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H&r block efile Publication 505 - Additional Material Prev  Up  Next   Home   More Online Publications
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Limits of Free File Fillable Forms

Free File Fillable Forms is a good tool for many taxpayers, especially those who like to do their own taxes and want to take advantage of a free offer. Depending on the forms you must file and the information you need to provide, you may not be able to use Free File Fillable Forms to complete, and e-file your return. Below we list circumstances that will prevent you from filing your return electronically using Fillable Forms. If these apply to you, you can still use Fillable Forms, but you won't be able to e-file.  

  • You need to use one of the few forms and/or schedules that is not supported by e-file.
  • Free File Fillable Forms does not accept miscellaneous pdf attachments and you are required to attach a statement to your return. 
  • You cannot use Free File Fillable Forms to prepare and e-file your state income tax return. If your income is $58,000 or less, you may want to use Free File.
  • The program supports the use of only one six-digit Identity Protection Personal Identification Number (IP PIN). On Married filing jointly returns, the person who has been issued the IP PIN must be listed as the first (or Primary) taxpayer on the return. You will not be able to use Free File Fillable Forms to e-file your return if you and your spouse are filing jointly and you each have a unique six-digit Identity Protection Personal Identification Number (IP PIN). There is no place to enter a second IP PIN.
  • You will not be able to e-file if you have more than 30W-2s or W2-Gs.

Below is the list of unsupported forms in numerical order, a few unsupported schedules, and a couple of other issues you should know about before you start.   

Forms

  • Form 4562, Depreciation and Amortization (Including Information on Listed Property): Form 4562 is not available from the “Add/View Forms” menu. This form is an attachment to Schedule C and Schedule E. The form is selected from the “Add” button directly from Schedule C and Schedule E. If you need to associate more than one Form 4562 to a Schedule C or Schedule E, you must create another Schedule C or Schedule E to associate with the additional Form 4562. The asset shown on Form 4562 must be listed on its “parent” Schedule C or Schedule E.
  • Form 6198, At Risk Limitations: Form 6198 is not available from the “Add/View Forms” menu.  You can add this form only from Schedule C. You may only associate one Form 6198 to a Schedule C. If you need to associate more than one Form 6198 to a Schedule C, create another Schedule C’s for the same business. Associate one form 6198 to one Schedule C and the other form 6198 to the second Schedule C (properly allocating all other income and expense items).
  • Form 8283, Noncash Charitable Contributions with 1098C: Contributions of Motor Vehicles, Boats and Airplanes: Taxpayers are required to submit Form 1098C with Form 8283 if they donate a vehicle valued at $500 or more. Form 1098C is not supported; therefore, the taxpayer must mail in the return with the Form 1098C attached. The program restricts the user to attaching no more than four (4) 8283 Forms.
  • Form 8829, Expense for Business Use of Home: This form is not available from the “Add/View Forms” menu. You can only attach Form 8829 by first opening the associated Schedule C. You may only associate one Form 8829 to a Schedule C. If you need to associate more than one Form 8829 to a Schedule C, create another  Schedule C’s for the same business – associate one form 8829 to one Schedule C and the other form 8829 to the second Schedule C (properly allocating all other income and expense items).
  • Form 8889, Health Savings Accounts (HSAs):  If the Death of Account Beneficiary provision applies to you and you are not required to complete Part I, you will not be able to e-file your return with form 8889. You may complete your return, using Form 8889 and mail in your return.
  • Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit: This form will only support one qualifying vehicle. If you are trying to claim more than one qualifying vehicle, you will not be able to use this form and e-file your return.
  • Form 8938, Statement of Foreign Financial Assets: Taxpayers may only attach one of these forms to their return.
  • Form 8949, Sales and Other Dispositions of Capital Assets: This form does not support text (e.g., “VARIOUS” or “INHERITED”) in columns used for dates (numbers).
  • Temporary Limitation for Form 8959, Additional Medicare Tax: If you are attaching this form and Form 8960, you will not be able to successfully e-file your return until after March 27.
  • Temporary Limitation for Form 8960, Net Investment Income Tax Individuals, Estates and Trusts: If you are attaching this form and Form 8959, you will not be able to successfully e-file your return until after March 27.

Schedules

  • Schedule 8812, Child Tax Credit (Special Circumstances): For each child that meets the Special Circumstances described in the instructions, you must only select the “No” box, for the applicable lines A – D, in Part 1. Do not select both boxes, per the instructions for the schedule. Presently, Schedule 8812 will not accept more than four (4) qualifying children and you are not able to add more than one (1) Schedule 8812 to a return. If you have more than four (4) qualifying children to add to Schedule 8812, you will not be able to e-file the return.
  • Schedule C, Profit or Loss from Business: The form does not support the Simplified Method for calculating expenses for business use of your home. You must use Form 8829 to calculate the expense.
  • Schedule D, Capital Gains and Losses: Does not support text (e.g., “EXPIRED” or “WORTHLESS”) in columns used for dates (numbers)
  • Schedule E, Supplemental Income and Loss: The program does not support multiple copies of page 2 of Schedule E. Taxpayers who need to list more entities than Parts II, III and IV allow will not be able to use this program to complete their tax return.
  • W-2 and W2-G: The program will not allow the user to add more than thirty (30) W-2s or thirty (30) W2-Gs.

Additional Issues

  • Tax Literals: We use "tax literals" to describe information that taxpayers sometimes enter in small grey boxes located to the left of the input field on tax forms. The program only supports one tax literal on any single line for forms 1040, 1040A and 1040EZ. Generally, a tax literal will consist of two grey boxes, the first box is for the description (text) and the second is for the related amount. Where lines have one tax literal box, only the description can be entered in the field. If your return requires multiple literals on a single line (either multiple text only fields or multiple text and amount fields) or if you have a literal that is required on a form other than forms 1040, 1040A and 1040EZ, you may not be able to e-file using this program. Additionally, if you need to enter a tax literal, you must type in the tax literal exactly as written in the instructions. Incorrect capitalization and/or spelling of tax literals will result in a rejected return.
  • International (Foreign) Filers: Taxpayers who need to file a Foreign Employer Compensation Record (FEC) will not be able to e-file their return using Fillable Forms. Additionally, taxpayers with a foreign address, a spouse or a child who needs to be identified on the return, and a spouse or dependent without a SSN or an ITIN may not be able to e-file using Fillable Forms.
    • Foreign phone numbers are not supported on 1040 forms or on Step 2 Section 5- Payment. 
    • Direct Debits for payments on a balance due:  International filers that have a U.S. bank should use that bank to debit funds from their account. If there is no U.S. bank account, international filers should contact their foreign bank and find out if the bank has a U.S. affiliate. If there is a U.S. affiliate bank, international taxpayers should use the affiliate bank's (domestic) RTN in any payment request submitted to IRS.
    • Direct deposit of refund into foreign bank: You cannot direct deposit a refund into a foreign bank account. Direct deposit is only available for bank accounts located in the United States.

 

Page Last Reviewed or Updated: 25-Mar-2014

The H&r Block Efile

H&r block efile 5. H&r block efile   Taxes Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: When To Deduct Taxes Real Estate TaxesSeparate elections. H&r block efile Making the election. H&r block efile Form 3115. H&r block efile Income TaxesAccrual of contested income taxes. H&r block efile Employment Taxes Other TaxesAdditional Medicare Tax. H&r block efile What's New Additional Medicare Tax. H&r block efile  Beginning in 2013, you must withhold a 0. H&r block efile 9% Additional Medicare Tax from wages you pay to an employee in excess of $200,000 in a calendar year. H&r block efile Also, self-employed individuals may be required to pay Additional Medicare Tax on self-employment income. H&r block efile See Employment Taxes , and Self-employment tax , later. H&r block efile Introduction You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. H&r block efile You cannot deduct federal income taxes, estate and gift taxes, or state inheritance, legacy, and succession taxes. H&r block efile Topics - This chapter discusses: When to deduct taxes Real estate taxes Income taxes Employment taxes Other taxes Useful Items - You may want to see: Publication 15 (Circular E), Employer's Tax Guide 334 Tax Guide for Small Business 510 Excise Taxes 538 Accounting Periods and Methods 551 Basis of Assets Form (and Instructions) Sch A (Form 1040) Itemized Deductions Sch SE (Form 1040) Self-Employment Tax 3115 Application for Change in Accounting Method 8959 Additional Medicare Tax See chapter 12 for information about getting publications and forms. H&r block efile When To Deduct Taxes Generally, you can only deduct taxes in the year you pay them. H&r block efile This applies whether you use the cash method or an accrual method of accounting. H&r block efile Under an accrual method, you can deduct a tax before you pay it if you meet the exception for recurring items discussed under Economic Performance in Publication 538. H&r block efile You can also elect to ratably accrue real estate taxes as discussed later under Real Estate Taxes . H&r block efile Limit on accrual of taxes. H&r block efile   A taxing jurisdiction can require the use of a date for accruing taxes that is earlier than the date it originally required. H&r block efile However, if you use an accrual method, and can deduct the tax before you pay it, use the original accrual date for the year of change and all future years to determine when you can deduct the tax. H&r block efile Example. H&r block efile Your state imposes a tax on personal property used in a trade or business conducted in the state. H&r block efile This tax is assessed and becomes a lien as of July 1 (accrual date). H&r block efile In 2013, the state changed the assessment and lien dates from July 1, 2014, to December 31, 2013, for property tax year 2014. H&r block efile Use the original accrual date (July 1, 2014) to determine when you can deduct the tax. H&r block efile You must also use the July 1 accrual date for all future years to determine when you can deduct the tax. H&r block efile Uniform capitalization rules. H&r block efile   Uniform capitalization rules apply to certain taxpayers who produce real property or tangible personal property for use in a trade or business or for sale to customers. H&r block efile They also apply to certain taxpayers who acquire property for resale. H&r block efile Under these rules, you either include certain costs in inventory or capitalize certain expenses related to the property, such as taxes. H&r block efile For more information, see chapter 1. H&r block efile Carrying charges. H&r block efile   Carrying charges include taxes you pay to carry or develop real estate or to carry, transport, or install personal property. H&r block efile You can elect to capitalize carrying charges not subject to the uniform capitalization rules if they are otherwise deductible. H&r block efile For more information, see chapter 7. H&r block efile Refunds of taxes. H&r block efile   If you receive a refund for any taxes you deducted in an earlier year, include the refund in income to the extent the deduction reduced your federal income tax in the earlier year. H&r block efile For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1. H&r block efile    You must include in income any interest you receive on tax refunds. H&r block efile Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real estate levied for the general public welfare. H&r block efile The taxing authority must base the taxes on the assessed value of the real estate and charge them uniformly against all property under its jurisdiction. H&r block efile 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 efile See Taxes for local benefits , later. H&r block efile If you use an accrual method, you generally cannot accrue real estate taxes until you pay them to the government authority. H&r block efile However, you can elect to ratably accrue the taxes during the year. H&r block efile See Electing to ratably accrue , later. H&r block efile Taxes for local benefits. H&r block efile   Generally, you cannot deduct taxes charged for local benefits and improvements that tend to increase the value of your property. H&r block efile These include assessments for streets, sidewalks, water mains, sewer lines, and public parking facilities. H&r block efile You should increase the basis of your property by the amount of the assessment. H&r block efile   You can deduct taxes for these local benefits only if the taxes are for maintenance, repairs, or interest charges related to those benefits. H&r block efile If part of the tax is for maintenance, repairs, or interest, you must be able to show how much of the tax is for these expenses to claim a deduction for that part of the tax. H&r block efile Example. H&r block efile To improve downtown commercial business, Waterfront City converted a downtown business area street into an enclosed pedestrian mall. H&r block efile The city assessed the full cost of construction, financed with 10-year bonds, against the affected properties. H&r block efile The city is paying the principal and interest with the annual payments made by the property owners. H&r block efile The assessments for construction costs are not deductible as taxes or as business expenses, but are depreciable capital expenses. H&r block efile The part of the payments used to pay the interest charges on the bonds is deductible as taxes. H&r block efile Charges for services. H&r block efile   Water bills, sewerage, and other service charges assessed against your business property are not real estate taxes, but are deductible as business expenses. H&r block efile Purchase or sale of real estate. H&r block efile   If real estate is sold, the real estate taxes must be allocated between the buyer and the seller. H&r block efile   The buyer and seller must allocate the real estate taxes according to the number of days in the real property tax year (the period to which the tax imposed relates) that each owned the property. H&r block efile Treat the seller as paying the taxes up to but not including the date of sale. H&r block efile Treat the buyer as paying the taxes beginning with the date of sale. H&r block efile You can usually find this information on the settlement statement you received at closing. H&r block efile   If you (the seller) use an accrual method and have not elected to ratably accrue real estate taxes, you are considered to have accrued your part of the tax on the date you sell the property. H&r block efile Example. H&r block efile Alberto Verde, a calendar year accrual method taxpayer, owns real estate in Olmo County. H&r block efile He has not elected to ratably accrue property taxes. H&r block efile November 30 of each year is the assessment and lien date for the current real property tax year, which is the calendar year. H&r block efile He sold the property on June 30, 2013. H&r block efile Under his accounting method he would not be able to claim a deduction for the taxes because the sale occurred before November 30. H&r block efile He is treated as having accrued his part of the tax, 181/366  (January 1–June 29), on June 30, and he can deduct it for 2013. H&r block efile Electing to ratably accrue. H&r block efile   If you use an accrual method, you can elect to accrue real estate tax related to a definite period ratably over that period. H&r block efile Example. H&r block efile Juan Sanchez is a calendar year taxpayer who uses an accrual method. H&r block efile His real estate taxes for the real property tax year, July 1, 2013, to June 30, 2014, are $1,200. H&r block efile July 1 is the assessment and lien date. H&r block efile If Juan elects to ratably accrue the taxes, $600 will accrue in 2013 ($1,200 × 6/12, July 1–December 31) and the balance will accrue in 2014. H&r block efile Separate elections. H&r block efile   You can elect to ratably accrue the taxes for each separate trade or business and for nonbusiness activities if you account for them separately. H&r block efile Once you elect to ratably accrue real estate taxes, you must use that method unless you get permission from the IRS to change. H&r block efile See Form 3115 , later. H&r block efile Making the election. H&r block efile   If you elect to ratably accrue the taxes for the first year in which you incur real estate taxes, attach a statement to your income tax return for that year. H&r block efile The statement should show all the following items. H&r block efile The trades or businesses to which the election applies and the accounting method or methods used. H&r block efile The period to which the taxes relate. H&r block efile The computation of the real estate tax deduction for that first year. H&r block efile   Generally, you must file your return by the due date (including extensions). H&r block efile However, if you timely filed your return for the year without electing to ratably accrue, you can still make the election by filing an amended return within 6 months after the due date of the return (excluding extensions). H&r block efile Attach the statement to the amended return and write “Filed pursuant to section 301. H&r block efile 9100-2” on the statement. H&r block efile File the amended return at the same address where you filed the original return. H&r block efile Form 3115. H&r block efile    If you elect to ratably accrue real estate taxes for a year after the first year in which you incur real estate taxes, or if you want to revoke your election to ratably accrue real estate taxes, file Form 3115. H&r block efile For more information, including applicable time frames for filing, see the Instructions for Form 3115. H&r block efile Note. H&r block efile If you are filing an application for a change in accounting method filed after January 9, 2011, for a year of change ending after April 29, 2010, see Revenue Procedure 2011-14, 2011-4 I. H&r block efile R. H&r block efile B. H&r block efile 330, as modified and clarified by Revenue Procedure 2012-19, 2012-14 I. H&r block efile R. H&r block efile B. H&r block efile 689, and Revenue Procedure 2012-20, 2012-14 I. H&r block efile R. H&r block efile B. H&r block efile 700, or any successor. H&r block efile Revenue Procedure 2011-14 is available at  www. H&r block efile irs. H&r block efile gov/irb/2011-04IRB/ar08. H&r block efile html. H&r block efile Income Taxes This section discusses federal, state, local, and foreign income taxes. H&r block efile Federal income taxes. H&r block efile   You cannot deduct federal income taxes. H&r block efile State and local income taxes. H&r block efile   A corporation or partnership can deduct state and local income taxes imposed on the corporation or partnership as business expenses. H&r block efile An individual can deduct state and local income taxes only as an itemized deduction on Schedule A (Form 1040). H&r block efile   However, an individual can deduct a state tax on gross income (as distinguished from net income) directly attributable to a trade or business as a business expense. H&r block efile Accrual of contested income taxes. H&r block efile   If you use an accrual method, and you contest a state or local income tax liability, you must accrue and deduct any contested amount in the tax year in which the liability is finally determined. H&r block efile   If additional state or local income taxes for a prior year are assessed in a later year, you can deduct the taxes in the year in which they were originally imposed (the prior year) if the tax liability is not contested. H&r block efile You cannot deduct them in the year in which the liability is finally determined. H&r block efile    The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. H&r block efile Also, you can deduct any additional taxes in the prior year if you do not show some affirmative evidence of denial of the liability. H&r block efile   However, if you consistently deduct additional assessments in the year they are paid or finally determined (including those for which there was no contest), you must continue to do so. H&r block efile You cannot take a deduction in the earlier year unless you receive permission to change your method of accounting. H&r block efile For more information on accounting methods, see When Can I Deduct an Expense in chapter 1. H&r block efile Foreign income taxes. H&r block efile   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 efile S. H&r block efile possession. H&r block efile However, an individual cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. H&r block efile S. H&r block efile tax under the foreign earned income exclusion or the foreign housing exclusion. H&r block efile For information on these exclusions, see Publication 54, Tax Guide for U. H&r block efile S. H&r block efile Citizens and Resident Aliens Abroad. H&r block efile For information on the foreign tax credit, see Publication 514, Foreign Tax Credit for Individuals. H&r block efile Employment Taxes If you have employees, you must withhold various taxes from your employees' pay. H&r block efile Most employers must withhold their employees' share of social security, Medicare taxes, and Additional Medicare Tax (if applicable) along with state and federal income taxes. H&r block efile You may also need to pay certain employment taxes from your own funds. H&r block efile These include your share of social security and Medicare taxes as an employer, along with unemployment taxes. H&r block efile Note. H&r block efile Additional Medicare Tax is only imposed on the employee. H&r block efile There is no employer share of Additional Medicare Tax. H&r block efile Your deduction for wages paid is not reduced by the social security and Medicare taxes, Additional Medicare Tax, and income taxes you withhold from your employees. H&r block efile You can deduct the employment taxes you must pay from your own funds as taxes. H&r block efile Example. H&r block efile You pay your employee $18,000 a year. H&r block efile However, after you withhold various taxes, your employee receives $14,500. H&r block efile You also pay an additional $1,500 in employment taxes. H&r block efile You should deduct the full $18,000 as wages. H&r block efile You can deduct the $1,500 you pay from your own funds as taxes. H&r block efile For more information on employment taxes, see Publication 15 (Circular E). H&r block efile Unemployment fund taxes. H&r block efile   As an employer, you may have to make payments to a state unemployment compensation fund or to a state disability benefit fund. H&r block efile Deduct these payments as taxes. H&r block efile Other Taxes The following are other taxes you can deduct if you incur them in the ordinary course of your trade or business. H&r block efile Excise taxes. H&r block efile   Generally, you can deduct as a business expense all excise taxes that are ordinary and necessary expenses of carrying on your trade or business. H&r block efile However, see Fuel taxes , later. H&r block efile   For more information on excise taxes, see Publication 510. H&r block efile Franchise taxes. H&r block efile   You can deduct corporate franchise taxes as a business expense. H&r block efile Fuel taxes. H&r block efile   Generally, taxes on gasoline, diesel fuel, and other motor fuels that you use in your business are included as part of the cost of the fuel. H&r block efile Do not deduct these taxes as a separate item. H&r block efile   You may be entitled to a credit or refund for federal excise tax you paid on fuels used for certain purposes. H&r block efile For more information, see Publication 510. H&r block efile Occupational taxes. H&r block efile   You can deduct as a business expense an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. H&r block efile Personal property tax. H&r block efile   You can deduct any tax imposed by a state or local government on personal property used in your trade or business. H&r block efile Sales tax. H&r block efile   Treat any sales tax you pay on a service or on the purchase or use of property as part of the cost of the service or property. H&r block efile If the service or the cost or use of the property is a deductible business expense, you can deduct the tax as part of that service or cost. H&r block efile If the property is merchandise bought for resale, the sales tax is part of the cost of the merchandise. H&r block efile If the property is depreciable, add the sales tax to the basis for depreciation. H&r block efile For more information on basis, see Publication 551. H&r block efile    Do not deduct state and local sales taxes imposed on the buyer that you must collect and pay over to the state or local government. H&r block efile Also, do not include these taxes in gross receipts or sales. H&r block efile Self-employment tax. H&r block efile   You can deduct part of your self-employment tax as a business expense in figuring your adjusted gross income. H&r block efile This deduction only affects your income tax. H&r block efile It does not affect your net earnings from self-employment or your self-employment tax. H&r block efile   To deduct the tax, enter on Form 1040, line 27, the amount shown on the Deduction for one-half of self-employment tax line of Schedule SE (Form 1040). H&r block efile   For more information on self-employment tax, see Publication 334. H&r block efile Additional Medicare Tax. H&r block efile   Beginning in 2013, you may be required to pay Additional Medicare Tax on self-employment income. H&r block efile See Form 8959 and the Instructions for Form 8959 for more information on the Additional Medicare Tax. H&r block efile Prev  Up  Next   Home   More Online Publications