposes of the property within 2 years after the exchange, the exchange no longer qualifies for like-kind exchange treatment. Filing state taxes free online Each person must report any gain or loss not recognized on the original exchange unless the loss is not deductible under the related party rules. Filing state taxes free online Each person reports it on the tax return filed for the year in which the later disposition occurred. Filing state taxes free online If this rule applies, the basis of the property received in the original exchange will be its FMV. Filing state taxes free online For more information, see chapter 8. Filing state taxes free online Exchange of business property. Filing state taxes free online   Exchanging the property of one business for the property of another business generally is a multiple property exchange. Filing state taxes free online For information on figuring basis, see Multiple Property Exchanges in chapter 1 of Publication 544. Filing state taxes free online Basis for depreciation. Filing state taxes free online   Special rules apply in determining and depreciating the basis of MACRS property acquired in a like-kind transaction. Filing state taxes free online For information, see Figuring the Deduction for Property Acquired in a Nontaxable Exchange under Figuring Depreciation Under MACRS in chapter 7. Filing state taxes free online Partially Nontaxable Exchanges A partially nontaxable exchange is an exchange in which you receive unlike property or money in addition to like-kind property. Filing state taxes free online The basis of the property you receive is the same as the adjusted basis of the property you gave up with the following adjustments. Filing state taxes free online Decrease the basis by the following amounts. Filing state taxes free online Any money you receive. Filing state taxes free online Any loss you recognize on the exchange. Filing state taxes free online Increase the basis by the following amounts. Filing state taxes free online Any additional costs you incur. Filing state taxes free online Any gain you recognize on the exchange. Filing state taxes free online If the other party to the exchange assumes your liabilities, treat the debt assumption as money you received in the exchange. Filing state taxes free online Example 1. Filing state taxes free online You trade farmland (basis of $100,000) for another tract of farmland (FMV of $110,000) and $30,000 cash. Filing state taxes free online You realize a gain of $40,000. Filing state taxes free online This is the FMV of the land received plus the cash minus the basis of the land you traded ($110,000 + $30,000 − $100,000). Filing state taxes free online Include your gain in income (recognize gain) only to the extent of the cash received. Filing state taxes free online Your basis in the land you received is figured as follows. Filing state taxes free online Basis of land traded $100,000 Minus: Cash received (adjustment 1(a)) − 30,000   $70,000 Plus: Gain recognized (adjustment 2(b)) + 30,000 Basis of land received $100,000 Example 2. Filing state taxes free online You trade a truck (adjusted basis of $22,750) for another truck (FMV of $20,000) and $10,000 cash. Filing state taxes free online You realize a gain of $7,250. Filing state taxes free online This is the FMV of the truck received plus the cash minus the adjusted basis of the truck you traded ($20,000 + $10,000 − $22,750). Filing state taxes free online You include all the gain in your income (recognize gain) because the gain is less than the cash you received. Filing state taxes free online Your basis in the truck you received is figured as follows. Filing state taxes free online Adjusted basis of truck traded $22,750 Minus: Cash received (adjustment 1(a)) −10,000   $12,750 Plus: Gain recognized (adjustment 2(b)) + 7,250 Basis of truck received $20,000 Allocation of basis. Filing state taxes free online   If you receive like-kind and unlike properties in the exchange, allocate the basis first to the unlike property, other than money, up to its FMV on the date of the exchange. Filing state taxes free online The rest is the basis of the like-kind property. Filing state taxes free online Example. Filing state taxes free online You traded a tractor with an adjusted basis of $15,000 for another tractor that had an FMV of $12,500. Filing state taxes free online You also received $1,000 cash and a truck that had an FMV of $3,000. Filing state taxes free online The truck is unlike property. Filing state taxes free online You realized a gain of $1,500. Filing state taxes free online This is the FMV of the tractor received plus the FMV of the truck received plus the cash minus the adjusted basis of the tractor you traded ($12,500 + $3,000 + $1,000 − $15,000). Filing state taxes free online You include in income (recognize) all $1,500 of the gain because it is less than the FMV of the unlike property plus the cash received. Filing state taxes free online Your basis in the properties you received is figured as follows. Filing state taxes free online Adjusted basis of old tractor $15,000 Minus: Cash received (adjustment 1(a)) − 1,000   $14,000 Plus: Gain recognized (adjustment 2(b)) + 1,500 Total basis of properties received $15,500 Allocate the total basis of $15,500 first to the unlike property—the truck ($3,000). Filing state taxes free online This is the truck's FMV. Filing state taxes free online The rest ($12,500) is the basis of the tractor. Filing state taxes free online Sale and Purchase If you sell property and buy similar property in two mutually dependent transactions, you may have to treat the sale and purchase as a single nontaxable exchange. Filing state taxes free online Example. Filing state taxes free online You used a tractor on your farm for 3 years. Filing state taxes free online Its adjusted basis is $22,000 and its FMV is $40,000. Filing state taxes free online You are interested in a new tractor, which sells for $60,000. Filing state taxes free online Ordinarily, you would trade your old tractor for the new one and pay the dealer $20,000. Filing state taxes free online Your basis for depreciating the new tractor would then be $42,000 ($20,000 + $22,000, the adjusted basis of your old tractor). Filing state taxes free online However, you want a higher basis for depreciating the new tractor, so you agree to pay the dealer $60,000 for the new tractor if he will pay you $40,000 for your old tractor. Filing state taxes free online Because the two transactions are dependent on each other, you are treated as having exchanged your old tractor for the new one and paid $20,000 ($60,000 − $40,000). Filing state taxes free online Your basis for depreciating the new tractor is $42,000, the same as if you traded the old tractor. Filing state taxes free online Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you. Filing state taxes free online You also must know its FMV at the time it was given to you and any gift tax paid on it. Filing state taxes free online FMV equal to or greater than donor's adjusted basis. Filing state taxes free online   If the FMV of the property is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis when you received the gift. Filing state taxes free online Increase your basis by all or part of any gift tax paid, depending on the date of the gift. Filing state taxes free online   Also, for figuring gain or loss from a sale or other disposition of the property, or for figuring depreciation, depletion, or amortization deductions on business property, you must increase or decrease your basis (the donor's adjusted basis) by any required adjustments to basis while you held the property. Filing state taxes free online See Adjusted Basis , earlier. Filing state taxes free online   If you received a gift during the tax year, increase your basis in the gift (the donor's adjusted basis) by the part of the gift tax paid on it due to the net increase in value of the gift. Filing state taxes free online Figure the increase by multiplying the gift tax paid by the following fraction. Filing state taxes free online Net increase in value of the gift Amount of the gift   The net increase in value of the gift is the FMV of the gift minus the donor's adjusted basis. Filing state taxes free online The amount of the gift is its value for gift tax purposes after reduction by any annual exclusion and marital or charitable deduction that applies to the gift. Filing state taxes free online Example. Filing state taxes free online In 2013, you received a gift of property from your mother that had an FMV of $50,000. Filing state taxes free online Her adjusted basis was $20,000. Filing state taxes free online The amount of the gift for gift tax purposes was $36,000 ($50,000 minus the $14,000 annual exclusion). Filing state taxes free online She paid a gift tax of $7,320. Filing state taxes free online Your basis, $26,076, is figured as follows. Filing state taxes free online Fair market value $50,000 Minus: Adjusted basis −20,000 Net increase in value $30,000 Gift tax paid $7,320 Multiplied by ($30,000 ÷ $36,000) × . Filing state taxes free online 83 Gift tax due to net increase in value $6,076 Adjusted basis of property to your mother +20,000 Your basis in the property $26,076 Note. Filing state taxes free online If you received a gift before 1977, your basis in the gift (the donor's adjusted basis) includes any gift tax paid on it. Filing state taxes free online However, your basis cannot exceed the FMV of the gift when it was given to you. Filing state taxes free online FMV less than donor's adjusted basis. Filing state taxes free online   If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or a loss when you dispose of the property. Filing state taxes free online Your basis for figuring gain is the donor's adjusted basis plus or minus any required adjustments to basis while you held the property. Filing state taxes free online Your basis for figuring loss is its FMV when you received the gift plus or minus any required adjustments to basis while you held the property. Filing state taxes free online (See Adjusted Basis , earlier. Filing state taxes free online )   If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither gain nor loss on the sale or other disposition of the property. Filing state taxes free online Example. Filing state taxes free online You received farmland as a gift from your parents when they retired from farming. Filing state taxes free online At the time of the gift, the land had an FMV of $80,000. Filing state taxes free online Your parents' adjusted basis was $100,000. Filing state taxes free online After you received the land, no events occurred that would increase or decrease your basis. Filing state taxes free online If you sell the land for $120,000, you will have a $20,000 gain because you must use the donor's adjusted basis at the time of the gift ($100,000) as your basis to figure a gain. Filing state taxes free online If you sell the land for $70,000, you will have a $10,000 loss because you must use the FMV at the time of the gift ($80,000) as your basis to figure a loss. Filing state taxes free online If the sales price is between $80,000 and $100,000, you have neither gain nor loss. Filing state taxes free online For instance, if the sales price was $90,000 and you tried to figure a gain using the donor's adjusted basis ($100,000), you would get a $10,000 loss. Filing state taxes free online If you then tried to figure a loss using the FMV ($80,000), you would get a $10,000 gain. Filing state taxes free online Business property. Filing state taxes free online   If you hold the gift as business property, your basis for figuring any depreciation, depletion, or amortization deductions is the same as the donor's adjusted basis plus or minus any required adjustments to basis while you hold the property. Filing state taxes free online Property Transferred From a Spouse The basis of property transferred to you or transferred in trust for your benefit by your spouse is the same as your spouse's adjusted basis. Filing state taxes free online The same rule applies to a transfer by your former spouse if the transfer is incident to divorce. Filing state taxes free online However, for property transferred in trust, adjust your basis for any gain recognized by your spouse or former spouse if the liabilities assumed plus the liabilities to which the property is subject are more than the adjusted basis of the property transferred. Filing state taxes free online The transferor must give you the records needed to determine the adjusted basis and holding period of the property as of the date of the transfer. Filing state taxes free online For more information, see Property Settlements in Publication 504, Divorced or Separated Individuals. Filing state taxes free online Inherited Property Your basis in property you inherited from a decedent, who died before January 1, 2010, or after December 31, 2010, is generally one of the following: The FMV of the property at the date of the decedent's death. Filing state taxes free online If a federal estate return is filed, you can use its appraised value. Filing state taxes free online The FMV on the alternate valuation date, if the personal representative for the estate elects to use alternate valuation. Filing state taxes free online For information on the alternate valuation, see the Instructions for Form 706. Filing state taxes free online The decedent's adjusted basis in land to the extent of the value that is excluded from the decedent's taxable estate as a qualified conservation easement. Filing state taxes free online If a federal estate tax return does not have to be filed, your basis in the inherited property is its appraised value at the date of death for state inheritance or transmission taxes. Filing state taxes free online Special-use valuation method. Filing state taxes free online   Under certain conditions, when a person dies, the executor or personal representative of that person's estate may elect to value qualified real property at other than its FMV. Filing state taxes free online If so, the executor or personal representative values the qualified real property based on its use as a farm or other closely held business. Filing state taxes free online If the executor or personal representative elects this method of valuation for estate tax purposes, this value is the basis of the property for the qualified heirs. Filing state taxes free online The qualified heirs should be able to get the necessary value from the executor or personal representative of the estate. Filing state taxes free online   If you are a qualified heir who received special-use valuation property, increase your basis by any gain recognized by the estate or trust because of post-death appreciation. Filing state taxes free online Post-death appreciation is the property's FMV on the date of distribution minus the property's FMV either on the date of the individual's death or on the alternate valuation date. Filing state taxes free online Figure all FMVs without regard to the special-use valuation. Filing state taxes free online   You may be liable for an additional estate tax if, within 10 years after the death of the decedent, you transfer the property or the property stops being used as a farm. Filing state taxes free online This tax does not apply if you dispose of the property in a like-kind exchange or in an involuntary conversion in which all of the proceeds are reinvested in qualified replacement property. Filing state taxes free online The tax also does not apply if you transfer the property to a member of your family and certain requirements are met. Filing state taxes free online   You can elect to increase your basis in special-use valuation property if it becomes subject to the additional estate tax. Filing state taxes free online To increase your basis, you must make an irrevocable election and pay interest on the additional estate tax figured from the date 9 months after the decedent's death until the date of payment of the additional estate tax. Filing state taxes free online If you meet these requirements, increase your basis in the property to its FMV on the date of the decedent's death or the alternate valuation date. Filing state taxes free online The increase in your basis is considered to have occurred immediately before the event that resulted in the additional estate tax. Filing state taxes free online   You make the election by filing, with Form 706-A, United States Additional Estate Tax Return, a statement that: Contains your (and the estate's) name, address, and taxpayer identification number; Identifies the election as an election under section 1016(c) of the Internal Revenue Code; Specifies the property for which you are making the election; and Provides any additional information required by the Form 706-A instructions. Filing state taxes free online   For more information, see Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return, Form 706-A, and the related instructions. Filing state taxes free online Property inherited from a decedent who died in 2010. Filing state taxes free online   If you inherited property from a decedent who died in 2010, different rules may apply. Filing state taxes free online See Publication 4895, Tax Treatment of Property Acquired From a Decendent Dying in 2010, for details. Filing state taxes free online Property Distributed From a Partnership or Corporation The following rules apply to determine a partner's basis and a shareholder's basis in property distributed respectively from a partnership to the partner with respect to the partner's interest in the partnership and from a corporation to the shareholder with respect to the shareholder's ownership of stock in the corporation. Filing state taxes free online Partner's basis. Filing state taxes free online   Unless there is a complete liquidation of a partner's interest, the basis of property (other than money) distributed by a partnership to the partner is its adjusted basis to the partnership immediately before the distribution. Filing state taxes free online However, the basis of the property to the partner cannot be more than the adjusted basis of his or her interest in the partnership reduced by any money received in the same transaction. Filing state taxes free online For more information, see Partner's Basis for Distributed Property in Publication 541, Partnerships. Filing state taxes free online Shareholder's basis. Filing state taxes free online   The basis of property distributed by a corporation to a shareholder is its fair market value. Filing state taxes free online For more information about corporate distributions, see Distributions to Shareholders in Publication 542, Corporations. Filing state taxes free online Prev  Up  Next   Home   More Online Publications
Print - Click this link to Print this page

Contact My Local Office in Wyoming

Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Casper  100 E. B St.
Casper, WY 82601 

Tuesday - 10:45 a.m.-4:30 p.m.
Wednesday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)
Thursday - 8:30 a.m.-1:00 p.m.

 

Services Provided

(307) 261-6390 
Cheyenne  5353 Yellowstone Rd.
Cheyenne, WY 82009 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)

 

Services Provided

(307) 633-0888 
Sheridan  1949 Sugarland Dr.
Sheridan, WY 82801 

Monday-Friday - 8:30 a.m.-4:30 p.m.
(Closed for lunch 12:30 p.m.-1:30 p.m.)

 

Services Provided

(307) 672-2788 

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses

The Taxpayer Advocate Service: Call 307-633-0800 in the Cheyenne area or 1-877-777-4778 elsewhere, or see Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
5353 Yellowstone Rd., RM 206A 
MS 6610CHE
Cheyenne, WY 82001

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The Filing State Taxes Free Online

Filing state taxes free online 3. Filing state taxes free online   Adjustments to Income Table of Contents Individual Retirement Arrangement (IRA) Contributions and DeductionsContributions to Kay Bailey Hutchison Spousal IRAs. Filing state taxes free online Deductible contribution. Filing state taxes free online Nondeductible contribution. Filing state taxes free online You may be able to subtract amounts from your total income (Form 1040, line 22 or Form 1040A, line 15) or total effectively connected income (Form 1040NR, line 23) to get your adjusted gross income (Form 1040, line 37; Form 1040A, line 21; or Form 1040NR, line 36). Filing state taxes free online Some adjustments to income follow. Filing state taxes free online Contributions to your individual retirement arrangement (IRA) (Form 1040, line 32; Form 1040A, line 17; or Form 1040NR, line 32), explained later in this publication. Filing state taxes free online Certain moving expenses (Form 1040, line 26; or Form 1040NR, line 26) if you changed job locations or started a new job in 2013. Filing state taxes free online See Publication 521, Moving Expenses, or see Form 3903, Moving Expenses, and its instructions. Filing state taxes free online Some health insurance costs (Form 1040, line 29 or Form 1040NR, line 29) if you were self-employed and had a net profit for the year, or if you received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. Filing state taxes free online For more details, see Publication 535, Business Expenses. Filing state taxes free online Payments to your self-employed SEP, SIMPLE, or qualified plan (Form 1040, line 28 or Form 1040NR, line 28). Filing state taxes free online For more information, including limits on how much you can deduct, see Publication 560, Retirement Plans for Small Business. Filing state taxes free online Penalties paid on early withdrawal of savings (Form 1040, line 30 or Form 1040NR, line 30). Filing state taxes free online Form 1099-INT, Interest Income, or Form 1099-OID, Original Issue Discount, will show the amount of any penalty you were charged. Filing state taxes free online Alimony payments (Form 1040, line 31a). Filing state taxes free online For more information, see Publication 504, Divorced or Separated Individuals. Filing state taxes free online There are other items you can claim as adjustments to income. Filing state taxes free online These adjustments are discussed in your tax return instructions. Filing state taxes free online Individual Retirement Arrangement (IRA) Contributions and Deductions This section explains the tax treatment of amounts you pay into traditional IRAs. Filing state taxes free online A traditional IRA is any IRA that is not a Roth or SIMPLE IRA. Filing state taxes free online Roth and SIMPLE IRAs are defined earlier in the IRA discussion under Retirement Plan Distributions . Filing state taxes free online For more detailed information, see Publication 590. Filing state taxes free online Contributions. Filing state taxes free online   An IRA is a personal savings plan that offers you tax advantages to set aside money for your retirement. Filing state taxes free online Two advantages of a traditional IRA are: You may be able to deduct some or all of your contributions to it, depending on your circumstances, and Generally, amounts in your IRA, including earnings and gains, are not taxed until distributed. Filing state taxes free online    Although interest earned from your traditional IRA generally is not taxed in the year earned, it is not tax-exempt interest. Filing state taxes free online Do not report this interest on your tax return as tax-exempt interest. Filing state taxes free online General limit. Filing state taxes free online   The most that can be contributed for 2013 to your traditional IRA is the smaller of the following amounts. Filing state taxes free online Your taxable compensation for the year, or $5,500 ($6,500 if you were age 50 or older by the end of 2013). Filing state taxes free online Contributions to Kay Bailey Hutchison Spousal IRAs. Filing state taxes free online   In the case of a married couple filing a joint return for 2013, up to $5,500 ($6,500 for each spouse age 50 or older by the end of 2013) can be contributed to IRAs on behalf of each spouse, even if one spouse has little or no compensation. Filing state taxes free online For more information on the general limit and the Kay Bailey Hutchison Spousal IRA limit, see How Much Can Be Contributed? in Publication 590. Filing state taxes free online Deductible contribution. Filing state taxes free online   Generally, you can deduct the lesser of the contributions to your traditional IRA for the year or the general limit (or Kay Bailey Hutchison Spousal IRA limit, if applicable) just explained. Filing state taxes free online However, if you or your spouse was covered by an employer retirement plan at any time during the year for which contributions were made, you may not be able to deduct all of the contributions. Filing state taxes free online Your deduction may be reduced or eliminated, depending on your filing status and the amount of your income. Filing state taxes free online For more information, see Limit if Covered by Employer Plan in Publication 590. Filing state taxes free online Nondeductible contribution. Filing state taxes free online   The difference between your total permitted contributions and your IRA deduction, if any, is your nondeductible contribution. Filing state taxes free online You must file Form 8606, Nondeductible IRAs, to report nondeductible contributions even if you do not have to file a tax return for the year. Filing state taxes free online    For 2014, the most that can be contributed to your traditional IRA is $5,500 ($6,500 if you are age 50 or older at the end of 2014). Filing state taxes free online Prev  Up  Next   Home   More Online Publications