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Free Tax Filing 2011

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Free Tax Filing 2011

Free tax filing 2011 Publication 915 - Main Content Table of Contents Are Any of Your Benefits Taxable?Worksheet A. Free tax filing 2011 Exemption from withholding. Free tax filing 2011 How To Report Your Benefits How Much Is Taxable?Examples Lump-Sum ElectionExample Deductions Related to Your BenefitsRepayments More Than Gross Benefits Worksheets AppendixForm SSA-1099, Social Security Benefit Statement 2013 Form SSA-1042S, Social Security Benefit Statement 2013 (Nonresident Aliens) Form RRB-1099, Payments by the Railroad Retirement Board 2013 Form RRB-1042S, Payments by the Railroad Retirement Board 2013 (Nonresident Aliens) How To Get Tax HelpLow Income Taxpayer Clinics Are Any of Your Benefits Taxable? To find out whether any of your benefits shown on Forms SSA-1099 and RRB-1099 may be taxable, compare the base amount (explained later) for your filing status with the total of: One-half of your benefits, plus All your other income, including tax-exempt interest. Free tax filing 2011 When making this comparison, do not reduce your other income by any exclusions for: Interest from qualified U. Free tax filing 2011 S. Free tax filing 2011 savings bonds, Employer-provided adoption benefits, Foreign earned income or foreign housing, or Income earned by bona fide residents of American Samoa or Puerto Rico. Free tax filing 2011 Children's benefits. Free tax filing 2011   The rules in this publication apply to benefits received by children. Free tax filing 2011 See Who is taxed , later. Free tax filing 2011 The SSA issues Form SSA-1099 and Form SSA-1042S. Free tax filing 2011 The RRB issues Form RRB-1099 and Form RRB-1042S. Free tax filing 2011 These forms (tax statements) report the amounts paid and repaid, and taxes withheld for a tax year. Free tax filing 2011 You may receive more than one of these forms for the same tax year. Free tax filing 2011 See the Appendix at the end of this publication for more information. Free tax filing 2011 Each original Form RRB-1099 or Form RRB-1042S is valid unless it has been corrected. Free tax filing 2011 The RRB will issue a corrected Form RRB-1099 or Form RRB-1042S if there is an error in the original. Free tax filing 2011 A corrected Form RRB-1099 or Form RRB-1042S is indicated as “CORRECTED” and replaces the corresponding original Form RRB-1099 or Form RRB-1042S. Free tax filing 2011 You must use the latest corrected Form RRB-1099 or Form RRB-1042S you received and any original Form RRB-1099 or Form RRB-1042S that the RRB has not corrected when you determine what amounts to report on your tax return. Free tax filing 2011 Figuring total income. Free tax filing 2011   To figure the total of one-half of your benefits plus your other income, use Worksheet A, discussed later. Free tax filing 2011 If the total is more than your base amount, part of your benefits may be taxable. Free tax filing 2011   If you are married and file a joint return for 2013, you and your spouse must combine your incomes and your benefits to figure whether any of your combined benefits are taxable. Free tax filing 2011 Even if your spouse did not receive any benefits, you must add your spouse's income to yours to figure whether any of your benefits are taxable. Free tax filing 2011 If the only income you received during 2013 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. Free tax filing 2011 If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable. Free tax filing 2011 Base amount. Free tax filing 2011   Your base amount is: $25,000 if you are single, head of household, or qualifying widow(er), $25,000 if you are married filing separately and lived apart from your spouse for all of 2013, $32,000 if you are married filing jointly, or $-0- if you are married filing separately and lived with your spouse at any time during 2013. Free tax filing 2011 Worksheet A. Free tax filing 2011   You can use Worksheet A to figure the amount of income to compare with your base amount. Free tax filing 2011 This is a quick way to check whether some of your benefits may be taxable. Free tax filing 2011     Worksheet A. Free tax filing 2011 A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. Free tax filing 2011 Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Free tax filing 2011 (If you received more than one form, combine the amounts from box 5 and enter the total. Free tax filing 2011 ) A. Free tax filing 2011   Note. Free tax filing 2011 If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Free tax filing 2011 B. Free tax filing 2011 Enter one-half of the amount on line A B. Free tax filing 2011   C. Free tax filing 2011 Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Free tax filing 2011   D. Free tax filing 2011 Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Free tax filing 2011   E. Free tax filing 2011 Add lines B, C, and D E. Free tax filing 2011   Note. Free tax filing 2011 Compare the amount on line E to your base amount for your filing status. Free tax filing 2011 If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Free tax filing 2011 If the amount on line E is more than your base amount, some of your benefits may be taxable. Free tax filing 2011 You need to complete Worksheet 1, shown later. Free tax filing 2011 If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits . Free tax filing 2011   Example. Free tax filing 2011 You and your spouse (both over 65) are filing a joint return for 2013 and you both received social security benefits during the year. Free tax filing 2011 In January 2014, you received a Form SSA-1099 showing net benefits of $7,500 in box 5. Free tax filing 2011 Your spouse received a Form SSA-1099 showing net benefits of $3,500 in box 5. Free tax filing 2011 You also received a taxable pension of $22,800 and interest income of $500. Free tax filing 2011 You did not have any tax-exempt interest income. Free tax filing 2011 Your benefits are not taxable for 2013 because your income, as figured in Worksheet A below, is not more than your base amount ($32,000) for married filing jointly. Free tax filing 2011   Even though none of your benefits are taxable, you must file a return for 2013 because your taxable gross income ($23,300) exceeds the minimum filing requirement amount for your filing status. Free tax filing 2011     Filled-in Worksheet A. Free tax filing 2011 A Quick Way To Check if Your Benefits May Be Taxable Keep for your records A. Free tax filing 2011 Enter the amount from box 5 of all your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Include the full amount of any lump-sum benefit payments received in 2013, for 2013 and earlier years. Free tax filing 2011 (If you received more than one form, combine the amounts from box 5 and enter the total. Free tax filing 2011 ) A. Free tax filing 2011 $11,000 Note. Free tax filing 2011 If the amount on line A is zero or less, stop here; none of your benefits are taxable this year. Free tax filing 2011 B. Free tax filing 2011 Enter one-half of the amount on line A B. Free tax filing 2011 5,500 C. Free tax filing 2011 Enter your taxable pensions, wages, interest, dividends, and other taxable income C. Free tax filing 2011 23,300 D. Free tax filing 2011 Enter any tax-exempt interest income (such as interest on municipal bonds) plus any exclusions from income (listed earlier) D. Free tax filing 2011 -0- E. Free tax filing 2011 Add lines B, C, and D E. Free tax filing 2011 $28,800 Note. Free tax filing 2011 Compare the amount on line E to your base amount for your filing status. Free tax filing 2011 If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. Free tax filing 2011 If the amount on line E is more than your base amount, some of your benefits may be taxable. Free tax filing 2011 You need to complete Worksheet 1, shown later. Free tax filing 2011 If none of your benefits are taxable, but you otherwise must file a tax return, see Benefits not taxable , later, under How To Report Your Benefits . Free tax filing 2011   Who is taxed. Free tax filing 2011   Benefits are included in the taxable income (to the extent they are taxable) of the person who has the legal right to receive the benefits. Free tax filing 2011 For example, if you and your child receive benefits, but the check for your child is made out in your name, you must use only your part of the benefits to see whether any benefits are taxable to you. Free tax filing 2011 One-half of the part that belongs to your child must be added to your child's other income to see whether any of those benefits are taxable to your child. Free tax filing 2011 Repayment of benefits. Free tax filing 2011   Any repayment of benefits you made during 2013 must be subtracted from the gross benefits you received in 2013. Free tax filing 2011 It does not matter whether the repayment was for a benefit you received in 2013 or in an earlier year. Free tax filing 2011 If you repaid more than the gross benefits you received in 2013, see Repayments More Than Gross Benefits , later. Free tax filing 2011   Your gross benefits are shown in box 3 of Form SSA-1099 or Form RRB-1099. Free tax filing 2011 Your repayments are shown in box 4. Free tax filing 2011 The amount in box 5 shows your net benefits for 2013 (box 3 minus box 4). Free tax filing 2011 Use the amount in box 5 to figure whether any of your benefits are taxable. Free tax filing 2011 Example. Free tax filing 2011 In 2012, you received $3,000 in social security benefits, and in 2013 you received $2,700. Free tax filing 2011 In March 2013, SSA notified you that you should have received only $2,500 in benefits in 2012. Free tax filing 2011 During 2013, you repaid $500 to SSA. Free tax filing 2011 The Form SSA-1099 you received for 2013 shows $2,700 in box 3 (gross amount) and $500 in box 4 (repayment). Free tax filing 2011 The amount in box 5 shows your net benefits of $2,200 ($2,700 minus $500). Free tax filing 2011 Tax withholding and estimated tax. Free tax filing 2011   You can choose to have federal income tax withheld from your social security benefits and/or the SSEB portion of your tier 1 railroad retirement benefits. Free tax filing 2011 If you choose to do this, you must complete a Form W-4V, Voluntary Withholding Statement. Free tax filing 2011   If you do not choose to have income tax withheld, you may have to request additional withholding from other income or pay estimated tax during the year. Free tax filing 2011 For details, see Publication 505, Tax Withholding and Estimated Tax, or the instructions for Form 1040-ES, Estimated Tax for Individuals. Free tax filing 2011 U. Free tax filing 2011 S. Free tax filing 2011 citizens residing abroad. Free tax filing 2011   U. Free tax filing 2011 S. Free tax filing 2011 citizens who are residents of the following countries are exempt from U. Free tax filing 2011 S. Free tax filing 2011 tax on their benefits. Free tax filing 2011 Canada. Free tax filing 2011 Egypt. Free tax filing 2011 Germany. Free tax filing 2011 Ireland. Free tax filing 2011 Israel. Free tax filing 2011 Italy. Free tax filing 2011 (You must also be a citizen of Italy for the exemption to apply. Free tax filing 2011 ) Romania. Free tax filing 2011 United Kingdom. Free tax filing 2011   The SSA will not withhold U. Free tax filing 2011 S. Free tax filing 2011 tax from your benefits if you are a U. Free tax filing 2011 S. Free tax filing 2011 citizen. Free tax filing 2011   The RRB will withhold U. Free tax filing 2011 S. Free tax filing 2011 tax from your benefits unless you file Form RRB-1001, Nonresident Questionnaire, with the RRB to provide citizenship and residency information. Free tax filing 2011 If you do not file Form RRB-1001, the RRB will consider you a nonresident alien and withhold tax from your railroad retirement benefits at a 30% rate. Free tax filing 2011 Contact the RRB to get this form. Free tax filing 2011 Lawful permanent residents. Free tax filing 2011   For U. Free tax filing 2011 S. Free tax filing 2011 income tax purposes, lawful permanent residents (green card holders) are considered resident aliens until their lawful permanent resident status under the immigration laws is either taken away or is administratively or judicially determined to have been abandoned. Free tax filing 2011 Social security benefits paid to a green card holder are not subject to 30% withholding. Free tax filing 2011 If you are a green card holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the Social Security Administration (SSA) or the IRS. Free tax filing 2011 SSA will refund taxes erroneously withheld if the refund can be processed during the same calendar year in which the tax was withheld. Free tax filing 2011 If SSA cannot refund the taxes withheld, you must file a Form 1040 or 1040A with the Internal Revenue Service Center, Austin, TX 73301 to determine if you are entitled to a refund. Free tax filing 2011 You must also attach the following information to your Form 1040 or 1040A: A copy of the Form SSA-1042S, Social Security Benefit Statement, A copy of the “green card,” and A signed declaration that includes the following statements:    “The SSA should not have withheld federal income tax from my social security benefits because I am a U. Free tax filing 2011 S. Free tax filing 2011 lawful permanent resident and my green card has been neither revoked nor administratively or judicially determined to have been abandoned. Free tax filing 2011 I am filing a U. Free tax filing 2011 S. Free tax filing 2011 income tax return for the tax year as a resident alien reporting all of my worldwide income. Free tax filing 2011 I have not claimed benefits for the tax year under an income tax treaty as a nonresident alien. Free tax filing 2011 ” Nonresident aliens. Free tax filing 2011   A nonresident alien is an individual who is not a citizen or resident of the United States. Free tax filing 2011 If you are a nonresident alien, the rules discussed in this publication do not apply to you. Free tax filing 2011 Instead, 85% of your benefits are taxed at a 30% rate, unless exempt (or subject to a lower rate) by treaty. Free tax filing 2011 You will receive a Form SSA-1042S or Form RRB-1042S showing the amount of your benefits. Free tax filing 2011 These forms will also show the tax rate and the amount of tax withheld from your benefits. Free tax filing 2011   Under tax treaties with the following countries, residents of these countries are exempt from U. Free tax filing 2011 S. Free tax filing 2011 tax on their benefits. Free tax filing 2011 Canada. Free tax filing 2011 Egypt. Free tax filing 2011 Germany. Free tax filing 2011 Ireland. Free tax filing 2011 Israel. Free tax filing 2011 Italy. Free tax filing 2011 Japan. Free tax filing 2011 Romania. Free tax filing 2011 United Kingdom. Free tax filing 2011   Under a treaty with India, benefits paid to individuals who are both residents and nationals of India are exempt from U. Free tax filing 2011 S. Free tax filing 2011 tax if the benefits are for services performed for the United States, its subdivisions, or local government authorities. Free tax filing 2011   If you are a resident of Switzerland, your total benefit amount will be taxed at a 15% rate. Free tax filing 2011   For more information on whether you are a nonresident alien, see Publication 519, U. Free tax filing 2011 S. Free tax filing 2011 Tax Guide for Aliens. Free tax filing 2011 Exemption from withholding. Free tax filing 2011   If your social security benefits are exempt from tax because you are a resident of one of the treaty countries listed, the SSA will not withhold U. Free tax filing 2011 S. Free tax filing 2011 tax from your benefits. Free tax filing 2011   If your railroad retirement benefits are exempt from tax because you are a resident of one of the treaty countries listed, you can claim an exemption from withholding by filing Form RRB-1001 with the RRB. Free tax filing 2011 Contact the RRB to get this form. Free tax filing 2011 Canadian or German social security benefits paid to U. Free tax filing 2011 S. Free tax filing 2011 residents. Free tax filing 2011   Under income tax treaties with Canada and Germany, social security benefits paid by those countries to U. Free tax filing 2011 S. Free tax filing 2011 residents are treated for U. Free tax filing 2011 S. Free tax filing 2011 income tax purposes as if they were paid under the social security legislation of the United States. Free tax filing 2011 If you receive social security benefits from Canada or Germany, include them on line 1 of Worksheet 1, shown later. Free tax filing 2011 How To Report Your Benefits If part of your benefits are taxable, you must use Form 1040 or Form 1040A. Free tax filing 2011 You cannot use Form 1040EZ. Free tax filing 2011 Reporting on Form 1040. Free tax filing 2011   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 20a and the taxable part on line 20b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 20a. Free tax filing 2011 Reporting on Form 1040A. Free tax filing 2011   Report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on line 14a and the taxable part on line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on line 14a. Free tax filing 2011 Benefits not taxable. Free tax filing 2011   If you are filing Form 1040EZ, do not report any benefits on your tax return. Free tax filing 2011 If you are filing Form 1040 or Form 1040A, report your net benefits (the total amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099) on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, also enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 How Much Is Taxable? If part of your benefits are taxable, how much is taxable depends on the total amount of your benefits and other income. Free tax filing 2011 Generally, the higher that total amount, the greater the taxable part of your benefits. Free tax filing 2011 Maximum taxable part. Free tax filing 2011   Generally, up to 50% of your benefits will be taxable. Free tax filing 2011 However, up to 85% of your benefits can be taxable if either of the following situations applies to you. Free tax filing 2011 The total of one-half of your benefits and all your other income is more than $34,000 ($44,000 if you are married filing jointly). Free tax filing 2011 You are married filing separately and lived with your spouse at any time during 2013. Free tax filing 2011 Which worksheet to use. Free tax filing 2011   A worksheet you can use to figure your taxable benefits is in the instructions for your Form 1040 or 1040A. Free tax filing 2011 You can use either that worksheet or Worksheet 1 in this publication, unless any of the following situations applies to you. Free tax filing 2011 You contributed to a traditional individual retirement arrangement (IRA) and you or your spouse is covered by a retirement plan at work. Free tax filing 2011 In this situation you must use the special worksheets in Appendix B of Publication 590 to figure both your IRA deduction and your taxable benefits. Free tax filing 2011 Situation (1) does not apply and you take an exclusion for interest from qualified U. Free tax filing 2011 S. Free tax filing 2011 savings bonds (Form 8815), for adoption benefits (Form 8839), for foreign earned income or housing (Form 2555 or Form 2555-EZ), or for income earned in American Samoa (Form 4563) or Puerto Rico by bona fide residents. Free tax filing 2011 In this situation, you must use Worksheet 1 in this publication to figure your taxable benefits. Free tax filing 2011 You received a lump-sum payment for an earlier year. Free tax filing 2011 In this situation, also complete Worksheet 2 or 3 and Worksheet 4 in this publication. Free tax filing 2011 See Lump-Sum Election , later. Free tax filing 2011 Examples A few examples you can use as a guide to figure the taxable part of your benefits follow. Free tax filing 2011 Filled-in Worksheet 1. Free tax filing 2011 Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Free tax filing 2011 None of your benefits are taxable for 2013. Free tax filing 2011 For more information, see Repayments More Than Gross Benefits . Free tax filing 2011 If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Free tax filing 2011 S. Free tax filing 2011 Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Free tax filing 2011 Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Free tax filing 2011 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Free tax filing 2011 $5,980         2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011 2,990     3. Free tax filing 2011 Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Free tax filing 2011 28,990     4. Free tax filing 2011 Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Free tax filing 2011 -0-     5. Free tax filing 2011 Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Free tax filing 2011 -0-     6. Free tax filing 2011 Combine lines 2, 3, 4, and 5 6. Free tax filing 2011 31,980     7. Free tax filing 2011 Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free tax filing 2011  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Free tax filing 2011 -0-     8. Free tax filing 2011 Is the amount on line 7 less than the amount on line 6?             No. Free tax filing 2011 None of your social security benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011 31,980     9. Free tax filing 2011 If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Free tax filing 2011 25,000       Note. Free tax filing 2011 If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 9 less than the amount on line 8?             No. Free tax filing 2011 None of your benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011 6,980     11. Free tax filing 2011 Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Free tax filing 2011 9,000     12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011 -0-     13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011 6,980     14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011 3,490     15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011 2,990     16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011 -0-     17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011 2,990     18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011 5,083     19. Free tax filing 2011 Taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18. Free tax filing 2011 Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Free tax filing 2011 $2,990       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Free tax filing 2011         Example 1. Free tax filing 2011 George White is single and files Form 1040 for 2013. Free tax filing 2011 In addition to receiving social security payments, he received a fully taxable pension of $18,600, wages from a part-time job of $9,400, and taxable interest income of $990, for a total of $28,990. Free tax filing 2011 He received a Form SSA-1099 in January 2014 that shows his net social security benefits of $5,980 in box 5. Free tax filing 2011   To figure his taxable benefits, George completes Worksheet 1, shown below. Free tax filing 2011 On line 20a of his Form 1040, George enters his net benefits of $5,980. Free tax filing 2011 On line 20b, he enters his taxable benefits of $2,990. Free tax filing 2011 Example 2. Free tax filing 2011 Ray and Alice Hopkins file a joint return on Form 1040A for 2013. Free tax filing 2011 Ray is retired and received a fully taxable pension of $15,500. Free tax filing 2011 He also received social security benefits and his Form SSA-1099 for 2013 shows net benefits of $5,600 in box 5. Free tax filing 2011 Alice worked during the year and had wages of $14,000. Free tax filing 2011 She made a deductible payment to her IRA account of $1,000. Free tax filing 2011 Ray and Alice have two savings accounts with a total of $250 in taxable interest income. Free tax filing 2011 They complete Worksheet 1, entering $29,750 ($15,500 + $14,000 + $250) on line 3. Free tax filing 2011 They find none of Ray's social security benefits are taxable. Free tax filing 2011 On Form 1040A, they enter $5,600 on line 14a and -0- on line 14b. Free tax filing 2011 Filled-in Worksheet 1. Free tax filing 2011 Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Free tax filing 2011 None of your benefits are taxable for 2013. Free tax filing 2011 For more information, see Repayments More Than Gross Benefits . Free tax filing 2011 If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Free tax filing 2011 S. Free tax filing 2011 Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Free tax filing 2011 Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Free tax filing 2011 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Free tax filing 2011 $5,600         2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011 2,800     3. Free tax filing 2011 Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Free tax filing 2011 29,750     4. Free tax filing 2011 Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Free tax filing 2011 -0-     5. Free tax filing 2011 Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Free tax filing 2011 -0-     6. Free tax filing 2011 Combine lines 2, 3, 4, and 5 6. Free tax filing 2011 32,550     7. Free tax filing 2011 Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free tax filing 2011  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Free tax filing 2011 1,000     8. Free tax filing 2011 Is the amount on line 7 less than the amount on line 6?             No. Free tax filing 2011 None of your social security benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011 31,550     9. Free tax filing 2011 If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Free tax filing 2011 32,000       Note. Free tax filing 2011 If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 9 less than the amount on line 8?             No. Free tax filing 2011 None of your benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011       11. Free tax filing 2011 Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Free tax filing 2011       12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011       13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011       14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011       15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011       16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011       17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011       18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011       19. Free tax filing 2011 Taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18. Free tax filing 2011 Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Free tax filing 2011         If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Free tax filing 2011         Example 3. Free tax filing 2011 Joe and Betty Johnson file a joint return on Form 1040 for 2013. Free tax filing 2011 Joe is a retired railroad worker and in 2013 received the social security equivalent benefit (SSEB) portion of tier 1 railroad retirement benefits. Free tax filing 2011 Joe's Form RRB-1099 shows $10,000 in box 5. Free tax filing 2011 Betty is a retired government worker and received a fully taxable pension of $38,000. Free tax filing 2011 They had $2,300 in taxable interest income plus interest of $200 on a qualified U. Free tax filing 2011 S. Free tax filing 2011 savings bond. Free tax filing 2011 The savings bond interest qualified for the exclusion. Free tax filing 2011 They figure their taxable benefits by completing Worksheet 1 below. Free tax filing 2011 Because they have qualified U. Free tax filing 2011 S. Free tax filing 2011 savings bond interest, they follow the note at the beginning of the worksheet and use the amount from line 2 of their Schedule B (Form 1040A or 1040) on line 3 of the worksheet instead of the amount from line 8a of their Form 1040. Free tax filing 2011 On line 3 of the worksheet, they enter $40,500 ($38,000 + $2,500). Free tax filing 2011 More than 50% of Joe's net benefits are taxable because the income on line 8 of the worksheet ($45,500) is more than $44,000. Free tax filing 2011 (See Maximum taxable part under How Much Is Taxable earlier. Free tax filing 2011 ) Joe and Betty enter $10,000 on Form 1040, line 20a, and $6,275 on Form 1040, line 20b. Free tax filing 2011 Filled-in Worksheet 1. Free tax filing 2011 Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Free tax filing 2011 None of your benefits are taxable for 2013. Free tax filing 2011 For more information, see Repayments More Than Gross Benefits . Free tax filing 2011 If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Free tax filing 2011 S. Free tax filing 2011 Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Free tax filing 2011 Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Free tax filing 2011 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Free tax filing 2011 $10,000         2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011 5,000     3. Free tax filing 2011 Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Free tax filing 2011 40,500     4. Free tax filing 2011 Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Free tax filing 2011 -0-     5. Free tax filing 2011 Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Free tax filing 2011 -0-     6. Free tax filing 2011 Combine lines 2, 3, 4, and 5 6. Free tax filing 2011 45,500     7. Free tax filing 2011 Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free tax filing 2011  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Free tax filing 2011 -0-     8. Free tax filing 2011 Is the amount on line 7 less than the amount on line 6?             No. Free tax filing 2011 None of your social security benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011 45,500     9. Free tax filing 2011 If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Free tax filing 2011 32,000       Note. Free tax filing 2011 If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 9 less than the amount on line 8?             No. Free tax filing 2011 None of your benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011 13,500     11. Free tax filing 2011 Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Free tax filing 2011 12,000     12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011 1,500     13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011 12,000     14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011 6,000     15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011 5,000     16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011 1,275     17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011 6,275     18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011 8,500     19. Free tax filing 2011 Taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18. Free tax filing 2011 Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Free tax filing 2011 $6,275       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Free tax filing 2011         Filled-in Worksheet 1. Free tax filing 2011 Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Free tax filing 2011 None of your benefits are taxable for 2013. Free tax filing 2011 For more information, see Repayments More Than Gross Benefits . Free tax filing 2011 If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Free tax filing 2011 S. Free tax filing 2011 Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Free tax filing 2011 Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Free tax filing 2011 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Free tax filing 2011 $4,000         2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011 2,000     3. Free tax filing 2011 Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Free tax filing 2011 8,000     4. Free tax filing 2011 Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Free tax filing 2011 -0-     5. Free tax filing 2011 Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Free tax filing 2011 -0-     6. Free tax filing 2011 Combine lines 2, 3, 4, and 5 6. Free tax filing 2011 10,000     7. Free tax filing 2011 Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free tax filing 2011  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Free tax filing 2011 -0-     8. Free tax filing 2011 Is the amount on line 7 less than the amount on line 6?             No. Free tax filing 2011 None of your social security benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011 10,000     9. Free tax filing 2011 If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Free tax filing 2011         Note. Free tax filing 2011 If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 9 less than the amount on line 8?             No. Free tax filing 2011 None of your benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011       11. Free tax filing 2011 Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Free tax filing 2011       12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011       13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011       14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011       15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011       16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011       17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011 8,500     18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011 3,400     19. Free tax filing 2011 Taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18. Free tax filing 2011 Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Free tax filing 2011 $3,400       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Free tax filing 2011         Example 4. Free tax filing 2011 Bill and Eileen Jones are married and live together, but file separate Form 1040 returns for 2013. Free tax filing 2011 Bill earned $8,000 during 2013. Free tax filing 2011 The only other income he had for the year was $4,000 net social security benefits (box 5 of his Form SSA-1099). Free tax filing 2011 Bill figures his taxable benefits by completing Worksheet 1 below. Free tax filing 2011 He must include 85% of his social security benefits in his taxable income because he is married filing separately and lived with his spouse during 2013. Free tax filing 2011 See How Much Is Taxable earlier. Free tax filing 2011 Bill enters $4,000 on his Form 1040, line 20a, and $3,400 on Form 1040, line 20b. Free tax filing 2011 Lump-Sum Election You must include the taxable part of a lump-sum (retroactive) payment of benefits received in 2013 in your 2013 income, even if the payment includes benefits for an earlier year. Free tax filing 2011 This type of lump-sum benefit payment should not be confused with the lump-sum death benefit that both the SSA and RRB pay to many of their beneficiaries. Free tax filing 2011 No part of the lump-sum death benefit is subject to tax. Free tax filing 2011 Generally, you use your 2013 income to figure the taxable part of the total benefits received in 2013. Free tax filing 2011 However, you may be able to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year. Free tax filing 2011 You can elect this method if it lowers your taxable benefits. Free tax filing 2011 Under the lump-sum election method, you refigure the taxable part of all your benefits for the earlier year (including the lump-sum payment) using that year's income. Free tax filing 2011 Then you subtract any taxable benefits for that year that you previously reported. Free tax filing 2011 The remainder is the taxable part of the lump-sum payment. Free tax filing 2011 Add it to the taxable part of your benefits for 2013 (figured without the lump-sum payment for the earlier year). Free tax filing 2011 Because the earlier year's taxable benefits are included in your 2013 income, no adjustment is made to the earlier year's return. Free tax filing 2011 Do not file an amended return for the earlier year. Free tax filing 2011 Will the lump-sum election method lower your taxable benefits?   To find out, take the following steps. Free tax filing 2011 Complete Worksheet 1 in this publication. Free tax filing 2011 Complete Worksheet 2 and Worksheet 3 as appropriate. Free tax filing 2011 Use Worksheet 2 if your lump-sum payment was for a year after 1993. Free tax filing 2011 Use Worksheet 3 if it was for 1993 or an earlier year. Free tax filing 2011 Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received the lump-sum payment. Free tax filing 2011 Complete Worksheet 4. Free tax filing 2011 Compare the taxable benefits on line 19 of Worksheet 1 with the taxable benefits on line 21 of Worksheet 4. Free tax filing 2011 If the taxable benefits on Worksheet 4 are lower than the taxable benefits on Worksheet 1, you can elect to report the lower amount on your return. Free tax filing 2011 Making the election. Free tax filing 2011   If you elect to report your taxable benefits under the lump-sum election method, follow the instructions at the bottom of Worksheet 4. Free tax filing 2011 Do not attach the completed worksheets to your return. Free tax filing 2011 Keep them with your records. Free tax filing 2011    Once you elect this method of figuring the taxable part of a lump-sum payment, you can revoke your election only with the consent of the IRS. Free tax filing 2011 Lump-sum payment reported on Form SSA-1099 or RRB-1099. Free tax filing 2011   If you received a lump-sum payment in 2013 that includes benefits for one or more earlier years after 1983, it will be included in box 3 of either Form SSA-1099 or Form RRB-1099. Free tax filing 2011 That part of any lump-sum payment for years before 1984 is not taxed and will not be shown on the form. Free tax filing 2011 The form will also show the year (or years) the payment is for. Free tax filing 2011 However, Form RRB-1099 will not show a breakdown by year (or years) of any lump-sum payment for years before 2011. Free tax filing 2011 You must contact the RRB for a breakdown by year for any amount shown in box 9. Free tax filing 2011 Example Jane Jackson is single. Free tax filing 2011 In 2012 she applied for social security disability benefits but was told she was ineligible. Free tax filing 2011 She appealed the decision and won. Free tax filing 2011 In 2013, she received a lump-sum payment of $6,000, of which $2,000 was for 2012 and $4,000 was for 2013. Free tax filing 2011 Jane also received $5,000 in social security benefits in 2013, so her total benefits in 2013 were $11,000. Free tax filing 2011 Jane's other income for 2012 and 2013 is as follows. Free tax filing 2011   Income 2012 2013     Wages $20,000 $ 3,500     Interest income 2,000 2,500     Dividend income 1,000 1,500     Fully taxable pension   18,000     Total $23,000 $25,500   To see if the lump-sum election method results in lower taxable benefits, she completes Worksheets 1, 2, and 4 from this publication. Free tax filing 2011 She does not need to complete Worksheet 3 because her lump-sum payment was for years after 1993. Free tax filing 2011 Jane completes Worksheet 1 to find the amount of her taxable benefits for 2013 under the regular method. Free tax filing 2011 She completes Worksheet 2 to find the taxable part of the lump-sum payment for 2012 under the lump-sum election method. Free tax filing 2011 She completes Worksheet 4 to decide if the lump-sum election method will lower her taxable benefits. Free tax filing 2011 After completing the worksheets, Jane compares the amounts from Worksheet 4, line 21, and Worksheet 1, line 19. Free tax filing 2011 Because the amount on Worksheet 4 is smaller, she chooses to use the lump-sum election method. Free tax filing 2011 To do this, she prints “LSE” to the left of Form 1040, line 20a. Free tax filing 2011 She then enters $11,000 on Form 1040, line 20a, and her taxable benefits of $2,500 on line 20b. Free tax filing 2011 Jane's filled-in worksheets (1, 2, and 4) follow. Free tax filing 2011 Jane Jackson's Filled-in Worksheet 1. Free tax filing 2011 Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Free tax filing 2011 None of your benefits are taxable for 2013. Free tax filing 2011 For more information, see Repayments More Than Gross Benefits . Free tax filing 2011 If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Free tax filing 2011 S. Free tax filing 2011 Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Free tax filing 2011 Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Free tax filing 2011 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Free tax filing 2011 $11,000         2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011 5,500     3. Free tax filing 2011 Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Free tax filing 2011 25,500     4. Free tax filing 2011 Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Free tax filing 2011 -0-     5. Free tax filing 2011 Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Free tax filing 2011 -0-     6. Free tax filing 2011 Combine lines 2, 3, 4, and 5 6. Free tax filing 2011 31,000     7. Free tax filing 2011 Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free tax filing 2011  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Free tax filing 2011 -0-     8. Free tax filing 2011 Is the amount on line 7 less than the amount on line 6?             No. Free tax filing 2011 None of your social security benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011 31,000     9. Free tax filing 2011 If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Free tax filing 2011 25,000       Note. Free tax filing 2011 If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 9 less than the amount on line 8?             No. Free tax filing 2011 None of your benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011 6,000     11. Free tax filing 2011 Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Free tax filing 2011 9,000     12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011 -0-     13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011 6,000     14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011 3,000     15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011 3,000     16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011 -0-     17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011 3,000     18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011 9,350     19. Free tax filing 2011 Taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18. Free tax filing 2011 Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Free tax filing 2011 $3,000       If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Free tax filing 2011         Jane Jackson's Filled-in Worksheet 2. Free tax filing 2011 Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 2012 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year 1. Free tax filing 2011 $2,000           Note. Free tax filing 2011 If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Free tax filing 2011 Otherwise, go on to line 2. Free tax filing 2011             2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011 1,000   3. Free tax filing 2011 Enter your adjusted gross income for the earlier year 3. Free tax filing 2011 23,000   4. Free tax filing 2011 Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. Free tax filing 2011 S. Free tax filing 2011 savings bond interest (Form 8815) Student loan interest (Form 1040, page 1, or Form 1040A, page 1) Tuition and fees (Form 1040, page 1, or Form 1040A, page 1) Domestic production activities (for 2005 through 2012) (Form 1040, page 1) Foreign earned income or housing (Form 2555 or Form 2555-EZ) Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico 4. Free tax filing 2011 -0-   5. Free tax filing 2011 Enter any tax-exempt interest received in the earlier year 5. Free tax filing 2011 -0-   6. Free tax filing 2011 Add lines 2 through 5 6. Free tax filing 2011 24,000   7. Free tax filing 2011 Enter your taxable benefits for the earlier year that you previously reported 7. Free tax filing 2011 -0-   8. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011 24,000   9. Free tax filing 2011 If, for the earlier year, you were:     Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), married filing separately and you lived apart from your spouse for all of the earlier year, enter $25,000 9. Free tax filing 2011 25,000     Note. Free tax filing 2011 If you were married filing separately and you lived with your spouse at any time during the earlier year, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 8 more than the amount on line 9?       No. Free tax filing 2011 Skip lines 10 through 20 and enter -0- on line 21. Free tax filing 2011       Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011     11. Free tax filing 2011 Enter $12,000 if married filing jointly for the earlier year; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of the earlier year 11. Free tax filing 2011     12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011     13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011     14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011     15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011     16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011     17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011     18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011     19. Free tax filing 2011 Refigured taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18 19. Free tax filing 2011     20. Free tax filing 2011 Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. Free tax filing 2011     21. Free tax filing 2011 Additional taxable benefits. Free tax filing 2011 Subtract line 20 from line 19. Free tax filing 2011 Also enter this amount on Worksheet 4, line 20 21. Free tax filing 2011 -0-     Do not file an amended return for this earlier year. Free tax filing 2011 Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. Free tax filing 2011   Jane Jackson's Filled-in Worksheet 4. Free tax filing 2011 Figure Your Taxable Benefits Under the Lump-Sum Election Method (Use With Worksheet 2 or 3)     Complete Worksheet 1 and Worksheets 2 and 3 as appropriate before completing this worksheet. Free tax filing 2011 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for 2013, minus the lump-sum payment for years before 2013 1. Free tax filing 2011 $9,000         Note. Free tax filing 2011 If line 1 is zero or less, skip lines 2 through 18, enter -0- on line 19 and go to line 20. Free tax filing 2011 Otherwise, go on to line 2. Free tax filing 2011           2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011 4,500   3. Free tax filing 2011 Enter the amount from Worksheet 1, line 3 3. Free tax filing 2011 25,500   4. Free tax filing 2011 Enter the amount from Worksheet 1, line 4 4. Free tax filing 2011 -0-   5. Free tax filing 2011 Enter the amount from Worksheet 1, line 5 5. Free tax filing 2011 -0-   6. Free tax filing 2011 Combine lines 2, 3, 4, and 5 6. Free tax filing 2011 30,000   7. Free tax filing 2011 Enter the amount from Worksheet 1, line 7 7. Free tax filing 2011 -0-   8. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011 30,000   9. Free tax filing 2011 Enter the amount from Worksheet 1, line 9. Free tax filing 2011 But if you are married filing separately and lived with your spouse at any time during 2013, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then, go to line 18 9. Free tax filing 2011 25,000   10. Free tax filing 2011 Is the amount on line 8 more than the amount on line 9? No. Free tax filing 2011 Skip lines 10 through 18, enter -0- on line 19, and go to line 20. Free tax filing 2011  Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011 5,000   11. Free tax filing 2011 Enter the amount from Worksheet 1, line 11 11. Free tax filing 2011 9,000   12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011 -0-   13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011 5,000   14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011 2,500   15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011 2,500   16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011 -0-   17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011 2,500   18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011 7,650   19. Free tax filing 2011 Enter the smaller of line 17 or line 18 19. Free tax filing 2011 2,500   20. Free tax filing 2011 Enter the total of the amounts from Worksheet 2, line 21, and Worksheet 3, line 14, for all earlier years for which the lump-sum payment was received 20. Free tax filing 2011 -0-   21. Free tax filing 2011 Taxable benefits under lump-sum election method. Free tax filing 2011 Add lines 19 and 20 21. Free tax filing 2011 $2,500   Next. Free tax filing 2011 Is line 21 above smaller than Worksheet 1, line 19? No. Free tax filing 2011 Do not use this method to figure your taxable benefits. Free tax filing 2011 Follow the instructions on Worksheet 1 to report your benefits. Free tax filing 2011  Yes. Free tax filing 2011 You can elect to report your taxable benefits under this method. Free tax filing 2011 To elect this method:     Enter “LSE” to the left of Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 If line 21 above is zero, follow the instructions in line 10 for “No” on Worksheet 1. Free tax filing 2011 Otherwise: Enter the amount from Worksheet 1, line 1, on Form 1040, line 20a, or on Form 1040A, line 14a. Free tax filing 2011 Enter the amount from line 21 above on Form 1040, line 20b, or on Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011   Deductions Related to Your Benefits You may be entitled to deduct certain amounts related to the benefits you receive. Free tax filing 2011 Disability payments. Free tax filing 2011   You may have received disability payments from your employer or an insurance company that you included as income on your tax return in an earlier year. Free tax filing 2011 If you received a lump-sum payment from SSA or RRB, and you had to repay the employer or insurance company for the disability payments, you can take an itemized deduction for the part of the payments you included in gross income in the earlier year. Free tax filing 2011 If the amount you repay is more than $3,000, you may be able to claim a tax credit instead. Free tax filing 2011 Claim the deduction or credit in the same way explained under Repayment of benefits received in an earlier year in the section Repayments More Than Gross Benefits , later. Free tax filing 2011 Legal expenses. Free tax filing 2011   You can usually deduct legal expenses that you pay or incur to produce or collect taxable income or in connection with the determination, collection, or refund of any tax. Free tax filing 2011   Legal expenses for collecting the taxable part of your benefits are deductible as a miscellaneous itemized deduction on Schedule A (Form 1040), line 23. Free tax filing 2011 Repayments More Than Gross Benefits In some situations, your Form SSA-1099 or Form RRB-1099 will show that the total benefits you repaid (box 4) are more than the gross benefits (box 3) you received. Free tax filing 2011 If this occurred, your net benefits in box 5 will be a negative figure (a figure in parentheses) and none of your benefits will be taxable. Free tax filing 2011 Do not use Worksheet 1 in this case. Free tax filing 2011 If you receive more than one form, a negative figure in box 5 of one form is used to offset a positive figure in box 5 of another form for that same year. Free tax filing 2011 If you have any questions about this negative figure, contact your local SSA office or your local RRB field office. Free tax filing 2011 Joint return. Free tax filing 2011   If you and your spouse file a joint return, and your Form SSA-1099 or RRB-1099 has a negative figure in box 5, but your spouse's does not, subtract the amount in box 5 of your form from the amount in box 5 of your spouse's form. Free tax filing 2011 You do this to get your net benefits when figuring if your combined benefits are taxable. Free tax filing 2011 Example. Free tax filing 2011 John and Mary file a joint return for 2013. Free tax filing 2011 John received Form SSA-1099 showing $3,000 in box 5. Free tax filing 2011 Mary also received Form SSA-1099 and the amount in box 5 was ($500). Free tax filing 2011 John and Mary will use $2,500 ($3,000 minus $500) as the amount of their net benefits when figuring if any of their combined benefits are taxable. Free tax filing 2011 Repayment of benefits received in an earlier year. Free tax filing 2011   If the total amount shown in box 5 of all of your Forms SSA-1099 and RRB-1099 is a negative figure, you can take an itemized deduction for the part of this negative figure that represents benefits you included in gross income in an earlier year. Free tax filing 2011 Deduction $3,000 or less. Free tax filing 2011   If this deduction is $3,000 or less, it is subject to the 2%-of-adjusted-gross-income limit that applies to certain miscellaneous itemized deductions. Free tax filing 2011 Claim it on Schedule A (Form 1040), line 23. Free tax filing 2011 Deduction more than $3,000. Free tax filing 2011   If this deduction is more than $3,000, you should figure your tax two ways: Figure your tax for 2013 with the itemized deduction included on Schedule A, line 28. Free tax filing 2011 Figure your tax for 2013 in the following steps: Figure the tax without the itemized deduction included on Schedule A, line 28. Free tax filing 2011 For each year after 1983 for which part of the negative figure represents a repayment of benefits, refigure your taxable benefits as if your total benefits for the year were reduced by that part of the negative figure. Free tax filing 2011 Then refigure the tax for that year. Free tax filing 2011 Subtract the total of the refigured tax amounts in (b) from the total of your actual tax amounts. Free tax filing 2011 Subtract the result in (c) from the result in (a). Free tax filing 2011   Compare the tax figured in methods (1) and (2). Free tax filing 2011 Your tax for 2013 is the smaller of the two amounts. Free tax filing 2011 If method (1) results in less tax, take the itemized deduction on Schedule A (Form 1040), line 28. Free tax filing 2011 If method (2) results in less tax, claim a credit for the amount from step 2(c) above on Form 1040, line 71. Free tax filing 2011 Check box d and enter “I. Free tax filing 2011 R. Free tax filing 2011 C. Free tax filing 2011 1341” in the space next to that box. Free tax filing 2011 If both methods produce the same tax, deduct the repayment on Schedule A (Form 1040), line 28. Free tax filing 2011 Worksheets Blank Worksheets 1 through 4 are provided in this section: Worksheet 1, Figuring Your Taxable Benefits; Worksheet 2, Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993); Worksheet 3, Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994); Worksheet 4, Figure Your Taxable Benefits Under the Lump-Sum Election Method (Use With Worksheet 2 or 3). Free tax filing 2011 Worksheet 1. Free tax filing 2011 Figuring Your Taxable Benefits Before you begin: If you are married filing separately and you lived apart from your spouse for all of 2013, enter “D” to the right of the word “benefits” on Form 1040, line 20a, or Form 1040A, line 14a. Free tax filing 2011 Do not use this worksheet if you repaid benefits in 2013 and your total repayments (box 4 of Forms SSA-1099 and RRB-1099) were more than your gross benefits for 2013 (box 3 of Forms SSA-1099 and RRB-1099). Free tax filing 2011 None of your benefits are taxable for 2013. Free tax filing 2011 For more information, see Repayments More Than Gross Benefits . Free tax filing 2011 If you are filing Form 8815, Exclusion of Interest From Series EE and I U. Free tax filing 2011 S. Free tax filing 2011 Savings Bonds Issued After 1989, do not include the amount from line 8a of Form 1040 or Form 1040A on line 3 of this worksheet. Free tax filing 2011 Instead, include the amount from Schedule B (Form 1040A or 1040), line 2. Free tax filing 2011 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099. Free tax filing 2011 Also enter this amount on Form 1040, line 20a, or Form 1040A, line 14a 1. Free tax filing 2011           2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011       3. Free tax filing 2011 Combine the amounts from: Form 1040: Lines 7, 8a, 9a, 10 through 14, 15b, 16b, 17 through 19, and 21 Form 1040A: Lines 7, 8a, 9a, 10, 11b, 12b, and 13 3. Free tax filing 2011       4. Free tax filing 2011 Enter the amount, if any, from Form 1040 or 1040A, line 8b 4. Free tax filing 2011       5. Free tax filing 2011 Enter the total of any exclusions/adjustments for: Adoption benefits (Form 8839, line 28), Foreign earned income or housing (Form 2555, lines 45 and 50, or Form 2555-EZ, line 18), and Certain income of bona fide residents of American Samoa (Form 4563, line 15) or Puerto Rico 5. Free tax filing 2011       6. Free tax filing 2011 Combine lines 2, 3, 4, and 5 6. Free tax filing 2011       7. Free tax filing 2011 Form 1040 filers: Enter the amounts from Form 1040, lines 23 through 32, and any write-in adjustments you entered on the dotted line next to line 36. Free tax filing 2011  Form 1040A filers: Enter the amounts from Form 1040A, lines 16 and 17 7. Free tax filing 2011       8. Free tax filing 2011 Is the amount on line 7 less than the amount on line 6?             No. Free tax filing 2011 None of your social security benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or Form 1040A, line 14b. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011       9. Free tax filing 2011 If you are:  Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013, enter $25,000 9. Free tax filing 2011         Note. Free tax filing 2011 If you are married filing separately and you lived with your spouse at any time in 2013, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 9 less than the amount on line 8?             No. Free tax filing 2011 None of your benefits are taxable. Free tax filing 2011 Enter -0- on Form 1040, line 20b, or on Form 1040A, line 14b. Free tax filing 2011 If you are married filing separately and you lived apart from your spouse for all of 2013, be sure you entered “D” to the right of the word “benefits” on Form 1040, line 20a, or on Form 1040A, line 14a. Free tax filing 2011             Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011       11. Free tax filing 2011 Enter $12,000 if married filing jointly; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of 2013 11. Free tax filing 2011       12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011       13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011       14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011       15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011       16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011       17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011       18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011       19. Free tax filing 2011 Taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18. Free tax filing 2011 Also enter this amount on Form 1040, line 20b, or Form 1040A, line 14b 19. Free tax filing 2011         If you received a lump-sum payment in 2013 that was for an earlier year, also complete Worksheet 2 or 3 and Worksheet 4 to see if you can report a lower taxable benefit. Free tax filing 2011         Worksheet 2. Free tax filing 2011 Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993)     Enter earlier year 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year 1. Free tax filing 2011             Note. Free tax filing 2011 If line 1 is zero or less, skip lines 2 through 20 and enter -0- on line 21. Free tax filing 2011 Otherwise, go on to line 2. Free tax filing 2011             2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011     3. Free tax filing 2011 Enter your adjusted gross income for the earlier year 3. Free tax filing 2011     4. Free tax filing 2011 Enter the total of any exclusions/adjustments you claimed in the earlier year for: Adoption benefits (Form 8839) Qualified U. Free tax filing 2011 S. Free tax filing 2011 savings bond interest (Form 8815) Student loan interest (Form 1040, page 1, or Form 1040A, page 1) Tuition and fees (Form 1040, page 1, or Form 1040A, page 1) Domestic production activities (for 2005 through 2012) (Form 1040, page 1) Foreign earned income or housing (Form 2555 or Form 2555-EZ) Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico 4. Free tax filing 2011     5. Free tax filing 2011 Enter any tax-exempt interest received in the earlier year 5. Free tax filing 2011     6. Free tax filing 2011 Add lines 2 through 5 6. Free tax filing 2011     7. Free tax filing 2011 Enter your taxable benefits for the earlier year that you previously reported 7. Free tax filing 2011     8. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011     9. Free tax filing 2011 If, for the earlier year, you were:     Married filing jointly, enter $32,000 Single, head of household, qualifying widow(er), married filing separately and you lived apart from your spouse for all of the earlier year, enter $25,000 9. Free tax filing 2011       Note. Free tax filing 2011 If you were married filing separately and you lived with your spouse at any time during the earlier year, skip lines 9 through 16; multiply line 8 by 85% (. Free tax filing 2011 85) and enter the result on line 17. Free tax filing 2011 Then go to line 18. Free tax filing 2011         10. Free tax filing 2011 Is the amount on line 8 more than the amount on line 9?       No. Free tax filing 2011 Skip lines 10 through 20 and enter -0- on line 21. Free tax filing 2011       Yes. Free tax filing 2011 Subtract line 9 from line 8 10. Free tax filing 2011     11. Free tax filing 2011 Enter $12,000 if married filing jointly for the earlier year; $9,000 if single, head of household, qualifying widow(er), or married filing separately and you lived apart from your spouse for all of the earlier year 11. Free tax filing 2011     12. Free tax filing 2011 Subtract line 11 from line 10. Free tax filing 2011 If zero or less, enter -0- 12. Free tax filing 2011     13. Free tax filing 2011 Enter the smaller of line 10 or line 11 13. Free tax filing 2011     14. Free tax filing 2011 Enter one-half of line 13 14. Free tax filing 2011     15. Free tax filing 2011 Enter the smaller of line 2 or line 14 15. Free tax filing 2011     16. Free tax filing 2011 Multiply line 12 by 85% (. Free tax filing 2011 85). Free tax filing 2011 If line 12 is zero, enter -0- 16. Free tax filing 2011     17. Free tax filing 2011 Add lines 15 and 16 17. Free tax filing 2011     18. Free tax filing 2011 Multiply line 1 by 85% (. Free tax filing 2011 85) 18. Free tax filing 2011     19. Free tax filing 2011 Refigured taxable benefits. Free tax filing 2011 Enter the smaller of line 17 or line 18 19. Free tax filing 2011     20. Free tax filing 2011 Enter your taxable benefits for the earlier year (or as refigured due to a previous lump-sum payment for the year) 20. Free tax filing 2011     21. Free tax filing 2011 Additional taxable benefits. Free tax filing 2011 Subtract line 20 from line 19. Free tax filing 2011 Also enter this amount on Worksheet 4, line 20 21. Free tax filing 2011       Do not file an amended return for this earlier year. Free tax filing 2011 Complete a separate Worksheet 2 or Worksheet 3 for each earlier year for which you received a lump-sum payment in 2013. Free tax filing 2011   Worksheet 3. Free tax filing 2011 Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year Before 1994) Enter earlier year 1. Free tax filing 2011 Enter the total amount from box 5 of ALL your Forms SSA-1099 and RRB-1099 for the earlier year, plus the lump-sum payment for the earlier year received after that year 1. Free tax filing 2011           Note. Free tax filing 2011 If line 1 is zero or less, skip lines 2 through 13 and enter -0- on line 14. Free tax filing 2011 Otherwise, go on to line 2. Free tax filing 2011           2. Free tax filing 2011 Enter one-half of line 1 2. Free tax filing 2011     3. Free tax filing 2011 Enter your adjusted gross income for the earlier year 3. Free tax filing 2011     4. Free tax filing 2011 Enter the total of any exclusions/adjustments you claimed in the earlier year for: Qualified U. Free tax filing 2011 S. Free tax filing 2011 savings bond interest (Form 8815) Foreign earned income or housing (Form 2555 or Form 2555-EZ) Certain income of bona fide residents of American Samoa (Form 4563) or Puerto Rico 4. Free tax filing 2011     5. Free tax filing 2011 Enter any tax-exempt interest received in the earlier year 5. Free tax filing 2011     6. Free tax filing 2011 Add lines 2 through 5 6. Free tax filing 2011     7. Free tax filing 2011 Enter your taxable benefits for the earlier year that you previously reported 7. Free tax filing 2011     8. Free tax filing 2011 Subtract line 7 from line 6 8. Free tax filing 2011     9. Free tax filing 2011 Enter $25,000 ($32,000 if married filing jointly for the earlier year; $-0- if married filing separately for the earlier year and you lived with your spouse at any time during the earlier year) 9. Free tax filing 2011     10. Free tax filing 2011 Is the amount on line 8 more than the amount on line 9? No. Free tax filing 2011 Skip lines 10 through 13 and enter -0- on line 14. Free tax filing 2011  Yes. Free tax filing 2011 Subtract line 9 from line 8. Free tax filing 2011 10. Free tax filing 2011     11. Free tax filing 2011 Enter one-half of line 10 11. Free tax filing 2011     12. Free tax filing 2011 Refigured taxable benefits. Free tax filing 2011 Enter the smaller of line 2 or line 11 12. Free tax filing 2011     13. Free tax filing 2011 Enter your taxable benefits for the earlier year (or as refigured due to a previous
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The only proven way to help you lose weight is to burn more calories than you consume. If you need to lose weight, talk with your doctor about the options that are best for you. Most health experts agree that the best and safest way to lose weight is to modestly cut calories, eat a balanced diet, and exercise. People usually do best when they reduce their usual calorie intake or increase the calories they use by 500-1,000 per day. This allows you to eat enough for good nutrition yet lose about one to two pounds a week. Steer clear of harmful tactics such as smoking, fasting, purging, or abusing laxatives.

Avoid fad diets and other weight loss programs that promise fast results or limit your food choices. Ask yourself the following:

  • How does the product or service work? Does the program emphasize diet, exercise or a combination of both?
  • How much will it cost? Ask for an itemized list that includes membership fees and fees for weekly visits. Ask if there are extra fees for diagnostic tests, food, dietary supplements, or other products in the program.
  • How well does it work? Ask to see the studies that back up success claims. Look for how many people completed the program, how much weight they lost, and how long they kept the weight off.
  • What are the risks? Get details about possible side effects. Check with your doctor before you take prescriptions, over-the-counter weight loss drugs, or dietary supplements. Diets that require drastic food restriction should be under the supervision of a physician.
  • How many calories will you eat each day? For diets under 1,500 calories, be sure to check with your doctor to make sure you get all your nutrients.
  • What are the staff qualifications? Ask about their training and experience.
  • What type of attention will you receive? Will you get individual counseling or group support? How often?

Complaints concerning fraudulent weight loss claims should be directed to the Federal Trade Commission.

Cancelling Gym Memberships

Signing up for a gym membership can be a great step, but it is important to know what commitments you are making before you sign on the dotted line. For example:

  • Read the contract. Pay attention to cancellation policies, including whether there is an "exit fee" for breaking the agreement.
  • Know your state's laws. Many states have consumer protections that offer a "cooling-off period" during which you can back out of contracts, including gym memberships. However, these laws vary from state to state.
  • Know your gym's rules. Some gyms grant waivers if you are temporarily incapacitated, out of the area for an extended period, or move a certain distance away. These rules vary from gym to gym.
  • Cancel in writing
  • Always put your intention to cancel in writing, even if you are advised that is not necessary, and keep a copy of your letter. Make sure you follow the advance notice requirements in your contract.

The Free Tax Filing 2011

Free tax filing 2011 2. Free tax filing 2011   Fuel Tax Credits and Refunds Table of Contents Gasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Free tax filing 2011 Providing information. Free tax filing 2011 Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Free tax filing 2011 Fuel used between airfield and farm. Free tax filing 2011 Fuel not used for farming. Free tax filing 2011 Vehicles not considered highway vehicles. Free tax filing 2011 Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Federal excise taxes are imposed on certain fuels as discussed in chapter 1. Free tax filing 2011 This chapter lists the nontaxable uses of each fuel and defines the nontaxable uses. Free tax filing 2011 Information on the refund of second tax is included. Free tax filing 2011 This chapter also explains credits and refunds for the biodiesel or renewable diesel mixture credits, and the alternative fuel mixture and alternative fuel credits. Free tax filing 2011 Information on how to make a claim for credit or refund is included in this chapter and in the instructions for: Form 720, Form 4136, and Form 8849. Free tax filing 2011 Exported taxable fuel. Free tax filing 2011   The claim rates for exported taxable fuel are listed on Schedule C (Form 720), Schedule 1 (Form 8849), and Form 4136. Free tax filing 2011 Taxpayers making a claim for exported taxable fuel must include with their records proof of exportation. Free tax filing 2011 Proof of exportation includes: A copy of the export bill of lading issued by the delivering carrier, A certificate by the agent or representative of the export carrier showing actual exportation of the fuel, A certificate of lading signed by a customs officer of the foreign country to which the fuel is exported, or A statement of the foreign consignee showing receipt of the fuel. Free tax filing 2011 Gasoline and Aviation Gasoline Ultimate Purchasers. Free tax filing 2011   The following are the uses of gasoline (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Free tax filing 2011 On a farm for farming purposes (credit only). Free tax filing 2011 Off-highway business use. Free tax filing 2011 Export. Free tax filing 2011 In a boat engaged in commercial fishing. Free tax filing 2011 In certain intercity and local buses. Free tax filing 2011 In a school bus. Free tax filing 2011 Exclusive use by a qualified blood collector organization. Free tax filing 2011 In a highway vehicle owned by the United States that is not used on a highway. Free tax filing 2011 Exclusive use by a nonprofit educational organization (see Sales by registered ultimate vendors and Credit Card Purchases, later). Free tax filing 2011 Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit Card Purchases, later). Free tax filing 2011 In an aircraft or vehicle owned by an aircraft museum. Free tax filing 2011   The following are the uses of aviation gasoline for which a credit or refund may be allowable to an ultimate purchaser. Free tax filing 2011 On a farm for farming purposes (credit only). Free tax filing 2011 Export. Free tax filing 2011 In foreign trade. Free tax filing 2011 Certain helicopter and fixed-wing air ambulance uses. Free tax filing 2011 In commercial aviation (other than foreign trade). Free tax filing 2011 Exclusive use by a qualified blood collector organization. Free tax filing 2011 Exclusive use by a nonprofit education organization (see Sales by registered ultimate vendors and Credit card purchases, later). Free tax filing 2011 Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by registered ultimate vendors and Credit and purchases, later). Free tax filing 2011 In an aircraft owned by an aircraft museum. Free tax filing 2011 In military aircraft. Free tax filing 2011 Claims by persons who paid the tax to the government. Free tax filing 2011   Except for sales to nonprofit educational organizations and states and local governments, a credit or refund is allowable to the person that paid the tax to the government if the gasoline was sold to the ultimate purchaser (including an exporter) by either that person or by a retailer and the fuel was exported; used or sold for use as supplies for vessels or aircraft, including military aircraft, commercial fishing, and foreign trade; sold to a qualified blood collector organization; or used or sold for use in the production of Other Fuels. Free tax filing 2011 See Filing Claims, later. Free tax filing 2011 Sales by registered ultimate vendors. Free tax filing 2011   This is an ultimate vendor that sells gasoline or aviation gasoline to any of the following and that is purchased without the use of a credit card. Free tax filing 2011 A state or local government for its exclusive use (including essential government use by an Indian tribal government). Free tax filing 2011 A nonprofit educational organization for its exclusive use. Free tax filing 2011   The registered ultimate vendor may make the claim if the ultimate purchaser did not use a credit card and waives its right to the credit or refund by providing the registered ultimate vendor with a certificate. Free tax filing 2011 A sample certificate is included as Model Certificate M in the Appendix. Free tax filing 2011 The registered ultimate vendor must have the certificate at the time the credit or refund is claimed. Free tax filing 2011   The ultimate vendor must be registered by the IRS. Free tax filing 2011 See Registration Requirements, earlier. Free tax filing 2011 Credit card purchases. Free tax filing 2011   If gasoline and aviation gasoline are purchased with a credit card issued to a state or local government for its exclusive use (including essential government use by an Indian tribal government), or a nonprofit educational organization for its exclusive use, the person who extended credit to the ultimate purchaser (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the gasoline or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Free tax filing 2011   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Free tax filing 2011 How to make the claim. Free tax filing 2011   If the claim is made by the credit card issuer, see Schedule C  (Form 720) or Schedule 8 (Form 8849). Free tax filing 2011 Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation) For conditions to an allowance of a credit or refund on exported dyed diesel fuel and dyed kerosene, see Exported taxable fuel, earlier. Free tax filing 2011 Ultimate purchasers. Free tax filing 2011   The following are nontaxable uses of diesel fuel and kerosene (defined earlier) for which a credit or refund may be allowable to an ultimate purchaser. Free tax filing 2011 On a farm for farming purposes. Free tax filing 2011 Off-highway business use. Free tax filing 2011 Export. Free tax filing 2011 In a qualified local bus. Free tax filing 2011 In a school bus. Free tax filing 2011 Other than as a fuel in a propulsion engine of a diesel-powered highway vehicle (such as home heating oil). Free tax filing 2011 Exclusive use by a qualified blood collector organization. Free tax filing 2011 In a highway vehicle owned by the United States that is not used on a highway. Free tax filing 2011 Exclusive use by a nonprofit educational organization (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Free tax filing 2011 Exclusive use by a state, political subdivision of a state, or the District of Columbia (see Sales by Registered Ultimate Vendors and Credit Card Purchases, later). Free tax filing 2011 In a vehicle owned by an aircraft museum. Free tax filing 2011 As a fuel in a propulsion engine of a diesel-powered train. Free tax filing 2011 Sales by Registered Ultimate Vendors The following are the sales for which a credit or refund may be allowable to the registered ultimate vendor only. Free tax filing 2011 Undyed diesel fuel or undyed kerosene sold for the exclusive use by a state or local government (if credit card rules (defined later) do not apply), Undyed kerosene sold from a blocked pump (defined below), or Undyed diesel fuel or undyed kerosene used in certain intercity and local buses, only if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Free tax filing 2011 Registered ultimate vendor (state use). Free tax filing 2011   This is a person that sells undyed diesel fuel or undyed kerosene to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Free tax filing 2011 The diesel fuel or kerosene must be purchased by the state without the use of a credit card, issued to the state by the credit card issuer, in order for the ultimate vendor to make the claim. Free tax filing 2011 The ultimate vendor must be registered by the IRS. Free tax filing 2011 See Registration Requirements, earlier. Free tax filing 2011 Registered ultimate vendor (blocked pump). Free tax filing 2011   This is an ultimate vendor that sells undyed kerosene from a blocked pump. Free tax filing 2011   A credit or refund may be allowable to a registered ultimate vendor (blocked pump) if the vendor sold to a buyer undyed kerosene from a blocked pump for use other than as a fuel in a diesel-powered highway vehicle and the vendor had no reason to believe the kerosene would not be used in that manner. Free tax filing 2011 Blocked pump. Free tax filing 2011   A blocked pump is a fuel pump that meets all the following requirements. Free tax filing 2011 It is used to make retail sales of undyed kerosene for use by the buyer in any nontaxable use. Free tax filing 2011 It is at a fixed location. Free tax filing 2011 It is identified with a legible and conspicuous notice stating, “UNDYED UNTAXED KEROSENE, NONTAXABLE USE ONLY. Free tax filing 2011 ” It meets either of the following conditions. Free tax filing 2011 It cannot reasonably be used to dispense fuel directly into the fuel supply tank of a diesel-powered highway vehicle or train. Free tax filing 2011 It is locked by the vendor after each sale and unlocked by the vendor only in response to a buyer's request for undyed kerosene for use other than as a fuel in a diesel-powered highway vehicle or train. Free tax filing 2011 Registered ultimate vendor (certain intercity and local buses). Free tax filing 2011   This is an ultimate vendor that sells undyed diesel fuel or undyed kerosene to the ultimate purchaser for use in certain intercity and local buses. Free tax filing 2011   The registered ultimate vendor may make the claim if the ultimate purchaser waives its right to the credit or refund by providing the registered ultimate vendor with a waiver. Free tax filing 2011 A sample waiver is included as Model Waiver N in the Appendix. Free tax filing 2011 The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Free tax filing 2011 Credit Card Purchases. Free tax filing 2011   If undyed diesel fuel or kerosene is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the diesel fuel or kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Free tax filing 2011   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Free tax filing 2011 Diesel-Water Fuel Emulsion A claim for credit or refund may be made for the nontaxable use of a diesel-water fuel emulsion and for undyed diesel fuel used to produce a diesel-water fuel emulsion. Free tax filing 2011 The claim rate for nontaxable use of a diesel-water fuel emulsion taxed at $. Free tax filing 2011 198 per gallon is $. Free tax filing 2011 197 (if exported, the claim rate is $. Free tax filing 2011 198). Free tax filing 2011 The following are the nontaxable uses for a diesel-water fuel emulsion for which a credit or refund may be allowable to an ultimate purchaser. Free tax filing 2011 On a farm for farming purposes. Free tax filing 2011 Off-highway business use. Free tax filing 2011 Export. Free tax filing 2011 In a qualified local bus. Free tax filing 2011 In a school bus. Free tax filing 2011 Other than as fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway use). Free tax filing 2011 Exclusive use by a qualified blood collector organization. Free tax filing 2011 In a highway vehicle owned by the United States that is not used on a highway. Free tax filing 2011 Exclusive use by a nonprofit educational organization. Free tax filing 2011 Exclusive use by a state, political subdivision of a state, or the District of Columbia. Free tax filing 2011 In an aircraft or vehicle owned by an aircraft museum. Free tax filing 2011 Blender claims. Free tax filing 2011   The claim rate for undyed diesel fuel taxed at $. Free tax filing 2011 244 and used to produce a diesel-water fuel emulsion is $. Free tax filing 2011 046 per gallon of diesel fuel so used. Free tax filing 2011 The blender must be registered by the IRS in order to make the claim. Free tax filing 2011 The blender must attach a statement to the claim certifying that: The diesel-water fuel emulsion contains at least 14% water, The emulsion additive is registered by a United States manufacturer with the EPA under section 211 of the Clean Air Act as in effect on March 31, 2003, Undyed diesel fuel taxed at $. Free tax filing 2011 244 was used to produce the diesel-water fuel emulsion, and The diesel-water fuel emulsion was used or sold for use in the blender's trade or business. Free tax filing 2011 Kerosene for Use in Aviation Ultimate purchasers. Free tax filing 2011   Ultimate purchasers of kerosene used in certain aviation uses may make a claim if the rate of tax on their use is less than the rate of tax that was charged on the kerosene. Free tax filing 2011   The ultimate purchaser of the kerosene used in commercial aviation (other than foreign trade) and noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) is eligible to make a claim if the ultimate purchaser certifies that the right to make the claim has not been waived. Free tax filing 2011 Generally, the ultimate purchaser is the aircraft operator. Free tax filing 2011   The following are the nontaxable uses of kerosene used in noncommercial aviation for which a credit or refund may be allowable to the ultimate purchaser. Free tax filing 2011 On a farm for farming purposes. Free tax filing 2011 Certain helicopter and fixed-wing aircraft uses. Free tax filing 2011 Exclusive use by a qualified blood collector organization. Free tax filing 2011 Exclusive use by a nonprofit educational organization. Free tax filing 2011 In an aircraft owned by an aircraft museum. Free tax filing 2011 In military aircraft. Free tax filing 2011 Kerosene for use partly in commercial aviation and partly in nonexempt, noncommercial aviation. Free tax filing 2011   If the fuel is used partly for use in commercial aviation and partly for use in nonexempt, noncommercial aviation, the operator may identify, either at the time of purchase or after the kerosene has been used, the amount that will be (or has been) used in commercial aviation. Free tax filing 2011 At the same time, the operator would either make the claim or waive the right to make the claim for credit or refund of the kerosene for use in commercial and nonexempt, noncommercial aviation. Free tax filing 2011   If the operator does not identify the amount of kerosene that will be (or has been) used in commercial aviation, the operator may provide a certificate to the ultimate vendor similar to Model Certificate Q in the Appendix. Free tax filing 2011 For kerosene purchased with the certificate, used in commercial aviation, and taxed at $. Free tax filing 2011 244 per gallon, use of the certificate will be treated as a waiver of the right to claim a credit or refund for the $. Free tax filing 2011 025 per gallon part of the tax. Free tax filing 2011 The ultimate vendor may make this claim. Free tax filing 2011 The operator may make a claim for the $. Free tax filing 2011 175 tax per gallon of the kerosene, but cannot waive the right to make the claim for the $. Free tax filing 2011 175 tax per gallon. Free tax filing 2011 Sales by Registered Ultimate Vendors Kerosene for use in commercial aviation or noncommercial aviation. Free tax filing 2011   The registered ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may make this claim if the ultimate purchaser waives its right to the credit or payment by providing the registered ultimate vendor with a waiver. Free tax filing 2011 A sample waiver is included as Model Waiver L in the Appendix. Free tax filing 2011 The registered ultimate vendor must have the waiver at the time the credit or payment is claimed. Free tax filing 2011   Noncommercial aviation means any use of an aircraft not described as commercial aviation. Free tax filing 2011 For the definition of commercial aviation, see Commercial aviation on page 11. Free tax filing 2011 Kerosene for use in nonexempt, noncommercial aviation. Free tax filing 2011   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in nonexempt, noncommercial aviation. Free tax filing 2011 The ultimate vendor must be registered by the IRS (activity letter UA) and have the required certificate from the ultimate purchaser. Free tax filing 2011 A sample certificate is included as Model Certificate Q in the Appendix. Free tax filing 2011 The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Free tax filing 2011 Kerosene for use in aviation by a state or local government. Free tax filing 2011   Only the registered ultimate vendor may claim a credit or payment for sales of kerosene for use in aviation to a state or local government for its exclusive use (including essential government use by an Indian tribal government). Free tax filing 2011 The kerosene for use in aviation must be purchased by the state without the use of a credit card in order for the ultimate vendor to make the claim. Free tax filing 2011 The ultimate vendor must be registered by the IRS (activity letter UV) and have the required certificate from the ultimate purchaser. Free tax filing 2011 A sample certificate is included as Model Certificate P in the Appendix. Free tax filing 2011 The registered ultimate vendor must have the certificate at the time the credit or payment is claimed. Free tax filing 2011 Credit card purchases. Free tax filing 2011   If taxed kerosene for use in aviation is purchased with a credit card issued to a state, the person who extended credit to the state (the credit card issuer) is treated as the person that paid the tax and makes the claim if the credit card issuer: Is registered by the IRS, Has established that the amount of tax has not been collected from the person who purchased the kerosene, or has obtained written consent from the ultimate purchaser to the allowance of the credit or refund, and Has repaid or agreed to repay the amount of the tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to the allowance of the credit or refund, or has made arrangements that provide the ultimate vendor with reimbursement of the tax. Free tax filing 2011   If the requirements above are not met by the credit card issuer, the credit card issuer must collect the tax from the ultimate purchaser and only the ultimate purchaser may make the claim. Free tax filing 2011 Other Fuels (Including Alternative Fuels) Credit or refund for nontaxable use of taxed Other Fuels may be allowable to an ultimate purchaser. Free tax filing 2011 While tax is generally imposed on delivery, Other Fuels are taxed prior to delivery in the case of certain bulk sales described in chapter 1. Free tax filing 2011 The following are the nontaxable uses of Other Fuels for which a credit or refund may be allowable to the ultimate purchaser. Free tax filing 2011 On a farm for farming purposes. Free tax filing 2011 Off-highway business use. Free tax filing 2011 In a boat engaged in commercial fishing. Free tax filing 2011 In certain intercity and local buses. Free tax filing 2011 In a school bus. Free tax filing 2011 In a qualified local bus. Free tax filing 2011 Exclusive use by a qualified blood collector organization. Free tax filing 2011 Exclusive use by a nonprofit educational organization. Free tax filing 2011 Exclusive use by a state, political subdivision of a state, or the District of Columbia. Free tax filing 2011 In an aircraft or vehicle owned by an aircraft museum. Free tax filing 2011 Use in any boat operated by the United States for its exclusive use or any vessel of war of any foreign nation. Free tax filing 2011 See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit, later. Free tax filing 2011 Refunds of Second Tax The tax on dyed diesel fuel for inland waterways fuel use applies at the rate listed on Form 720. Free tax filing 2011 This is in addition to all other taxes imposed on the sale or use of the fuel. Free tax filing 2011 The section 4081(e) refund (discussed below) cannot be claimed. Free tax filing 2011 If the tax is paid and reported to the government on more than one taxable event for a taxable fuel under section 4081, the person paying the “second tax” may claim a refund (without interest) of that tax if certain conditions and reporting requirements are met. Free tax filing 2011 No credit against any tax is allowed for this tax. Free tax filing 2011 For information about taxable events, see the discussions under Gasoline, Diesel Fuel and Kerosene and Kerosene for Use in Aviation in chapter 1. Free tax filing 2011 Conditions to allowance of refund. Free tax filing 2011   A claim for refund of the tax is allowed only if all the following conditions are met. Free tax filing 2011 A tax on the fuel was paid to the government and not credited or refunded (the “first tax”). Free tax filing 2011 After the first tax was imposed, another tax was imposed on the same fuel and was paid to the government (the “second tax”). Free tax filing 2011 The person that paid the second tax filed a timely claim for refund containing the information required (see Refund claim, later). Free tax filing 2011 The person that paid the first tax has met the reporting requirements, discussed next. Free tax filing 2011 Reporting requirements. Free tax filing 2011   Generally, the person that paid the first tax must file a “First Taxpayer's Report” with its Form 720 for the quarter to which the report relates. Free tax filing 2011 A model first taxpayer's report is shown in the Appendix as Model Certificate B. Free tax filing 2011 The report must contain all information needed to complete the model. Free tax filing 2011   By the due date for filing the Form 720, you must also send a separate copy of the report to the following address. Free tax filing 2011 Department of the Treasury Internal Revenue Service  Cincinnati, OH 45999-0555 Write “EXCISE – FIRST TAXPAYER'S REPORT” across the top of that copy. Free tax filing 2011 Optional reporting. Free tax filing 2011   A first taxpayer's report is not required for the tax imposed on: Removal at a terminal rack, Nonbulk entries into the United States, and Removals or sales by blenders. Free tax filing 2011 However, if the person liable for the tax expects that another tax will be imposed on that fuel, that person should (but is not required to) file a first taxpayer's report. Free tax filing 2011 Providing information. Free tax filing 2011   The first taxpayer must give a copy of the report to the buyer of the fuel within the bulk transfer/terminal system or to the owner of the fuel immediately before the first tax was imposed, if the first taxpayer is not the owner at that time. Free tax filing 2011 If an optional report is filed, a copy should (but is not required to) be given to the buyer or owner. Free tax filing 2011   A person that receives a copy of the first taxpayer's report and later sells the fuel within the bulk transfer/terminal system must give the copy and a “Statement of Subsequent Seller” to the buyer. Free tax filing 2011 If the later sale is outside the bulk transfer/terminal system and that person expects that another tax will be imposed, that person should (but is not required to) give the copy and the statement to the buyer. Free tax filing 2011 A model statement of subsequent seller is shown in the Appendix as Model Certificate A. Free tax filing 2011 The statement must contain all information necessary to complete the model. Free tax filing 2011   If the first taxpayer's report relates to fuel sold to more than one buyer, copies of that report must be made when the fuel is divided. Free tax filing 2011 Each buyer must be given a copy of the report. Free tax filing 2011 Refund claim. Free tax filing 2011   You must have filed Form 720 and paid the second tax before you file for a refund of that tax. Free tax filing 2011 You must make your claim for refund on Form 8849. Free tax filing 2011 Complete Schedule 5 (Form 8849) and attach it to your Form 8849. Free tax filing 2011 Do not include this claim with a claim under another tax provision. Free tax filing 2011 You must not have included the second tax in the price of the fuel and must not have collected it from the purchaser. Free tax filing 2011 You must submit the following information with your claim. Free tax filing 2011 A copy of the first taxpayer's report (discussed earlier). Free tax filing 2011 A copy of the statement of subsequent seller if the fuel was bought from someone other than the first taxpayer. Free tax filing 2011 Definitions of Nontaxable Uses This section provides definitions of the terms used in Table 2-1 for nontaxable uses. Free tax filing 2011 If applicable, the type of use number from Table 2-1 is indicated in each heading. Free tax filing 2011 Type of use table. Free tax filing 2011   The first column of the table is the number you enter on Form 4136, Form 8849, or Schedule C (Form 720) for that type of use. Free tax filing 2011 For type of use 2, the mobile machinery parenthetical applies only to Form 8849 and Form 720. Free tax filing 2011 Table 2-1. Free tax filing 2011 Type of Use Table No. Free tax filing 2011 Type of Use 1 On a farm for farming purposes 2 Off-highway business use (for business use other than in a highway vehicle registered or required to be registered for highway use) (other than use in mobile machinery) 3 Export 4 In a boat engaged in commercial fishing 5 In certain intercity and local buses 6 In a qualified local bus 7 In a bus transporting students and employees of schools (school buses) 8 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a train or diesel-powered highway vehicle (but not off-highway business use) 9 In foreign trade 10 Certain helicopter and fixed-wing aircraft uses 11 Exclusive use by a qualified blood collector organization 12 In a highway vehicle owned by the United States that is not used on a highway 13 Exclusive use by a nonprofit educational organization 14 Exclusive use by a state, political subdivision of a state, or the District of Columbia 15 In an aircraft or vehicle owned by an aircraft museum 16 In military aircraft On a farm for farming purposes (No. Free tax filing 2011 1). Free tax filing 2011   On a farm for farming purposes means fuel used in carrying on a trade or business of farming, on a farm in the United States, and for farming purposes. Free tax filing 2011 Farm. Free tax filing 2011   A farm includes livestock, dairy, fish, poultry, fruit, fur-bearing animals, and truck farms; orchards; plantations; ranches; nurseries; ranges; and feed yards for fattening cattle. Free tax filing 2011 It also includes structures such as greenhouses used primarily for the raising of agricultural or horticultural commodities. Free tax filing 2011 A fish farm is an area where fish are grown or raised — not merely caught or harvested. Free tax filing 2011 Farming purposes. Free tax filing 2011   As an owner, tenant, or operator, you use fuel on a farm for farming purposes if you use it in any of the following ways. Free tax filing 2011 To cultivate the soil or to raise or harvest any agricultural or horticultural commodity. Free tax filing 2011 To raise, shear, feed, care for, train, or manage livestock, bees, poultry, fur-bearing animals, or wildlife. Free tax filing 2011 To operate, manage, conserve, improve, or maintain your farm and its tools and equipment. Free tax filing 2011 To handle, dry, pack, grade, or store any raw agricultural or horticultural commodity. Free tax filing 2011 For this use to qualify, you must have produced more than half the commodity so treated during the tax year. Free tax filing 2011 Commodity means a single raw product. Free tax filing 2011 For example, apples and peaches are two separate commodities. Free tax filing 2011 To plant, cultivate, care for, or cut trees or to prepare (other than sawing logs into lumber, chipping, or other milling) trees for market, but only if the planting, etc. Free tax filing 2011 , is incidental to your farming operations. Free tax filing 2011 Your tree operations will be incidental only if they are minor in nature when compared to the total farming operations. Free tax filing 2011   If any other person, such as a neighbor or custom operator, performs a service for you on your farm for any of the purposes listed in (1) or (2), you are considered to be the ultimate purchaser that used the fuel on a farm for farming purposes. Free tax filing 2011 However, see Custom application of fertilizer and pesticide, next. Free tax filing 2011   If doubt exists whether the owner, the tenant, or the operator of the farm bought the fuel, determine who bore the cost of the fuel. Free tax filing 2011 For example, if the owner of a farm and the tenant equally share the cost of gasoline that is used on a farm for farming purposes, each can claim a credit for the tax on one-half the fuel used. Free tax filing 2011 Custom application of fertilizer and pesticide. Free tax filing 2011   Fuel used on a farm for farming purposes includes fuel used in the application of fertilizer, pesticides, or other substances, including aerial applications. Free tax filing 2011 Generally, the applicator is treated as having used the fuel on a farm for farming purposes. Free tax filing 2011 For aviation gasoline, the aerial applicator makes the claim as the ultimate purchaser. Free tax filing 2011 For kerosene used in aviation, the ultimate purchaser may make the claim or waive their right to make the claim to the registered ultimate vendor. Free tax filing 2011 Fuel used between airfield and farm. Free tax filing 2011   Fuel used by an aerial applicator for the direct flight between the airfield and one or more farms is treated as a farming purpose. Free tax filing 2011 Fuel not used for farming. Free tax filing 2011   Fuel is not used on a farm for farming purposes if it is used in any of the following ways. Free tax filing 2011 Off the farm, such as on the highway or in noncommercial aviation, other than fuel used between the airfield and farm described above, even if the fuel is used in transporting livestock, feed, crops, or equipment. Free tax filing 2011 For personal use, such as mowing the lawn. Free tax filing 2011 In processing, packaging, freezing, or canning operations. Free tax filing 2011 In processing crude gum into gum spirits of turpentine or gum resin or in processing maple sap into maple syrup or maple sugar. Free tax filing 2011 Off-highway business use (No. Free tax filing 2011 2). Free tax filing 2011   Off-highway business use means fuel used in a trade or business or in an income-producing activity other than as a fuel in a highway vehicle registered or required to be registered for use on public highways. Free tax filing 2011 The terms “highway vehicle,” “public highway,” and “registered” are defined below. Free tax filing 2011 Do not consider any use in a boat as an off-highway business use. Free tax filing 2011   Off-highway business use includes fuels used in any of the following ways. Free tax filing 2011 In stationary machines such as generators, compressors, power saws, and similar equipment. Free tax filing 2011 For cleaning purposes. Free tax filing 2011 In forklift trucks, bulldozers, and earthmovers. Free tax filing 2011   Generally, this use does not include nonbusiness use of fuel, such as use by minibikes, snowmobiles, power lawn mowers, chain saws, and other yard equipment. Free tax filing 2011 Example. Free tax filing 2011 Caroline owns a landscaping business. Free tax filing 2011 She uses power lawn mowers and chain saws in her business. Free tax filing 2011 The gasoline used in the power lawn mowers and chain saws qualifies as fuel used in an off-highway business use. Free tax filing 2011 The gasoline used in her personal lawn mower at home does not qualify. Free tax filing 2011 Highway vehicle. Free tax filing 2011   A highway vehicle is any self-propelled vehicle designed to carry a load over public highways, whether or not it is also designed to perform other functions. Free tax filing 2011 Examples of vehicles designed to carry a load over public highways are passenger automobiles, motorcycles, buses, and highway-type trucks and truck tractors. Free tax filing 2011 A vehicle is a highway vehicle even though the vehicle's design allows it to perform a highway transportation function for only one of the following. Free tax filing 2011 A particular type of load, such as passengers, furnishings, and personal effects (as in a house, office, or utility trailer). Free tax filing 2011 A special kind of cargo, goods, supplies, or materials. Free tax filing 2011 Some off-highway task unrelated to highway transportation, except as discussed next. Free tax filing 2011 Vehicles not considered highway vehicles. Free tax filing 2011   Generally, the following kinds of vehicles are not considered highway vehicles for purposes of the credit or refund of fuel taxes. Free tax filing 2011 Specially designed mobile machinery for nontransportation functions. Free tax filing 2011 A self-propelled vehicle is not a highway vehicle if all the following apply. Free tax filing 2011 The chassis has permanently mounted to it machinery or equipment used to perform certain operations (construction, manufacturing, drilling, mining, timbering, processing, farming, or similar operations) if the operation of the machinery or equipment is unrelated to transportation on or off the public highways. Free tax filing 2011 The chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation. Free tax filing 2011 The chassis could not, because of its special design and without substantial structural modification, be used as part of a vehicle designed to carry any other load. Free tax filing 2011 The vehicle must have traveled less than 7,500 miles on public highways during the taxable year. Free tax filing 2011 Vehicles specially designed for off-highway transportation. Free tax filing 2011 A vehicle is not treated as a highway vehicle if the vehicle is specially designed for the primary function of transporting a particular type of load other than over the public highway and because of this special design, the vehicle's capability to transport a load over a public highway is substantially limited or impaired. Free tax filing 2011 To make this determination, you can take into account the vehicle's size, whether the vehicle is subject to licensing, safety, or other requirements, and whether the vehicle can transport a load at a sustained speed of at least 25 miles per hour. Free tax filing 2011 It does not matter that the vehicle can carry heavier loads off highway than it is allowed to carry over the highway. Free tax filing 2011 Nontransportation trailers and semitrailers. Free tax filing 2011 A trailer or semi-trailer is not treated as a highway vehicle if it is specially designed to function only as an enclosed stationary shelter for carrying on a nontransportation function at an off-highway site. Free tax filing 2011 For example, a trailer that is capable only of functioning as an office for an off-highway construction operation is not a highway vehicle. Free tax filing 2011 Public highway. Free tax filing 2011   A public highway includes any road in the United States that is not a private roadway. Free tax filing 2011 This includes federal, state, county, and city roads and streets. Free tax filing 2011 Registered. Free tax filing 2011   A vehicle is considered registered when it is registered or required to be registered for highway use under the law of any state, the District of Columbia, or any foreign country in which it is operated or situated. Free tax filing 2011 Any highway vehicle operated under a dealer's tag, license, or permit is considered registered. Free tax filing 2011 A highway vehicle is not considered registered solely because a special permit allows the vehicle to be operated at particular times and under specified conditions. Free tax filing 2011 Dual use of propulsion motor. Free tax filing 2011   Off-highway business use does not include any fuel used in the propulsion motor of a registered highway vehicle even though that motor also operates special equipment by means of a power take-off or power transfer. Free tax filing 2011 It does not matter if the special equipment is mounted on the vehicle. Free tax filing 2011 Example. Free tax filing 2011 The motor of a registered concrete-mixer truck operates both the engine and the mixing unit by means of a power take-off. Free tax filing 2011 The fuel used in the motor to run the mixer is not off-highway business use. Free tax filing 2011 Use in separate motor. Free tax filing 2011   Off-highway business use includes fuel used in a separate motor to operate special equipment, such as a refrigeration unit, pump, generator, or mixing unit. Free tax filing 2011 If you draw fuel from the same tank that supplies fuel to the propulsion motor, you must figure the quantity used in the separate motor operating the special equipment. Free tax filing 2011 You may make a reasonable estimate based on your operating experience and supported by your records. Free tax filing 2011   You can use devices that measure the miles the vehicle has traveled (such as hubometers) to figure the gallons of fuel used to propel the vehicle. Free tax filing 2011 Add to this amount the fuel consumed while idling or warming up the motor before propelling the vehicle. Free tax filing 2011 The difference between your total fuel used and the fuel used to propel the vehicle is the fuel used in the separate motor. Free tax filing 2011 Example. Free tax filing 2011 Hazel owns a refrigerated truck. Free tax filing 2011 It has a separate motor for the refrigeration unit. Free tax filing 2011 The same tank supplies both motors. Free tax filing 2011 Using the truck's hubometer, Hazel figures that 90% of the fuel was used to propel the truck. Free tax filing 2011 Therefore, 10% of the fuel is used in an off-highway business use. Free tax filing 2011 Fuel lost or destroyed. Free tax filing 2011   You cannot treat fuel lost or destroyed through spillage, fire, or other casualty as fuel used in an off-highway business use. Free tax filing 2011 Export (No. Free tax filing 2011 3). Free tax filing 2011   Export means fuel transported from the United States with the intention that the fuel remain in a foreign country or possession of the United States. Free tax filing 2011 Fuel is not exported if it is in the fuel supply tank of a vehicle or aircraft. Free tax filing 2011 In a boat engaged in commercial fishing (No. Free tax filing 2011 4). Free tax filing 2011   In a boat engaged in commercial fishing means fuel used in taking, catching, processing, or transporting fish, shellfish, or other aquatic life for commercial purposes, such as selling or processing the catch, on a specific trip basis. Free tax filing 2011 They include boats used in both fresh and salt water fishing. Free tax filing 2011 They do not include boats used for both sport fishing and commercial fishing on the same trip. Free tax filing 2011 In certain intercity and local buses (No. Free tax filing 2011 5). Free tax filing 2011   In certain intercity and local buses means fuel used in a bus engaged in furnishing (for compensation) passenger land transportation available to the general public. Free tax filing 2011 The bus must be engaged in one of the following activities. Free tax filing 2011 Scheduled transportation along regular routes. Free tax filing 2011 Nonscheduled operations if the seating capacity of the bus is at least 20 adults, not including the driver. Free tax filing 2011 Vans and similar vehicles used for van-pooling or taxi service do not qualify. Free tax filing 2011 Available to the general public. Free tax filing 2011   This means you offer service to more than a limited number of persons or organizations. Free tax filing 2011 If a bus operator normally provides charter operations through travel agencies but has buses available for chartering by the general public, this service is available to the general public. Free tax filing 2011 A bus does not qualify when its operator uses it to provide exclusive services to only one person, group, or organization. Free tax filing 2011 Also, intercity bus transportation does not include transporting students and employees of schools or intercity transportation in a qualified local bus. Free tax filing 2011 In a qualified local bus (No. Free tax filing 2011 6). Free tax filing 2011   In a qualified local bus means fuel used in a bus meeting all the following requirements. Free tax filing 2011 It is engaged in furnishing (for compensation) intracity passenger land transportation available to the general public. Free tax filing 2011 It operates along scheduled, regular routes. Free tax filing 2011 It has a seating capacity of at least 20 adults (excluding the driver). Free tax filing 2011 It is under contract with (or is receiving more than a nominal subsidy from) any state or local government to furnish the transportation. Free tax filing 2011 Intracity passenger land transportation. Free tax filing 2011   This is the land transportation of passengers between points located within the same metropolitan area. Free tax filing 2011 It includes transportation along routes that cross state, city, or county boundaries if the routes remain within the metropolitan area. Free tax filing 2011 Under contract. Free tax filing 2011   A bus is under contract with a state or local government only if the contract imposes a bona fide obligation on the bus operator to furnish the transportation. Free tax filing 2011 More than a nominal subsidy. Free tax filing 2011   A subsidy is more than nominal if it is reasonably expected to exceed an amount equal to 3 cents multiplied by the number of gallons of fuel used in buses on subsidized routes. Free tax filing 2011 A company that operates its buses along subsidized and unsubsidized intracity routes may consider its buses qualified local buses only when the buses are used on the subsidized intracity routes. Free tax filing 2011 In a school bus (No. Free tax filing 2011 7). Free tax filing 2011   In a school bus means fuel used in a bus engaged in the transportation of students or employees of schools. Free tax filing 2011 A school is an educational organization with a regular faculty and curriculum and a regularly enrolled body of students who attend the place where the educational activities occur. Free tax filing 2011 For diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel (No. Free tax filing 2011 8). Free tax filing 2011   Diesel fuel and kerosene (other than kerosene used in aviation) used other than as a fuel in the propulsion engine of a diesel-powered highway vehicle or diesel-powered train (not including off-highway business use) means undyed diesel fuel and undyed kerosene used: For home heating, lighting, and cooking; In boats; In stationary machines, such as generators and compressors; For cleaning purposes; or In minibikes and snowmobiles. Free tax filing 2011 In foreign trade (No. Free tax filing 2011 9). Free tax filing 2011   In foreign trade means fuel used in civil aircraft employed in foreign trade or trade between the United States and any of its possessions. Free tax filing 2011 The term trade includes the transportation of persons or property for hire and the making of the necessary preparations for such transportation. Free tax filing 2011 In the case of aircraft registered in a foreign country, the country must allow reciprocal benefits for aircraft registered in the United States. Free tax filing 2011 Certain helicopter and fixed-wing aircraft uses (No. Free tax filing 2011 10). Free tax filing 2011   Includes: Certain helicopter uses. Free tax filing 2011   Certain helicopter uses means fuel used by a helicopter for any of the following purposes. Free tax filing 2011 Transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas. Free tax filing 2011 Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Free tax filing 2011 Providing emergency medical transportation. Free tax filing 2011   During a use described in items (1) and (2), the helicopter must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Free tax filing 2011 For item (1), treat each flight segment as a separate flight. Free tax filing 2011 Fixed-wing aircraft uses. Free tax filing 2011   Fixed-wing aircraft uses means fuel used by a fixed-wing aircraft for any of the following purposes. Free tax filing 2011 Planting, cultivating, cutting, transporting, or caring for trees (including logging operations). Free tax filing 2011 Providing emergency medical transportation. Free tax filing 2011 The aircraft must be equipped for and exclusively dedicated on that flight to acute care emergency medical services. Free tax filing 2011 During a use described in item (1), the aircraft must not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code. Free tax filing 2011 Exclusive use by a qualified blood collector organization (No. Free tax filing 2011 11). Free tax filing 2011   Exclusive use by a qualified blood collector organization means fuel used by the qualified blood collector organization for its exclusive use in the collection, storage, or transportation of blood. Free tax filing 2011 Qualified blood collector organization. Free tax filing 2011   A qualified blood collector organization is one that is: Described in section 501(c)(3) and exempt from tax under section 501(a), Primarily engaged in the activity of collecting human blood, Registered by the IRS, and Registered by the Food and Drug Administration to collect blood. Free tax filing 2011 In a highway vehicle owned by the United States that is not used on a highway (No. Free tax filing 2011 12). Free tax filing 2011   In a highway vehicle owned by the United States that is not used on a highway means fuel used in a vehicle that was not used on public highways during the period covered by the claim. Free tax filing 2011 This use applies whether or not the vehicle is registered or required to be registered for highway use. Free tax filing 2011 Exclusive use by a nonprofit educational organization (No. Free tax filing 2011 13). Free tax filing 2011   Exclusive use by a nonprofit educational organization means fuel used by an organization exempt from income tax under section 501(a) that meets both of the following requirements. Free tax filing 2011 It has a regular faculty and curriculum. Free tax filing 2011 It has a regularly enrolled body of students who attend the place where the instruction normally occurs. Free tax filing 2011   A nonprofit educational organization also includes a school operated by a church or other organization described in section 501(c)(3) if the school meets the above requirements. Free tax filing 2011 Exclusive use by a state, political subdivision of a state, or the District of Columbia (No. Free tax filing 2011 14). Free tax filing 2011   Exclusive use by a state, political subdivision of a state, or the District of Columbia means fuel purchased by the state or local government for its exclusive use. Free tax filing 2011 A state or local government is any state, any political subdivision thereof, or the District of Columbia. Free tax filing 2011 An Indian tribal government is treated as a state only if the fuel is used in an activity that involves the exercise of an essential tribal government function. Free tax filing 2011 Gasoline, diesel fuel, and kerosene used by the American Red Cross is considered to be the use of these fuels by a state. Free tax filing 2011 In an aircraft or vehicle owned by an aircraft museum (No. Free tax filing 2011 15). Free tax filing 2011   In an aircraft or vehicle owned by an aircraft museum means fuel used in an aircraft or vehicle that is owned by an organization that meets all the following requirements. Free tax filing 2011 It is exempt from income tax as an organization described in section 501(c)(3). Free tax filing 2011 It is operated as a museum under a state (or District of Columbia) charter. Free tax filing 2011 It is operated exclusively for acquiring, exhibiting, and caring for aircraft of the type used for combat or transport in  World War II. Free tax filing 2011   The aircraft or vehicle (such as a ground servicing vehicle for aircraft) must be used exclusively for the purposes described in item (3). Free tax filing 2011 In military aircraft (No. Free tax filing 2011 16). Free tax filing 2011   In a military aircraft means fuel used in an aircraft owned by the United States or any foreign nation and constituting a part of its armed forces. Free tax filing 2011 In commercial aviation (other than foreign trade). Free tax filing 2011   See Commercial aviation, earlier, for the definition. Free tax filing 2011 Use in a train. Free tax filing 2011   Use in a train means fuel used in the propulsion engine of equipment or machinery that rides on rails. Free tax filing 2011 This includes use in a locomotive, work train, switching engine, and track maintenance machine. Free tax filing 2011 Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture Credit For alternative fuel mixtures produced after December 31, 2011, see How to Claim the Credit below. Free tax filing 2011 The section 6426 credit for biodiesel and alternative fuel consists of the biodiesel or renewable diesel mixture credit, alternative fuel credit, and alternative fuel mixture credit. Free tax filing 2011 Biodiesel or renewable diesel mixture credit claimant. Free tax filing 2011   Claimant produced a biodiesel mixture by mixing biodiesel with diesel fuel. Free tax filing 2011 Claimant produced a renewable diesel mixture by mixing renewable diesel with liquid fuel (other than renewable diesel). Free tax filing 2011   The person that produced and sold or used the mixture in their trade or business is the only person eligible to make this claim. Free tax filing 2011 The credit is based on the gallons of biodiesel or renewable diesel in the mixture. Free tax filing 2011 Renewable diesel does not include any fuel derived from coprocessing biomass (as defined in section 45K(c)(3)) with a feedstock that is not biomass. Free tax filing 2011 Claim requirements. Free tax filing 2011   See the Instructions for Form 720 for the biodiesel or renewable diesel mixture claim requirements. Free tax filing 2011 Alternative fuel credit claimant. Free tax filing 2011   For the alternative fuel credit, the registered alternative fueler who (1) sold an alternative fuel at retail delivered it into the fuel supply tank of a motor vehicle or motorboat, (2) sold an alternative fuel, delivered it in bulk taxable use in a motor vehicle or motorboat, and received required statement from the buyer, (3) used an alternative fuel (not sold at retail or in bulk as previously described) motor vehicle or motorboat, or (4) sold an alternative fuel used as a fuel in aviation is the only person eligible to make this claim. Free tax filing 2011 Carbon capture requirement. Free tax filing 2011   A credit for Fischer-Tropsch process liquid fuel derived from coal (including peat) can be claimed only if the fuel is derived from coal produced at a gasification facility that separates and sequesters at least 75% of the facility's total carbon dioxide emissions. Free tax filing 2011 Alternative fuel credit. Free tax filing 2011   The registered alternative fueler is the person eligible to make the claim. Free tax filing 2011 An alternative fueler is the person liable for tax on alternative fuel under the rules for taxable events for Other Fuels (discussed in chapter 1) or would be liable but for an exemption for nontaxable uses. Free tax filing 2011 An alternative fueler includes a person who sells for use or uses an alternative fuel in aviation. Free tax filing 2011 Alternative fuel mixture credit claimant. Free tax filing 2011   For the alternative fuel mixture credit, the registered alternative fueler that produced and sold or used the mixture as a fuel in their trade or business is the only person eligible to make this claim. Free tax filing 2011 The credit is based on the gallons of alternative fuel in the mixture. Free tax filing 2011 An alternative fuel mixture is a mixture of alternative fuel and section 4081 taxable fuel (gasoline, diesel fuel, or kerosene). Free tax filing 2011 Registration. Free tax filing 2011   You must be registered by the IRS to be eligible to claim the section 6426 fuel credit. Free tax filing 2011 See Registration Requirements in chapter 1. Free tax filing 2011 Credits for fuel provide incentive for United States production. Free tax filing 2011   The section 6426 fuel credit may not be claimed for alternative fuel that is produced outside the United States for use as a fuel outside the United States. Free tax filing 2011 The United States includes any possession of the United States. Free tax filing 2011 Credit for fuels derived from paper or pulp production. Free tax filing 2011   Credit for alternative fuels and alternative fuel mixtures for any fuel derived from the production of paper or pulp are not available for fuel sold or used on or after December 31, 2009. Free tax filing 2011 How to Claim the Credit Any biodiesel or renewable diesel mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. Free tax filing 2011 Any excess credit may be claimed on Schedule C (Form 720), Schedule 3 (Form 8849), Form 4136, or Form 8864, Biodiesel and Renewable Diesel Fuels Credit. Free tax filing 2011 See Notice 2005-4 and the Instructions for Form 720 for more information. Free tax filing 2011 Also see Notice 2013-26 on page 984 of I. Free tax filing 2011 R. Free tax filing 2011 B. Free tax filing 2011 2013-18 at www. Free tax filing 2011 irs. Free tax filing 2011 gov/pub/irs-irbs/irb13-18. Free tax filing 2011 pdf; and see chapter 2, later. Free tax filing 2011 Coordination with income tax credit. Free tax filing 2011   Only one credit may be taken for any amount of biodiesel or renewable diesel. Free tax filing 2011 If any amount is claimed (or will be claimed) for any amount of biodiesel or renewable diesel on Form 720, Form 8849, or Form 4136, then a claim cannot be made on Form 8864 for that amount of biodiesel or renewable diesel. Free tax filing 2011   Any alternative fuel credit must first be claimed on Schedule C (Form 720) to reduce your section 4041 taxable fuel liability for alternative fuel and CNG reported on Form 720. Free tax filing 2011 Any excess credit may claimed on Schedule C (Form 720), Schedule 3 (Form 8849), or Form 4136. Free tax filing 2011   For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit can be claimed on Schedule C (Form 720), not on Form 4136 or Schedule 3 (Form 8849), and only to the extent of your section 4081 taxable fuel liability for gasoline, diesel fuel and kerosene reported on Form 720. Free tax filing 2011   Calculate the limitation for alternative fuel mixtures separately and enter on Schedule C (Form 720), line 14, only the gallons of mixtures that do not exceed your section 4081 taxable fuel liability. Free tax filing 2011 Filing Claims This section tells you how to make a claim for a credit or refund of excise taxes on fuels. Free tax filing 2011 This section also covers recordkeeping requirements and when to include the credit or refund in your income. Free tax filing 2011 Generally, you will provide all the information needed to claim a credit or refund when you properly complete Form 8849, Form 4136, Schedule C (Form 720), Form 6478, or Form 8864. Free tax filing 2011 In some cases, you will have to attach additional information. Free tax filing 2011 You need to keep records that support your claim for a credit or refund. Free tax filing 2011 Keep at your principal place of business all records needed to enable the IRS to verify that you are the person entitled to claim a credit or refund and the amount you claimed. Free tax filing 2011 Ultimate purchaser. Free tax filing 2011   Ultimate purchasers may make claims for the nontaxable use of fuels on Form 4136, Schedule 1 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Free tax filing 2011 If you are an ultimate purchaser, you must keep the following records. Free tax filing 2011 The number of gallons purchased and used during the period covered by your claim. Free tax filing 2011 The dates of the purchases. Free tax filing 2011 The names and addresses of suppliers and amounts purchased from each in the period covered by your claim. Free tax filing 2011 The nontaxable use for which you used the fuel. Free tax filing 2011 The number of gallons used for each nontaxable use. Free tax filing 2011 It is important that your records show separately the number of gallons used for each nontaxable use that qualifies as a claim. Free tax filing 2011 If the fuel is exported, you must have proof of exportation. Free tax filing 2011   For more information about keeping records, see Publication 583, Starting a Business and Keeping Records, or chapter 1 of Publication 17, Your Federal Income Tax for Individuals. Free tax filing 2011 Exceptions. Free tax filing 2011    Generally, the ultimate purchaser may not claim a credit or refund for undyed diesel fuel, undyed kerosene, or kerosene for use in aviation sold for the exclusive use of a state or local government. Free tax filing 2011 However, see Claims by credit card issuers, later, for an exception. Free tax filing 2011 The ultimate purchaser may not claim a credit or refund as follows. Free tax filing 2011 The ultimate purchaser of gasoline or aviation gasoline used by a state or local government for its exclusive use or by a nonprofit educational organization for its exclusive use may waive its right to make a claim by providing a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate M. Free tax filing 2011 A new certificate is required each year or when any information in the current certificate expires. Free tax filing 2011 The ultimate purchaser of kerosene for use in commercial aviation or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia) may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver L. Free tax filing 2011 A new waiver is required each year or when any information in the current waiver expires. Free tax filing 2011 The ultimate purchaser of undyed diesel fuel or undyed kerosene used in certain intercity and local buses may waive its right to make a claim by providing a waiver that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Waiver N. Free tax filing 2011 A new waiver is required each year or when any information in the current waiver expires. Free tax filing 2011 The ultimate purchaser of kerosene for use in nonexempt, noncommercial aviation must provide a certificate that is signed under penalties of perjury by a person authorized to bind the ultimate purchaser and is in the same format as the Model Certificate Q. Free tax filing 2011 A new certificate is required each year or when any information in the current certificate expires. Free tax filing 2011 Registered ultimate vendor. Free tax filing 2011   Registered ultimate vendors may make claims for certain sales of fuels on Form 4136, Schedule 2 (Form 8849), and Schedule C (Form 720) if reporting excise tax liability on that return. Free tax filing 2011 If you are a registered ultimate vendor, you must keep certain information pertaining to the sale of the fuel. Free tax filing 2011   To make a claim, you must have sold the fuel at a tax-excluded price, repaid the tax to the buyer, or obtained the buyer's written consent to the allowance of the claim. Free tax filing 2011 You are required to have a valid certificate or waiver in your possession in order to make the claim. Free tax filing 2011   In addition, you must have a registration number that has not been revoked or suspended. Free tax filing 2011 See Form 637. Free tax filing 2011 State use. Free tax filing 2011   To make a claim as an ultimate vendor (state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained below. Free tax filing 2011 If you sell undyed diesel fuel, undyed kerosene, or kerosene for use in aviation for use by a state or local government, you must keep the following information. Free tax filing 2011 The name and taxpayer identification number of each person (government unit) that bought the fuel. Free tax filing 2011 The number of gallons sold to each person. Free tax filing 2011 An unexpired certificate from the buyer. Free tax filing 2011 See Model Certificate P in the Appendix. Free tax filing 2011 The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Free tax filing 2011 Nonprofit educational organization and state use. Free tax filing 2011   To make a claim as an ultimate vendor (nonprofit educational organization or state), you must have a UV registration number and the fuel cannot be purchased with a credit card as explained later. Free tax filing 2011 If you sell gasoline or aviation gasoline to a nonprofit educational organization for its exclusive use or to a state or local government for its exclusive use, you must keep the following information. Free tax filing 2011 The name and taxpayer identification number of each person (nonprofit educational organization or government unit) that bought the fuel. Free tax filing 2011 The number of gallons sold to each person. Free tax filing 2011 An unexpired certificate from the buyer. Free tax filing 2011 See Model Certificate M in the Appendix. Free tax filing 2011  The certificate expires on the earlier of 1 year after the date of the certificate or the date a new certificate is given to the registered ultimate vendor. Free tax filing 2011 Blocked pump. Free tax filing 2011   To make a claim as an ultimate vendor (blocked pump), you must have a UP registration number. Free tax filing 2011 If you sell undyed kerosene (other than kerosene for use in aviation) from a pump that qualifies as a blocked pump because it is locked by you after each sale and is unlocked by you at the request of the buyer, you must keep the following information for each sale of more than 5 gallons. Free tax filing 2011 The date of each sale. Free tax filing 2011 The name and address of the buyer. Free tax filing 2011 The number of gallons sold to that buyer. Free tax filing 2011 Certain intercity and local bus use. Free tax filing 2011   To make a claim as an ultimate vendor of undyed diesel fuel or undyed kerosene used in certain intercity and local buses, you must have a UB registration number. Free tax filing 2011 You must keep the following information. Free tax filing 2011 The date of each sale. Free tax filing 2011 The name and address of the buyer. Free tax filing 2011 The number of gallons sold to the buyer. Free tax filing 2011 A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Free tax filing 2011 See Model Waiver N in the Appendix. Free tax filing 2011 Kerosene for use in commercial aviation or noncommercial aviation. Free tax filing 2011   To make a claim as an ultimate vendor of kerosene for use in commercial aviation (other than foreign trade) or noncommercial aviation (other than nonexempt, noncommercial aviation and exclusive use by a state, political subdivision of a state, or the District of Columbia), you must have a UA registration number. Free tax filing 2011 See Kerosene for use in aviation, earlier, for a list of nontaxable uses. Free tax filing 2011 You must keep the following information. Free tax filing 2011 The date of each sale. Free tax filing 2011 The name and address of the buyer. Free tax filing 2011 The number of gallons sold to the buyer. Free tax filing 2011 A copy of the waiver signed by the buyer at the time the credit or payment is claimed. Free tax filing 2011 See Model Waiver L in the Appendix. Free tax filing 2011 Kerosene for use in nonexempt, noncommercial aviation. Free tax filing 2011   To make a claim as an ultimate vendor of kerosene for use in nonexempt, noncommercial aviation, you must have a UA registration number. Free tax filing 2011 You must keep the following information. Free tax filing 2011 The date of each sale. Free tax filing 2011 The name and address of the buyer. Free tax filing 2011 The number of gallons sold to the buyer. Free tax filing 2011 A copy of the certificate signed by the buyer at the time the credit or payment is claimed. Free tax filing 2011 See Model Certificate Q in the Appendix. Free tax filing 2011 Claims by credit card issuers. Free tax filing 2011   For sales of gasoline, aviation gasoline, diesel fuel, kerosene, or kerosene for use in aviation that are purchased by an exempt user with the use of a credit card, the registered credit card issuer is the only person who can make the claim. Free tax filing 2011 An exempt user for this purpose is: For gasoline or aviation gasoline, a state or local government (including essential government use by an Indian tribal government) or a nonprofit educational organization; or For diesel fuel, kerosene, or kerosene for use in aviation, a state or local government (including essential government use by an Indian tribal government). Free tax filing 2011   If gasoline is purchased without the use of a credit card, then the registered ultimate vendor of the gasoline may make the claim for refund or credit. Free tax filing 2011 However, if the gasoline is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Free tax filing 2011   If diesel fuel, kerosene, or kerosene for use in aviation is purchased without the use of a credit card, the registered ultimate vendor may make the claim for refund or credit. Free tax filing 2011 A state is not allowed to make a claim for these fuels. Free tax filing 2011 However, if the diesel fuel or kerosene is purchased with a credit card issued to a state, but the credit card issuer is not registered by the IRS or does not meet the conditions described, the credit card issuer must collect the tax and the state may make the claim. Free tax filing 2011   The claim from the credit card issuer must contain the following information as it applies to the fuel covered in the claim. Free tax filing 2011 The total number of gallons. Free tax filing 2011 Its registration number. Free tax filing 2011 A statement that it has not collected the amount of tax from the ultimate purchaser or has obtained the written consent of the ultimate purchaser to make the claim. Free tax filing 2011 A statement that it has repaid or agreed to repay the amount of tax to the ultimate vendor, has obtained the written consent of the ultimate vendor to make the claim, or has otherwise made arrangements which directly or indirectly provide the ultimate vendor with reimbursement of the tax. Free tax filing 2011 Has in its possession an unexpired certificate similar to Model Certificate R in the Appendix and has no reason to believe any of the information in the certificate is false. Free tax filing 2011 Taxpayer identification number. Free tax filing 2011   To file a claim, you must have a taxpayer identification number. Free tax filing 2011 Your taxpayer identification number can be an: Employer identification number (EIN), Social security number (SSN), or Individual taxpayer identification number (ITIN), if you are an alien individual and do not have and are not eligible to get an SSN. Free tax filing 2011   If you normally file only a U. Free tax filing 2011 S. Free tax filing 2011 individual income tax return (such as Form 1040 or 1040NR), use your SSN or ITIN. Free tax filing 2011 You get an SSN by filing Form SS-5, Application for a Social Security Card, with the Social Security Administration. Free tax filing 2011 To get an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. Free tax filing 2011   If you operate a business, use your EIN. Free tax filing 2011 If you do not have an EIN, you may apply for one online. Free tax filing 2011 Go to the IRS website at irs. Free tax filing 2011 gov/businesses/small and click on the “Employer ID Numbers (EINs)” link. Free tax filing 2011 You may also apply for an EIN by calling 1-800-829-4933, or you can fax or mail Form SS-4, Application for Employer Identification Number, to the IRS. Free tax filing 2011 Claiming A Refund Generally, you may claim a refund of excise taxes on Form 8849. Free tax filing 2011 Complete and attach to Form 8849 the appropriate Form 8849 schedules. Free tax filing 2011 The instructions for Form 8849 and the separate instructions for each schedule explain the requirements for making a claim for refund. Free tax filing 2011 If you file Form 720, you can use the Schedule C (Form 720) for your refund claims for the quarter. Free tax filing 2011 See the Instructions for Form 720. Free tax filing 2011 Do not claim a refund on Form 8849 for any amount for which you have filed or will file a claim on Schedule C (Form 720) or Form 4136. Free tax filing 2011 The alternative fuel mixture credit must be claimed on Schedule C (Form 720) against your section 4081 taxable fuel liability for gasoline, diesel, and kerosene and any excess is not allowed. Free tax filing 2011 The alternative fuel credit must first be claimed on Schedule C (Form 720) against your section 4041 taxable fuel liability for alternative fuel and CNG. Free tax filing 2011 To the extent the alternative fuel credit exceeds this taxable fuel liability, a payment is allowed and may be claimed as a credit on Schedule C (Form 720), or as an income tax credit on Forms 4136, 6478, or 8864, as applicable. Free tax filing 2011 Only one claim may be made for any particular amount of alternative fuel. Free tax filing 2011 Claiming a Credit on Form 4136 For alternative fuel mixtures produced after December 31, 2011, the alternative fuel mixture credit cannot be claimed on Form 4136. Free tax filing 2011 See Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit and Alternative Fuel Mixture Credit in chapter 2, earlier. Free tax filing 2011 A credit may be claimed for certain uses and sales of fuels on Form 4136 when you file your income tax return at the end of the year. Free tax filing 2011 If you meet certain requirements (discussed earlier), you may be able to make a claim during the year. Free tax filing 2011 Credit only. Free tax filing 2011   You can claim the following taxes only as a credit on Form 4136. Free tax filing 2011 Tax on fuels used for nontaxable uses if the total for your tax year is less than $750. Free tax filing 2011 Tax on fuel you did not include in any claim for refund previously filed for any quarter of your tax year. Free tax filing 2011 Tax on fuel you used in mobile machinery (off-highway business use) that traveled less than 7,500 miles on public highways. Free tax filing 2011 Do not claim a credit for any amount for which you have filed a refund claim on Form 8849 or credit on Schedule C (Form 720). Free tax filing 2011 When to file. Free tax filing 2011   You can claim a fuel tax credit on your income tax return for the year you used the fuel (or sold the fuel in the case of a registered ultimate vendor claim). Free tax filing 2011 You may be able to make a fuel tax claim on an amended income tax return for the year you used the fuel. Free tax filing 2011 Generally, you must file an amended return by the later of 3 years from the date you filed your original return or within 2 years from the date you paid the income tax. Free tax filing 2011 How to claim a credit. Free tax filing 2011   How you claim a credit depends on whether you are an individual, partnership, corporation, S corporation, or farmers' cooperative association. Free tax filing 2011 Individuals. Free tax filing 2011   You claim the credit on the “Credits from” line of Form 1040. Free tax filing 2011 Also check box b on that line. Free tax filing 2011 If you would not otherwise have to file an income tax return, you must do so to get a fuel tax credit. Free tax filing 2011 Partnerships. Free tax filing 2011   Partnerships (other than electing large partnerships) claim the credit by including a statement on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Free tax filing 2011 , showing each partner's share of the number of gallons of each fuel sold or used for a non