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Free 2012 Tax Return Software

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Free 2012 Tax Return Software

Free 2012 tax return software 12. Free 2012 tax return software   Business Deduction for Work-Related Education Table of Contents What's New Introduction Qualifying Work-Related EducationEducation Required by Employer or by Law Education To Maintain or Improve Skills Education To Meet Minimum Requirements Education That Qualifies You for a New Trade or Business What Expenses Can Be DeductedUnclaimed reimbursement. Free 2012 tax return software Transportation Expenses Travel Expenses No Double Benefit Allowed How To Treat ReimbursementsAccountable Plans Nonaccountable Plans Deducting Business ExpensesSelf-Employed Persons Employees Performing Artists and Fee-Basis Officials Impairment-Related Work Expenses Recordkeeping Illustrated Example What's New Standard mileage rate. Free 2012 tax return software  Generally, if you claim a business deduction for work-related education and you drive your car to and from school, the amount you can deduct for miles driven from January 1, 2013 through December 31, 2013, is 56. Free 2012 tax return software 5 cents per mile. Free 2012 tax return software For more information, see Transportation Expenses under What Expenses Can Be Deducted, later. Free 2012 tax return software Introduction This chapter discusses work-related education expenses that you may be able to deduct as business expenses. Free 2012 tax return software To claim such a deduction, you must: Itemize your deductions on Schedule A (Form 1040 or 1040NR) if you are an employee, File Schedule C (Form 1040), Profit or Loss From Business, Schedule C-EZ (Form 1040), Net Profit From Business, or Schedule F (Form 1040), Profit or Loss From Farming if you are self-employed, and Have expenses for education that meet the requirements discussed under Qualifying Work-Related Education , later. Free 2012 tax return software What is the tax benefit of taking a business deduction for work-related education. Free 2012 tax return software   If you are an employee and can itemize your deductions, you may be able to claim a deduction for the expenses you pay for your work-related education. Free 2012 tax return software Your deduction will be the amount by which your qualifying work-related education expenses plus other job and certain miscellaneous expenses (except for impairment-related work expenses of disabled individuals) is greater than 2% of your adjusted gross income. Free 2012 tax return software An itemized deduction reduces the amount of your income subject to tax. Free 2012 tax return software   If you are self-employed, you deduct your expenses for qualifying work-related education directly from your self-employment income. Free 2012 tax return software This reduces the amount of your income subject to both income tax and self-employment tax. Free 2012 tax return software   Your work-related education expenses may also qualify you for other tax benefits, such as the American opportunity and lifetime learning credits. Free 2012 tax return software You may qualify for these other benefits even if you do not meet the requirements listed above. Free 2012 tax return software   Also, your work-related education expenses may qualify you to claim more than one tax benefit. Free 2012 tax return software Generally, you may claim any number of benefits as long as you use different expenses to figure each one. Free 2012 tax return software Qualifying Work-Related Education You can deduct the costs of qualifying work-related education as business expenses. Free 2012 tax return software This is education that meets at least one of the following two tests. Free 2012 tax return software The education is required by your employer or the law to keep your present salary, status, or job. Free 2012 tax return software The required education must serve a bona fide business purpose of your employer. Free 2012 tax return software The education maintains or improves skills needed in your present work. Free 2012 tax return software However, even if the education meets one or both of the above tests, it is not qualifying work-related education if it: Is needed to meet the minimum educational requirements of your present trade or business, or Is part of a program of study that will qualify you for a new trade or business. Free 2012 tax return software You can deduct the costs of qualifying work-related education as a business expense even if the education could lead to a degree. Free 2012 tax return software Use Figure 12-1, Does Your Work-Related Education Qualify as a quick check to see if your education qualifies. Free 2012 tax return software Education Required by Employer or by Law Once you have met the minimum educational requirements for your job, your employer or the law may require you to get more education. Free 2012 tax return software This additional education is qualifying work-related education if all three of the following requirements are met. Free 2012 tax return software It is required for you to keep your present salary, status, or job, The requirement serves a bona fide business purpose of your employer, and The education is not part of a program that will qualify you for a new trade or business. Free 2012 tax return software When you get more education than your employer or the law requires, the additional education can be qualifying work-related education only if it maintains or improves skills required in your present work. Free 2012 tax return software See Education To Maintain or Improve Skills , later. Free 2012 tax return software Example. Free 2012 tax return software You are a teacher who has satisfied the minimum requirements for teaching. Free 2012 tax return software Your employer requires you to take an additional college course each year to keep your teaching job. Free 2012 tax return software If the courses will not qualify you for a new trade or business, they are qualifying work-related education even if you eventually receive a master's degree and an increase in salary because of this extra education. Free 2012 tax return software This image is too large to be displayed in the current screen. Free 2012 tax return software Please click the link to view the image. Free 2012 tax return software Figure 12-1 Education To Maintain or Improve Skills If your education is not required by your employer or the law, it can be qualifying work-related education only if it maintains or improves skills needed in your present work. Free 2012 tax return software This could include refresher courses, courses on current developments, and academic or vocational courses. Free 2012 tax return software Example. Free 2012 tax return software You repair televisions, radios, and stereo systems for XYZ Store. Free 2012 tax return software To keep up with the latest changes, you take special courses in radio and stereo service. Free 2012 tax return software These courses maintain and improve skills required in your work. Free 2012 tax return software Maintaining skills vs. Free 2012 tax return software qualifying for new job. Free 2012 tax return software   Education to maintain or improve skills needed in your present work is not qualifying education if it will also qualify you for a new trade or business. Free 2012 tax return software Education during temporary absence. Free 2012 tax return software   If you stop working for a year or less in order to get education to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Free 2012 tax return software Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Free 2012 tax return software Example. Free 2012 tax return software You quit your biology research job to become a full-time biology graduate student for 1 year. Free 2012 tax return software If you return to work in biology research after completing the courses, the education is related to your present work even if you do not go back to work with the same employer. Free 2012 tax return software Education during indefinite absence. Free 2012 tax return software   If you stop work for more than a year, your absence from your job is considered indefinite. Free 2012 tax return software Education during an indefinite absence, even if it maintains or improves skills needed in the work from which you are absent, is considered to qualify you for a new trade or business. Free 2012 tax return software Therefore, it is not qualifying work-related education. Free 2012 tax return software Education To Meet Minimum Requirements Education you need to meet the minimum educational requirements for your present trade or business is not qualifying work-related education. Free 2012 tax return software The minimum educational requirements are determined by: Laws and regulations, Standards of your profession, trade, or business, and Your employer. Free 2012 tax return software Once you have met the minimum educational requirements that were in effect when you were hired, you do not have to meet any new minimum educational requirements. Free 2012 tax return software This means that if the minimum requirements change after you were hired, any education you need to meet the new requirements can be qualifying education. Free 2012 tax return software You have not necessarily met the minimum educational requirements of your trade or business simply because you are already doing the work. Free 2012 tax return software Example 1. Free 2012 tax return software You are a full-time engineering student. Free 2012 tax return software Although you have not received your degree or certification, you work part time as an engineer for a firm that will employ you as a full-time engineer after you finish college. Free 2012 tax return software Although your college engineering courses improve your skills in your present job, they are also needed to meet the minimum job requirements for a full-time engineer. Free 2012 tax return software The education is not qualifying work-related education. Free 2012 tax return software Example 2. Free 2012 tax return software You are an accountant and you have met the minimum educational requirements of your employer. Free 2012 tax return software Your employer later changes the minimum educational requirements and requires you to take college courses to keep your job. Free 2012 tax return software These additional courses can be qualifying work-related education because you have already satisfied the minimum requirements that were in effect when you were hired. Free 2012 tax return software Requirements for Teachers States or school districts usually set the minimum educational requirements for teachers. Free 2012 tax return software The requirement is the college degree or the minimum number of college hours usually required of a person hired for that position. Free 2012 tax return software If there are no requirements, you will have met the minimum educational requirements when you become a faculty member. Free 2012 tax return software The determination of whether you are a faculty member of an educational institution must be made on the basis of the particular practices of the institution. Free 2012 tax return software You generally will be considered a faculty member when one or more of the following occurs. Free 2012 tax return software You have tenure. Free 2012 tax return software Your years of service count toward obtaining tenure. Free 2012 tax return software You have a vote in faculty decisions. Free 2012 tax return software Your school makes contributions for you to a retirement plan other than social security or a similar program. Free 2012 tax return software Example 1. Free 2012 tax return software The law in your state requires beginning secondary school teachers to have a bachelor's degree, including 10 professional education courses. Free 2012 tax return software In addition, to keep the job a teacher must complete a fifth year of training within 10 years from the date of hire. Free 2012 tax return software If the employing school certifies to the state Department of Education that qualified teachers cannot be found, the school can hire persons with only 3 years of college. Free 2012 tax return software However, to keep their jobs, these teachers must get a bachelor's degree and the required professional education courses within 3 years. Free 2012 tax return software Under these facts, the bachelor's degree, whether or not it includes the 10 professional education courses, is considered the minimum educational requirement for qualification as a teacher in your state. Free 2012 tax return software If you have all the required education except the fifth year, you have met the minimum educational requirements. Free 2012 tax return software The fifth year of training is qualifying work-related education unless it is part of a program of study that will qualify you for a new trade or business. Free 2012 tax return software Example 2. Free 2012 tax return software Assume the same facts as in Example 1 except that you have a bachelor's degree and only six professional education courses. Free 2012 tax return software The additional four education courses can be qualifying work-related education. Free 2012 tax return software Although you do not have all the required courses, you have already met the minimum educational requirements. Free 2012 tax return software Example 3. Free 2012 tax return software Assume the same facts as in Example 1 except that you are hired with only 3 years of college. Free 2012 tax return software The courses you take that lead to a bachelor's degree (including those in education) are not qualifying work-related education. Free 2012 tax return software They are needed to meet the minimum educational requirements for employment as a teacher. Free 2012 tax return software Example 4. Free 2012 tax return software You have a bachelor's degree and you work as a temporary instructor at a university. Free 2012 tax return software At the same time, you take graduate courses toward an advanced degree. Free 2012 tax return software The rules of the university state that you can become a faculty member only if you get a graduate degree. Free 2012 tax return software Also, you can keep your job as an instructor only as long as you show satisfactory progress toward getting this degree. Free 2012 tax return software You have not met the minimum educational requirements to qualify you as a faculty member. Free 2012 tax return software The graduate courses are not qualifying work-related education. Free 2012 tax return software Certification in a new state. Free 2012 tax return software   Once you have met the minimum educational requirements for teachers for your state, you are considered to have met the minimum educational requirements in all states. Free 2012 tax return software This is true even if you must get additional education to be certified in another state. Free 2012 tax return software Any additional education you need is qualifying work-related education. Free 2012 tax return software You have already met the minimum requirements for teaching. Free 2012 tax return software Teaching in another state is not a new trade or business. Free 2012 tax return software Example. Free 2012 tax return software You hold a permanent teaching certificate in State A and are employed as a teacher in that state for several years. Free 2012 tax return software You move to State B and are promptly hired as a teacher. Free 2012 tax return software You are required, however, to complete certain prescribed courses to get a permanent teaching certificate in State B. Free 2012 tax return software These additional courses are qualifying work-related education because the teaching position in State B involves the same general kind of work for which you were qualified in State A. Free 2012 tax return software Education That Qualifies You for a New Trade or Business Education that is part of a program of study that will qualify you for a new trade or business is not qualifying work-related education. Free 2012 tax return software This is true even if you do not plan to enter that trade or business. Free 2012 tax return software If you are an employee, a change of duties that involves the same general kind of work is not a new trade or business. Free 2012 tax return software Example 1. Free 2012 tax return software You are an accountant. Free 2012 tax return software Your employer requires you to get a law degree at your own expense. Free 2012 tax return software You register at a law school for the regular curriculum that leads to a law degree. Free 2012 tax return software Even if you do not intend to become a lawyer, the education is not qualifying because the law degree will qualify you for a new trade or business. Free 2012 tax return software Example 2. Free 2012 tax return software You are a general practitioner of medicine. Free 2012 tax return software You take a 2-week course to review developments in several specialized fields of medicine. Free 2012 tax return software The course does not qualify you for a new profession. Free 2012 tax return software It is qualifying work- related education because it maintains or improves skills required in your present profession. Free 2012 tax return software Example 3. Free 2012 tax return software While working in the private practice of psychiatry, you enter a program to study and train at an accredited psychoanalytic institute. Free 2012 tax return software The program will lead to qualifying you to practice psychoanalysis. Free 2012 tax return software The psychoanalytic training does not qualify you for a new profession. Free 2012 tax return software It is qualifying work-related education because it maintains or improves skills required in your present profession. Free 2012 tax return software Bar or CPA Review Course Review courses to prepare for the bar examination or the certified public accountant (CPA) examination are not qualifying work-related education. Free 2012 tax return software They are part of a program of study that can qualify you for a new profession. Free 2012 tax return software Teaching and Related Duties All teaching and related duties are considered the same general kind of work. Free 2012 tax return software A change in duties in any of the following ways is not considered a change to a new business. Free 2012 tax return software Elementary school teacher to secondary school teacher. Free 2012 tax return software Teacher of one subject, such as biology, to teacher of another subject, such as art. Free 2012 tax return software Classroom teacher to guidance counselor. Free 2012 tax return software Classroom teacher to school administrator. Free 2012 tax return software What Expenses Can Be Deducted If your education meets the requirements described earlier under Qualifying Work-Related Education you can generally deduct your education expenses as business expenses. Free 2012 tax return software If you are not self-employed, you can deduct business expenses only if you itemize your deductions. Free 2012 tax return software You cannot deduct expenses related to tax-exempt and excluded income. Free 2012 tax return software Deductible expenses. Free 2012 tax return software   The following education expenses can be deducted. Free 2012 tax return software Tuition, books, supplies, lab fees, and similar items. Free 2012 tax return software Certain transportation and travel costs. Free 2012 tax return software Other education expenses, such as costs of research and typing when writing a paper as part of an educational program. Free 2012 tax return software Nondeductible expenses. Free 2012 tax return software   You cannot deduct personal or capital expenses. Free 2012 tax return software For example, you cannot deduct the dollar value of vacation time or annual leave you take to attend classes. Free 2012 tax return software This amount is a personal expense. Free 2012 tax return software Unclaimed reimbursement. Free 2012 tax return software   If you do not claim reimbursement that you are entitled to receive from your employer, you cannot deduct the expenses that apply to that unclaimed reimbursement. Free 2012 tax return software Example. Free 2012 tax return software Your employer agrees to pay your education expenses if you file a voucher showing your expenses. Free 2012 tax return software You do not file a voucher and you do not get reimbursed. Free 2012 tax return software Because you did not file a voucher, you cannot deduct the expenses on your tax return. Free 2012 tax return software Transportation Expenses If your education qualifies, you can deduct local transportation costs of going directly from work to school. Free 2012 tax return software If you are regularly employed and go to school on a temporary basis, you can also deduct the costs of returning from school to home. Free 2012 tax return software Temporary basis. Free 2012 tax return software   You go to school on a temporary basis if either of the following situations applies to you. Free 2012 tax return software Your attendance at school is realistically expected to last 1 year or less and does indeed last for 1 year or less. Free 2012 tax return software Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Free 2012 tax return software Your attendance is temporary up to the date you determine it will last more than 1 year. Free 2012 tax return software If you are in either situation (1) or (2) above, your attendance is not temporary if facts and circumstances indicate otherwise. Free 2012 tax return software Attendance not on a temporary basis. Free 2012 tax return software   You do not go to school on a temporary basis if either of the following situations apply to you. Free 2012 tax return software Your attendance at school is realistically expected to last more than 1 year. Free 2012 tax return software It does not matter how long you actually attend. Free 2012 tax return software Initially, your attendance at school is realistically expected to last 1 year or less, but at a later date your attendance is reasonably expected to last more than 1 year. Free 2012 tax return software Your attendance is not temporary after the date you determine it will last more than 1 year. Free 2012 tax return software Deductible Transportation Expenses If you are regularly employed and go directly from home to school on a temporary basis, you can deduct the round-trip costs of transportation between your home and school. Free 2012 tax return software This is true regardless of the location of the school, the distance traveled, or whether you attend school on nonwork days. Free 2012 tax return software Transportation expenses include the actual costs of bus, subway, cab, or other fares, as well as the costs of using your car. Free 2012 tax return software Transportation expenses do not include amounts spent for travel, meals, or lodging while you are away from home overnight. Free 2012 tax return software Example 1. Free 2012 tax return software You regularly work in a nearby town, and go directly from work to home. Free 2012 tax return software You also attend school every work night for 3 months to take a course that improves your job skills. Free 2012 tax return software Since you are attending school on a temporary basis, you can deduct your daily round-trip transportation expenses in going between home and school. Free 2012 tax return software This is true regardless of the distance traveled. Free 2012 tax return software Example 2. Free 2012 tax return software Assume the same facts as in Example 1 except that on certain nights you go directly from work to school and then home. Free 2012 tax return software You can deduct your transportation expenses from your regular work site to school and then home. Free 2012 tax return software Example 3. Free 2012 tax return software Assume the same facts as in Example 1 except that you attend the school for 9 months on Saturdays, nonwork days. Free 2012 tax return software Since you are attending school on a temporary basis, you can deduct your round-trip transportation expenses in going between home and school. Free 2012 tax return software Example 4. Free 2012 tax return software Assume the same facts as in Example 1 except that you attend classes twice a week for 15 months. Free 2012 tax return software Since your attendance in school is not considered temporary, you cannot deduct your transportation expenses in going between home and school. Free 2012 tax return software If you go directly from work to school, you can deduct the one-way transportation expenses of going from work to school. Free 2012 tax return software If you go from work to home to school and return home, your transportation expenses cannot be more than if you had gone directly from work to school. Free 2012 tax return software Using your car. Free 2012 tax return software    If you use your car (whether you own or lease it) for transportation to school, you can deduct your actual expenses or use the standard mileage rate to figure the amount you can deduct. Free 2012 tax return software The standard mileage rate for miles driven from January 1, 2013 through December 31, 2013, is 56. Free 2012 tax return software 5 cents per mile. Free 2012 tax return software Whichever method you use, you can also deduct parking fees and tolls. Free 2012 tax return software See Publication 463, chapter 4, for information on deducting your actual expenses of using a car. Free 2012 tax return software Travel Expenses You can deduct expenses for travel, meals (see 50% limit on meals , later), and lodging if you travel overnight mainly to obtain qualifying work-related education. Free 2012 tax return software Travel expenses for qualifying work-related education are treated the same as travel expenses for other employee business purposes. Free 2012 tax return software For more information, see chapter 1 of Publication 463. Free 2012 tax return software You cannot deduct expenses for personal activities such as sightseeing, visiting, or entertaining. Free 2012 tax return software Mainly personal travel. Free 2012 tax return software   If your travel away from home is mainly personal, you cannot deduct all of your expenses for travel, meals, and lodging. Free 2012 tax return software You can deduct only your expenses for lodging and 50% of your expenses for meals during the time you attend the qualified educational activities. Free 2012 tax return software   Whether a trip's purpose is mainly personal or educational depends upon the facts and circumstances. Free 2012 tax return software An important factor is the comparison of time spent on personal activities with time spent on educational activities. Free 2012 tax return software If you spend more time on personal activities, the trip is considered mainly educational only if you can show a substantial nonpersonal reason for traveling to a particular location. Free 2012 tax return software Example 1. Free 2012 tax return software John works in Newark, New Jersey. Free 2012 tax return software He traveled to Chicago to take a deductible 1-week course at the request of his employer. Free 2012 tax return software His main reason for going to Chicago was to take the course. Free 2012 tax return software While there, he took a sightseeing trip, entertained some friends, and took a side trip to Pleasantville for a day. Free 2012 tax return software Since the trip was mainly for business, John can deduct his round-trip airfare to Chicago. Free 2012 tax return software He cannot deduct his transportation expenses of going to Pleasantville. Free 2012 tax return software He can deduct only the meals (subject to the 50% limit) and lodging connected with his educational activities. Free 2012 tax return software Example 2. Free 2012 tax return software Sue works in Boston. Free 2012 tax return software She went to a university in Michigan to take a course for work. Free 2012 tax return software The course is qualifying work-related education. Free 2012 tax return software She took one course, which is one-fourth of a full course load of study. Free 2012 tax return software She spent the rest of the time on personal activities. Free 2012 tax return software Her reasons for taking the course in Michigan were all personal. Free 2012 tax return software Sue's trip is mainly personal because three-fourths of her time is considered personal time. Free 2012 tax return software She cannot deduct the cost of her round-trip train ticket to Michigan. Free 2012 tax return software She can deduct one-fourth of the meals (subject to the 50% limit) and lodging costs for the time she attended the university. Free 2012 tax return software Example 3. Free 2012 tax return software Dave works in Nashville and recently traveled to California to take a 2-week seminar. Free 2012 tax return software The seminar is qualifying work-related education. Free 2012 tax return software While there, he spent an extra 8 weeks on personal activities. Free 2012 tax return software The facts, including the extra 8-week stay, show that his main purpose was to take a vacation. Free 2012 tax return software Dave cannot deduct his round-trip airfare or his meals and lodging for the 8 weeks. Free 2012 tax return software He can deduct only his expenses for meals (subject to the 50% limit) and lodging for the 2 weeks he attended the seminar. Free 2012 tax return software Cruises and conventions. Free 2012 tax return software   Certain cruises and conventions offer seminars or courses as part of their itinerary. Free 2012 tax return software Even if the seminars or courses are work related, your deduction for travel may be limited. Free 2012 tax return software This applies to: Travel by ocean liner, cruise ship, or other form of luxury water transportation, and Conventions outside the North American area. Free 2012 tax return software   For a discussion of the limits on travel expense deductions that apply to cruises and conventions, see Luxury Water Travel and Conventions in chapter 1 of Publication 463. Free 2012 tax return software 50% limit on meals. Free 2012 tax return software   You can deduct only 50% of the cost of your meals while traveling away from home to obtain qualifying work-related education. Free 2012 tax return software If you were reimbursed for the meals, see How To Treat Reimbursements , later. Free 2012 tax return software   Employees must use Form 2106 or Form 2106-EZ to apply the 50% limit. Free 2012 tax return software Travel as Education You cannot deduct the cost of travel as a form of education even if it is directly related to your duties in your work or business. Free 2012 tax return software Example. Free 2012 tax return software You are a French language teacher. Free 2012 tax return software While on sabbatical leave granted for travel, you traveled through France to improve your knowledge of the French language. Free 2012 tax return software You chose your itinerary and most of your activities to improve your French language skills. Free 2012 tax return software You cannot deduct your travel expenses as education expenses. Free 2012 tax return software This is true even if you spent most of your time learning French by visiting French schools and families, attending movies or plays, and engaging in similar activities. Free 2012 tax return software No Double Benefit Allowed You cannot do either of the following. Free 2012 tax return software Deduct work-related education expenses as business expenses if you benefit from these expenses under any other provision of the law, for example, as a tuition and fees deduction. Free 2012 tax return software Deduct work-related education expenses paid with tax-free scholarship, grant, or employer-provided educational assistance. Free 2012 tax return software See Adjustments to Qualifying Work-Related Education Expenses, next. Free 2012 tax return software Adjustments to Qualifying Work-Related Education Expenses If you pay qualifying work-related education expenses with certain tax-free funds, you cannot claim a deduction for those amounts. Free 2012 tax return software You must reduce the qualifying expenses by the amount of such expenses allocable to the tax-free educational assistance. Free 2012 tax return software Tax-free educational assistance. Free 2012 tax return software   This includes: The tax-free part of scholarships and fellowships (see Tax-Free Scholarships and Fellowships in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions). Free 2012 tax return software Employer-provided educational assistance (see chapter 11, Employer-Provided Educational Assistance ), Veterans' educational assistance (see Veterans' Benefits in chapter 1, Scholarships, Fellowships, Grants, and Tuition Reductions), and Any other nontaxable (tax-free) payments (other than gifts or inheritances) received as educational assistance. Free 2012 tax return software Amounts that do not reduce qualifying work-related education expenses. Free 2012 tax return software   Do not reduce the qualifying work-related education expenses by amounts paid with funds the student receives as: Payment for services, such as wages, A loan, A gift, An inheritance, or A withdrawal from the student's personal savings. Free 2012 tax return software Also, do not reduce the qualifying work-related education expenses by any scholarship or fellowship reported as income on the student's return or any scholarship which, by its terms, cannot be applied to qualifying work-related education expenses. Free 2012 tax return software How To Treat Reimbursements How you treat reimbursements depends on the arrangement you have with your employer. Free 2012 tax return software There are two basic types of reimbursement arrangements—accountable plans and nonaccountable plans. Free 2012 tax return software You can tell the type of plan you are reimbursed under by the way the reimbursement is reported on your Form W-2. Free 2012 tax return software Note. Free 2012 tax return software The following rules about reimbursement arrangements also apply to expense allowances received from your employer. Free 2012 tax return software Accountable Plans To be an accountable plan, your employer's reimbursement arrangement must require you to meet all three of the following rules. Free 2012 tax return software Your expenses must have a business connection. Free 2012 tax return software This means your expenses must be deductible under the rules for qualifying work-related education explained earlier. Free 2012 tax return software You must adequately account to your employer for your expenses within a reasonable period of time. Free 2012 tax return software You must return any reimbursement or allowance in excess of the expenses accounted for within a reasonable period of time. Free 2012 tax return software If you are reimbursed under an accountable plan, your employer should not include any reimbursement in your income in box 1 of your Form W-2. Free 2012 tax return software If your employer included reimbursements in box 1 of your Form W-2 and you meet all three rules for accountable plans, ask your employer for a corrected Form W-2. Free 2012 tax return software Accountable plan rules not met. Free 2012 tax return software   Even though you are reimbursed under an accountable plan, some of your expenses may not meet all three rules for accountable plans. Free 2012 tax return software Those expenses that fail to meet the three rules are treated as having been reimbursed under a Nonaccountable Plan (discussed later). Free 2012 tax return software Expenses equal reimbursement. Free 2012 tax return software   Under an accountable plan, if your expenses equal your reimbursement, you do not complete Form 2106 or 2106-EZ. Free 2012 tax return software Because your expenses and reimbursements are equal, you do not have a deduction. Free 2012 tax return software Excess expenses. Free 2012 tax return software   If your expenses are more than your reimbursement, you can deduct your excess expenses. Free 2012 tax return software This is discussed later, under Deducting Business Expenses . Free 2012 tax return software Allocating your reimbursements for meals. Free 2012 tax return software   Because your excess meal expenses are subject to the 50% limit, you must figure them separately from your other expenses. Free 2012 tax return software If your employer paid you a single amount to cover both meals and other expenses, you must allocate the reimbursement so that you can figure your excess meal expenses separately. Free 2012 tax return software Make the allocation as follows. Free 2012 tax return software Divide your meal expenses by your total expenses. Free 2012 tax return software Multiply your total reimbursement by the result from (1). Free 2012 tax return software This is the allocated reimbursement for your meal expenses. Free 2012 tax return software Subtract the amount figured in (2) from your total reimbursement. Free 2012 tax return software The difference is the allocated reimbursement for your other expenses of qualifying work-related education. Free 2012 tax return software Example. Free 2012 tax return software Your employer paid you an expense allowance of $2,000 under an accountable plan. Free 2012 tax return software The allowance was to cover all of your expenses of traveling away from home to take a 2-week training course for work. Free 2012 tax return software There was no indication of how much of the reimbursement was for each type of expense. Free 2012 tax return software Your actual expenses equal $2,500 ($425 for meals + $700 lodging + $150 transportation expenses + $1,225 for books and tuition). Free 2012 tax return software Using the steps listed above, allocate the reimbursement between the $425 meal expenses and the $2,075 other expenses. Free 2012 tax return software   1. Free 2012 tax return software $425 meal expenses  $2,500 total expenses = . Free 2012 tax return software 17   2. Free 2012 tax return software $2,000 (reimbursement)×. Free 2012 tax return software 17     =$340 (allocated reimbursement for meal expenses)   3. Free 2012 tax return software $2,000 (reimbursement)−$340 (meals)     = $1,660 (allocated reimbursement for other qualifying work-related education expenses) Your excess meal expenses are $85 ($425 − $340) and your excess other expenses are $415 ($2,075 − $1,660). Free 2012 tax return software After you apply the 50% limit to your meals, you have a deduction for work-related education expenses of $458 (($85 × 50%) + $415). Free 2012 tax return software Nonaccountable Plans Your employer will combine the amount of any reimbursement or other expense allowance paid to you under a nonaccountable plan with your wages, salary, or other pay and report the total in box 1 of your Form W-2. Free 2012 tax return software You can deduct your expenses regardless of whether they are more than, less than, or equal to your reimbursement. Free 2012 tax return software This is discussed later under Deducting Business Expenses . Free 2012 tax return software An illustrated example of a nonaccountable plan, using Form 2106-EZ, is shown at the end of this chapter. Free 2012 tax return software Reimbursements for nondeductible expenses. Free 2012 tax return software   Reimbursements you received for nondeductible expenses are treated as paid under a nonaccountable plan. Free 2012 tax return software You must include them in your income. Free 2012 tax return software For example, you must include in your income reimbursements your employer gave you for expenses of education that: You need to meet the minimum educational requirements for your job, or Is part of a program of study that can qualify you for a new trade or business. Free 2012 tax return software   For more information on accountable and nonaccountable plans, see chapter 6 of Publication 463. Free 2012 tax return software Deducting Business Expenses Self-employed persons and employees report their business expenses differently. Free 2012 tax return software The following information explains what forms you must use to deduct the cost of your qualifying work-related education as a business expense. Free 2012 tax return software Self-Employed Persons If you are self-employed, you must report the cost of your qualifying work-related education on the appropriate form used to report your business income and expenses (generally Schedule C (Form 1040), Schedule C-EZ (Form 1040), or Schedule F (Form 1040)). Free 2012 tax return software If your education expenses include expenses for a car or truck, travel, or meals, report those expenses the same way you report other business expenses for those items. Free 2012 tax return software See the instructions for the form you file for information on how to complete it. Free 2012 tax return software Employees If you are an employee, you can deduct the cost of qualifying work-related education only if you: Did not receive (and were not entitled to receive) any reimbursement from your employer, Were reimbursed under a nonaccountable plan (amount is included in box 1 of Form W-2), or Received reimbursement under an accountable plan, but the amount received was less than your expenses for which you claimed reimbursement. Free 2012 tax return software If either (1) or (2) applies, you can deduct the total qualifying cost. Free 2012 tax return software If (3) applies, you can deduct only the qualifying costs that were more than your reimbursement. Free 2012 tax return software In order to deduct the cost of your qualifying work-related education as a business expense, include the amount with your deduction for any other employee business expenses on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Free 2012 tax return software (Special rules for expenses of certain performing artists and fee-basis officials and for impairment-related work expenses are explained later. Free 2012 tax return software ) This deduction (except for impairment-related work expenses of disabled individuals) is subject to the 2%-of-adjusted-gross-income limit that applies to most miscellaneous itemized deductions. Free 2012 tax return software Form 2106 or 2106-EZ. Free 2012 tax return software   To figure your deduction for employee business expenses, including qualifying work-related education, you generally must complete Form 2106 or 2106-EZ. Free 2012 tax return software Form not required. Free 2012 tax return software   Do not complete either Form 2106 or 2106-EZ if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are not claiming travel, transportation, meal, or entertainment expenses. Free 2012 tax return software   If you meet both of these requirements, enter the expenses directly on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Free 2012 tax return software (Special rules for expenses of certain Performing Artists and Fee-Basis Officials and for Impairment-Related Work Expenses are explained later. Free 2012 tax return software ) Using Form 2106-EZ. Free 2012 tax return software   This form is shorter and easier to use than Form 2106. Free 2012 tax return software Generally, you can use this form if: All reimbursements, if any, are included in box 1 of your Form W-2, and You are using the standard mileage rate if you are claiming vehicle expenses. Free 2012 tax return software   If you do not meet both of these requirements, use Form 2106. Free 2012 tax return software Performing Artists and Fee-Basis Officials If you are a qualified performing artist, or a state (or local) government official who is paid in whole or in part on a fee basis, you can deduct the cost of your qualifying work-related education as an adjustment to gross income rather than as an itemized deduction. Free 2012 tax return software Include the cost of your qualifying work-related education with any other employee business expenses on Form 1040, line 24, or Form 1040NR, line 35. Free 2012 tax return software You do not have to itemize your deductions on Schedule A (Form 1040 or 1040NR), and, therefore, the deduction is not subject to the 2%-of-adjusted-gross-income limit. Free 2012 tax return software You must complete Form 2106 or 2106-EZ to figure your deduction even if you meet the requirements described earlier under Form not required . Free 2012 tax return software For more information on qualified performing artists, see chapter 6 of Publication 463. Free 2012 tax return software Impairment-Related Work Expenses If you are disabled and have impairment-related work expenses that are necessary for you to be able to get qualifying work-related education, you can deduct these expenses on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Free 2012 tax return software They are not subject to the 2%-of-adjusted-gross-income limit. Free 2012 tax return software To deduct these expenses, you must complete Form 2106 or 2106-EZ even if you meet the requirements described earlier under Form not required . Free 2012 tax return software For more information on impairment-related work expenses, see chapter 6 of Publication 463. Free 2012 tax return software Recordkeeping You must keep records as proof of any deduction claimed on your tax return. Free 2012 tax return software Generally, you should keep your records for 3 years from the date of filing the tax return and claiming the deduction. Free 2012 tax return software If you are an employee who is reimbursed for expenses and you give your records and documentation to your employer, you do not have to keep duplicate copies of this information. Free 2012 tax return software However, you should keep your records for a 3-year period if: You claim deductions for expenses that are more than your reimbursement, Your employer does not use adequate accounting procedures to verify expense accounts, You are related to your employer, or Your expenses are reimbursed under a nonaccountable plan. Free 2012 tax return software Examples of records to keep. Free 2012 tax return software   If any of the above cases apply to you, you must be able to prove that your expenses are deductible. Free 2012 tax return software You should keep adequate records or have sufficient evidence that will support your expenses. Free 2012 tax return software Estimates or approximations do not qualify as proof of an expense. Free 2012 tax return software Some examples of what can be used to help prove your expenses are: Documents, such as transcripts, course descriptions, catalogs, etc. Free 2012 tax return software , showing periods of enrollment in educational institutions, principal subjects studied, and descriptions of educational activity. Free 2012 tax return software Canceled checks and receipts to verify amounts you spent for: Tuition and books, Meals and lodging while away from home overnight for educational purposes, Travel and transportation, and Other education expenses. Free 2012 tax return software Statements from your employer explaining whether the education was necessary for you to keep your job, salary, or status; how the education helped maintain or improve skills needed in your job; how much reimbursement you received; and, if you are a teacher, the type of certificate and subjects taught. Free 2012 tax return software Complete information about any scholarship or fellowship grants, including amounts you received during the year. Free 2012 tax return software Illustrated Example Victor Jones teaches math at a private high school in North Carolina. Free 2012 tax return software He was selected to attend a 3-week math seminar at a university in California. Free 2012 tax return software The seminar will improve his skills in his current job and is qualifying work-related education. Free 2012 tax return software He was reimbursed for his expenses under his employer's nonaccountable plan, so his reimbursement of $2,100 is included in the wages shown in box 1 of his Form W-2. Free 2012 tax return software Victor will file Form 1040. Free 2012 tax return software His actual expenses for the seminar are as follows:   Lodging   $1,050     Meals   526     Airfare   550     Taxi fares   50     Tuition and books   400     Total Expenses   $2,576   Victor files Form 2106-EZ with his tax return. Free 2012 tax return software He shows his expenses for the seminar in Part I of the form. Free 2012 tax return software He enters $1,650 ($1,050 + $550 + $50) on line 3 to account for his lodging, airfare, and taxi fares. Free 2012 tax return software He enters $400 on line 4 for his tuition and books. Free 2012 tax return software On the line provided for total meals and entertainment expenses, Victor enters $526 for meal expenses. Free 2012 tax return software He multiplies that amount by 50% and enters the result, $263, on line 5. Free 2012 tax return software On line 6, Victor totals the amounts from lines 3 through 5. Free 2012 tax return software He carries the total, $2,313, to Schedule A (Form 1040), line 21. Free 2012 tax return software Since he does not claim any vehicle expenses, Victor leaves Part II blank. Free 2012 tax return software His filled-in form is shown on the next page. Free 2012 tax return software This image is too large to be displayed in the current screen. Free 2012 tax return software Please click the link to view the image. Free 2012 tax return software Form 2106-EZ for V. Free 2012 tax return software Jones Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Migration Data

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There is a delay in the release of  the 2010–2011 state and county level migration data. During the review process, we identified some discrepancies in the data. The data are being corrected and will be released as soon as possible. We apologize for any inconvenience this delay causes to users of the information.


U.S. Population Migration Data

Migration data for the United States are based on year-to-year address changes reported on individual income tax returns filed with the IRS. They present migration patterns by State or by county for the entire United States and are available for inflows—the number of new residents who moved to a State or county and where they migrated from, and outflows—the number of residents leaving a State or county and where they went. The data are available for Filing Years 1991 through 2010 and include:

  • Number of returns filed, which approximates the number of households that migrated
  • Number of personal exemptions claimed, which approximates the number of individuals
  • Total adjusted gross income, starting with Filing Year 1995.

Important: The data used to produce migration data products come from individual income tax returns filed prior to late September of each calendar year and represent between 95 and 98 percent of total annual filings. However, since returns filed after September are not included, totals shown in migration data tables will not match analogous totals reported in other IRS statistical data products. For more information, see U.S. Population Migration Data: Strengths and Limitations

Migration Data Users Guides


Migration Data 2005–2010

Migration Data 1990–2004

Migration data for years 1990 to 2004 are available as single Zip files containing all State Excel files. Both migration inflow and outflow files are included for each state. The files are compressed using the WinZip utility and must be downloaded and extracted before viewing or loading into any application. A free WinZip utility is available, if needed.

County-to-County Migration Data

1990 to 1991  1991 to 1992  1992 to 1993  1993 to 1994  1994 to 1995  1995 to 1996  1996 to 1997  1997 to 1998  1998 to 1999  1999 to 2000  2000 to 2001  2001 to 2002  2002 to 2003  2003 to 2004

State-to-State Migration Data

1990 to 1991  1991 to 1992  1992 to 1993  1993 to 1994  1994 to 1995  1995 to 1996  1996 to 1997  1997 to 1998  1998 to 1999  1999 to 2000  2000 to 2001  2001 to 2002  2002 to 2003  2003 to 2004

Follow these steps to extract files for the entire year (all States) or for an individual State.

To extract an entire year (all States) using WinZip:

  1. Double click the Zip file to open the WinZip utility.
  2. Double click the folder.
  3. Click and drag either the Inflow and/or Outflow folder to your desktop.

OR

  1. Double click the Zip file to open the WinZip utility (NOTE: SecureZIP users should follow the following steps).
  2. Click the ‘Extract’ button. Ensure that the radio button, ‘All Files in Archive Selected’, is selected.
  3. Select a destination folder.
  4. Click the ‘Extract’ button.

To extract an individual State using WinZip:

  1. Double click the Zip file to open the WinZip utility.
  2. Double click the folder.
  3. Double click either the Inflow or Outflow folder.
  4. Click and drag the desired Excel file(s) to your desktop.

OR

  1. Double click the Zip file to open the WinZip utility (NOTE: SecureZIP users should follow the following steps).
  2. Highlight the desired Excel file(s).
  3. Click the ‘Extract’ button. Ensure that radio button, ‘Selected Files/Folder’, is selected.
  4. Select a destination folder.
  5. Click the ‘Extract’ button.


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Page Last Reviewed or Updated: 18-Dec-2013

The Free 2012 Tax Return Software

Free 2012 tax return software 5. Free 2012 tax return software   Illustrated Examples Table of Contents Illustrated Example of Form 4563Line 1. Free 2012 tax return software Line 2. Free 2012 tax return software Lines 3a and 3b. Free 2012 tax return software Lines 4a and 4b. Free 2012 tax return software Line 5. Free 2012 tax return software Line 6. Free 2012 tax return software Line 7. Free 2012 tax return software Line 9. Free 2012 tax return software Line 15. Free 2012 tax return software Illustrated Example of Form 5074Part I. Free 2012 tax return software Part II. Free 2012 tax return software Part III. Free 2012 tax return software Illustrated Example of Form 8689Part I. Free 2012 tax return software Part II. Free 2012 tax return software Part III. Free 2012 tax return software Part IV. Free 2012 tax return software Use the following examples to help you complete the correct attachment to your Form 1040. Free 2012 tax return software The completed form for each example is shown on the pages that follow. Free 2012 tax return software Illustrated Example of Form 4563 John Black is a U. Free 2012 tax return software S. Free 2012 tax return software citizen, single, and under 65. Free 2012 tax return software He was a bona fide resident of American Samoa during all of 2013. Free 2012 tax return software John must file Form 1040 because his gross income from sources outside the possessions ($10,000 of dividends from U. Free 2012 tax return software S. Free 2012 tax return software corporations) is more than his adjusted filing requirement for single filers under 65. Free 2012 tax return software (See Filing Requirement if Possession Income Is Excluded in chapter 4. Free 2012 tax return software ) Because he must file Form 1040 (not illustrated), he fills out Form 4563 to determine the amount of income from American Samoa he can exclude. Free 2012 tax return software See Bona Fide Resident of American Samoa in chapter 3. Free 2012 tax return software Completing Form 4563. Free 2012 tax return software   John enters his name and social security number at the top of the form. Free 2012 tax return software Line 1. Free 2012 tax return software   On Form 4563 (see later), John enters the date his bona fide residence began in American Samoa, June 2, 2012. Free 2012 tax return software Because he is still a bona fide resident, he enters “not ended” in the second blank space. Free 2012 tax return software Line 2. Free 2012 tax return software   He checks the box labeled “Rented house or apartment” to describe his type of living quarters in American Samoa. Free 2012 tax return software Lines 3a and 3b. Free 2012 tax return software   He checks “No” on line 3a because no family members lived with him. Free 2012 tax return software He leaves line 3b blank. Free 2012 tax return software Lines 4a and 4b. Free 2012 tax return software   He checks “No” on line 4a because he did not maintain a home outside American Samoa. Free 2012 tax return software He leaves line 4b blank. Free 2012 tax return software Line 5. Free 2012 tax return software   He enters the name and address of his employer, Samoa Products Co. Free 2012 tax return software It is a private American Samoa corporation. Free 2012 tax return software Line 6. Free 2012 tax return software   He enters the dates of his 2-week vacation to New Zealand from November 11 to November 25. Free 2012 tax return software That was his only trip outside American Samoa during the year. Free 2012 tax return software Line 7. Free 2012 tax return software   He enters the $24,000 in wages he received from Samoa Products Co. Free 2012 tax return software Line 9. Free 2012 tax return software   He received $220 in dividends from an American Samoa corporation, which he enters here. Free 2012 tax return software He also received $10,000 of dividends from a U. Free 2012 tax return software S. Free 2012 tax return software corporation, but he will enter that amount only on his Form 1040 because the U. Free 2012 tax return software S. Free 2012 tax return software dividends do not qualify for the possession exclusion. Free 2012 tax return software Line 15. Free 2012 tax return software   John totals the amounts on lines 7 and 9 to get the amount he can exclude from his gross income in 2013. Free 2012 tax return software He will not enter his excluded income on Form 1040. Free 2012 tax return software However, he will attach his completed Form 4563 to his Form 1040. Free 2012 tax return software Illustrated Example of Form 5074 Tracy Grey is a U. Free 2012 tax return software S. Free 2012 tax return software citizen who is a self-employed fisheries consultant with a tax home in New York. Free 2012 tax return software Her only income for 2013 was net self-employment income of $80,000. Free 2012 tax return software Of the $80,000, $20,000 was from consulting work in Guam and the rest was earned in the United States. Free 2012 tax return software Thinking she would owe tax to Guam on the $20,000, Tracy made estimated tax payments of $1,409 to Guam. Free 2012 tax return software She was not a bona fide resident of Guam during 2013. Free 2012 tax return software Tracy completes Form 1040 (not illustrated), reporting her worldwide income. Free 2012 tax return software Because the adjusted gross income on her Form 1040 was $50,000 or more and at least $5,000 of her gross income is from Guam, Tracy must file Form 5074 with her Form 1040. Free 2012 tax return software All amounts reported on Form 5074 are also reported on her Form 1040. Free 2012 tax return software See U. Free 2012 tax return software S. Free 2012 tax return software Citizen or Resident Alien (Other Than a Bona Fide Resident of Guam) in chapter 3. Free 2012 tax return software Completing Form 5074. Free 2012 tax return software   Tracy enters her name and social security number at the top of the form. Free 2012 tax return software Part I. Free 2012 tax return software   On Form 5074 (see later), Tracy enters her self-employment income from Guam ($20,000) on line 6. Free 2012 tax return software She has no other income from Guam, so the total on line 16 is $20,000. Free 2012 tax return software Part II. Free 2012 tax return software   Tracy's only adjustment in Part II is the deductible part of the self-employment tax on her net income earned in Guam. Free 2012 tax return software She enters $1,413 on line 21 and line 28. Free 2012 tax return software Her adjusted gross income on line 29 is $18,587. Free 2012 tax return software Part III. Free 2012 tax return software   Tracy made estimated tax payments of $1,409. Free 2012 tax return software She enters this amount on line 30, and again on line 34 as the total payments. Free 2012 tax return software Illustrated Example of Form 8689 Juan and Carla Moreno live and work in the United States. Free 2012 tax return software In 2013, they received $14,400 in income from the rental of a condominium they own in the U. Free 2012 tax return software S. Free 2012 tax return software Virgin Islands (USVI). Free 2012 tax return software The rental income was deposited in a bank in the USVI and they received $500 of interest on this income. Free 2012 tax return software They were not bona fide residents of the USVI during the entire tax year. Free 2012 tax return software The Morenos complete Form 1040 (not illustrated), reporting their income from all sources, including their interest income and the income and expenses from their USVI rental property (reported on Schedule E (Form 1040)). Free 2012 tax return software The Morenos take the standard deduction for married filing jointly, both are under 65, and they have no dependents. Free 2012 tax return software The Morenos also complete Form 8689 to determine how much of their U. Free 2012 tax return software S. Free 2012 tax return software tax shown on Form 1040, line 61 (with certain adjustments), must be paid to the U. Free 2012 tax return software S. Free 2012 tax return software Virgin Islands. Free 2012 tax return software See U. Free 2012 tax return software S. Free 2012 tax return software Citizen or Resident Alien (Other Than a Bona Fide Resident of the USVI) in chapter 3. Free 2012 tax return software The Morenos file their Form 1040, attaching Form 8689 and all other schedules, with the Internal Revenue Service. Free 2012 tax return software At the same time, they send a copy of their Form 1040 with all attachments, including Form 8689, to the Virgin Islands Bureau of Internal Revenue. Free 2012 tax return software The Virgin Islands Bureau of Internal Revenue will process this copy. Free 2012 tax return software Completing Form 8689. Free 2012 tax return software   Juan and Carla enter their names and Juan's social security number at the top of the form. Free 2012 tax return software Part I. Free 2012 tax return software   The Morenos enter their income from the USVI in Part I (see later). Free 2012 tax return software The interest income is entered on line 2 and the net rental income of $6,200 ($14,400 of rental income minus $8,200 of rental expenses) is entered on line 11. Free 2012 tax return software The Morenos' total USVI income of $6,700 is entered on line 16. Free 2012 tax return software Part II. Free 2012 tax return software   The Morenos have no adjustments to their USVI income, so they enter zero (-0-) on line 28, and $6,700 on line 29. Free 2012 tax return software Their USVI adjusted gross income (AGI) is $6,700. Free 2012 tax return software Part III. Free 2012 tax return software   On line 30, the Morenos enter the amount from Form 1040, line 61 ($4,539). Free 2012 tax return software Their Form 1040 does not show any entries required on line 31, so they leave that line blank and enter $4,539 on line 32. Free 2012 tax return software   The Morenos enter their worldwide AGI, $54,901 (Form 1040, line 38), on line 33. Free 2012 tax return software Next, they find what percentage of their AGI is from USVI sources ($6,700 ÷ $54,901 = 0. Free 2012 tax return software 122) and enter that as a decimal on line 34. Free 2012 tax return software They then apply that percentage to the U. Free 2012 tax return software S. Free 2012 tax return software tax entered on line 32 to find the amount of U. Free 2012 tax return software S. Free 2012 tax return software tax allocated to USVI income ($4,539 x 0. Free 2012 tax return software 122 = $554), and enter that amount on line 35. Free 2012 tax return software Part IV. Free 2012 tax return software   Part IV is used to show payments of income tax to the USVI only. Free 2012 tax return software The Morenos had no tax withheld by the U. Free 2012 tax return software S. Free 2012 tax return software Virgin Islands, but made estimated tax payments to the USVI of $400, which they entered on lines 37 and 39. Free 2012 tax return software They include this amount ($400) in the total payments on Form 1040, line 72. Free 2012 tax return software On the dotted line next to the entry space for line 72, they enter “Form 8689” and show the amount. Free 2012 tax return software The Morenos do not complete Form 1116 because they receive credit on Form 1040, line 72, for the tax paid to the USVI. Free 2012 tax return software   The income tax they owe to the USVI ($154) is shown on Form 8689, line 44. Free 2012 tax return software They enter this amount on line 45. Free 2012 tax return software They also include this additional amount ($154) on the dotted line next to the entry space and in the total on Form 1040, line 72. Free 2012 tax return software The Morenos will pay their USVI tax at the same time they file the copy of their U. Free 2012 tax return software S. Free 2012 tax return software income tax return with the U. Free 2012 tax return software S. Free 2012 tax return software Virgin Islands. Free 2012 tax return software This image is too large to be displayed in the current screen. Free 2012 tax return software Please click the link to view the image. Free 2012 tax return software Form 4563, page 1 for John Black This image is too large to be displayed in the current screen. Free 2012 tax return software Please click the link to view the image. Free 2012 tax return software Form 5074, for Tracy Grey This image is too large to be displayed in the current screen. Free 2012 tax return software Please click the link to view the image. Free 2012 tax return software Form 8689, page 1 for Juan and Carla Moreno Prev  Up  Next   Home   More Online Publications