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

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H&r Block At Home Deluxe

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H&r Block At Home Deluxe

H&r block at home deluxe Publication 947 - Introductory Material Table of Contents What's New Practitioners' Hotline IntroductionOrdering forms and publications. H&r block at home deluxe Tax questions. H&r block at home deluxe Useful Items - You may want to see: What's New Registered tax return preparers. H&r block at home deluxe  Registered tax return preparers may prepare and sign as the preparer tax returns and claims for refund and other documents for submission to the IRS. H&r block at home deluxe They may also represent taxpayers before revenue agents, customer service representatives, and similar IRS employees during an examination if they signed the return or claim for refund for the tax year or period under examination. H&r block at home deluxe Future developments. H&r block at home deluxe  The IRS has created a page on IRS. H&r block at home deluxe gov for information about Publication 947 at www. H&r block at home deluxe irs. H&r block at home deluxe gov/pub947. H&r block at home deluxe Information about any future developments (such as legislation enacted after we release it) will be posted on that page. H&r block at home deluxe Practitioners' Hotline The Practitioner Priority Service® is a nationwide, toll-free hotline that provides professional support to practitioners with account-related questions. H&r block at home deluxe The toll-free number for this service is 1-866-860-4259. H&r block at home deluxe Introduction This publication discusses who can represent a taxpayer before the IRS and what forms or documents are used to authorize a person to represent a taxpayer. H&r block at home deluxe Usually, attorneys, certified public accountants (CPAs), enrolled agents, enrolled retirement plan agents, and enrolled actuaries can represent taxpayers before the IRS. H&r block at home deluxe Under special circumstances, other individuals, including registered tax return preparers, unenrolled return preparers, and students can represent taxpayers before the IRS. H&r block at home deluxe For details regarding taxpayer representation, see Who Can Practice Before the IRS, later. H&r block at home deluxe Definitions. H&r block at home deluxe   Many of the terms used in this publication, such as “enrolled agent” and “practitioner” are defined in the Glossary at the back of this publication. H&r block at home deluxe Comments and suggestions. H&r block at home deluxe   We welcome your comments about this publication and your suggestions for future editions. H&r block at home deluxe   You can write to us at the following address: Internal Revenue Service Individual Forms and Publications Branch SE:W:CAR:MP:T:I 1111 Constitution Ave. H&r block at home deluxe NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. H&r block at home deluxe Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. H&r block at home deluxe   You can email us at taxforms@irs. H&r block at home deluxe gov . H&r block at home deluxe Please put “Publications Comment” on the subject line. H&r block at home deluxe You can also send us comments from www. H&r block at home deluxe irs. H&r block at home deluxe gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information About. H&r block at home deluxe ” Ordering forms and publications. H&r block at home deluxe   Visit www. H&r block at home deluxe irs. H&r block at home deluxe gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. H&r block at home deluxe Internal Revenue Service 1201 N. H&r block at home deluxe Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. H&r block at home deluxe   If you have a tax question, check the information available on IRS. H&r block at home deluxe gov or call 1-800-829-1040. H&r block at home deluxe We cannot answer tax questions sent to either of the above addresses. H&r block at home deluxe Useful Items - You may want to see: Publications 1 Your Rights as a Taxpayer 470 Limited Practice Without Enrollment Circular No. H&r block at home deluxe 230 Regulations Governing Practice before the Internal Revenue Service Forms and Instructions 2848 Power of Attorney and Declaration of Representative 8821 Tax Information Authorization Prev  Up  Next   Home   More Online Publications
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Food Safety and Labels

To help you make healthy food choices, the federal government posts dietary guidelines. Federal regulations also require many foods to identify fat content, fiber and nutrients on their labels.

Food safety in the home revolves around three main functions: food storage, food handling, and cooking. Most experts agree that practicing a few simple rules focused on cleaning, separating, and cooking can prevent most food-borne illness in the home. The storage and cooking temperatures of food are also important factors in keeping your food safe. Food needs to be kept at 40 degrees Fahrenheit to keep bacteria from growing. In addition, meats should be cooked to a safe temperature - 165 degrees Fahrenheit for poultry and 160 degrees Fahrenheit for beef. The website foodsafety.gov. is your gateway to government food safety information including publications you can download or request. You can also visit recalls.gov for the latest food safety alerts and recalls.

For more information, here are some additional resources:

Organic Food

Buying organic food is a way to eat in a healthy manner and protect the environment. These foods are grown and processed according to USDA regulations and follow specific rules concerning pest control, raising animals, and the use of additives. Keep in mind that organic and natural foods tend to be more expensive than conventionally grown foods, and that the USDA does not claim that organic food is safer or more nutritious than other foods.
To make sure a product is certified organic, look for the USDA organic seal. You can also tell whether produce was grown organically by checking the price look up code (PLU); if the first number starts with a 4, then the food was grown conventionally, if it starts with a 9, it was grown organically.
Other common labels that help you choose certain types of organic food products include:

  • Free-Range or Cage-Free. The flock was provided shelter in a building, room, or area with unlimited access to food, fresh water, and the outdoors during its production cycle.
  • Natural. As required by USDA, meat, poultry, and egg products labeled as “natural” must be minimally processed and contain no artificial ingredients.
  • Grass-Fed. Grass-fed animals receive a majority of their nutrients from grass throughout their life, while organic animals’ pasture diet may be supplemented with grain.

Contact the Agricultural Marketing Service for more information about organic foods.

The H&r Block At Home Deluxe

H&r block at home deluxe 22. H&r block at home deluxe   Taxes Table of Contents IntroductionIndian tribal government. H&r block at home deluxe Useful Items - You may want to see: Tests To Deduct Any Tax Income TaxesState and Local Income Taxes Foreign Income Taxes General Sales TaxesMotor vehicles. H&r block at home deluxe Real Estate TaxesReal estate taxes for prior years. H&r block at home deluxe Examples. H&r block at home deluxe Form 1099-S. H&r block at home deluxe Real Estate-Related Items You Cannot Deduct Personal Property Taxes Taxes and Fees You Cannot Deduct Where To Deduct Introduction This chapter discusses which taxes you can deduct if you itemize deductions on Schedule A (Form 1040). H&r block at home deluxe It also explains which taxes you can deduct on other schedules or forms and which taxes you cannot deduct. H&r block at home deluxe This chapter covers the following topics. H&r block at home deluxe Income taxes (federal, state, local, and foreign). H&r block at home deluxe General sales taxes (state and local). H&r block at home deluxe Real estate taxes (state, local, and foreign). H&r block at home deluxe Personal property taxes (state and local). H&r block at home deluxe Taxes and fees you cannot deduct. H&r block at home deluxe Use Table 22-1 as a guide to determine which taxes you can deduct. H&r block at home deluxe The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. H&r block at home deluxe Business taxes. H&r block at home deluxe   You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. H&r block at home deluxe For information on these taxes, see Publication 535, Business Expenses. H&r block at home deluxe State or local taxes. H&r block at home deluxe   These are taxes imposed by the 50 states, U. H&r block at home deluxe S. H&r block at home deluxe possessions, or any of their political subdivisions (such as a county or city), or by the District of Columbia. H&r block at home deluxe Indian tribal government. H&r block at home deluxe   An Indian tribal government recognized by the Secretary of the Treasury as performing substantial government functions will be treated as a state for purposes of claiming a deduction for taxes. H&r block at home deluxe Income taxes, real estate taxes, and personal property taxes imposed by that Indian tribal government (or by any of its subdivisions that are treated as political subdivisions of a state) are deductible. H&r block at home deluxe General sales taxes. H&r block at home deluxe   These are taxes imposed at one rate on retail sales of a broad range of classes of items. H&r block at home deluxe Foreign taxes. H&r block at home deluxe   These are taxes imposed by a foreign country or any of its political subdivisions. H&r block at home deluxe Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 530 Tax Information for Homeowners Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule E (Form 1040) Supplemental Income and Loss 1116 Foreign Tax Credit Tests To Deduct Any Tax The following two tests must be met for you to deduct any tax. H&r block at home deluxe The tax must be imposed on you. H&r block at home deluxe You must pay the tax during your tax year. H&r block at home deluxe The tax must be imposed on you. H&r block at home deluxe   In general, you can deduct only taxes imposed on you. H&r block at home deluxe   Generally, you can deduct property taxes only if you are an owner of the property. H&r block at home deluxe If your spouse owns the property and pays the real estate taxes, the taxes are deductible on your spouse's separate return or on your joint return. H&r block at home deluxe You must pay the tax during your tax year. H&r block at home deluxe   If you are a cash basis taxpayer, you can deduct only those taxes you actually paid during your tax year. H&r block at home deluxe If you pay your taxes by check, the day you mail or deliver the check is the date of payment, provided the check is honored by the financial institution. H&r block at home deluxe If you use a pay-by-phone account (such as a credit card or electronic funds withdrawal), the date reported on the statement of the financial institution showing when payment was made is the date of payment. H&r block at home deluxe If you contest a tax liability and are a cash basis taxpayer, you can deduct the tax only in the year you actually pay it (or transfer money or other property to provide for satisfaction of the contested liability). H&r block at home deluxe See Publication 538, Accounting Periods and Methods, for details. H&r block at home deluxe    If you use an accrual method of accounting, see Publication 538 for more information. H&r block at home deluxe Income Taxes This section discusses the deductibility of state and local income taxes (including employee contributions to state benefit funds) and foreign income taxes. H&r block at home deluxe State and Local Income Taxes You can deduct state and local income taxes. H&r block at home deluxe However, you can elect to deduct state and local general sales taxes instead of state and local income taxes. H&r block at home deluxe See General Sales Taxes , later. H&r block at home deluxe Exception. H&r block at home deluxe    You cannot deduct state and local income taxes you pay on income that is exempt from federal income tax, unless the exempt income is interest income. H&r block at home deluxe For example, you cannot deduct the part of a state's income tax that is on a cost-of-living allowance exempt from federal income tax. H&r block at home deluxe What To Deduct Your deduction may be for withheld taxes, estimated tax payments, or other tax payments as follows. H&r block at home deluxe Withheld taxes. H&r block at home deluxe   You can deduct state and local income taxes withheld from your salary in the year they are withheld. H&r block at home deluxe Your Form(s) W-2 will show these amounts. H&r block at home deluxe Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. H&r block at home deluxe Estimated tax payments. H&r block at home deluxe   You can deduct estimated tax payments you made during the year to a state or local government. H&r block at home deluxe However, you must have a reasonable basis for making the estimated tax payments. H&r block at home deluxe Any estimated state or local tax payments that are not made in good faith at the time of payment are not deductible. H&r block at home deluxe For example, you made an estimated state income tax payment. H&r block at home deluxe However, the estimate of your state tax liability shows that you will get a refund of the full amount of your estimated payment. H&r block at home deluxe You had no reasonable basis to believe you had any additional liability for state income taxes and you cannot deduct the estimated tax payment. H&r block at home deluxe Refund applied to taxes. H&r block at home deluxe   You can deduct any part of a refund of prior-year state or local income taxes that you chose to have credited to your 2013 estimated state or local income taxes. H&r block at home deluxe    Do not reduce your deduction by either of the following items. H&r block at home deluxe Any state or local income tax refund (or credit) you expect to receive for 2013. H&r block at home deluxe Any refund of (or credit for) prior-year state and local income taxes you actually received in 2013. H&r block at home deluxe   However, part or all of this refund (or credit) may be taxable. H&r block at home deluxe See Refund (or credit) of state or local income taxes , later. H&r block at home deluxe Separate federal returns. H&r block at home deluxe   If you and your spouse file separate state, local, and federal income tax returns, you each can deduct on your federal return only the amount of your own state and local income tax that you paid during the tax year. H&r block at home deluxe Joint state and local returns. H&r block at home deluxe   If you and your spouse file joint state and local returns and separate federal returns, each of you can deduct on your separate federal return a part of the total state and local income taxes paid during the tax year. H&r block at home deluxe You can deduct only the amount of the total taxes that is proportionate to your gross income compared to the combined gross income of you and your spouse. H&r block at home deluxe However, you cannot deduct more than the amount you actually paid during the year. H&r block at home deluxe You can avoid this calculation if you and your spouse are jointly and individually liable for the full amount of the state and local income taxes. H&r block at home deluxe If so, you and your spouse can deduct on your separate federal returns the amount you each actually paid. H&r block at home deluxe Joint federal return. H&r block at home deluxe   If you file a joint federal return, you can deduct the total of the state and local income taxes both of you paid. H&r block at home deluxe Contributions to state benefit funds. H&r block at home deluxe    As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. H&r block at home deluxe For example, certain states require employees to make contributions to state funds providing disability or unemployment insurance benefits. H&r block at home deluxe Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5. H&r block at home deluxe Alaska Unemployment Compensation Fund. H&r block at home deluxe California Nonoccupational Disability Benefit Fund. H&r block at home deluxe New Jersey Nonoccupational Disability Benefit Fund. H&r block at home deluxe New Jersey Unemployment Compensation Fund. H&r block at home deluxe New York Nonoccupational Disability Benefit Fund. H&r block at home deluxe Pennsylvania Unemployment Compensation Fund. H&r block at home deluxe Rhode Island Temporary Disability Benefit Fund. H&r block at home deluxe Washington State Supplemental Workmen's Compensation Fund. H&r block at home deluxe    Employee contributions to private or voluntary disability plans are not deductible. H&r block at home deluxe Refund (or credit) of state or local income taxes. H&r block at home deluxe   If you receive a refund of (or credit for) state or local income taxes in a year after the year in which you paid them, you may have to include the refund in income on Form 1040, line 10, in the year you receive it. H&r block at home deluxe This includes refunds resulting from taxes that were overwithheld, applied from a prior year return, not figured correctly, or figured again because of an amended return. H&r block at home deluxe If you did not itemize your deductions in the previous year, do not include the refund in income. H&r block at home deluxe If you deducted the taxes in the previous year, include all or part of the refund on Form 1040, line 10, in the year you receive the refund. H&r block at home deluxe For a discussion of how much to include, see Recoveries in chapter 12. H&r block at home deluxe Foreign Income Taxes Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. H&r block at home deluxe S. H&r block at home deluxe possession. H&r block at home deluxe However, you cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. H&r block at home deluxe S. H&r block at home deluxe tax under the foreign earned income exclusion or the foreign housing exclusion. H&r block at home deluxe For information on these exclusions, see Publication 54, Tax Guide for U. H&r block at home deluxe S. H&r block at home deluxe Citizens and Resident Aliens Abroad. H&r block at home deluxe For information on the foreign tax credit, see Publication 514. H&r block at home deluxe General Sales Taxes You can elect to deduct state and local general sales taxes, instead of state and local income taxes, as an itemized deduction on Schedule A (Form 1040), line 5b. H&r block at home deluxe You can use either your actual expenses or the state and local sales tax tables to figure your sales tax deduction. H&r block at home deluxe Actual expenses. H&r block at home deluxe   Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) if the tax rate was the same as the general sales tax rate. H&r block at home deluxe However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. H&r block at home deluxe If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. H&r block at home deluxe If you use the actual expenses method, you must have receipts to show the general sales taxes paid. H&r block at home deluxe Do not include sales taxes paid on items used in your trade or business. H&r block at home deluxe Motor vehicles. H&r block at home deluxe   For purposes of this section, motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. H&r block at home deluxe This also includes sales taxes on a leased motor vehicle, but not on vehicles used in your trade or business. H&r block at home deluxe Optional sales tax tables. H&r block at home deluxe   Instead of using your actual expenses, you can figure your state and local general sales tax deduction using the state and local sales tax tables in the Instructions for Schedule A (Form 1040). H&r block at home deluxe You may also be able to add the state and local general sales taxes paid on certain specified items. H&r block at home deluxe   Your applicable table amount is based on the state where you live, your income, and the number of exemptions claimed on your tax return. H&r block at home deluxe Your income is your adjusted gross income plus any nontaxable items such as the following. H&r block at home deluxe Tax-exempt interest. H&r block at home deluxe Veterans' benefits. H&r block at home deluxe Nontaxable combat pay. H&r block at home deluxe Workers' compensation. H&r block at home deluxe Nontaxable part of social security and railroad retirement benefits. H&r block at home deluxe Nontaxable part of IRA, pension, or annuity distributions, excluding rollovers. H&r block at home deluxe Public assistance payments. H&r block at home deluxe If you lived in different states during the same tax year, you must prorate your applicable table amount for each state based on the days you lived in each state. H&r block at home deluxe See the Instructions for Schedule A (Form 1040), line 5, for details. H&r block at home deluxe Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real property levied for the general public welfare. H&r block at home deluxe You can deduct these taxes only if they are based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority. H&r block at home deluxe Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. H&r block at home deluxe They also do not include itemized charges for services (such as trash collection) assessed against specific property or certain people, even if the charge is paid to the taxing authority. H&r block at home deluxe For more information about taxes and charges that are not deductible, see Real Estate-Related Items You Cannot Deduct , later. H&r block at home deluxe Tenant-shareholders in a cooperative housing corporation. H&r block at home deluxe   Generally, if you are a tenant-stockholder in a cooperative housing corporation, you can deduct the amount paid to the corporation that represents your share of the real estate taxes the corporation paid or incurred for your dwelling unit. H&r block at home deluxe The corporation should provide you with a statement showing your share of the taxes. H&r block at home deluxe For more information, see Special Rules for Cooperatives in Publication 530. H&r block at home deluxe Division of real estate taxes between buyers and sellers. H&r block at home deluxe   If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. H&r block at home deluxe   The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. H&r block at home deluxe The seller is treated as paying the taxes up to, but not including, the date of sale. H&r block at home deluxe The buyer is treated as paying the taxes beginning with the date of sale. H&r block at home deluxe This applies regardless of the lien dates under local law. H&r block at home deluxe Generally, this information is included on the settlement statement provided at the closing. H&r block at home deluxe    If you (the seller) cannot deduct taxes until they are paid because you use the cash method of accounting, and the buyer of your property is personally liable for the tax, you are considered to have paid your part of the tax at the time of the sale. H&r block at home deluxe This lets you deduct the part of the tax to the date of sale even though you did not actually pay it. H&r block at home deluxe However, you must also include the amount of that tax in the selling price of the property. H&r block at home deluxe The buyer must include the same amount in his or her cost of the property. H&r block at home deluxe   You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. H&r block at home deluxe Worksheet 22-1. H&r block at home deluxe Figuring Your Real Estate Tax Deduction 1. H&r block at home deluxe Enter the total real estate taxes for the real property tax year   2. H&r block at home deluxe Enter the number of days in the real property tax year that you owned the property   3. H&r block at home deluxe Divide line 2 by 365 (for leap years, divide line 2 by 366) . H&r block at home deluxe 4. H&r block at home deluxe Multiply line 1 by line 3. H&r block at home deluxe This is your deduction. H&r block at home deluxe Enter it on Schedule A (Form 1040), line 6   Note. H&r block at home deluxe Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. H&r block at home deluxe Your total deduction is the sum of the line 4 amounts for all of the properties. H&r block at home deluxe Real estate taxes for prior years. H&r block at home deluxe   Do not divide delinquent taxes between the buyer and seller if the taxes are for any real property tax year before the one in which the property is sold. H&r block at home deluxe Even if the buyer agrees to pay the delinquent taxes, the buyer cannot deduct them. H&r block at home deluxe The buyer must add them to the cost of the property. H&r block at home deluxe The seller can deduct these taxes paid by the buyer. H&r block at home deluxe However, the seller must include them in the selling price. H&r block at home deluxe Examples. H&r block at home deluxe   The following examples illustrate how real estate taxes are divided between buyer and seller. H&r block at home deluxe Example 1. H&r block at home deluxe Dennis and Beth White's real property tax year for both their old home and their new home is the calendar year, with payment due August 1. H&r block at home deluxe The tax on their old home, sold on May 7, was $620. H&r block at home deluxe The tax on their new home, bought on May 3, was $732. H&r block at home deluxe Dennis and Beth are considered to have paid a proportionate share of the real estate taxes on the old home even though they did not actually pay them to the taxing authority. H&r block at home deluxe On the other hand, they can claim only a proportionate share of the taxes they paid on their new property even though they paid the entire amount. H&r block at home deluxe Dennis and Beth owned their old home during the real property tax year for 126 days (January 1 to May 6, the day before the sale). H&r block at home deluxe They figure their deduction for taxes on their old home as follows. H&r block at home deluxe Worksheet 22-1. H&r block at home deluxe Figuring Your Real Estate Tax Deduction — Taxes on Old Home 1. H&r block at home deluxe Enter the total real estate taxes for the real property tax year $620 2. H&r block at home deluxe Enter the number of days in the real property tax year that you owned the property 126 3. H&r block at home deluxe Divide line 2 by 365 (for leap years, divide line 2 by 366) . H&r block at home deluxe 3452 4. H&r block at home deluxe Multiply line 1 by line 3. H&r block at home deluxe This is your deduction. H&r block at home deluxe Enter it on Schedule A (Form 1040), line 6 $214 Since the buyers of their old home paid all of the taxes, Dennis and Beth also include the $214 in the selling price of the old home. H&r block at home deluxe (The buyers add the $214 to their cost of the home. H&r block at home deluxe ) Dennis and Beth owned their new home during the real property tax year for 243 days (May 3 to December 31, including their date of purchase). H&r block at home deluxe They figure their deduction for taxes on their new home as follows. H&r block at home deluxe Worksheet 22-1. H&r block at home deluxe Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. H&r block at home deluxe Enter the total real estate taxes for the real property tax year $732 2. H&r block at home deluxe Enter the number of days in the real property tax year that you owned the property 243 3. H&r block at home deluxe Divide line 2 by 365 (for leap years, divide line 2 by 366) . H&r block at home deluxe 6658 4. H&r block at home deluxe Multiply line 1 by line 3. H&r block at home deluxe This is your deduction. H&r block at home deluxe Enter it on Schedule A (Form 1040), line 6 $487 Since Dennis and Beth paid all of the taxes on the new home, they add $245 ($732 paid less $487 deduction) to their cost of the new home. H&r block at home deluxe (The sellers add this $245 to their selling price and deduct the $245 as a real estate tax. H&r block at home deluxe ) Dennis and Beth's real estate tax deduction for their old and new homes is the sum of $214 and $487, or $701. H&r block at home deluxe They will enter this amount on Schedule A (Form 1040), line 6. H&r block at home deluxe Example 2. H&r block at home deluxe George and Helen Brown bought a new home on May 3, 2013. H&r block at home deluxe Their real property tax year for the new home is the calendar year. H&r block at home deluxe Real estate taxes for 2012 were assessed in their state on January 1, 2013. H&r block at home deluxe The taxes became due on May 31, 2013, and October 31, 2013. H&r block at home deluxe The Browns agreed to pay all taxes due after the date of purchase. H&r block at home deluxe Real estate taxes for 2012 were $680. H&r block at home deluxe They paid $340 on May 31, 2013, and $340 on October 31, 2013. H&r block at home deluxe These taxes were for the 2012 real property tax year. H&r block at home deluxe The Browns cannot deduct them since they did not own the property until 2013. H&r block at home deluxe Instead, they must add $680 to the cost of their new home. H&r block at home deluxe In January 2014, the Browns receive their 2013 property tax statement for $752, which they will pay in 2014. H&r block at home deluxe The Browns owned their new home during the 2013 real property tax year for 243 days (May 3 to December 31). H&r block at home deluxe They will figure their 2014 deduction for taxes as follows. H&r block at home deluxe Worksheet 22-1. H&r block at home deluxe Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. H&r block at home deluxe Enter the total real estate taxes for the real property tax year $752 2. H&r block at home deluxe Enter the number of days in the real property tax year that you owned the property 243 3. H&r block at home deluxe Divide line 2 by 365 (for leap years, divide line 2 by 366) . H&r block at home deluxe 6658 4. H&r block at home deluxe Multiply line 1 by line 3. H&r block at home deluxe This is your deduction. H&r block at home deluxe Claim it on Schedule A (Form 1040), line 6 $501 The remaining $251 ($752 paid less $501 deduction) of taxes paid in 2014, along with the $680 paid in 2013, is added to the cost of their new home. H&r block at home deluxe Because the taxes up to the date of sale are considered paid by the seller on the date of sale, the seller is entitled to a 2013 tax deduction of $931. H&r block at home deluxe This is the sum of the $680 for 2012 and the $251 for the 122 days the seller owned the home in 2013. H&r block at home deluxe The seller must also include the $931 in the selling price when he or she figures the gain or loss on the sale. H&r block at home deluxe The seller should contact the Browns in January 2014 to find out how much real estate tax is due for 2013. H&r block at home deluxe Form 1099-S. H&r block at home deluxe   For certain sales or exchanges of real estate, the person responsible for closing the sale (generally the settlement agent) prepares Form 1099-S, Proceeds From Real Estate Transactions, to report certain information to the IRS and to the seller of the property. H&r block at home deluxe Box 2 of Form 1099-S is for the gross proceeds from the sale and should include the portion of the seller's real estate tax liability that the buyer will pay after the date of sale. H&r block at home deluxe The buyer includes these taxes in the cost basis of the property, and the seller both deducts this amount as a tax paid and includes it in the sales price of the property. H&r block at home deluxe   For a real estate transaction that involves a home, any real estate tax the seller paid in advance but that is the liability of the buyer appears on Form 1099-S, box 5. H&r block at home deluxe The buyer deducts this amount as a real estate tax, and the seller reduces his or her real estate tax deduction (or includes it in income) by the same amount. H&r block at home deluxe See Refund (or rebate) , later. H&r block at home deluxe Taxes placed in escrow. H&r block at home deluxe   If your monthly mortgage payment includes an amount placed in escrow (put in the care of a third party) for real estate taxes, you may not be able to deduct the total amount placed in escrow. H&r block at home deluxe You can deduct only the real estate tax that the third party actually paid to the taxing authority. H&r block at home deluxe If the third party does not notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. H&r block at home deluxe Tenants by the entirety. H&r block at home deluxe   If you and your spouse held property as tenants by the entirety and you file separate federal returns, each of you can deduct only the taxes each of you paid on the property. H&r block at home deluxe Divorced individuals. H&r block at home deluxe   If your divorce or separation agreement states that you must pay the real estate taxes for a home owned by you and your spouse, part of your payments may be deductible as alimony and part as real estate taxes. H&r block at home deluxe See Taxes and insurance in chapter 18 for more information. H&r block at home deluxe Ministers' and military housing allowances. H&r block at home deluxe   If you are a minister or a member of the uniformed services and receive a housing allowance that you can exclude from income, you still can deduct all of the real estate taxes you pay on your home. H&r block at home deluxe Refund (or rebate). H&r block at home deluxe   If you received a refund or rebate in 2013 of real estate taxes you paid in 2013, you must reduce your deduction by the amount refunded to you. H&r block at home deluxe If you received a refund or rebate in 2013 of real estate taxes you deducted in an earlier year (either as an itemized deduction or an increase to your standard deduction), you generally must include the refund or rebate in income in the year you receive it. H&r block at home deluxe However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. H&r block at home deluxe For more information, see Recoveries in chapter 12. H&r block at home deluxe Table 22-1. H&r block at home deluxe Which Taxes Can You Deduct? Type of Tax You Can Deduct You Cannot Deduct Fees and Charges Fees and charges that are expenses of your trade or business or of producing income. H&r block at home deluxe Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Cannot Deduct ). H&r block at home deluxe     Fines and penalties. H&r block at home deluxe Income Taxes State and local income taxes. H&r block at home deluxe Federal income taxes. H&r block at home deluxe   Foreign income taxes. H&r block at home deluxe     Employee contributions to state funds listed under Contributions to state benefit funds . H&r block at home deluxe Employee contributions to private or voluntary disability plans. H&r block at home deluxe     State and local general sales taxes if you choose to deduct state and local income taxes. H&r block at home deluxe General Sales Taxes State and local general sales taxes, including compensating use taxes. H&r block at home deluxe State and local income taxes if you choose to deduct state and local general sales taxes. H&r block at home deluxe Other Taxes Taxes that are expenses of your trade or business. H&r block at home deluxe Federal excise taxes, such as tax on gasoline, that are not expenses of your trade or business or of producing income. H&r block at home deluxe   Taxes on property producing rent or royalty income. H&r block at home deluxe Per capita taxes. H&r block at home deluxe   Occupational taxes. H&r block at home deluxe See chapter 28. H&r block at home deluxe     One-half of self-employment tax paid. H&r block at home deluxe   Personal Property Taxes State and local personal property taxes. H&r block at home deluxe Customs duties that are not expenses of your trade or business or of producing income. H&r block at home deluxe Real Estate Taxes State and local real estate taxes. H&r block at home deluxe Real estate taxes that are treated as imposed on someone else (see Division of real estate taxes between buyers and sellers ). H&r block at home deluxe   Foreign real estate taxes. H&r block at home deluxe Taxes for local benefits (with exceptions). H&r block at home deluxe See Real Estate-Related Items You Cannot Deduct . H&r block at home deluxe   Tenant's share of real estate taxes paid by  cooperative housing corporation. H&r block at home deluxe Trash and garbage pickup fees (with exceptions). H&r block at home deluxe See Real Estate-Related Items You Cannot Deduct . H&r block at home deluxe     Rent increase due to higher real estate taxes. H&r block at home deluxe     Homeowners' association charges. H&r block at home deluxe Real Estate-Related Items You Cannot Deduct Payments for the following items generally are not deductible as real estate taxes. H&r block at home deluxe Taxes for local benefits. H&r block at home deluxe Itemized charges for services (such as trash and garbage pickup fees). H&r block at home deluxe Transfer taxes (or stamp taxes). H&r block at home deluxe Rent increases due to higher real estate taxes. H&r block at home deluxe Homeowners' association charges. H&r block at home deluxe Taxes for local benefits. H&r block at home deluxe   Deductible real estate taxes generally do not include taxes charged for local benefits and improvements tending to increase the value of your property. H&r block at home deluxe These include assessments for streets, sidewalks, water mains, sewer lines, public parking facilities, and similar improvements. H&r block at home deluxe You should increase the basis of your property by the amount of the assessment. H&r block at home deluxe   Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits. H&r block at home deluxe If only a part of the taxes is for maintenance, repair, or interest, you must be able to show the amount of that part to claim the deduction. H&r block at home deluxe If you cannot determine what part of the tax is for maintenance, repair, or interest, none of it is deductible. H&r block at home deluxe    Taxes for local benefits may be included in your real estate tax bill. H&r block at home deluxe If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. H&r block at home deluxe You should use the rules above to determine if the local benefit tax is deductible. H&r block at home deluxe Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. H&r block at home deluxe Itemized charges for services. H&r block at home deluxe    An itemized charge for services assessed against specific property or certain people is not a tax, even if the charge is paid to the taxing authority. H&r block at home deluxe For example, you cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged to each homeowner for trash collection), or A flat fee charged for a single service provided by your government (such as a $30 charge for mowing your lawn because it was allowed to grow higher than permitted under your local ordinance). H&r block at home deluxe    You must look at your real estate tax bill to determine if any nondeductible itemized charges, such as those listed above, are included in the bill. H&r block at home deluxe If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. H&r block at home deluxe Exception. H&r block at home deluxe   Service charges used to maintain or improve services (such as trash collection or police and fire protection) are deductible as real estate taxes if: The fees or charges are imposed at a like rate against all property in the taxing jurisdiction, The funds collected are not earmarked; instead, they are commingled with general revenue funds, and Funds used to maintain or improve services are not limited to or determined by the amount of these fees or charges collected. H&r block at home deluxe Transfer taxes (or stamp taxes). H&r block at home deluxe   Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. H&r block at home deluxe If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. H&r block at home deluxe If paid by the buyer, they are included in the cost basis of the property. H&r block at home deluxe Rent increase due to higher real estate taxes. H&r block at home deluxe   If your landlord increases your rent in the form of a tax surcharge because of increased real estate taxes, you cannot deduct the increase as taxes. H&r block at home deluxe Homeowners' association charges. H&r block at home deluxe   These charges are not deductible because they are imposed by the homeowners' association, rather than the state or local government. H&r block at home deluxe Personal Property Taxes Personal property tax is deductible if it is a state or local tax that is: Charged on personal property, Based only on the value of the personal property, and Charged on a yearly basis, even if it is collected more or less than once a year. H&r block at home deluxe A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. H&r block at home deluxe For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways. H&r block at home deluxe If the tax is partly based on value and partly based on other criteria, it may qualify in part. H&r block at home deluxe Example. H&r block at home deluxe Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. H&r block at home deluxe You paid $32 based on the value ($1,500) and weight (3,400 lbs. H&r block at home deluxe ) of your car. H&r block at home deluxe You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. H&r block at home deluxe The remaining $17 ($. H&r block at home deluxe 50 × 34), based on the weight, is not deductible. H&r block at home deluxe Taxes and Fees You Cannot Deduct Many federal, state, and local government taxes are not deductible because they do not fall within the categories discussed earlier. H&r block at home deluxe Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them. H&r block at home deluxe See Table 22-1. H&r block at home deluxe Taxes and fees that are generally not deductible include the following items. H&r block at home deluxe Employment taxes. H&r block at home deluxe This includes social security, Medicare, and railroad retirement taxes withheld from your pay. H&r block at home deluxe However, one-half of self-employment tax you pay is deductible. H&r block at home deluxe In addition, the social security and other employment taxes you pay on the wages of a household worker may be included in medical expenses that you can deduct or child care expenses that allow you to claim the child and dependent care credit. H&r block at home deluxe For more information, see chapters 21 and 32. H&r block at home deluxe Estate, inheritance, legacy, or succession taxes. H&r block at home deluxe However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. H&r block at home deluxe In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. H&r block at home deluxe For more information, see Publication 559, Survivors, Executors, and Administrators. H&r block at home deluxe Federal income taxes. H&r block at home deluxe This includes income taxes withheld from your pay. H&r block at home deluxe Fines and penalties. H&r block at home deluxe You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits. H&r block at home deluxe Gift taxes. H&r block at home deluxe License fees. H&r block at home deluxe You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees). H&r block at home deluxe Per capita taxes. H&r block at home deluxe You cannot deduct state or local per capita taxes. H&r block at home deluxe Many taxes and fees other than those listed above are also nondeductible, unless they are ordinary and necessary expenses of a business or income producing activity. H&r block at home deluxe For other nondeductible items, see Real Estate-Related Items You Cannot Deduct , earlier. H&r block at home deluxe Where To Deduct You deduct taxes on the following schedules. H&r block at home deluxe State and local income taxes. H&r block at home deluxe    These taxes are deducted on Schedule A (Form 1040), line 5, even if your only source of income is from business, rents, or royalties. H&r block at home deluxe Check box a on line 5. H&r block at home deluxe General sales taxes. H&r block at home deluxe   Sales taxes are deducted on Schedule A (Form 1040), line 5. H&r block at home deluxe You must check box b on line 5. H&r block at home deluxe If you elect to deduct sales taxes, you cannot deduct state and local income taxes on Schedule A (Form 1040), line 5, box a. H&r block at home deluxe Foreign income taxes. H&r block at home deluxe   Generally, income taxes you pay to a foreign country or U. H&r block at home deluxe S. H&r block at home deluxe possession can be claimed as an itemized deduction on Schedule A (Form 1040), line 8, or as a credit against your U. H&r block at home deluxe S. H&r block at home deluxe income tax on Form 1040, line 47. H&r block at home deluxe To claim the credit, you may have to complete and attach Form 1116. H&r block at home deluxe For more information, see chapter 37, the Form 1040 instructions, or Publication 514. H&r block at home deluxe Real estate taxes and personal property taxes. H&r block at home deluxe    Real estate and personal property taxes are deducted on Schedule A (Form 1040), lines 6 and 7, respectively, unless they are paid on property used in your business, in which case they are deducted on Schedule C, Schedule C-EZ, or Schedule F (Form 1040). H&r block at home deluxe Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). H&r block at home deluxe Self-employment tax. H&r block at home deluxe    Deduct one-half of your self-employment tax on Form 1040, line 27. H&r block at home deluxe Other taxes. H&r block at home deluxe    All other deductible taxes are deducted on Schedule A (Form 1040), line 8. 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