Filing Your Taxes Online is Fast, Easy and Secure.
Start now and receive your tax refund in as little as 7 days.

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

Find tax credits for everything from school tuition to buying a hybri

3. E-File for FREE

E-file free with direct deposit to get your refund in as few as 7 days.

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

FREE audit support and representation from an enrolled agent – NEW and only from H&R Block

How Can I Do My 2012 Federal Tax Return With H&r Block

Amend Prior Years TaxesFiling Amended Tax Return 20131040ez Form 2012FreetaxesTax Form 1040ez 2013Form 1040vFree Tax PreperationH&r Block Advantage E FileFiling 1040nrezTax Form 1040a 2012Filing Taxes When UnemployedAmended Tax ReturnFile State Taxes Online Free 20122013 Amended Tax ReturnDownload 1040ezNj 1040nr FormFiling Your State Taxes FreeIrs 1040 XPast Year TaxesIrs RefundTurbotax OnlineSenior Tax Stimulus CheckEfile State Tax FreeFile Tax Return For 2012Buy Turbotax 20111040a For 2012Irs 1040x InstructionsDownload Form 1040xAmendment Tax Form2012 Form 1040How To File Tax Extensions Online2012 Irs 1040ez InstructionsFree File Fillable Forms2011 Irs Form 8863Turbotax Amended Return 201310 40 Ez Form 2012Irs For 1040xFree Tax FilingNeed To File My 2011 TaxesHow To Amend 2012 Tax Return

How Can I Do My 2012 Federal Tax Return With H&r Block

How can i do my 2012 federal tax return with h&r block Index A Additional Medicare Tax, What's New for 2013, What's New, Employment Taxes, Additional Medicare Tax. How can i do my 2012 federal tax return with h&r block Advertising, Advertising expenses. How can i do my 2012 federal tax return with h&r block Amortization Anti-abuse rule, Anti-abuse rule. How can i do my 2012 federal tax return with h&r block Anti-churning rules, Anti-Churning Rules Atmospheric pollution control facilities, Pollution Control Facilities Corporate organization costs, Costs of Organizing a Corporation Dispositions of section 197 intangibles, Disposition of Section 197 Intangibles Experimental costs, Research and Experimental Costs Geological and geophysical costs, Geological and Geophysical Costs How to deduct, How To Deduct Amortization Incorrect amount deducted, Incorrect Amount of Amortization Deducted Partnership organization costs, Costs of Organizing a Partnership Pollution control facilities, Pollution Control Facilities Reforestation costs, Reforestation Costs Reforestation expenses, Reforestation Costs Related person, Related person. How can i do my 2012 federal tax return with h&r block Research costs, Research and Experimental Costs Section 197 intangibles defined, Section 197 Intangibles Defined Start-up costs, Business Start-Up Costs Starting a businesscosts, Starting a Business Anticipated liabilities, Anticipated liabilities. How can i do my 2012 federal tax return with h&r block Assessments, local, Taxes for local benefits. How can i do my 2012 federal tax return with h&r block Assistance (see Tax help) At-risk limits, At-risk limits. How can i do my 2012 federal tax return with h&r block Attorney fees, Legal and professional fees. How can i do my 2012 federal tax return with h&r block Awards, Achievement awards. How can i do my 2012 federal tax return with h&r block , Length-of-service award. How can i do my 2012 federal tax return with h&r block , Safety achievement award. How can i do my 2012 federal tax return with h&r block B Bad debts Defined, Definition of Business Bad Debt How to treat, How To Claim a Business Bad Debt Recovery, Recovery of a Bad Debt Types of, Types of Business Bad Debts When worthless, When a Debt Becomes Worthless Bonuses Employee, Bonuses Royalties, Bonuses and advanced royalties. How can i do my 2012 federal tax return with h&r block Bribes, Bribes and kickbacks. How can i do my 2012 federal tax return with h&r block Business Assets, Business Assets Books and records, Business books and records, etc. How can i do my 2012 federal tax return with h&r block Meal expenses, Meals and Entertainment Use of car, Business use of your car. How can i do my 2012 federal tax return with h&r block , Car and truck expenses. How can i do my 2012 federal tax return with h&r block Use of home, Business use of your home. How can i do my 2012 federal tax return with h&r block C Campaign contribution, Political contributions. How can i do my 2012 federal tax return with h&r block Capital expenses, Capital Expenses, Capital versus Deductible Expenses Capitalization of interest, Capitalization of Interest Car allowance, Car allowance. How can i do my 2012 federal tax return with h&r block Car and truck expenses, Car and truck expenses. How can i do my 2012 federal tax return with h&r block Carrying charges, Carrying Charges Charitable contributions, Charitable contributions. How can i do my 2012 federal tax return with h&r block Circulation costs, newspapers and periodicals, Circulation Costs Club dues, Club dues and membership fees. How can i do my 2012 federal tax return with h&r block Comments on publication, Comments and suggestions. How can i do my 2012 federal tax return with h&r block Commitment fees, Commitment fees or standby charges. How can i do my 2012 federal tax return with h&r block Computer software, Computer software. How can i do my 2012 federal tax return with h&r block Constant-yield method, OID, Constant-yield method. How can i do my 2012 federal tax return with h&r block Contested liability, Contested liability. How can i do my 2012 federal tax return with h&r block Contributions Charitable, Charitable contributions. How can i do my 2012 federal tax return with h&r block Political, Political contributions. How can i do my 2012 federal tax return with h&r block Copyrights, Patents, copyrights, etc. How can i do my 2012 federal tax return with h&r block Cost depletion, Cost Depletion Cost of getting lease, Cost of Getting a Lease, Getting a Lease Cost of goods sold, Cost of Goods Sold Cost recovery, Cost recovery. How can i do my 2012 federal tax return with h&r block Covenant not to compete, Covenant not to compete. How can i do my 2012 federal tax return with h&r block Credit card convenience fees, Credit card convenience fees. How can i do my 2012 federal tax return with h&r block D De minimis OID, De minimis OID. How can i do my 2012 federal tax return with h&r block Debt-financed distributions, Debt-financed distribution. How can i do my 2012 federal tax return with h&r block Definitions Business bad debt, Definition of Business Bad Debt Necessary expense, What Can I Deduct? Ordinary expense, What Can I Deduct? Section 197 intangibles, Section 197 Intangibles Defined Demolition expenses, Demolition expenses or losses. How can i do my 2012 federal tax return with h&r block Depletion Mineral property, Mineral Property Oil and gas wells, Oil and Gas Wells Percentage table, Mines and other natural deposits. How can i do my 2012 federal tax return with h&r block Timber, Timber Who can claim, Who Can Claim Depletion? Depreciation (see Cost recovery) Development costs, miners, Development Costs Disabled, improvements for, Barrier Removal Costs Drilling and development costs, Intangible Drilling Costs Dues, membership, Club dues and membership fees. How can i do my 2012 federal tax return with h&r block E Economic interest, Who Can Claim Depletion? Economic performance, Economic performance. How can i do my 2012 federal tax return with h&r block Education expenses, Education Expenses, Education expenses. How can i do my 2012 federal tax return with h&r block Elderly, improvements for, Barrier Removal Costs Employee benefit programs, Employee benefit programs. How can i do my 2012 federal tax return with h&r block Employment taxes, Employment Taxes Entertainment, Reimbursement of Travel, Meals, and Entertainment Excise taxes, Excise taxes. How can i do my 2012 federal tax return with h&r block Experimentation costs, Research and Experimental Costs, Research and Experimental Costs Exploration costs, Exploration Costs F Fees Commitment, Commitment fees or standby charges. How can i do my 2012 federal tax return with h&r block Legal and professional, Legal and professional fees. How can i do my 2012 federal tax return with h&r block Regulatory, Licenses and regulatory fees. How can i do my 2012 federal tax return with h&r block Tax return preparation, Tax preparation fees. How can i do my 2012 federal tax return with h&r block Fines, Penalties and fines. How can i do my 2012 federal tax return with h&r block Forgone, Forgone interest. How can i do my 2012 federal tax return with h&r block Forgone interest, Forgone interest. How can i do my 2012 federal tax return with h&r block Form 3115, Form 3115. How can i do my 2012 federal tax return with h&r block , Changing Your Accounting Method 4562, How To Deduct Amortization 5213, Using the presumption later. How can i do my 2012 federal tax return with h&r block 8826, Disabled access credit. How can i do my 2012 federal tax return with h&r block 8885, Health coverage tax credit. How can i do my 2012 federal tax return with h&r block T, Form T. How can i do my 2012 federal tax return with h&r block Franchise, Franchise, trademark, or trade name. How can i do my 2012 federal tax return with h&r block , Franchise, trademark, trade name. How can i do my 2012 federal tax return with h&r block Franchise taxes, Franchise taxes. How can i do my 2012 federal tax return with h&r block Free tax services, Free help with your tax return. How can i do my 2012 federal tax return with h&r block Fringe benefits, Fringe Benefits Fuel taxes, Fuel taxes. How can i do my 2012 federal tax return with h&r block G Gas wells, Natural Gas Wells Geological and geophysical costs Development, oil and gas, Geological and Geophysical Costs Exploration, oil and gas, Geological and Geophysical Costs Geothermal wells, Intangible Drilling Costs, Mines and Geothermal Deposits Gifts, nominal value, Gifts of nominal value. How can i do my 2012 federal tax return with h&r block Going into business, Going Into Business, Starting a Business Goodwill, Goodwill. How can i do my 2012 federal tax return with h&r block Gross income, not-for-profit activity, Gross Income H Health insurance, deduction for self-employed, Self-Employed Health Insurance Deduction Heating equipment, Heating equipment. How can i do my 2012 federal tax return with h&r block Help (see Tax help) Home, business use of, Business use of your home. How can i do my 2012 federal tax return with h&r block I Impairment-related expenses, Impairment-related expenses. How can i do my 2012 federal tax return with h&r block Improvements, Improvements By lessee, Improvements by Lessee For disabled and elderly, Barrier Removal Costs Income taxes, Income Taxes Incorrect amount of amortization deducted, Incorrect Amount of Amortization Deducted Insurance Capitalized premiums, Capitalized Premiums Deductible premiums, Deductible Premiums Nondeductible premiums, Nondeductible Premiums Self-employed individuals, Self-Employed Health Insurance Deduction Intangible drilling costs, Intangible Drilling Costs Intangibles, amortization, Section 197 Intangibles Interest, Forgone interest. How can i do my 2012 federal tax return with h&r block Allocation of, Allocation of Interest Below-market, Below-Market Loans Business expense for, Interest Capitalized, Capitalized interest. How can i do my 2012 federal tax return with h&r block , Capitalization of Interest Carrying charge, Carrying Charges Deductible, Interest You Can Deduct Life insurance policies, Interest on loans with respect to life insurance policies. How can i do my 2012 federal tax return with h&r block Not deductible, Interest You Cannot Deduct Refunds of, Refunds of interest. How can i do my 2012 federal tax return with h&r block When to deduct, When To Deduct Interest Internet-related expenses, Internet-related expenses. How can i do my 2012 federal tax return with h&r block Interview expenses, Interview expense allowances. How can i do my 2012 federal tax return with h&r block K Key person, Who is a key person? Kickbacks, Bribes and kickbacks. How can i do my 2012 federal tax return with h&r block L Leases Canceling, Canceling a lease. How can i do my 2012 federal tax return with h&r block Cost of getting, Cost of Getting a Lease, Getting a Lease Improvements by lessee, Improvements by Lessee Leveraged, Leveraged leases. How can i do my 2012 federal tax return with h&r block Mineral, Bonuses and advanced royalties. How can i do my 2012 federal tax return with h&r block Oil and gas, Bonuses and advanced royalties. How can i do my 2012 federal tax return with h&r block Sales distinguished, Lease or purchase. How can i do my 2012 federal tax return with h&r block Taxes on, Taxes on Leased Property Legal and professional fees, Legal and professional fees. How can i do my 2012 federal tax return with h&r block Licenses, Government-granted license, permit, etc. How can i do my 2012 federal tax return with h&r block , Licenses and regulatory fees. How can i do my 2012 federal tax return with h&r block Life insurance coverage, Life insurance coverage. How can i do my 2012 federal tax return with h&r block Limit on deductions, Not-for-Profit Activities Line of credit, Line of credit (continuous borrowings). How can i do my 2012 federal tax return with h&r block Loans Below-market interestrate, Below-Market Loans Discounted, Discounted loan. How can i do my 2012 federal tax return with h&r block Loans or Advances, Loans or Advances Lobbying expenses, Lobbying expenses. How can i do my 2012 federal tax return with h&r block Long-term care insurance, Qualified long-term care insurance. How can i do my 2012 federal tax return with h&r block Losses, Limits on losses. How can i do my 2012 federal tax return with h&r block , Not-for-Profit Activities At-risk limits, At-risk limits. How can i do my 2012 federal tax return with h&r block Net operating, Net operating loss. How can i do my 2012 federal tax return with h&r block Passive activities, Passive activities. How can i do my 2012 federal tax return with h&r block M Machinery parts, Machinery parts. How can i do my 2012 federal tax return with h&r block Meals, Reimbursement of Travel, Meals, and Entertainment Meals and entertainment, Meals and Entertainment Meals and lodging, Meals and lodging. How can i do my 2012 federal tax return with h&r block Methods of accounting, When Can I Deduct an Expense? Mining Depletion, Mines and Geothermal Deposits Development costs, Development Costs Exploration costs, Exploration Costs Mortgage, Mortgage. How can i do my 2012 federal tax return with h&r block , Expenses paid to obtain a mortgage. How can i do my 2012 federal tax return with h&r block Moving expenses, machinery, Moving machinery. How can i do my 2012 federal tax return with h&r block N Natural gas, Natural Gas Wells Nonqualifying intangibles, Assets That Are Not Section 197 Intangibles Not-for-profit activities, Not-for-Profit Activities Not-for-profit activity, gross income, Gross Income O Office in home, Business use of your home. How can i do my 2012 federal tax return with h&r block Oil and gas wells Depletion, Oil and Gas Wells Drilling costs, Intangible Drilling Costs Partnerships, Partnerships and S Corporations S corporations, Partnerships and S Corporations Optional safe harbor method, Optional safe harbor method. How can i do my 2012 federal tax return with h&r block Optional write-off method Circulation costs, Optional Write-off of Certain Tax Preferences Experimental costs, Optional Write-off of Certain Tax Preferences Intangible drilling and development costs, Optional Write-off of Certain Tax Preferences Mining exploration and development costs, Optional Write-off of Certain Tax Preferences Research costs, Optional Write-off of Certain Tax Preferences Organization costs Corporate, Costs of Organizing a Corporation Partnership, Costs of Organizing a Partnership Organizational costs, Business Start-Up and Organizational Costs Original issue discount, Original issue discount (OID). How can i do my 2012 federal tax return with h&r block Outplacement services, Outplacement services. How can i do my 2012 federal tax return with h&r block P Passive activities, Passive activities. How can i do my 2012 federal tax return with h&r block Payments in kind, Payments in kind. How can i do my 2012 federal tax return with h&r block Penalties, Prepayment penalty. How can i do my 2012 federal tax return with h&r block Deductible, Penalties and fines. How can i do my 2012 federal tax return with h&r block Nondeductible, Penalties and fines. How can i do my 2012 federal tax return with h&r block Prepayment, Prepayment penalty. How can i do my 2012 federal tax return with h&r block Per diem and car allowances, Per Diem and Car Allowances Percentage depletion, Percentage Depletion Personal property tax, Personal property tax. How can i do my 2012 federal tax return with h&r block Political contributions, Political contributions. How can i do my 2012 federal tax return with h&r block Pollution control facilities, Pollution Control Facilities Prepaid expense, Prepayment. How can i do my 2012 federal tax return with h&r block Extends useful life, Prepayment. How can i do my 2012 federal tax return with h&r block Interest, Prepaid interest. How can i do my 2012 federal tax return with h&r block , Prepaid interest. How can i do my 2012 federal tax return with h&r block Rent, Rent paid in advance. How can i do my 2012 federal tax return with h&r block Prepayment penalty, Prepayment penalty. How can i do my 2012 federal tax return with h&r block Presumption of profit, Not-for-Profit Activities Publications (see Tax help) R Real estate taxes, Real Estate Taxes Recapture Exploration expenses, Recapture of exploration expenses. How can i do my 2012 federal tax return with h&r block Timber property, Recapture. How can i do my 2012 federal tax return with h&r block Recordkeeping, Partnerships and S Corporations Recovery of amount deducted, Recovery of amount deducted (tax benefit rule). How can i do my 2012 federal tax return with h&r block Refiners who cannot claim percentage depletion, Refiners who cannot claim percentage depletion. How can i do my 2012 federal tax return with h&r block Reforestation costs, Reforestation Costs, Reforestation Costs Regulatory fees, Licenses and regulatory fees. How can i do my 2012 federal tax return with h&r block Reimbursements, Reimbursements Business expenses, Reimbursements for Business Expenses Mileage, Per Diem and Car Allowances Nonaccountable plan, Nonaccountable Plans Per diem , Per Diem and Car Allowances Related persons Anti-churning rules, Related person. How can i do my 2012 federal tax return with h&r block Coal or iron ore, Disposal to related person. How can i do my 2012 federal tax return with h&r block Payments to, Related person. How can i do my 2012 federal tax return with h&r block , Related person. How can i do my 2012 federal tax return with h&r block Refiners, Related person. How can i do my 2012 federal tax return with h&r block Unreasonable rent, Unreasonable rent. How can i do my 2012 federal tax return with h&r block Removal, Retired Asset Removal Costs, Barrier Removal Costs Rent expense, capitalizing, Capitalizing Rent Expenses Repairs, Repairs. How can i do my 2012 federal tax return with h&r block Repayments (claim of right), Repayments. How can i do my 2012 federal tax return with h&r block Research costs, Research and Experimental Costs, Research and Experimental Costs Retiree drug subsidy, What's New for 2013, What's New S Sales taxes, Sales tax. How can i do my 2012 federal tax return with h&r block Section 179 expense deduction (see Cost recovery) Self-employed health insurance deduction, Self-Employed Health Insurance Deduction Self-employment tax, Self-employment tax. How can i do my 2012 federal tax return with h&r block Self-insurance, reserve for, Nondeductible Premiums Sick pay, Sick and Vacation Pay Standard meal allowance, Standard meal allowance. How can i do my 2012 federal tax return with h&r block Standard mileage rate, Car allowance. How can i do my 2012 federal tax return with h&r block (see Business use of your car) Standby charges, Commitment fees or standby charges. How can i do my 2012 federal tax return with h&r block Start-up costs, Business Start-Up and Organizational Costs, Business Start-Up Costs Subscriptions, Subscriptions. How can i do my 2012 federal tax return with h&r block Suggestions for publication, Comments and suggestions. How can i do my 2012 federal tax return with h&r block Supplies and materials, Supplies and materials. How can i do my 2012 federal tax return with h&r block T Tax help, How To Get Tax Help Tax preparation fees, Tax preparation fees. How can i do my 2012 federal tax return with h&r block Taxes, Taxes on Leased Property Carrying charge, Carrying Charges Employment, Employment Taxes Excise, Excise taxes. How can i do my 2012 federal tax return with h&r block Franchise, Franchise taxes. How can i do my 2012 federal tax return with h&r block Fuel, Fuel taxes. How can i do my 2012 federal tax return with h&r block Income, Income Taxes Leased property, Taxes on Leased Property Personal property, Personal property tax. How can i do my 2012 federal tax return with h&r block Real estate, Real Estate Taxes Sales, Sales tax. How can i do my 2012 federal tax return with h&r block Unemployment fund, Unemployment fund taxes. How can i do my 2012 federal tax return with h&r block Telephone, Telephone. How can i do my 2012 federal tax return with h&r block Timber, Reforestation Costs, Timber Tools, Tools. How can i do my 2012 federal tax return with h&r block Trademark, trade name, Franchise, trademark, or trade name. How can i do my 2012 federal tax return with h&r block , Franchise, trademark, trade name. How can i do my 2012 federal tax return with h&r block Travel, Reimbursement of Travel, Meals, and Entertainment TTY/TDD information, How To Get Tax Help U Unemployment fund taxes, Unemployment fund taxes. How can i do my 2012 federal tax return with h&r block Unpaid expenses, related person, Related person. How can i do my 2012 federal tax return with h&r block Utilities, Utilities. How can i do my 2012 federal tax return with h&r block V Vacation pay, Sick and Vacation Pay W Wages Property, Property Tests for deducting pay, Tests for Deducting Pay Welfare benefit funds, Welfare benefit funds. How can i do my 2012 federal tax return with h&r block Prev  Up     Home   More Online Publications
Español

File Your Taxes

Learn more about filing your federal and state taxes.


Federal Taxes

The government collects taxes to pay its bills and provide public goods and services. The Internal Revenue Service (IRS) is the nation's tax collection agency.

The taxes you owe to the government are generally paid through withholding (money taken out of your paycheck), estimated tax payments, and payments made with tax forms that you file with the government. April 15 of each year is usually the due date for filing your federal individual income tax return for the previous calendar year.

Many people file a return even though their income is below the filing requirement. Check if you need to file an income tax return with the IRS.

File Your Taxes

Over 100 million people filed their taxes electronically last year. Electronic filing (e-file) makes filing your taxes easier, reduces the risk of error, and you’ll receive your refund faster. The IRS can help you find an authorized e-file provider in your area.

You can also file your federal tax return by mail. You can print forms and publications from the IRS website or find them at your local library. Before mailing them in, make sure to double check your math for errors. Visit the IRS for a list of the most common tax forms and instruction booklets for each form. The IRS has information about which form to use: the 1040-EZ, 1040A, or 1040.

Deadline to File and Requesting an Extension

April 15, 2014 is the due date for filing your federal individual income tax return for the 2013 calendar year. For other deadlines, review Publication 509 Tax Calendar (PDF).

If you cannot file by the deadline, you need to request an extension. There are electronic and paper options available to file an extension. Download the form and learn more about your options.

Check Your Refund

If you pay more money than you owe, the government will issue you a tax refund. If you expect a refund, visit Where's My Refund? to track it.

You can check on the status of your refund 24 hours after you e-file. If you filed a paper return, please allow 4 weeks before checking on the status.

Free Tax Help

There are a number of ways to find free tax help. The IRS has trained volunteers and tax counseling programs. Find out if you qualify for tax counseling.

For detailed information on tax help, download the IRS Guide to Free Tax Services (PDF).

Back to Top

State and Local Taxes

State and local taxes come from transaction taxes, such as sales tax; income taxes, the money withheld from your paycheck; and property taxes from homeowners. The type and amount of tax varies from state to state and between local communities.

Visit your state's website to learn more about filing requirements, options, forms, and deadlines. Some states allow you to e-file both your federal and state taxes at once. Learn more about federal and state e-file options.

Back to Top

The How Can I Do My 2012 Federal Tax Return With H&r Block

How can i do my 2012 federal tax return with h&r block Publication 583 - Main Content Table of Contents What New Business Owners Need To Know Forms of BusinessMore information. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block Exception—Community Income. How can i do my 2012 federal tax return with h&r block Exception—Qualified joint venture. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block Identification NumbersEmployer Identification Number (EIN) Payee's Identification Number Tax Year Accounting Method Business TaxesIncome Tax Self-Employment Tax Employment Taxes Excise Taxes Depositing Taxes Information Returns PenaltiesWaiver of penalty. How can i do my 2012 federal tax return with h&r block Business ExpensesBusiness Start-Up Costs Depreciation Business Use of Your Home Car and Truck Expenses RecordkeepingWhy Keep Records? Kinds of Records To Keep How Long To Keep Records Sample Record System How to Get More InformationInternal Revenue Service Small Business Administration Other Federal Agencies What New Business Owners Need To Know As a new business owner, you need to know your federal tax responsibilities. How can i do my 2012 federal tax return with h&r block Table 1 can help you learn what those responsibilities are. How can i do my 2012 federal tax return with h&r block Ask yourself each question listed in the table, then see the related discussion to find the answer. How can i do my 2012 federal tax return with h&r block In addition to knowing about federal taxes, you need to make some basic business decisions. How can i do my 2012 federal tax return with h&r block Ask yourself: What are my financial resources? What products and services will I sell? How will I market my products and services? How will I develop a strategic business plan? How will I manage my business on a day-to-day basis? How will I recruit employees? The Small Business Administration (SBA) is a federal agency that can help you answer these types of questions. How can i do my 2012 federal tax return with h&r block For information on how to contact the SBA, see How to Get More Information, later. How can i do my 2012 federal tax return with h&r block Forms of Business The most common forms of business are the sole proprietorship, partnership, and corporation. How can i do my 2012 federal tax return with h&r block When beginning a business, you must decide which form of business to use. How can i do my 2012 federal tax return with h&r block Legal and tax considerations enter into this decision. How can i do my 2012 federal tax return with h&r block Only tax considerations are discussed in this publication. How can i do my 2012 federal tax return with h&r block Your form of business determines which income tax return form you have to file. How can i do my 2012 federal tax return with h&r block See Table 2 to find out which form you have to file. How can i do my 2012 federal tax return with h&r block Sole proprietorships. How can i do my 2012 federal tax return with h&r block   A sole proprietorship is an unincorporated business that is owned by one individual. How can i do my 2012 federal tax return with h&r block It is the simplest form of business organization to start and maintain. How can i do my 2012 federal tax return with h&r block The business has no existence apart from you, the owner. How can i do my 2012 federal tax return with h&r block Its liabilities are your personal liabilities. How can i do my 2012 federal tax return with h&r block You undertake the risks of the business for all assets owned, whether or not used in the business. How can i do my 2012 federal tax return with h&r block You include the income and expenses of the business on your personal tax return. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block   For more information on sole proprietorships, see Publication 334, Tax Guide for Small Business. How can i do my 2012 federal tax return with h&r block If you are a farmer, see Publication 225, Farmer's Tax Guide. How can i do my 2012 federal tax return with h&r block Partnerships. How can i do my 2012 federal tax return with h&r block   A partnership is the relationship existing between two or more persons who join to carry on a trade or business. How can i do my 2012 federal tax return with h&r block Each person contributes money, property, labor, or skill, and expects to share in the profits and losses of the business. How can i do my 2012 federal tax return with h&r block   A partnership must file an annual information return to report the income, deductions, gains, losses, etc. How can i do my 2012 federal tax return with h&r block , from its operations, but it does not pay income tax. How can i do my 2012 federal tax return with h&r block Instead, it “passes through” any profits or losses to its partners. How can i do my 2012 federal tax return with h&r block Each partner includes his or her share of the partnership's items on his or her tax return. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block   For more information on partnerships, see Publication 541, Partnerships. How can i do my 2012 federal tax return with h&r block Husband and wife business. How can i do my 2012 federal tax return with h&r block   If you and your spouse jointly own and operate an unincorporated business and share in the profits and losses, you are partners in a partnership, whether or not you have a formal partnership agreement. How can i do my 2012 federal tax return with h&r block Do not use Schedule C or C-EZ. How can i do my 2012 federal tax return with h&r block Instead, file Form 1065, U. How can i do my 2012 federal tax return with h&r block S. How can i do my 2012 federal tax return with h&r block Return of Partnership Income. How can i do my 2012 federal tax return with h&r block For more information, see Publication 541, Partnerships. How can i do my 2012 federal tax return with h&r block Exception—Community Income. How can i do my 2012 federal tax return with h&r block   If you and your spouse wholly own an unincorporated business as community property under the community property laws of a state, foreign country, or U. How can i do my 2012 federal tax return with h&r block S. How can i do my 2012 federal tax return with h&r block possession, you can treat the business either as a sole proprietorship or a partnership. How can i do my 2012 federal tax return with h&r block The only states with community property laws are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. How can i do my 2012 federal tax return with h&r block A change in your reporting position will be treated as a conversion of the entity. How can i do my 2012 federal tax return with h&r block Exception—Qualified joint venture. How can i do my 2012 federal tax return with h&r block   If you and your spouse each materially participate as the only members of a jointly owned and operated business, and you file a joint return for the tax year, you can make a joint election to be treated as a qualified joint venture instead of a partnership for the tax year. How can i do my 2012 federal tax return with h&r block Making this election will allow you to avoid the complexity of Form 1065 but still give each spouse credit for social security earnings on which retirement benefits are based. How can i do my 2012 federal tax return with h&r block For an explanation of "material participation," see the Instructions for Schedule C, line G. How can i do my 2012 federal tax return with h&r block   To make this election, you must divide all items of income, gain, loss, deduction, and credit attributable to the business between you and your spouse in accordance with your respective interests in the venture. How can i do my 2012 federal tax return with h&r block Each of you must file a separate Schedule C or C-EZ and a separate Schedule SE. How can i do my 2012 federal tax return with h&r block For more information, see Qualified Joint Venture in the Instructions for Schedule SE. How can i do my 2012 federal tax return with h&r block Corporations. How can i do my 2012 federal tax return with h&r block   In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. How can i do my 2012 federal tax return with h&r block A corporation generally takes the same deductions as a sole proprietorship to figure its taxable income. How can i do my 2012 federal tax return with h&r block A corporation can also take special deductions. How can i do my 2012 federal tax return with h&r block   The profit of a corporation is taxed to the corporation when earned, and then is taxed to the shareholders when distributed as dividends. How can i do my 2012 federal tax return with h&r block However, shareholders cannot deduct any loss of the corporation. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block   For more information on corporations, see Publication 542, Corporations. How can i do my 2012 federal tax return with h&r block S corporations. How can i do my 2012 federal tax return with h&r block   An eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation. How can i do my 2012 federal tax return with h&r block Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. How can i do my 2012 federal tax return with h&r block On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block   For more information on S corporations, see the instructions for Form 2553, Election by a Small Business Corporation, and Form 1120S, U. How can i do my 2012 federal tax return with h&r block S. How can i do my 2012 federal tax return with h&r block Income Tax Return for an S Corporation. How can i do my 2012 federal tax return with h&r block Limited liability company. How can i do my 2012 federal tax return with h&r block   A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. How can i do my 2012 federal tax return with h&r block The members of an LLC are not personally liable for its debts. How can i do my 2012 federal tax return with h&r block An LLC may be classified for federal income tax purposes as either a partnership, a corporation, or an entity disregarded as an entity separate from its owner by applying the rules in regulations section 301. How can i do my 2012 federal tax return with h&r block 7701-3. How can i do my 2012 federal tax return with h&r block For more information, see the instructions for Form 8832, Entity Classification Election. How can i do my 2012 federal tax return with h&r block Identification Numbers You must have a taxpayer identification number so the IRS can process your returns. How can i do my 2012 federal tax return with h&r block The two most common kinds of taxpayer identification numbers are the social security number (SSN) and the employer identification number (EIN). How can i do my 2012 federal tax return with h&r block An SSN is issued to individuals by the Social Security Administration (SSA) and is in the following format: 000–00–0000. How can i do my 2012 federal tax return with h&r block An EIN is issued to individuals (sole proprietors), partnerships, corporations, and other entities by the IRS and is in the following format: 00–0000000. How can i do my 2012 federal tax return with h&r block You must include your taxpayer identification number (SSN or EIN) on all returns and other documents you send to the IRS. How can i do my 2012 federal tax return with h&r block You must also furnish your number to other persons who use your identification number on any returns or documents they send to the IRS. How can i do my 2012 federal tax return with h&r block This includes returns or documents filed to report the following information. How can i do my 2012 federal tax return with h&r block Interest, dividends, royalties, etc. How can i do my 2012 federal tax return with h&r block , paid to you. How can i do my 2012 federal tax return with h&r block Any amount paid to you as a dependent care provider. How can i do my 2012 federal tax return with h&r block Certain other amounts paid to you that total $600 or more for the year. How can i do my 2012 federal tax return with h&r block If you do not furnish your identification number as required, you may be subject to penalties. How can i do my 2012 federal tax return with h&r block See Penalties, later. How can i do my 2012 federal tax return with h&r block Employer Identification Number (EIN) EINs are used to identify the tax accounts of employers, certain sole proprietors, corporations, partnerships, estates, trusts, and other entities. How can i do my 2012 federal tax return with h&r block If you don't already have an EIN, you need to get one if you: Have employees, Have a qualified retirement plan, Operate your business as a corporation or partnership, or File returns for: Employment taxes, or Excise taxes. How can i do my 2012 federal tax return with h&r block Applying for an EIN. How can i do my 2012 federal tax return with h&r block   You may apply for an EIN: Online—Click on the EIN link at www. How can i do my 2012 federal tax return with h&r block irs. How can i do my 2012 federal tax return with h&r block gov/businesses/small. How can i do my 2012 federal tax return with h&r block The EIN is issued immediately once the application information is validated. How can i do my 2012 federal tax return with h&r block By telephone at 1-800-829-4933. How can i do my 2012 federal tax return with h&r block By mailing or faxing Form SS-4, Application for Employer Identification Number. How can i do my 2012 federal tax return with h&r block When to apply. How can i do my 2012 federal tax return with h&r block   You should apply for an EIN early enough to receive the number by the time you must file a return or statement or make a tax deposit. How can i do my 2012 federal tax return with h&r block If you apply by mail, file Form SS-4 at least 4 weeks before you need an EIN. How can i do my 2012 federal tax return with h&r block If you apply by telephone or through the IRS website, you can get an EIN immediately. How can i do my 2012 federal tax return with h&r block If you apply by fax, you can get an EIN within 4 business days. How can i do my 2012 federal tax return with h&r block   If you do not receive your EIN by the time a return is due, file your return anyway. How can i do my 2012 federal tax return with h&r block Write “Applied for” and the date you applied for the number in the space for the EIN. How can i do my 2012 federal tax return with h&r block Do not use your social security number as a substitute for an EIN on your tax returns. How can i do my 2012 federal tax return with h&r block More than one EIN. How can i do my 2012 federal tax return with h&r block   You should have only one EIN. How can i do my 2012 federal tax return with h&r block If you have more than one EIN and are not sure which to use, contact the Internal Revenue Service Center where you file your return. How can i do my 2012 federal tax return with h&r block Give the numbers you have, the name and address to which each was assigned, and the address of your main place of business. How can i do my 2012 federal tax return with h&r block The IRS will tell you which number to use. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block   For more information about EINs, see Publication 1635, Understanding Your EIN. How can i do my 2012 federal tax return with h&r block Payee's Identification Number In the operation of a business, you will probably make certain payments you must report on information returns (discussed later under Information Returns). How can i do my 2012 federal tax return with h&r block The forms used to report these payments must include the payee's identification number. How can i do my 2012 federal tax return with h&r block Employee. How can i do my 2012 federal tax return with h&r block   If you have employees, you must get an SSN from each of them. How can i do my 2012 federal tax return with h&r block Record the name and SSN of each employee exactly as they are shown on the employee's social security card. How can i do my 2012 federal tax return with h&r block If the employee's name is not correct as shown on the card, the employee should request a new card from the SSA. How can i do my 2012 federal tax return with h&r block This may occur, for example, if the employee's name has changed due to marriage or divorce. How can i do my 2012 federal tax return with h&r block   If your employee does not have an SSN, he or she should file Form SS-5, Application for a Social Security Card, with the SSA. How can i do my 2012 federal tax return with h&r block This form is available at SSA offices or by calling 1-800-772-1213. How can i do my 2012 federal tax return with h&r block It is also available from the SSA website at www. How can i do my 2012 federal tax return with h&r block ssa. How can i do my 2012 federal tax return with h&r block gov. How can i do my 2012 federal tax return with h&r block Other payee. How can i do my 2012 federal tax return with h&r block   If you make payments to someone who is not your employee and you must report the payments on an information return, get that person's SSN. How can i do my 2012 federal tax return with h&r block If you make reportable payments to an organization, such as a corporation or partnership, you must get its EIN. How can i do my 2012 federal tax return with h&r block   To get the payee's SSN or EIN, use Form W-9, Request for Taxpayer Identification Number and Certification. How can i do my 2012 federal tax return with h&r block This form is available from IRS offices or by calling 1-800-829-3676. How can i do my 2012 federal tax return with h&r block It is also available from the IRS website at IRS. How can i do my 2012 federal tax return with h&r block gov. How can i do my 2012 federal tax return with h&r block    If the payee does not provide you with an identification number, you may have to withhold part of the payments as backup withholding. How can i do my 2012 federal tax return with h&r block For information on backup withholding, see the Form W-9 instructions and the General Instructions for Certain Information Returns. How can i do my 2012 federal tax return with h&r block Tax Year You must figure your taxable income and file an income tax return based on an annual accounting period called a tax year. How can i do my 2012 federal tax return with h&r block A tax year is usually 12 consecutive months. How can i do my 2012 federal tax return with h&r block There are two kinds of tax years. How can i do my 2012 federal tax return with h&r block Calendar tax year. How can i do my 2012 federal tax return with h&r block A calendar tax year is 12 consecutive months beginning January 1 and ending December 31. How can i do my 2012 federal tax return with h&r block Fiscal tax year. How can i do my 2012 federal tax return with h&r block A fiscal tax year is 12 consecutive months ending on the last day of any month except December. How can i do my 2012 federal tax return with h&r block A 52-53-week tax year is a fiscal tax year that varies from 52 to 53 weeks but does not have to end on the last day of a month. How can i do my 2012 federal tax return with h&r block If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor, become a partner in a partnership, or become a shareholder in an S corporation, you must continue to use the calendar year unless you get IRS approval to change it or are otherwise allowed to change it without IRS approval. How can i do my 2012 federal tax return with h&r block You must use a calendar tax year if: You keep no books. How can i do my 2012 federal tax return with h&r block You have no annual accounting period. How can i do my 2012 federal tax return with h&r block Your present tax year does not qualify as a fiscal year. How can i do my 2012 federal tax return with h&r block You are required to use a calendar year by a provision of the Internal Revenue Code or the Income Tax Regulations. How can i do my 2012 federal tax return with h&r block For more information, see Publication 538, Accounting Periods and Methods. How can i do my 2012 federal tax return with h&r block First-time filer. How can i do my 2012 federal tax return with h&r block   If you have never filed an income tax return, you can adopt either a calendar tax year or a fiscal tax year. How can i do my 2012 federal tax return with h&r block You adopt a tax year by filing your first income tax return using that tax year. How can i do my 2012 federal tax return with h&r block You have not adopted a tax year if you merely did any of the following. How can i do my 2012 federal tax return with h&r block Filed an application for an extension of time to file an income tax return. How can i do my 2012 federal tax return with h&r block Filed an application for an employer identification number. How can i do my 2012 federal tax return with h&r block Paid estimated taxes for that tax year. How can i do my 2012 federal tax return with h&r block Changing your tax year. How can i do my 2012 federal tax return with h&r block   Once you have adopted your tax year, you may have to get IRS approval to change it. How can i do my 2012 federal tax return with h&r block To get approval, you must file Form 1128, Application To Adopt, Change, or Retain a Tax Year. How can i do my 2012 federal tax return with h&r block You may have to pay a fee. How can i do my 2012 federal tax return with h&r block For more information, see Publication 538. How can i do my 2012 federal tax return with h&r block Accounting Method An accounting method is a set of rules used to determine when and how income and expenses are reported. How can i do my 2012 federal tax return with h&r block You choose an accounting method for your business when you file your first income tax return. How can i do my 2012 federal tax return with h&r block There are two basic accounting methods. How can i do my 2012 federal tax return with h&r block Cash method. How can i do my 2012 federal tax return with h&r block Under the cash method, you report income in the tax year you receive it. How can i do my 2012 federal tax return with h&r block You usually deduct or capitalize expenses in the tax year you pay them. How can i do my 2012 federal tax return with h&r block Accrual method. How can i do my 2012 federal tax return with h&r block Under an accrual method, you generally report income in the tax year you earn it, even though you may receive payment in a later year. How can i do my 2012 federal tax return with h&r block You deduct or capitalize expenses in the tax year you incur them, whether or not you pay them that year. How can i do my 2012 federal tax return with h&r block For other methods, see Publication 538. How can i do my 2012 federal tax return with h&r block If you need inventories to show income correctly, you must generally use an accrual method of accounting for purchases and sales. How can i do my 2012 federal tax return with h&r block Inventories include goods held for sale in the normal course of business. How can i do my 2012 federal tax return with h&r block They also include raw materials and supplies that will physically become a part of merchandise intended for sale. How can i do my 2012 federal tax return with h&r block Inventories are explained in Publication 538. How can i do my 2012 federal tax return with h&r block Certain small business taxpayers can use the cash method of accounting and can also account for inventoriable items as materials and supplies that are not incidental. How can i do my 2012 federal tax return with h&r block For more information, see Publication 538. How can i do my 2012 federal tax return with h&r block You must use the same accounting method to figure your taxable income and to keep your books. How can i do my 2012 federal tax return with h&r block Also, you must use an accounting method that clearly shows your income. How can i do my 2012 federal tax return with h&r block In general, any accounting method that consistently uses accounting principles suitable for your trade or business clearly shows income. How can i do my 2012 federal tax return with h&r block An accounting method clearly shows income only if it treats all items of gross income and expense the same from year to year. How can i do my 2012 federal tax return with h&r block More than one business. How can i do my 2012 federal tax return with h&r block   When you own more than one business, you can use a different accounting method for each business if the method you use for each clearly shows your income. How can i do my 2012 federal tax return with h&r block You must keep a complete and separate set of books and records for each business. How can i do my 2012 federal tax return with h&r block Changing your method of accounting. How can i do my 2012 federal tax return with h&r block   Once you have set up your accounting method, you must generally get IRS approval before you can change to another method. How can i do my 2012 federal tax return with h&r block A change in accounting method not only includes a change in your overall system of accounting, but also a change in the treatment of any material item. How can i do my 2012 federal tax return with h&r block For examples of changes that require approval and information on how to get approval for the change, see Publication 538. How can i do my 2012 federal tax return with h&r block Business Taxes The form of business you operate determines what taxes you must pay and how you pay them. How can i do my 2012 federal tax return with h&r block The following are the four general kinds of business taxes. How can i do my 2012 federal tax return with h&r block Income tax. How can i do my 2012 federal tax return with h&r block Self-employment tax. How can i do my 2012 federal tax return with h&r block Employment taxes. How can i do my 2012 federal tax return with h&r block Excise taxes. How can i do my 2012 federal tax return with h&r block See Table 2 for the forms you file to report these taxes. How can i do my 2012 federal tax return with h&r block You may want to get Publication 509. How can i do my 2012 federal tax return with h&r block It has tax calendars that tell you when to file returns and make tax payments. How can i do my 2012 federal tax return with h&r block Income Tax All businesses except partnerships must file an annual income tax return. How can i do my 2012 federal tax return with h&r block Partnerships file an information return. How can i do my 2012 federal tax return with h&r block Which form you use depends on how your business is organized. How can i do my 2012 federal tax return with h&r block See Table 2 to find out which return you have to file. How can i do my 2012 federal tax return with h&r block The federal income tax is a pay-as-you-go tax. How can i do my 2012 federal tax return with h&r block You must pay the tax as you earn or receive income during the year. How can i do my 2012 federal tax return with h&r block An employee usually has income tax withheld from his or her pay. How can i do my 2012 federal tax return with h&r block If you do not pay your tax through withholding, or do not pay enough tax that way, you might have to pay estimated tax. How can i do my 2012 federal tax return with h&r block If you are not required to make estimated tax payments, you may pay any tax due when you file your return. How can i do my 2012 federal tax return with h&r block Table 2. How can i do my 2012 federal tax return with h&r block Which Forms Must I File? IF you are a. How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block   THEN you may be liable for. How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block   Use Form. How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block Sole proprietor   Income tax   1040 and Schedule C 1 or C-EZ (Schedule F 1 for farm business)     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES     Employment taxes:         • Social security and Medicare   taxes and income tax   withholding   941 or 944 (943 for farm employees)     • Federal unemployment (FUTA)   tax   940     Excise taxes   See Excise Taxes Partnership   Annual return of income   1065     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes Partner in a partnership (individual)   Income tax   1040 and Schedule E 2     Self-employment tax   1040 and Schedule SE     Estimated tax   1040-ES Corporation or S corporation   Income tax   1120 (corporation) 2  1120S (S corporation) 2     Estimated tax   1120-W (corporation only)     Employment taxes   Same as sole proprietor     Excise taxes   See Excise Taxes S corporation shareholder   Income tax   1040 and Schedule E 2     Estimated tax   1040-ES 1 File a separate schedule for each business. How can i do my 2012 federal tax return with h&r block 2 Various other schedules may be needed. How can i do my 2012 federal tax return with h&r block Estimated tax. How can i do my 2012 federal tax return with h&r block   Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. How can i do my 2012 federal tax return with h&r block Sole proprietors, partners, and S corporation shareholders. How can i do my 2012 federal tax return with h&r block   You generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. How can i do my 2012 federal tax return with h&r block Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay your estimated tax. How can i do my 2012 federal tax return with h&r block For more information, see Publication 505, Tax Withholding and Estimated Tax. How can i do my 2012 federal tax return with h&r block Corporations. How can i do my 2012 federal tax return with h&r block   You generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return. How can i do my 2012 federal tax return with h&r block Use Form 1120-W, Estimated Tax for Corporations, to figure the estimated tax. How can i do my 2012 federal tax return with h&r block You must deposit the payments as explained later under Depositing Taxes. How can i do my 2012 federal tax return with h&r block For more information, see Publication 542. How can i do my 2012 federal tax return with h&r block Self-Employment Tax Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. How can i do my 2012 federal tax return with h&r block Your payments of SE tax contribute to your coverage under the social security system. How can i do my 2012 federal tax return with h&r block Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. How can i do my 2012 federal tax return with h&r block You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies. How can i do my 2012 federal tax return with h&r block Your net earnings from self-employment were $400 or more. How can i do my 2012 federal tax return with h&r block You had church employee income of $108. How can i do my 2012 federal tax return with h&r block 28 or more. How can i do my 2012 federal tax return with h&r block Use Schedule SE (Form 1040) to figure your SE tax. How can i do my 2012 federal tax return with h&r block For more information, see Publication 334, Tax Guide for Small Business. How can i do my 2012 federal tax return with h&r block You can deduct a portion of your SE tax as an adjustment to income on your Form 1040. How can i do my 2012 federal tax return with h&r block The Social Security Administration (SSA) time limit for posting self-employment income. How can i do my 2012 federal tax return with h&r block   Generally, the SSA will give you credit only for self-employment income reported on a tax return filed within 3 years, 3 months, and 15 days after the tax year you earned the income. How can i do my 2012 federal tax return with h&r block If you file your tax return or report a change in your self-employment income after this time limit, the SSA may change its records, but only to remove or reduce the amount. How can i do my 2012 federal tax return with h&r block The SSA will not change its records to increase your self-employment income. How can i do my 2012 federal tax return with h&r block Employment Taxes This section briefly discusses the employment taxes you must pay, the forms you must file to report them, and other forms that must be filed when you have employees. How can i do my 2012 federal tax return with h&r block Employment taxes include the following. How can i do my 2012 federal tax return with h&r block Social security and Medicare taxes. How can i do my 2012 federal tax return with h&r block Federal income tax withholding. How can i do my 2012 federal tax return with h&r block Federal unemployment (FUTA) tax. How can i do my 2012 federal tax return with h&r block If you have employees, you will need to get Publication 15, Circular E, Employer's Tax Guide. How can i do my 2012 federal tax return with h&r block If you have agricultural employees, get Publication 51, Circular A, Agricultural Employer's Tax Guide. How can i do my 2012 federal tax return with h&r block These publications explain your tax responsibilities as an employer. How can i do my 2012 federal tax return with h&r block If you are not sure whether the people working for you are your employees, see Publication 15-A, Employer's Supplemental Tax Guide. How can i do my 2012 federal tax return with h&r block That publication has information to help you determine whether an individual is an employee or an independent contractor. How can i do my 2012 federal tax return with h&r block If you classify an employee as an independent contractor, you can be held liable for employment taxes for that worker plus a penalty. How can i do my 2012 federal tax return with h&r block An independent contractor is someone who is self-employed. How can i do my 2012 federal tax return with h&r block Generally, you do not have to withhold or pay any taxes on payments to an independent contractor. How can i do my 2012 federal tax return with h&r block Federal Income, Social Security, and Medicare Taxes You generally must withhold federal income tax from your employee's wages. How can i do my 2012 federal tax return with h&r block To figure how much federal income tax to withhold from each wage payment, use the employee's Form W-4 (discussed later under Hiring Employees) and the methods described in Publication 15. How can i do my 2012 federal tax return with h&r block Social security and Medicare taxes pay for benefits that workers and their families receive under the Federal Insurance Contributions Act (FICA). How can i do my 2012 federal tax return with h&r block Social security tax pays for benefits under the old-age, survivors, and disability insurance part of FICA. How can i do my 2012 federal tax return with h&r block Medicare tax pays for benefits under the hospital insurance part of FICA. How can i do my 2012 federal tax return with h&r block You withhold part of these taxes from your employee's wages and you pay a part yourself. How can i do my 2012 federal tax return with h&r block To find out how much social security and Medicare tax to withhold and to pay, see Publication 15. How can i do my 2012 federal tax return with h&r block Which form do I file?   Report these taxes on Form 941, Employer's QUARTERLY Federal Tax Return, or Form 944, Employer's ANNUAL Federal Tax Return. How can i do my 2012 federal tax return with h&r block (Farm employers use Form 943, Employer's Annual Federal Tax Return for Agricultural Employees. How can i do my 2012 federal tax return with h&r block ) Federal Unemployment (FUTA) Tax The federal unemployment tax is part of the federal and state program under the Federal Unemployment Tax Act (FUTA) that pays unemployment compensation to workers who lose their jobs. How can i do my 2012 federal tax return with h&r block You report and pay FUTA tax separately from social security and Medicare taxes and withheld income tax. How can i do my 2012 federal tax return with h&r block You pay FUTA tax only from your own funds. How can i do my 2012 federal tax return with h&r block Employees do not pay this tax or have it withheld from their pay. How can i do my 2012 federal tax return with h&r block Which form do I file?   Report federal unemployment tax on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. How can i do my 2012 federal tax return with h&r block See Publication 15 to find out if you can use this form. How can i do my 2012 federal tax return with h&r block Hiring Employees Have the employees you hire fill out Form I-9 and Form W-4. How can i do my 2012 federal tax return with h&r block Form I-9. How can i do my 2012 federal tax return with h&r block   You must verify that each new employee is legally eligible to work in the United States. How can i do my 2012 federal tax return with h&r block Both you and the employee must complete the U. How can i do my 2012 federal tax return with h&r block S. How can i do my 2012 federal tax return with h&r block Citizenship and Immigration Services (USCIS) Form I-9, Employment Eligibility Verification. How can i do my 2012 federal tax return with h&r block You can get the form from USCIS offices or from the USCIS website at www. How can i do my 2012 federal tax return with h&r block uscis. How can i do my 2012 federal tax return with h&r block gov. How can i do my 2012 federal tax return with h&r block Call the USCIS at 1-800-375-5283 for more information about your responsibilities. How can i do my 2012 federal tax return with h&r block Form W-4. How can i do my 2012 federal tax return with h&r block   Each employee must fill out Form W-4, Employee's Withholding Allowance Certificate. How can i do my 2012 federal tax return with h&r block You will use the filing status and withholding allowances shown on this form to figure the amount of income tax to withhold from your employee's wages. How can i do my 2012 federal tax return with h&r block For more information, see Publication 15. How can i do my 2012 federal tax return with h&r block Employees claiming more than 10 withholding allowances. How can i do my 2012 federal tax return with h&r block   An employer of an employee who claims more than 10 withholding allowances for wages paid can use several methods of withholding. How can i do my 2012 federal tax return with h&r block See section 16 of Publication 15. How can i do my 2012 federal tax return with h&r block Form W-2 Wage Reporting After the calendar year is over, you must furnish copies of Form W-2, Wage and Tax Statement, to each employee to whom you paid wages during the year. How can i do my 2012 federal tax return with h&r block You must also send copies to the Social Security Administration. How can i do my 2012 federal tax return with h&r block See Information Returns, later, for more information on Form W-2. How can i do my 2012 federal tax return with h&r block Excise Taxes This section describes the excise taxes you may have to pay and the forms you have to file if you do any of the following. How can i do my 2012 federal tax return with h&r block Manufacture or sell certain products. How can i do my 2012 federal tax return with h&r block Operate certain kinds of businesses. How can i do my 2012 federal tax return with h&r block Use various kinds of equipment, facilities, or products. How can i do my 2012 federal tax return with h&r block Receive payment for certain services. How can i do my 2012 federal tax return with h&r block For more information on excise taxes, see Publication 510, Excise Taxes. How can i do my 2012 federal tax return with h&r block Form 720. How can i do my 2012 federal tax return with h&r block   The federal excise taxes reported on Form 720, Quarterly Federal Excise Tax Return, consist of several broad categories of taxes, including the following. How can i do my 2012 federal tax return with h&r block Environmental taxes. How can i do my 2012 federal tax return with h&r block Communications and air transportation taxes. How can i do my 2012 federal tax return with h&r block Fuel taxes. How can i do my 2012 federal tax return with h&r block Tax on the first retail sale of heavy trucks, trailers, and tractors. How can i do my 2012 federal tax return with h&r block Manufacturers taxes on the sale or use of a variety of different articles. How can i do my 2012 federal tax return with h&r block Form 2290. How can i do my 2012 federal tax return with h&r block   There is a federal excise tax on certain trucks, truck tractors, and buses used on public highways. How can i do my 2012 federal tax return with h&r block The tax applies to vehicles having a taxable gross weight of 55,000 pounds or more. How can i do my 2012 federal tax return with h&r block Report the tax on Form 2290, Heavy Highway Vehicle Use Tax Return. How can i do my 2012 federal tax return with h&r block For more information, see the instructions for Form 2290. How can i do my 2012 federal tax return with h&r block Form 730. How can i do my 2012 federal tax return with h&r block   If you are in the business of accepting wagers or conducting a wagering pool or lottery, you may be liable for the federal excise tax on wagering. How can i do my 2012 federal tax return with h&r block Use Form 730, Monthly Tax Return for Wagers, to figure the tax on the wagers you receive. How can i do my 2012 federal tax return with h&r block Form 11-C. How can i do my 2012 federal tax return with h&r block   Use Form 11-C, Occupational Tax and Registration Return for Wagering, to register for any wagering activity and to pay the federal occupational tax on wagering. How can i do my 2012 federal tax return with h&r block Depositing Taxes You generally have to deposit employment taxes, certain excise taxes, corporate income tax, and S corporation taxes before you file your return. How can i do my 2012 federal tax return with h&r block Generally, taxpayers are required to deposit taxes through the Electronic Federal Tax Payment System (EFTPS). How can i do my 2012 federal tax return with h&r block Any business that has a federal tax obligation and requests a new EIN will automatically be enrolled in EFTPS. How can i do my 2012 federal tax return with h&r block Through the mail, the business will receive an EFTPS PIN package that contains instructions for activating its EFTPS enrollment. How can i do my 2012 federal tax return with h&r block Information Returns If you make or receive payments in your business, you may have to report them to the IRS on information returns. How can i do my 2012 federal tax return with h&r block The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. How can i do my 2012 federal tax return with h&r block You must give a copy of each information return you are required to file to the recipient or payer. How can i do my 2012 federal tax return with h&r block In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. How can i do my 2012 federal tax return with h&r block For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns. How can i do my 2012 federal tax return with h&r block Form 1099-MISC. How can i do my 2012 federal tax return with h&r block   Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. How can i do my 2012 federal tax return with h&r block These payments include the following items. How can i do my 2012 federal tax return with h&r block Payments of $600 or more for services performed for your business by people not treated as your employees, such as subcontractors, attorneys, accountants, or directors. How can i do my 2012 federal tax return with h&r block Rent payments of $600 or more, other than rents paid to real estate agents. How can i do my 2012 federal tax return with h&r block Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows. How can i do my 2012 federal tax return with h&r block Royalty payments of $10 or more. How can i do my 2012 federal tax return with h&r block Payments to certain crew members by operators of fishing boats. How can i do my 2012 federal tax return with h&r block You also use Form 1099-MISC to report your sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment. How can i do my 2012 federal tax return with h&r block Form W-2. How can i do my 2012 federal tax return with h&r block   You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. How can i do my 2012 federal tax return with h&r block For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3. How can i do my 2012 federal tax return with h&r block Form 8300. How can i do my 2012 federal tax return with h&r block   You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. How can i do my 2012 federal tax return with h&r block Cash includes U. How can i do my 2012 federal tax return with h&r block S. How can i do my 2012 federal tax return with h&r block and foreign coin and currency. How can i do my 2012 federal tax return with h&r block It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. How can i do my 2012 federal tax return with h&r block For more information, see Publication 1544, Reporting Cash Payments of Over $10,000 (Received in a Trade or Business). How can i do my 2012 federal tax return with h&r block Penalties The law provides penalties for not filing returns or paying taxes as required. How can i do my 2012 federal tax return with h&r block Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. How can i do my 2012 federal tax return with h&r block Failure to file tax returns. How can i do my 2012 federal tax return with h&r block   If you do not file your tax return by the due date, you may have to pay a penalty. How can i do my 2012 federal tax return with h&r block The penalty is based on the tax not paid by the due date. How can i do my 2012 federal tax return with h&r block See your tax return instructions for more information about this penalty. How can i do my 2012 federal tax return with h&r block Failure to pay tax. How can i do my 2012 federal tax return with h&r block   If you do not pay your taxes by the due date, you will have to pay a penalty for each month, or part of a month, that your taxes are not paid. How can i do my 2012 federal tax return with h&r block For more information, see your tax return instructions. How can i do my 2012 federal tax return with h&r block Failure to withhold, deposit, or pay taxes. How can i do my 2012 federal tax return with h&r block   If you do not withhold income, social security, or Medicare taxes from employees, or if you withhold taxes but do not deposit them or pay them to the IRS, you may be subject to a penalty of the unpaid tax, plus interest. How can i do my 2012 federal tax return with h&r block You may also be subject to penalties if you deposit the taxes late. How can i do my 2012 federal tax return with h&r block For more information, see Publication 15. How can i do my 2012 federal tax return with h&r block Failure to follow information reporting requirements. How can i do my 2012 federal tax return with h&r block   The following penalties apply if you are required to file information returns. How can i do my 2012 federal tax return with h&r block For more information, see the General Instructions for Certain Information Returns. How can i do my 2012 federal tax return with h&r block Failure to file information returns. How can i do my 2012 federal tax return with h&r block A penalty applies if you do not file information returns by the due date, if you do not include all required information, or if you report incorrect information. How can i do my 2012 federal tax return with h&r block Failure to furnish correct payee statements. How can i do my 2012 federal tax return with h&r block A penalty applies if you do not furnish a required statement to a payee by the due date, if you do not include all required information, or if you report incorrect information. How can i do my 2012 federal tax return with h&r block Waiver of penalty. How can i do my 2012 federal tax return with h&r block   These penalties will not apply if you can show that the failures were due to reasonable cause and not willful neglect. How can i do my 2012 federal tax return with h&r block   In addition, there is no penalty for failure to include all the required information, or for including incorrect information, on a de minimis number of information returns if you correct the errors by August 1 of the year the returns are due. How can i do my 2012 federal tax return with h&r block (To be considered de minimis, the number of returns cannot exceed the greater of 10 or ½ of 1% of the total number of returns you are required to file for the year. How can i do my 2012 federal tax return with h&r block ) Failure to supply taxpayer identification number. How can i do my 2012 federal tax return with h&r block   If you do not include your taxpayer identification number (SSN or EIN) or the taxpayer identification number of another person where required on a return, statement, or other document, you may be subject to a penalty of $50 for each failure. How can i do my 2012 federal tax return with h&r block You may also be subject to the $50 penalty if you do not give your taxpayer identification number to another person when it is required on a return, statement, or other document. How can i do my 2012 federal tax return with h&r block Business Expenses You can deduct business expenses on your income tax return. How can i do my 2012 federal tax return with h&r block These are the current operating costs of running your business. How can i do my 2012 federal tax return with h&r block To be deductible, a business expense must be both ordinary and necessary. How can i do my 2012 federal tax return with h&r block An ordinary expense is one that is common and accepted in your field of business, trade, or profession. How can i do my 2012 federal tax return with h&r block A necessary expense is one that is helpful and appropriate for your business, trade, or profession. How can i do my 2012 federal tax return with h&r block An expense does not have to be indispensable to be considered necessary. How can i do my 2012 federal tax return with h&r block The following are brief explanations of some expenses that are of interest to people starting a business. How can i do my 2012 federal tax return with h&r block There are many other expenses that you may be able to deduct. How can i do my 2012 federal tax return with h&r block See your form instructions and Publication 535, Business Expenses. How can i do my 2012 federal tax return with h&r block Business Start-Up Costs Business start-up costs are the expenses you incur before you actually begin business operations. How can i do my 2012 federal tax return with h&r block Your business start-up costs will depend on the type of business you are starting. How can i do my 2012 federal tax return with h&r block They may include costs for advertising, travel, surveys, and training. How can i do my 2012 federal tax return with h&r block These costs are generally capital expenses. How can i do my 2012 federal tax return with h&r block You usually recover costs for a particular asset (such as machinery or office equipment) through depreciation (discussed next). How can i do my 2012 federal tax return with h&r block You can elect to deduct up to $5,000 of business start-up costs and $5,000 of organizational costs paid or incurred after October 22, 2004. How can i do my 2012 federal tax return with h&r block The $5,000 deduction is reduced by the amount your total start-up or organizational costs exceed $50,000. How can i do my 2012 federal tax return with h&r block Any remaining cost must be amortized. How can i do my 2012 federal tax return with h&r block For more information about amortizing start-up and organizational costs, see chapter 7 in Publication 535. How can i do my 2012 federal tax return with h&r block Depreciation If property you acquire to use in your business has a useful life that extends substantially beyond the year it is placed in service, you generally cannot deduct the entire cost as a business expense in the year you acquire it. How can i do my 2012 federal tax return with h&r block You must spread the cost over more than one tax year and deduct part of it each year. How can i do my 2012 federal tax return with h&r block This method of deducting the cost of business property is called depreciation. How can i do my 2012 federal tax return with h&r block Business property you must depreciate includes the following items. How can i do my 2012 federal tax return with h&r block Office furniture. How can i do my 2012 federal tax return with h&r block Buildings. How can i do my 2012 federal tax return with h&r block Machinery and equipment. How can i do my 2012 federal tax return with h&r block You can choose to deduct a limited amount of the cost of certain depreciable property in the year you place the property in service. How can i do my 2012 federal tax return with h&r block This deduction is known as the “section 179 deduction. How can i do my 2012 federal tax return with h&r block ” For more information about depreciation and the section 179 deduction, see Publication 946, How To Depreciate Property. How can i do my 2012 federal tax return with h&r block Depreciation must be taken in the year it is allowable. How can i do my 2012 federal tax return with h&r block Allowable depreciation not taken in a prior year cannot be taken in the current year. How can i do my 2012 federal tax return with h&r block If you do not deduct the correct depreciation, you may be able to make a correction by filing Form 1040X, Amended U. How can i do my 2012 federal tax return with h&r block S. How can i do my 2012 federal tax return with h&r block Individual Income Tax Return, or by changing your accounting method. How can i do my 2012 federal tax return with h&r block For more information on how to correct depreciation deductions, see chapter 1 in Publication 946. How can i do my 2012 federal tax return with h&r block Business Use of Your Home To deduct expenses related to the business use of part of your home, you must meet specific requirements. How can i do my 2012 federal tax return with h&r block Even then, your deduction may be limited. How can i do my 2012 federal tax return with h&r block To qualify to claim expenses for business use of your home, you must meet both the following tests. How can i do my 2012 federal tax return with h&r block Your use of the business part of your home must be: Exclusive (however, see Exceptions to exclusive use, later), Regular, For your trade or business, AND The business part of your home must be one of the following: Your principal place of business (defined later), A place where you meet or deal with patients, clients, or customers in the normal course of your trade or business, or A separate structure (not attached to your home) you use in connection with your trade or business. How can i do my 2012 federal tax return with h&r block Exclusive use. How can i do my 2012 federal tax return with h&r block   To qualify under the exclusive use test, you must use a specific area of your home only for your trade or business. How can i do my 2012 federal tax return with h&r block The area used for business can be a room or other separately identifiable space. How can i do my 2012 federal tax return with h&r block The space does not need to be marked off by a permanent partition. How can i do my 2012 federal tax return with h&r block   You do not meet the requirements of the exclusive use test if you use the area in question both for business and for personal purposes. How can i do my 2012 federal tax return with h&r block Exceptions to exclusive use. How can i do my 2012 federal tax return with h&r block   You do not have to meet the exclusive use test if either of the following applies. How can i do my 2012 federal tax return with h&r block You use part of your home for the storage of inventory or product samples. How can i do my 2012 federal tax return with h&r block You use part of your home as a daycare facility. How can i do my 2012 federal tax return with h&r block For an explanation of these exceptions, see Publication 587, Business Use of Your Home (Including Use by Daycare Providers). How can i do my 2012 federal tax return with h&r block Principal place of business. How can i do my 2012 federal tax return with h&r block   Your home office will qualify as your principal place of business for deducting expenses for its use if you meet the following requirements. How can i do my 2012 federal tax return with h&r block You use it exclusively and regularly for administrative or management activities of your trade or business. How can i do my 2012 federal tax return with h&r block You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. How can i do my 2012 federal tax return with h&r block   Alternatively, if you use your home exclusively and regularly for your business, but your home office does not qualify as your principal place of business based on the previous rules, you determine your principal place of business based on the following factors. How can i do my 2012 federal tax return with h&r block The relative importance of the activities performed at each location. How can i do my 2012 federal tax return with h&r block If the relative importance factor does not determine your principal place of business, the time spent at each location. How can i do my 2012 federal tax return with h&r block    If, after considering your business locations, your home cannot be identified as your principal place of business, you cannot deduct home office expenses. How can i do my 2012 federal tax return with h&r block However, for other ways to qualify to deduct home office expenses, see Publication 587. How can i do my 2012 federal tax return with h&r block Which form do I file?   If you file Schedule C (Form 1040), use Form 8829, Expenses for Business Use of Your Home, to figure your deduction. How can i do my 2012 federal tax return with h&r block If you file Schedule F (Form 1040) or you are a partner, you can use the worksheet in Publication 587. How can i do my 2012 federal tax return with h&r block More information. How can i do my 2012 federal tax return with h&r block   For more information about business use of your home, see Publication 587. How can i do my 2012 federal tax return with h&r block Car and Truck Expenses If you use your car or truck in your business, you can deduct the costs of operating and maintaining it. How can i do my 2012 federal tax return with h&r block You generally can deduct either your actual expenses or the standard mileage rate. How can i do my 2012 federal tax return with h&r block Actual expenses. How can i do my 2012 federal tax return with h&r block   If you deduct actual expenses, you can deduct the cost of the following items: Depreciation Lease payments Registration Garage rent Licenses Repairs Gas Oil Tires Insurance Parking fees Tolls   If you use your vehicle for both business and personal purposes, you must divide your expenses between business and personal use. How can i do my 2012 federal tax return with h&r block You can divide your expenses based on the miles driven for each purpose. How can i do my 2012 federal tax return with h&r block Example. How can i do my 2012 federal tax return with h&r block You are the sole proprietor of a flower shop. How can i do my 2012 federal tax return with h&r block You drove your van 20,000 miles during the year. How can i do my 2012 federal tax return with h&r block 16,000 miles were for delivering flowers to customers and 4,000 miles were for personal use. How can i do my 2012 federal tax return with h&r block You can claim only 80% (16,000 ÷ 20,000) of the cost of operating your van as a business expense. How can i do my 2012 federal tax return with h&r block Standard mileage rate. How can i do my 2012 federal tax return with h&r block   Instead of figuring actual expenses, you may be able to use the standard mileage rate to figure the deductible costs of operating your car, van, pickup, or panel truck for business purposes. How can i do my 2012 federal tax return with h&r block You can use the standard mileage rate for a vehicle you own or lease. How can i do my 2012 federal tax return with h&r block The standard mileage rate is a specified amount of money you can deduct for each business mile you drive. How can i do my 2012 federal tax return with h&r block It is announced annually by the IRS. How can i do my 2012 federal tax return with h&r block To figure your deduction, multiply your business miles by the standard mileage rate for the year. How can i do my 2012 federal tax return with h&r block    Generally, if you use the standard mileage rate, you cannot deduct your actual expenses. How can i do my 2012 federal tax return with h&r block However, you may be able to deduct business-related parking fees, tolls, interest on your car loan, and certain state and local taxes. How can i do my 2012 federal tax return with h&r block Choosing the standard mileage rate. How can i do my 2012 federal tax return with h&r block   If you want to use the standard mileage rate for a car you own, you must choose to use it in the first year the car is available for use in your business. How can i do my 2012 federal tax return with h&r block In later years, you can choose to use either the standard mileage rate or actual expenses. How can i do my 2012 federal tax return with h&r block   If you use the standard mileage rate for a car you lease, you must choose to use it for the entire lease period (including renewals). How can i do my 2012 federal tax return with h&r block Additional information. How can i do my 2012 federal tax return with h&r block   For more information about the rules for claiming car and truck expenses, see Publication 463, Travel, Entertainment, Gift, and Car Expenses. How can i do my 2012 federal tax return with h&r block Recordkeeping This part explains why you must keep records, what kinds of records you must keep, and how to keep them. How can i do my 2012 federal tax return with h&r block It also explains how long you must keep your records for federal tax purposes. How can i do my 2012 federal tax return with h&r block A sample recordkeeping system is illustrated at the end of this part. How can i do my 2012 federal tax return with h&r block Why Keep Records? Everyone in business must keep records. How can i do my 2012 federal tax return with h&r block Good records will help you do the following. How can i do my 2012 federal tax return with h&r block Monitor the progress of your business. How can i do my 2012 federal tax return with h&r block   You need good records to monitor the progress of your business. How can i do my 2012 federal tax return with h&r block Records can show whether your business is improving, which items are selling, or what changes you need to make. How can i do my 2012 federal tax return with h&r block Good records can increase the likelihood of business success. How can i do my 2012 federal tax return with h&r block Prepare your financial statements. How can i do my 2012 federal tax return with h&r block   You need good records to prepare accurate financial statements. How can i do my 2012 federal tax return with h&r block These include income (profit and loss) statements and balance sheets. How can i do my 2012 federal tax return with h&r block These statements can help you in dealing with your bank or creditors and help you manage your business. How can i do my 2012 federal tax return with h&r block An income statement shows the income and expenses of the business for a given period of time. How can i do my 2012 federal tax return with h&r block A balance sheet shows the assets, liabilities, and your equity in the business on a given date. How can i do my 2012 federal tax return with h&r block Identify source of receipts. How can i do my 2012 federal tax return with h&r block   You will receive money or property from many sources. How can i do my 2012 federal tax return with h&r block Your records can identify the source of your receipts. How can i do my 2012 federal tax return with h&r block You need this information to separate business from nonbusiness receipts and taxable from nontaxable income. How can i do my 2012 federal tax return with h&r block Keep track of deductible expenses. How can i do my 2012 federal tax return with h&r block   You may forget expenses when you prepare your tax return unless you record them when they occur. How can i do my 2012 federal tax return with h&r block Prepare your tax returns. How can i do my 2012 federal tax return with h&r block   You need good records to prepare your tax returns. How can i do my 2012 federal tax return with h&r block These records must support the income, expenses, and credits you report. How can i do my 2012 federal tax return with h&r block Generally, these are the same records you use to monitor your business and prepare your financial statements. How can i do my 2012 federal tax return with h&r block Support items reported on tax returns. How can i do my 2012 federal tax return with h&r block   You must keep your business records available at all times for inspection by the IRS. How can i do my 2012 federal tax return with h&r block If the IRS examines any of your tax returns, you may be asked to explain the items reported. How can i do my 2012 federal tax return with h&r block A complete set of records will speed up the examination. How can i do my 2012 federal tax return with h&r block Kinds of Records To Keep Except in a few cases, the law does not require any specific kind of records. How can i do my 2012 federal tax return with h&r block You can choose any recordkeeping system suited to your business that clearly shows your income and expenses. How can i do my 2012 federal tax return with h&r block The business you are in affects the type of records you need to keep for federal tax purposes. How can i do my 2012 federal tax return with h&r block You should set up your recordkeeping system using an accounting method that clearly shows your income for your tax year. How can i do my 2012 federal tax return with h&r block See Accounting Method, earlier. How can i do my 2012 federal tax return with h&r block If you are in more than one business, you should keep a complete and separate set of records for each business. How can i do my 2012 federal tax return with h&r block A corporation should keep minutes of board of directors' meetings. How can i do my 2012 federal tax return with h&r block Your recordkeeping system should include a summary of your business transactions. How can i do my 2012 federal tax return with h&r block This summary is ordinarily made in your books (for example, accounting journals and ledgers). How can i do my 2012 federal tax return with h&r block Your books must show your gross income, as well as your deductions and credits. How can i do my 2012 federal tax return with h&r block For most small businesses, the business checkbook (discussed later) is the main source for entries in the business books. How can i do my 2012 federal tax return with h&r block In addition, you must keep supporting documents, explained later. How can i do my 2012 federal tax return with h&r block Electronic records. How can i do my 2012 federal tax return with h&r block   All requirements that apply to hard copy books and records also apply to electronic storage systems that maintain tax books and records. How can i do my 2012 federal tax return with h&r block When you replace hard copy books and records, you must maintain the electronic storage systems for as long as they are material to the administration of tax law. How can i do my 2012 federal tax return with h&r block An electronic storage system is any system for preparing or keeping your records either by electronic imaging or by transfer to an electronic storage media. How can i do my 2012 federal tax return with h&r block The electronic storage system must index, store, preserve, retrieve and reproduce the electronically stored books and records in legible format. How can i do my 2012 federal tax return with h&r block All electronic storage systems must provide a complete and accurate record of your data that is accessible to the IRS. How can i do my 2012 federal tax return with h&r block Electronic storage systems are also subject to the same controls and retention guidelines as those imposed on your original hard copy books and records. How can i do my 2012 federal tax return with h&r block   The original hard copy books and records may be destroyed provided that the electronic storage system has been tested to establish that the hard copy books and records are being reproduced in compliance with IRS requirements for an electronic storage system and procedures are established to ensure continued compliance with all applicable rules and regulations. How can i do my 2012 federal tax return with h&r block You still have the responsibility of retaining any other books and records that are required to be retained. How can i do my 2012 federal tax return with h&r block   The IRS may test your electronic storage system, including the equipment used, indexing methodology, software and retrieval capabilities. How can i do my 2012 federal tax return with h&r block This test is not considered an examination and the results must be shared with you. How can i do my 2012 federal tax return with h&r block If your electronic storage system meets the requirements mentioned earlier, you will be in compliance. How can i do my 2012 federal tax return with h&r block If not, you may be subject to penalties for non-compliance, unless you continue to maintain your original hard copy books and records in a manner that allows you and the IRS to determine your correct tax. How can i do my 2012 federal tax return with h&r block For details on electronic storage system requirements, see Revenue Procedure 97-22, available in Internal Revenue Bulletin 1997-13. How can i do my 2012 federal tax return with h&r block Supporting Documents Purchases, sales, payroll, and other transactions you have in your business generate supporting documents. How can i do my 2012 federal tax return with h&r block Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. How can i do my 2012 federal tax return with h&r block These documents contain information you need to record in your books. How can i do my 2012 federal tax return with h&r block It is important to keep these documents because they support the entries in your books and on your tax return. How can i do my 2012 federal tax return with h&r block Keep them in an orderly fashion and in a safe place. How can i do my 2012 federal tax return with h&r block For instance, organize them by year and type of income or expense. How can i do my 2012 federal tax return with h&r block Gross receipts. How can i do my 2012 federal tax return with h&r block   Gross receipts are the income you receive from your business. How can i do my 2012 federal tax return with h&r block You should keep supporting documents that show the amounts and sources of your gross receipts. How can i do my 2012 federal tax return with h&r block Documents that show gross receipts include the following. How can i do my 2012 federal tax return with h&r block Cash register tapes. How can i do my 2012 federal tax return with h&r block Bank deposit slips. How can i do my 2012 federal tax return with h&r block Receipt books. How can i do my 2012 federal tax return with h&r block Invoices. How can i do my 2012 federal tax return with h&r block Credit card charge slips. How can i do my 2012 federal tax return with h&r block Forms 1099-MISC. How can i do my 2012 federal tax return with h&r block Purchases. How can i do my 2012 federal tax return with h&r block   Purchases are the items you buy and resell to customers. How can i do my 2012 federal tax return with h&r block If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into finished products. How can i do my 2012 federal tax return with h&r block Your supporting documents should show the amount paid and that the amount was for purchases. How can i do my 2012 federal tax return with h&r block Documents for purchases include the following. How can i do my 2012 federal tax return with h&r block Canceled checks. How can i do my 2012 federal tax return with h&r block Cash register tape receipts. How can i do my 2012 federal tax return with h&r block Credit card sales slips. How can i do my 2012 federal tax return with h&r block Invoices. How can i do my 2012 federal tax return with h&r block These records will help you determine the value of your inventory at the end of the year. How can i do my 2012 federal tax return with h&r block See Publication 538 for information on methods for valuing inventory. How can i do my 2012 federal tax return with h&r block Expenses. How can i do my 2012 federal tax return with h&r block   Expenses are the costs you incur (other than purchases) to carry on your business. How can i do my 2012 federal tax return with h&r block Your supporting documents should show the amount paid and that the amount was for a business expense. How can i do my 2012 federal tax return with h&r block Documents for expenses include the following. How can i do my 2012 federal tax return with h&r block Canceled checks. How can i do my 2012 federal tax return with h&r block Cash register tapes. How can i do my 2012 federal tax return with h&r block Account statements. How can i do my 2012 federal tax return with h&r block Credit card sales slips. How can i do my 2012 federal tax return with h&r block Invoices. How can i do my 2012 federal tax return with h&r block Petty cash slips for small cash payments. How can i do my 2012 federal tax return with h&r block    A petty cash fund allows you to make small payments without having to write checks for small amounts. How can i do my 2012 federal tax return with h&r block Each time you make a payment from this fund, you should make out a petty cash slip and attach it to your receipt as proof of payment. How can i do my 2012 federal tax return with h&r block Travel, transportation, entertainment, and gift expenses. How can i do my 2012 federal tax return with h&r block   Specific recordkeeping rules apply to these expenses. How can i do my 2012 federal tax return with h&r block For more information, see Publication 463. How can i do my 2012 federal tax return with h&r block Employment taxes. How can i do my 2012 federal tax return with h&r block   There are specific employment tax records you must keep. How can i do my 2012 federal tax return with h&r block For a list, see Publication 15. How can i do my 2012 federal tax return with h&r block Assets. How can i do my 2012 federal tax return with h&r block   Assets are the property, such as machinery and furniture you own and use in your business. How can i do my 2012 federal tax return with h&r block You must keep records to verify certain information about your business assets. How can i do my 2012 federal tax return with h&r block You need records to figure the annual depreciation and the gain or loss when you sell the assets. How can i do my 2012 federal tax return with h&r block Your records should show the following information. How can i do my 2012 federal tax return with h&r block When and how you acquired the asset. How can i do my 2012 federal tax return with h&r block Purchase price. How can i do my 2012 federal tax return with h&r block Cost of any improvements. How can i do my 2012 federal tax return with h&r block Section 179 deduction taken. How can i do my 2012 federal tax return with h&r block Deductions taken for depreciation. How can i do my 2012 federal tax return with h&r block Deductions taken for casualty losses, such as losses resulting from fires or storms. How can i do my 2012 federal tax return with h&r block How you used the asset. How can i do my 2012 federal tax return with h&r block When and how you disposed of the asset. How can i do my 2012 federal tax return with h&r block Selling price. How can i do my 2012 federal tax return with h&r block Expenses of sale. How can i do my 2012 federal tax return with h&r block   The following documents may show this information. How can i do my 2012 federal tax return with h&r block Purchase and sales invoices. How can i do my 2012 federal tax return with h&r block Real estate closing statements. How can i do my 2012 federal tax return with h&r block Canceled checks. How can i do my 2012 federal tax return with h&r block What if I don't have a canceled check?   If you do not have a canceled check, you may be able to prove payment with certain financial account statements prepared by financial institutions. How can i do my 2012 federal tax return with h&r block These include account statements prepared for the financial institution by a third party. How can i do my 2012 federal tax return with h&r block These account statements must be highly legible. How can i do my 2012 federal tax return with h&r block The following table lists acceptable account statements. How can i do my 2012 federal tax return with h&r block  IF payment is by. How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block THEN the statement must show the. How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block Check Check number. How can i do my 2012 federal tax return with h&r block Amount. How can i do my 2012 federal tax return with h&r block Payee's name. How can i do my 2012 federal tax return with h&r block Date the check amount was posted to the account by the financial institution. How can i do my 2012 federal tax return with h&r block Electronic funds transfer Amount transferred. How can i do my 2012 federal tax return with h&r block Payee's name. How can i do my 2012 federal tax return with h&r block Date the transfer was posted to the account by the financial institution. How can i do my 2012 federal tax return with h&r block Credit card Amount charged. How can i do my 2012 federal tax return with h&r block Payee's name. How can i do my 2012 federal tax return with h&r block Transaction date. How can i do my 2012 federal tax return with h&r block    Proof of payment of an amount, by itself, does not establish you are entitled to a tax deduction. How can i do my 2012 federal tax return with h&r block You should also keep other documents, such as credit card sales slips and invoices, to show that you also incurred the cost. How can i do my 2012 federal tax return with h&r block Recording Business Transactions A good recordkeeping system includes a summary of your business transactions. How can i do my 2012 federal tax return with h&r block (Your business transactions are shown on the supporting documents just discussed. How can i do my 2012 federal tax return with h&r block ) Business transactions are ordinarily summarized in books called journals and ledgers. How can i do my 2012 federal tax return with h&r block You can buy them at your local stationery or office supply store. How can i do my 2012 federal tax return with h&r block A journal is a book where you record each business transaction shown on your supporting documents. How can i do my 2012 federal tax return with h&r block You may have to keep separate journals for transactions that occur frequently. How can i do my 2012 federal tax return with h&r block A ledger is a book that contains the totals from all of your journals. How can i do my 2012 federal tax return with h&r block It is organized into different accounts. How can i do my 2012 federal tax return with h&r block Whether you keep journals and ledgers and how you keep them depends on the type of business you are in. How can i do my 2012 federal tax return with h&r block For example, a recordkeeping system for a small business might include the following items. How can i do my 2012 federal tax return with h&r block Business checkbook. How can i do my 2012 federal tax return with h&r block Daily summary of cash receipts. How can i do my 2012 federal tax return with h&r block Monthly summary of cash receipts. How can i do my 2012 federal tax return with h&r block Check disbursements journal. How can i do my 2012 federal tax return with h&r block Depreciation worksheet. How can i do my 2012 federal tax return with h&r block Employee compensation record. How can i do my 2012 federal tax return with h&r block The business checkbook is explained next. How can i do my 2012 federal tax return with h&r block The other items are illustrated later under Sample Record System. How can i do my 2012 federal tax return with h&r block The system you use to record business transactions will be more effective if you follow good recordkeeping practices. How can i do my 2012 federal tax return with h&r block For example, record expenses when they occur, and identify the source of recorded receipts. How can i do my 2012 federal tax return with h&r block Generally, it is best to record transactions on a daily basis. How can i do my 2012 federal tax return with h&r block Business checkbook. How can i do my 2012 federal tax return with h&r block   One of the first things you should do when you start a business is open a business checking account. How can i do my 2012 federal tax return with h&r block You should keep your business account separate from your personal checking account. How can i do my 2012 federal tax return with h&r block   The business checkbook is your basic source of information for recording your business expenses. How can i do my 2012 federal tax return with h&r block You should deposit all daily receipts in your business checking account. How can i do my 2012 federal tax return with h&r block You should check your account for errors by reconciling it. How can i do my 2012 federal tax return with h&r block See Reconciling the checking account, later. How can i do my 2012 federal tax return with h&r block   Consider using a checkbook that allows enough space to identify the source of deposits as business income, personal funds, or loans. How can i do my 2012 federal tax return with h&r block You should also note on the deposit slip the source of the deposit and keep copies of all slips. How can i do my 2012 federal tax return with h&r block   You should make all payments by check to document business expenses. How can i do my 2012 federal tax return with h&r block Write checks payable to yourself only when making withdrawals from your business for personal use. How can i do my 2012 federal tax return with h&r block Avoid writing checks payable to cash. How can i do my 2012 federal tax return with h&r block If you must write a check for cash to pay a business expense, include the receipt for the cash payment in your records. How can i do my 2012 federal tax return with h&r block If you cannot get a receipt for a cash payment, you should make an adequate explanation in your records at the time of payment. How can i do my 2012 federal tax return with h&r block    Use the business account for business purposes only. How can i do my 2012 federal tax return with h&r block Indicate the source of deposits and the type of expense in the checkbook. How can i do my 2012 federal tax return with h&r block Reconciling the checking account. How can i do my 2012 federal tax return with h&r block   When you receive your bank statement, make sure the statement, your checkbook, and your books agree. How can i do my 2012 federal tax return with h&r block The statement balance may not agree with the balance in your checkbook and books if the statement: Includes bank charges you did not enter in your books and subtract from your checkbook balance, or Does not include deposits made after the statement date or checks that did not clear your account before the statement date. How can i do my 2012 federal tax return with h&r block   By reconciling your checking account, you will: Verify how much money you have in the account, Make sure that your checkbook and books reflect all bank charges and the correct balance in the checking account, and Correct any errors in your bank statement, checkbook, and books. How can i do my 2012 federal tax return with h&r block    You should reconcile your checking account each month. How can i do my 2012 federal tax return with h&r block     Before you reconcile your monthly bank statement, check your own figures. How can i do my 2012 federal tax return with h&r block Begin with the balance shown in your checkbook at the end of the previous month. How can i do my 2012 federal tax return with h&r block To this balance, add the total cash deposited during the month and subtract the total cash disbursements. How can i do my 2012 federal tax return with h&r block   After checking your figures, the result should agree with your checkbook balance at the end of the month. How can i do my 2012 federal tax return with h&r block If the result does not agree, you may have made an error in recording a check or deposit. How can i do my 2012 federal tax return with h&r block You can find the error by doing the following. How can i do my 2012 federal tax return with h&r block Adding the amounts on your check stubs and comparing that total with the total in the “amount of check” column in your check disbursements journal. How can i do my 2012 federal tax return with h&r block If the totals do not agree, check the individual amounts to see if an error was made in your check stub record or in the related entry in your check disbursements journal. How can i do my 2012 federal tax return with h&r block Adding the deposit amounts in your checkbook. How can i do my 2012 federal tax return with h&r block Compare that total with the monthly total in your cash receipt book, if you have one. How can i do my 2012 federal tax return with h&r block If the totals do not agree, check the individual amounts to find any errors. How can i do my 2012 federal tax return with h&r block   If your checkbook and journal entries still disagree, then refigure the running balance in your checkbook to make sure additions and subtractions are correct. How can i do my 2012 federal tax return with h&r block   When your checkbook balance agrees with the balance figured from the journal entries, you may begin reconciling your checkbook with the bank statement. How can i do my 2012 federal tax return with h&r block Many banks print a reconciliation worksheet on the back of the statement. How can i do my 2012 federal tax return with h&r block   To reconcile your account, follow these steps. How can i do my 2012 federal tax return with h&r block Compare the deposits listed on the bank statement with the deposits shown in your checkbook. How can i do my 2012 federal tax return with h&r block Note all differences in the dollar amounts. How can i do my 2012 federal tax return with h&r block Compare each canceled check, including both check number and dollar amount, with the entry in your checkbook. How can i do my 2012 federal tax return with h&r block Note all differences in the dollar amounts. How can i do my 2012 federal tax return with h&r block Mark the check number in the checkbook as having cleared the bank. How can i do my 2012 federal tax return with h&r block After accounting for all checks returned by the bank, those not marked in your checkbook are your outstanding checks. How can i do my 2012 federal tax return with h&r block Prepare a bank reconciliation. How can i do my 2012 federal tax return with h&r block One is illustrated later under Sample Record System. How can i do my 2012 federal tax return with h&r block Update your checkbook and journals for items shown on the reconciliation as not recorded (such as service charges) or recorded incorrectly. How can i do my 2012 federal tax return with h&r block At this point, the adjusted bank statement balance should equal your adjusted checkbook balance. How can i do my 2012 federal tax return with h&r block If you still have differences, check the previous steps to find the errors. How can i do my 2012 federal tax return with h&r block   Table 3. How can i do my 2012 federal tax return with h&r block Period of Limitations IF you. How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block   THEN the period is. How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block . How can i do my 2012 federal tax return with h&r block 1. How can i do my 2012 federal tax return with h&r block Owe additional tax and situations (2), (3), and (4), below, do not apply to you   3 years 2. How can i do my 2012 federal tax return with h&r block Do not report income that you should report and it is more than 25% of the gross income shown on the return   6 years 3. How can i do my 2012 federal tax return with h&r block File a fraudulent return   Not limited 4. How can i do my 2012 federal tax return with h&r block Do not file a return   Not limited 5. How can i do my 2012 federal tax return with h&r block File a claim for credit or refund after you filed your return   Later of: 3 years or  2 years after tax   was paid 6. How can i do my 2012 federal tax return with h&r block File a claim for a loss from worthless securities or a bad debt deduction   7 years Bookkeeping System You must decide whether to use a single-entry or a double-entry bookkeeping system. How can i do my 2012 federal tax return with h&r block The single-entry system of bookkeeping is the simplest to maintain, but it may not be suitable for everyone. How can i do my 2012 federal tax return with h&r block You may find the double-entry system better because it has built-in checks and balances to assure accuracy and control. How can i do my 2012 federal tax return with h&r block Single-entry. How can i do my 2012 federal tax return with h&r block   A single-entry system is based on the income statement (profit or loss statement). How can i do my 2012 federal tax return with h&r block It can be a simple and practical system if you are starting a small business. How can i do my 2012 federal tax return with h&r block The system records the flow of income and expenses through the use of: A daily summary of cash receipts, and Monthly summaries of cash receipts and disbursements. How can i do my 2012 federal tax return with h&r block Double-entry. How can i do my 2012 federal tax return with h&r block   A double-entry bookkeeping system uses journals and ledgers. How can i do my 2012 federal tax return with h&r block Transactions are first entered in a journal and then posted to ledger accounts. How can i do my 2012 federal tax return with h&r block These accounts show income, expenses, assets (property a business owns), liabilities (debts of a business), and net worth (excess of assets over liabilities). How can i do my 2012 federal tax return with h&r block You close income and expense accounts at the end of each tax year. How can i do my 2012 federal tax return with h&r block You keep asset, liability, and net worth accounts open on a permanent basis. How can i do my 2012 federal tax return with h&r block   In the double-entry system, each account has a left side for debits and a right side for credits. How can i do my 2012 federal tax return with h&r block It is self-balancing because you record every transaction as a debit entry in one account and as a credit entry in another. How can i do my 2012 federal tax return with h&r block   Under this system, the total debits must equal the total credits after you post the journal entries to the ledger accounts. How can i do my 2012 federal tax return with h&r block If the amounts do not balance, you have made an error and you must find and correct it. How can i do my 2012 federal tax return with h&r block   An example of a journal entry exhibiting a payment of rent in October is shown next. How can i do my 2012 federal tax return with h&r block General Journal Date Description of Entry Debit  Credit Oct. How can i do my 2012 federal tax return with h&r block 5 Rent expense 780. How can i do my 2012 federal tax return with h&r block 00     Cash   780. How can i do my 2012 federal tax return with h&r block 00                 Computerized System There are computer software packages you can use for recordkeeping. How can i do my 2012 federal tax return with h&r block They can be purchased in many retail stores. How can i do my 2012 federal tax return with h&r block These packages are very helpful and relatively easy to use; they require very little knowledge of bookkeeping and accounting. How can i do my 2012 federal tax return with h&r block If you use a computerized system, you must be able to produce sufficient legible records to support and verify entries made on your return and determine your correct tax liability. How can i do my 2012 federal tax return with h&r block To meet this qualification, the machine-sensible records must reconcile with your books and return. How can i do my 2012 federal tax return with h&r block These records must provide enough detail to identify the underlying source documents. How can i do my 2012 federal tax return with h&r block You must also keep all machine-sensible records and a complete description of the computerized portion of your recordkeeping system. How can i do my 2012 federal tax return with h&r block This documentation must be sufficiently detailed to show all of the following items. How can i do my 2012 federal tax return with h&r block Functions being performed as the data flows through the system. How can i do my 2012 federal tax return with h&r block Controls used to ensure accurate and reliable processing. How can i do my 2012 federal tax return with h&r block Controls used to prevent the unauthorized addition, alteration, or deletion of retained records. How can i do my 2012 federal tax return with h&r block Charts of accounts and detailed account descriptions. How can i do my 2012 federal tax return with h&r block See Revenue Procedure 98-25 in Cumulative Bulletin 1998-1 for more information. How can i do my 2012 federal tax return with h&r block How Long To Keep Records You must keep your records as long as they may be needed for the administration of any provision of the Internal Revenue Code. How can i do my 2012 federal tax return with h&r block Generally, this means you must keep records that support an item of income or deduction on a return until the period of limitations for that return runs out. How can i do my 2012 federal tax return with h&r block The period of limitations is the period of time in which you can amend your return to claim a credit or refund, or the IRS can assess additional tax. How can i do my 2012 federal tax return with h&r block Table 3 contains the periods of limitations that apply to income tax returns. How can i do my 2012 federal tax return with h&r block Unless otherwise stated, the years refer to the period after the return was filed. How can i do my 2012 federal tax return with h&r block Returns filed before the due date are treated as filed on the due date. How can i do my 2012 federal tax return with h&r block Keep copies of your filed tax returns. How can i do my 2012 federal tax return with h&r block They help in preparing future tax returns and making computations if you file an amended return. How can i do my 2012 federal tax return with h&r block Employment taxes. How can i do my 2012 federal tax return with h&r block   If you have employees, you must keep all employment tax records for at least 4 years after the date the tax becomes due or is paid, whichever is later. How can i do my 2012 federal tax return with h&r block For more information about recordkeeping for employment taxes, see Publication 15. How can i do my 2012 federal tax return with h&r block Assets. How can i do my 2012 federal tax return with h&r block   Keep records relating to property until the period of limitations expires for the year in which you dispose of the property in a taxable disposition. How can i do my 2012 federal tax return with h&r block You must keep these records to figure any depreciation, amortization, or depletion deduction, and to figure your basis for computing gain or loss when you sell or otherwise dispose of the property. How can i do my 2012 federal tax return with h&r block   Generally, if you received property in a nontaxable exchange, your basis in that property is the same as the basis of the property you gave up, increased by any money you paid. How can i do my 2012 federal tax return with h&r block You must keep the records on the old property, as well as on the new property, until the period of limitations expires for the year in which you dispose of the new property in a taxable disposition. How can i do my 2012 federal tax return with h&r block Records for nontax purposes. How can i do my 2012 federal tax return with h&r block   When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. How can i do my 2012 federal tax return with h&r block For example, your insurance company or creditors may require you to keep them longer than the IRS does. How can i do my 2012 federal tax return with h&r block Sample Record System This example illustrates a single-entry system used by Henry Brown, who is the sole proprietor of a small automobile body shop. How can i do my 2012 federal tax return with h&r block Henry uses part-time help, has no inventory of items held for sale, and uses the cash method of accounting. How can i do my 2012 federal tax return with h&r block These sample records should not be viewed as a recommendation of how to keep your records. How can i do my 2012 federal tax return with h&r block They are intended only to show how one business keeps its records. How can i do my 2012 federal tax return with h&r block 1. How can i do my 2012 federal tax return with h&r block Daily Summary of Cash Receipts This summary is a record of cash sales for the day. How can i do my 2012 federal tax return with h&r block It accounts for cash at the end of the day over the amount in the Change and Petty Cash Fund at the beginning of the day. How can i do my 2012 federal tax return with h&r block Henry takes the cash sales entry from his cash register tape. How can i do my 2012 federal tax return with h&r block If he had no cash register, he would simply total his cash sale slips and any other cash received that day. How can i do my 2012 federal tax return with h&r block He carries the total receipts shown in this summary for January 3 ($267. How can i do my 2012 federal tax return with h&r block 80), including cash sales ($263. How can i do my 2012 federal tax return with h&r block 60) and sales tax ($4. How can i do my 2012 federal tax return with h&r block 20), to the Monthly Summary of Cash Receipts. How can i do my 2012 federal tax return with h&r block Petty cash fund. How can i do my 2012 federal tax return with h&r block   Henry uses a petty cash fund to make small payments without having to write checks for small amounts. How can i do my 2012 federal tax return with h&r block Each time he makes a payment from this fund, he makes out a petty cash slip and attaches it to his receipt as proof of payment. How can i do my 2012 federal tax return with h&r block He sets up a fixed amount ($50) in his petty cash fund. How can i do my 2012 federal tax return with h&r block The total of the unspent petty cash and the amounts on the petty cash slips should equal the fixed amount of the fund. How can i do my 2012 federal tax return with h&r block When the totals on the petty cash slips approach the fixed amount, he brings the cash in the fund back to the fixed amount by writing a check to “Petty Cash” for the total of the outstanding slips. How can i do my 2012 federal tax return with h&r block (See the Check Disbursements Journal entry for check number 92. How can i do my 2012 federal tax return with h&r block ) This restores the fund to its fixed amount of $50. How can i do my 2012 federal tax return with h&r block He then summarizes the slips and enters them in the proper columns in the monthly check disbursements journal. How can i do my 2012 federal tax return with h&r block 2. How can i do my 2012 federal tax return with h&r block Monthly Summary of Cash Receipts This shows the income activity for the month. How can i do my 2012 federal tax return with h&r block Henry carries the total monthly net sales shown in this summary for January ($4,865. How can i do my 2012 federal tax return with h&r block 05) to his Annual Summary. How can i do my 2012 federal tax return with h&r block To figure total monthly net sales, Henry reduces the total monthly receipts by the sales tax imposed on his customers and turned over to the state. How can i do my 2012 federal tax return with h&r block He cannot take a deduction for sales tax turned over to the state because he only collected the tax. How can i do my 2012 federal tax return with h&r block He does not include the tax in his income. How can i do my 2012 federal tax return with h&r block 3. How can i do my 2012 federal tax return with h&r block Check Disbursements Journal Henry enters checks drawn on the business checking account in the Check Disbursements Journal each day. How can i do my 2012 federal tax return with h&r block All checks are prenumbered and each check number is listed and accounted for in the column provided in the journal. How can i do my 2012 federal tax return with h&r block Frequent expenses have their own headings across the sheet. How can i do my 2012 federal tax return with h&r block He enters in a separate column expenses that require comparatively numerous or large payments each month, such as materials, gross payroll, and rent. How can i do my 2012 federal tax return with h&r block Under the General Accounts column, he enters small expenses that normally have only one or two monthly payments, such as licenses and postage. How can i do my 2012 federal tax return with h&r block Henry does not pay personal or nonbusiness expenses by checks drawn on the business account. How can i do my 2012 federal tax return with h&r block If he did, he would record them in the journal, even though he could not deduct them as business expenses. How can i do my 2012 federal tax return with h&r block Henry carries the January total of expenses for materials ($1,083. How can i do my 2012 federal tax return with h&r block 50) to the Annual Summary. How can i do my 2012 federal tax return with h&r block Similarly, he enters the monthly total of expenses for telephone, truck/auto, etc. How can i do my 2012 federal tax return with h&r block , in the appropriate columns of that summary. How can i do my 2012 federal tax return with h&r block 4. How can i do my 2012 federal tax return with h&r block Employee Compensation Record This record shows the following information. How can i do my 2012 federal tax return with h&r block The number of hours Henry's employee worked in a pay period. How can i do my 2012 federal tax return with h&r block The employee's total pay for the period. How can i do my 2012 federal tax return with h&r block The deductions Henry withheld in figuring the employee's net pay. How can i do my 2012 federal tax return with h&r block The monthly gross payroll. How can i do my 2012 federal tax return with h&r block Henry carries the January gross payroll ($520) to the Annual Summary. How can i do my 2012 federal tax return with h&r block 5. How can i do my 2012 federal tax return with h&r block Annual Summary This annual summary of monthly cash receipts and expense totals provides the final amounts to enter on Henry's tax return. How can i do my 2012 federal tax return with h&r block He figures the cash receipts total from the total of monthly cash receipts shown in the Monthly Summary of Cash Receipts. How can i do my 2012 federal tax return with h&r block He figures the expense totals from the totals of monthly expense items shown in the Check Disbursements Journal. How can i do my 2012 federal tax return with h&r block As in the journal, he keeps each major expense in a separate column. How can i do my 2012 federal tax return with h&r block Henry carries the cash receipts total shown in the annual summary ($47,440. How can i do my 2012 federal tax return with h&r block 9