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Information About Tax Returns For Students

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Information About Tax Returns For Students

Information about tax returns for students 4. Information about tax returns for students   Underpayment Penalty for 2013 Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: General RuleFarmers and fishermen. Information about tax returns for students Higher income taxpayers. Information about tax returns for students Minimum required for higher income taxpayers. Information about tax returns for students Estate or trust payments of estimated tax. Information about tax returns for students Lowering or eliminating the penalty. Information about tax returns for students ExceptionsLess Than $1,000 Due No Tax Liability Last Year Figuring Your Required Annual Payment (Part I) Short Method for Figuring the Penalty (Part III) Regular Method for Figuring the Penalty (Part IV)Figuring Your Underpayment (Part IV, Section A) Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Annualized Income Installment Method (Schedule AI) Farmers and Fishermen Waiver of PenaltyFarmers and fishermen. Information about tax returns for students Introduction If you did not pay enough tax, either through withholding or by making timely estimated tax payments, you will have underpaid your estimated tax and may have to pay a penalty. Information about tax returns for students You may understand this chapter better if you can refer to a copy of your latest federal income tax return. Information about tax returns for students No penalty. Information about tax returns for students   Generally, you will not have to pay a penalty for 2013 if any of the following apply. Information about tax returns for students The total of your withholding and timely estimated tax payments was at least as much as your 2012 tax. Information about tax returns for students (See Special rules for certain individuals for higher income taxpayers and farmers and fishermen. Information about tax returns for students ) The tax balance due on your 2013 return is no more than 10% of your total 2013 tax, and you paid all required estimated tax payments on time. Information about tax returns for students Your total tax for 2013 (defined later) minus your withholding is less than $1,000. Information about tax returns for students You did not have a tax liability for 2012. Information about tax returns for students You did not have any withholding taxes and your current year tax (less any household employment taxes) is less than $1,000. Information about tax returns for students IRS can figure the penalty for you. Information about tax returns for students   If you think you owe the penalty, but you do not want to figure it yourself when you file your tax return, you may not have to. Information about tax returns for students Generally, the IRS will figure the penalty for you and send you a bill. Information about tax returns for students   You only need to figure your penalty in the following three situations. Information about tax returns for students You are requesting a waiver of part, but not all, of the penalty. Information about tax returns for students You are using the annualized income installment method to figure the penalty. Information about tax returns for students You are treating the federal income tax withheld from your income as paid on the dates actually withheld. Information about tax returns for students However, if these situations do not apply to you, and you think you can lower or eliminate your penalty, complete Form 2210 or Form 2210-F and attach it to your return. Information about tax returns for students See Form 2210 , later. Information about tax returns for students Topics - This chapter discusses: The general rule for the underpayment penalty, Special rules for certain individuals, Exceptions to the underpayment penalty, How to figure your underpayment and the amount of your penalty on Form 2210, and How to ask the IRS to waive the penalty. Information about tax returns for students Useful Items - You may want to see: Form (and Instructions) 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts 2210-F Underpayment of Estimated Tax by Farmers and Fishermen See chapter 5 for information about getting these forms. Information about tax returns for students General Rule In general, you may owe a penalty for 2013 if the total of your withholding and timely estimated tax payments did not equal at least the smaller of: 90% of your 2013 tax, or 100% of your 2012 tax. Information about tax returns for students (Your 2012 tax return must cover a 12-month period. Information about tax returns for students ) Your 2013 tax, for this purpose, is defined under Total tax for 2013 , later. Information about tax returns for students Special rules for certain individuals. Information about tax returns for students   There are special rules for farmers and fishermen and certain higher income taxpayers. Information about tax returns for students Farmers and fishermen. Information about tax returns for students   If at least two-thirds of your gross income for 2012 or 2013 is from farming or fishing, substitute  662/3% for 90% in (1) above. Information about tax returns for students   See Farmers and Fishermen , later. Information about tax returns for students Higher income taxpayers. Information about tax returns for students   If your AGI for 2012 was more than $150,000 ($75,000 if your 2013 filing status is married filing a separate return), substitute 110% for 100% in (2) under General Rule . Information about tax returns for students This rule does not apply to farmers or fishermen. Information about tax returns for students   For 2012, AGI is the amount shown on Form 1040, line 37; Form 1040A, line 21; and Form 1040EZ, line 4. Information about tax returns for students Penalty figured separately for each period. Information about tax returns for students   Because the penalty is figured separately for each payment period, you may owe a penalty for an earlier payment period even if you later paid enough to make up the underpayment. Information about tax returns for students This is true even if you are due a refund when you file your income tax return. Information about tax returns for students Example. Information about tax returns for students You did not make estimated tax payments for 2013 because you thought you had enough tax withheld from your wages. Information about tax returns for students Early in January 2014, you made an estimate of your total 2013 tax. Information about tax returns for students Then you realized that your withholding was $2,000 less than the amount needed to avoid a penalty for underpayment of estimated tax. Information about tax returns for students On January 10, you made an estimated tax payment of $3,000, which is the difference between your withholding and your estimate of your total tax. Information about tax returns for students Your final return shows your total tax to be $50 less than your estimate, so you are due a refund. Information about tax returns for students You do not owe a penalty for your payment due January 15, 2014. Information about tax returns for students However, you may owe a penalty through January 10, 2014, the day you made the $3,000 payment, for your underpayments for the earlier payment periods. Information about tax returns for students Minimum required each period. Information about tax returns for students   You will owe a penalty for any 2013 payment period for which your estimated tax payment plus your withholding for the period and overpayments applied from previous periods was less than the smaller of: 22. Information about tax returns for students 5% of your 2013 tax, or 25% of your 2012 tax. Information about tax returns for students (Your 2012 tax return must cover a 12-month period. Information about tax returns for students ) Minimum required for higher income taxpayers. Information about tax returns for students   If you are subject to the rule for higher income taxpayers, discussed above, substitute 27. Information about tax returns for students 5% for 25% in (2) under General Rule . Information about tax returns for students When penalty is charged. Information about tax returns for students   If you miss a payment or you paid less than the minimum required in a period, you may be charged an underpayment penalty from the date the amount was due to the date the payment is made. Information about tax returns for students If a payment is mailed, the date of the U. Information about tax returns for students S. Information about tax returns for students postmark is considered the date of payment. Information about tax returns for students   If a payment is made electronically, the date the payment is shown on your payment account (checking, savings, etc. Information about tax returns for students ) is considered to be the date of payment. Information about tax returns for students Estate or trust payments of estimated tax. Information about tax returns for students   If you have estimated taxes credited to you from an estate or trust (Schedule K-1 (Form 1041)), treat the payment as made by you on January 15, 2014. Information about tax returns for students Amended returns. Information about tax returns for students    If you file an amended return by the due date of your original return, use the tax shown on your amended return to figure your required estimated tax payments. Information about tax returns for students If you file an amended return after the due date of the original return, use the tax shown on the original return. Information about tax returns for students   However, if you and your spouse file a joint return after the due date to replace separate returns you originally filed by the due date, use the tax shown on the joint return to figure your required estimated tax payments. Information about tax returns for students This rule applies only if both original separate returns were filed on time. Information about tax returns for students 2012 separate returns and 2013 joint return. Information about tax returns for students    If you file a joint return with your spouse for 2013, but you filed separate returns for 2012, your 2012 tax is the total of the tax shown on your separate returns. Information about tax returns for students You filed a separate return if you filed as single, head of household, or married filing separately. Information about tax returns for students 2012 joint return and 2013 separate returns. Information about tax returns for students    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, your 2012 tax is your share of the tax on the joint return. Information about tax returns for students You are filing a separate return if you file as single, head of household, or married filing separately. Information about tax returns for students   To figure your share of the taxes on a joint return, first figure the tax both you and your spouse would have paid had you filed separate returns for 2012 using the same filing status as for 2013. Information about tax returns for students Then multiply the tax on the joint return by the following fraction. Information about tax returns for students   The tax you would have paid had you filed a separate return   The total tax you and your spouse would have paid had you filed separate returns Example. Information about tax returns for students Lisa and Paul filed a joint return for 2012 showing taxable income of $49,000 and a tax of $6,484. Information about tax returns for students Of the $49,000 taxable income, $41,000 was Lisa's and the rest was Paul's. Information about tax returns for students For 2013, they file married filing separately. Information about tax returns for students Lisa figures her share of the tax on the 2012 joint return as follows. Information about tax returns for students 2012 tax on $41,000 based on a separate return $ 6,286 2012 tax on $8,000 based on a  separate return 803 Total $ 7,089 Lisa's percentage of total tax  ($6,286 ÷ $ 7,089) 88. Information about tax returns for students 67% Lisa's part of tax on joint return ($6,484 × 88. Information about tax returns for students 67%) $ 5,749 Form 2210. Information about tax returns for students   In most cases, you do not need to file Form 2210. Information about tax returns for students The IRS will figure the penalty for you and send you a bill. Information about tax returns for students If you want us to figure the penalty for you, leave the penalty line on your return blank. Information about tax returns for students Do not file Form 2210. Information about tax returns for students   To determine if you should file Form 2210, see Part II of Form 2210. Information about tax returns for students If you decide to figure your penalty, complete Part I, Part II, and either Part III or Part IV of the form and the Penalty Worksheet in the Instructions for Form 2210. Information about tax returns for students If you use Form 2210, you cannot file Form 1040EZ. Information about tax returns for students   On Form 1040, enter the amount of your penalty on line 77. Information about tax returns for students If you owe tax on line 76, add the penalty to your tax due and show your total payment on line 76. Information about tax returns for students If you are due a refund, subtract the penalty from the overpayment and enter the result on line 73. Information about tax returns for students   On Form 1040A, enter the amount of your penalty on line 46. Information about tax returns for students If you owe tax on line 45, add the penalty to your tax due and show your total payment on line 45. Information about tax returns for students If you are due a refund, subtract the penalty from the overpayment and enter the result on line 42. Information about tax returns for students Lowering or eliminating the penalty. Information about tax returns for students    You may be able to lower or eliminate your penalty if you file Form 2210. Information about tax returns for students You must file Form 2210 with your return if any of the following applies. Information about tax returns for students You request a waiver. Information about tax returns for students See Waiver of Penalty , later. Information about tax returns for students You use the annualized income installment method. Information about tax returns for students See the explanation of this method under Annualized Income Installment Method (Schedule AI) . Information about tax returns for students You use your actual withholding for each payment period for estimated tax purposes. Information about tax returns for students See Actual withholding method under Figuring Your Underpayment (Part IV, Section A). Information about tax returns for students You base any of your required installments on the tax shown on your 2012 return and you filed or are filing a joint return for either 2012 or 2013, but not for both years. Information about tax returns for students Exceptions Generally, you do not have to pay an underpayment penalty if either: Your total tax is less than $1,000, or You had no tax liability last year. Information about tax returns for students Less Than $1,000 Due You do not owe a penalty if the total tax shown on your return minus the amount you paid through withholding (including excess social security and tier 1 railroad retirement (RRTA) tax withholding) is less than $1,000. Information about tax returns for students Total tax for 2013. Information about tax returns for students   For 2013, your total tax on Form 1040 is the amount on line 61 reduced by the following. Information about tax returns for students    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Information about tax returns for students Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Information about tax returns for students The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Information about tax returns for students Any refundable credit amounts listed on lines 64a, 65, 66, 70, and any credit from Form 8885 included on line 71. Information about tax returns for students   If you filed Form 1040A, your 2013 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Information about tax returns for students   If you filed Form 1040EZ, your 2013 total tax is the amount on line 10 reduced by the amount on line 8a. Information about tax returns for students Note. Information about tax returns for students When figuring the amount on line 60, include household employment taxes only if you had federal income tax withheld from your income or you would owe the penalty even if you did not include those taxes. Information about tax returns for students Paid through withholding. Information about tax returns for students    For 2013, the amount you paid through withholding on Form 1040 is the amount on line 62 plus any excess social security or tier 1 RRTA tax withholding on line 69. Information about tax returns for students Add to that any write-in amount on line 72 identified as “Form 8689. Information about tax returns for students ” On Form 1040A, the amount you paid through withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included on line 41. Information about tax returns for students On Form 1040EZ, it is the amount on line 7. Information about tax returns for students No Tax Liability Last Year You do not owe a penalty if you had no tax liability last year and you were a U. Information about tax returns for students S. Information about tax returns for students citizen or resident for the whole year. Information about tax returns for students For this rule to apply, your tax year must have included all 12 months of the year. Information about tax returns for students You had no tax liability for 2012 if your total tax was zero or you were not required to file an income tax return. Information about tax returns for students Example. Information about tax returns for students Ray, who is single and 22 years old, was unemployed for a few months during 2012. Information about tax returns for students He earned $6,700 in wages before he was laid off, and he received $1,400 in unemployment compensation afterwards. Information about tax returns for students He had no other income. Information about tax returns for students Even though he had gross income of $8,100, he did not have to pay income tax because his gross income was less than the filing requirement for a single person under age 65 ($9,750 for 2012). Information about tax returns for students He filed a return only to have his withheld income tax refunded to him. Information about tax returns for students In 2013, Ray began regular work as an independent contractor. Information about tax returns for students Ray made no estimated tax payments in 2013. Information about tax returns for students Even though he did owe tax at the end of the year, Ray does not owe the underpayment penalty for 2013 because he had no tax liability in 2012. Information about tax returns for students Total tax for 2012. Information about tax returns for students   For 2012, your total tax on Form 1040 is the amount on line 61 reduced by the following. Information about tax returns for students    Unreported social security and Medicare tax or RRTA tax from Forms 4137 or 8919 (line 57). Information about tax returns for students Any tax included on line 58 for excess contributions to IRAs, Archer MSAs, Coverdell education savings accounts, and health savings accounts, or any tax on excess accumulations in qualified retirement plans. Information about tax returns for students The following write-ins on line 60: Uncollected social security and Medicare tax or RRTA tax on tips or group-term life insurance, Tax on excess golden parachute payments, Excise tax on insider stock compensation from an expatriated corporation, Look-back interest due under section 167(g), Look-back interest due under section 460(b), Recapture of federal mortgage subsidy, and Additional tax on advance payments of health coverage tax credit when not eligible. Information about tax returns for students Any refundable credit amounts listed on lines 64a, 65, 66, 70, and credits from Forms 8801 (line 27 only), and 8885 included on line 71. Information about tax returns for students   If you filed Form 1040A, your 2012 total tax is the amount on line 35 reduced by any refundable credits on lines 38a, 39, and 40. Information about tax returns for students   If you filed Form 1040EZ, your 2012 total tax is the amount on line 11 reduced by the amount on line 8a. Information about tax returns for students Figuring Your Required Annual Payment (Part I) Figure your required annual payment in Part I of Form 2210, following the line-by-line instructions. Information about tax returns for students If you rounded the entries on your tax return to whole dollars, you can round on Form 2210. Information about tax returns for students Example. Information about tax returns for students The tax on Lori Lane's 2012 return was $12,400. Information about tax returns for students Her AGI was not more than $150,000 for either 2012 or 2013. Information about tax returns for students The tax on her 2013 return (Form 1040, line 55) is $13,044. Information about tax returns for students Line 56 (self-employment tax) is $8,902. Information about tax returns for students Her 2013 total tax is $21,946. Information about tax returns for students For 2013, Lori had $1,600 income tax withheld and made four equal estimated tax payments ($1,000 each). Information about tax returns for students 90% of her 2013 tax is $19,751. Information about tax returns for students Because she paid less than her 2012 tax ($12,400) and less than 90% of her 2013 tax ($19,751), and does not meet an exception, Lori knows that she owes a penalty for underpayment of estimated tax. Information about tax returns for students The IRS will figure the penalty for Lori, but she decides to figure it herself on Form 2210 and pay it with her taxes when she files her tax return. Information about tax returns for students Lori's required annual payment is $12,400 (100% of 2012 tax) because that is smaller than 90% of her 2013 tax. Information about tax returns for students Different 2012 filing status. Information about tax returns for students    If you file a separate return for 2013, but you filed a joint return with your spouse for 2012, see 2012 joint return and 2013 separate returns , earlier, to figure the amount to enter as your 2012 tax on line 8 of Form 2210. Information about tax returns for students Short Method for Figuring the Penalty (Part III) You may be able to use the short method in Part III of Form 2210 to figure your penalty for underpayment of estimated tax. Information about tax returns for students If you qualify to use this method, it will result in the same penalty amount as the regular method. Information about tax returns for students However, either the annualized income installment method or the actual withholding method, explained later, may result in a smaller penalty. Information about tax returns for students You can use the short method only if you meet one of the following requirements. Information about tax returns for students You made no estimated tax payments for 2013 (it does not matter whether you had income tax withholding). Information about tax returns for students You paid the same amount of estimated tax on each of the four payment due dates. Information about tax returns for students If you do not meet either requirement, figure your penalty using the regular method in Part IV of Form 2210 and the Penalty Worksheet in the instructions. Information about tax returns for students Note. Information about tax returns for students If any payment was made before the due date, you can use the short method, but the penalty may be less if you use the regular method. Information about tax returns for students However, if the payment was only a few days early, the difference is likely to be small. Information about tax returns for students You cannot use the short method if any of the following apply. Information about tax returns for students You made any estimated tax payments late. Information about tax returns for students You checked box C or D in Part II of Form 2210. Information about tax returns for students You are filing Form 1040NR or 1040NR-EZ and you did not receive wages as an employee subject to U. Information about tax returns for students S. Information about tax returns for students income tax withholding. Information about tax returns for students If you use the short method, you cannot use the annualized income installment method to figure your underpayment for each payment period. Information about tax returns for students Also, you cannot use your actual withholding during each period to figure your payments for each period. Information about tax returns for students These methods, which may give you a smaller penalty amount, are explained under Figuring Your Underpayment (Part IV, Section A). Information about tax returns for students Complete Part III of Form 2210 following the line-by-line instructions in the Instructions for Form 2210. Information about tax returns for students Regular Method for Figuring the Penalty (Part IV) You can use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if you paid one or more estimated tax payments earlier than the due date. Information about tax returns for students You must use the regular method in Part IV of Form 2210 to figure your penalty for underpayment of estimated tax if any of the following apply to you. Information about tax returns for students You paid one or more estimated tax payments on a date after the due date. Information about tax returns for students You paid at least one, but less than four, installments of estimated tax. Information about tax returns for students You paid estimated tax payments in un- equal amounts. Information about tax returns for students You use the annualized income installment method to figure your underpayment for each payment period. Information about tax returns for students You use your actual withholding during each payment period to figure your payments. Information about tax returns for students Under the regular method, figure your underpayment for each payment period in Section A, then figure your penalty using the Penalty Worksheet in the Instructions for Form 2210. Information about tax returns for students Enter the results on line 27 of Section B. Information about tax returns for students Figuring Your Underpayment (Part IV, Section A) Figure your underpayment of estimated tax for each payment period in Section A following the line-by-line instructions in the Instructions for Form 2210. Information about tax returns for students Complete lines 20 through 26 of the first column before going to line 20 of the next column. Information about tax returns for students Required installments—line 18. Information about tax returns for students   Your required payment for each payment period (line 18) is usually one-fourth of your required annual payment (Part I, line 9). Information about tax returns for students This method—the regular method—is the one to use if you received your income evenly throughout the year. Information about tax returns for students   However, if you did not receive your income evenly throughout the year, you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Information about tax returns for students First complete Schedule AI (Form 2210), then enter the amounts from line 25 of that schedule on line 18 of Form 2210, Part IV. Information about tax returns for students See Annualized Income Installment Method (Schedule AI), later. Information about tax returns for students Payments made—line 19. Information about tax returns for students   Enter in each column the total of: Your estimated tax paid after the due date for the previous column and by the due date shown at the top of the column, and One-fourth of your withholding. Information about tax returns for students For special rules for figuring your payments, see Form 2210 instructions for line 19. Information about tax returns for students   If you file Form 1040, your withholding is the amount on line 62, plus any excess social security or tier 1 RRTA tax withholding on line 69. Information about tax returns for students If you file Form 1040A, your withholding is the amount on line 36 plus any excess social security or tier 1 RRTA tax withholding included in line 41. Information about tax returns for students Actual withholding method. Information about tax returns for students    Instead of using one-fourth of your withholding for each quarter, you can choose to use the amounts actually withheld by each due date. Information about tax returns for students You can make this choice separately for the tax withheld from your wages and for all other withholding. Information about tax returns for students This includes any excess social security and tier 1 RRTA tax withheld. Information about tax returns for students   Using your actual withholding may result in a smaller penalty if most of your withholding occurred early in the year. Information about tax returns for students   If you use your actual withholding, you must check box D in Form 2210, Part II. Information about tax returns for students Then complete Form 2210 using the regular method (Part IV) and file it with your return. Information about tax returns for students Worksheet for Form 2210, Part IV, Section B—Figuring the Penalty Figure the amount of your penalty for Section B using the Penalty Worksheet in the Form 2210 instructions. Information about tax returns for students The penalty is imposed on each underpayment amount shown on Form 2210, Section A, line 25, for the number of days that it remained unpaid. Information about tax returns for students For 2013, there are four rate periods—April 16 through June 30, July 1 through September 30, October 1 through December 31, and January 1, 2014 through April 15, 2014. Information about tax returns for students A 3% rate applies to all four periods. Information about tax returns for students Payments. Information about tax returns for students    Before completing the Penalty Worksheet, it may be helpful to make a list of the payments you made and income tax withheld after the due date (or the last day payments could be made on time) for the earliest payment period an underpayment occurred. Information about tax returns for students For example, if you had an underpayment for the first payment period, list your payments after April 15, 2013. Information about tax returns for students You can use the table in the Form 2210 instructions to make your list. Information about tax returns for students Follow those instructions for listing income tax withheld and payments made with your return. Information about tax returns for students Use the list to determine when each underpayment was paid. Information about tax returns for students   If you mail your estimated tax payments, use the date of the U. Information about tax returns for students S. Information about tax returns for students postmark as the date of payment. Information about tax returns for students Line 1b. Information about tax returns for students   Apply the payments listed to underpayment balance in the first column until it is fully paid. Information about tax returns for students Apply payments in the order made. Information about tax returns for students Figuring the penalty. Information about tax returns for students   If an underpayment was paid in two or more payments on different dates, you must figure the penalty separately for each payment. Information about tax returns for students On line 3 of the Penalty Worksheet enter the number of days between the due date (line 2) and the date of each payment on line 1b. Information about tax returns for students On line 4 figure the penalty for the amount of each payment applied on line 1b or the amount remaining unpaid. Information about tax returns for students If no payments are applied, figure the penalty on the amount on line 1a. Information about tax returns for students Aid for counting days. Information about tax returns for students    Table 4-1 provides a simple method for counting the number of days between a due date and a payment date. Information about tax returns for students Find the number for the date the payment was due by going across to the column of the month the payment was due and moving down the column to the due date. Information about tax returns for students In the same manner, find the number for the date the payment was made. Information about tax returns for students Subtract the due date “number” from the payment date “number. Information about tax returns for students ”   For example, if a payment was due on June 15 (61), but was not paid until September 1 (139), the payment was 78 (139 – 61) days late. Information about tax returns for students Table 4-1. Information about tax returns for students Calendar To Determine the Number of Days a Payment Is Late Instructions. Information about tax returns for students Use this table with Form 2210 if you are completing Part IV, Section B. Information about tax returns for students First, find the number for the payment due date by going across to the column of the month the payment was due and moving down the column to the due date. Information about tax returns for students Then, in the same manner, find the number for the date the payment was made. Information about tax returns for students Finally, subtract the due date number from the payment date number. Information about tax returns for students The result is the number of days the payment is late. Information about tax returns for students Example. Information about tax returns for students The payment due date is June 15 (61). Information about tax returns for students The payment was made on November 4 (203). Information about tax returns for students The payment is 142 days late (203 – 61). Information about tax returns for students Tax Year 2013 Day of 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 Month April May June July Aug. Information about tax returns for students Sept. Information about tax returns for students Oct. Information about tax returns for students Nov. Information about tax returns for students Dec. Information about tax returns for students Jan. Information about tax returns for students Feb. Information about tax returns for students Mar. Information about tax returns for students Apr. Information about tax returns for students 1   16 47 77 108 139 169 200 230 261 292 320 351 2   17 48 78 109 140 170 201 231 262 293 321 352 3   18 49 79 110 141 171 202 232 263 294 322 353 4   19 50 80 111 142 172 203 233 264 295 323 354 5   20 51 81 112 143 173 204 234 265 296 324 355 6   21 52 82 113 144 174 205 235 266 297 325 356 7   22 53 83 114 145 175 206 236 267 298 326 357 8   23 54 84 115 146 176 207 237 268 299 327 358 9   24 55 85 116 147 177 208 238 269 300 328 359 10   25 56 86 117 148 178 209 239 270 301 329 360 11   26 57 87 118 149 179 210 240 271 302 330 361 12   27 58 88 119 150 180 211 241 272 303 331 362 13   28 59 89 120 151 181 212 242 273 304 332 363 14   29 60 90 121 152 182 213 243 274 305 333 364 15 0 30 61 91 122 153 183 214 244 275 306 334 365 16 1 31 62 92 123 154 184 215 245 276 307 335   17 2 32 63 93 124 155 185 216 246 277 308 336   18 3 33 64 94 125 156 186 217 247 278 309 337   19 4 34 65 95 126 157 187 218 248 279 310 338   20 5 35 66 96 127 158 188 219 249 280 311 339   21 6 36 67 97 128 159 189 220 250 281 312 340   22 7 37 68 98 129 160 190 221 251 282 313 341   23 8 38 69 99 130 161 191 222 252 283 314 342   24 9 39 70 100 131 162 192 223 253 284 315 343   25 10 40 71 101 132 163 193 224 254 285 316 344   26 11 41 72 102 133 164 194 225 255 286 317 345   27 12 42 73 103 134 165 195 226 256 287 318 346   28 13 43 74 104 135 166 196 227 257 288 319 347   29 14 44 75 105 136 167 197 228 258 289   348   30 15 45 76 106 137 168 198 229 259 290   349   31   46   107 138   199   260 291   350   Annualized Income Installment Method (Schedule AI) If you did not receive your income evenly throughout the year (for example, your income from a shop you operated at a marina was much larger in the summer than it was during the rest of the year), you may be able to lower or eliminate your penalty by figuring your underpayment using the annualized income installment method. Information about tax returns for students Under this method, your required installment (Part IV, line 18) for one or more payment periods may be less than one-fourth of your required annual payment. Information about tax returns for students To figure your underpayment using this method, complete Form 2210, Schedule AI. Information about tax returns for students Schedule AI annualizes your tax at the end of each payment period based on your income, deductions, and other items relating to events that occurred from the beginning of the tax year through the end of the period. Information about tax returns for students If you use the annualized income installment method, you must check box C in Part II of Form 2210. Information about tax returns for students Also, you must attach Form 2210 and Schedule AI to your return. Information about tax returns for students If you use Schedule AI for any payment due date, you must use it for all payment due dates. Information about tax returns for students Completing Schedule AI. Information about tax returns for students   Follow the Form 2210 instructions to complete Schedule AI. Information about tax returns for students For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. Information about tax returns for students If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period. Information about tax returns for students Note. Information about tax returns for students Each period includes amounts from the previous period(s). Information about tax returns for students Period (a) includes items for January 1 through March 31. Information about tax returns for students Period (b) includes items for January 1 through May 31. Information about tax returns for students Period (c) includes items for January 1 through August 31. Information about tax returns for students Period (d) includes items for the entire year. Information about tax returns for students Farmers and Fishermen If you are a farmer or fisherman, the following special rules for underpayment of estimated tax apply to you. Information about tax returns for students The penalty for underpaying your 2013 estimated tax will not apply if you file your return and pay all the tax due by March 3, 2014. Information about tax returns for students If you are a fiscal year taxpayer, the penalty will not apply if you file your return and pay the tax due by the first day of the third month after the end of your tax year. Information about tax returns for students Any penalty you owe for underpaying your 2013 estimated tax will be figured from one payment due date, January 15, 2014. Information about tax returns for students The underpayment penalty for 2013 is figured on the difference between the amount of 2013 withholding plus estimated tax paid by the due date and the smaller of: 662/3% (rather than 90%) of your 2013 tax, or 100% of the tax shown on your 2012 return. Information about tax returns for students Even if these special rules apply to you, you will not owe the penalty if you meet either of the two conditions discussed under Exceptions . Information about tax returns for students See Who Must Pay Estimated Tax in chapter 2 for the definition of a farmer or fisherman who is eligible for these special rules. Information about tax returns for students Form 2210-F. Information about tax returns for students   Use Form 2210-F to figure any underpayment penalty. Information about tax returns for students Do not attach it to your return unless you check a box in Part I. Information about tax returns for students However, if none of the boxes apply to you and you owe a penalty, you do not need to attach Form 2210-F. Information about tax returns for students Enter the amount from line 16 on Form 1040, line 77 and add the penalty to any balance due on your return or subtract it from your refund. Information about tax returns for students Keep your filled-in Form 2210-F for your records. Information about tax returns for students    If none of the boxes on Form 2210-F apply to you and you owe a penalty, the IRS can figure your penalty and send you a bill. Information about tax returns for students Waiver of Penalty The IRS can waive the penalty for underpayment if either of the following applies. Information about tax returns for students You did not make a payment because of a casualty, disaster, or other unusual circumstance and it would be inequitable to impose the penalty. Information about tax returns for students You retired (after reaching age 62) or became disabled in 2012 or 2013 and both the following requirements are met. Information about tax returns for students You had a reasonable cause for not making the payment. Information about tax returns for students Your underpayment was not due to willful neglect. Information about tax returns for students How to request a waiver. Information about tax returns for students   To request a waiver, see the Instructions for Form 2210. Information about tax returns for students Farmers and fishermen. Information about tax returns for students   To request a waiver, see the Instructions for Form 2210-F. Information about tax returns for students Federally declared disaster. Information about tax returns for students   Certain estimated tax payment deadlines for taxpayers who reside or have a business in a federally declared disaster area are postponed for a period during and after the disaster. Information about tax returns for students During the processing of your tax return, the IRS automatically identifies taxpayers located in a covered disaster area (by county or parish) and applies the appropriate penalty relief. Information about tax returns for students Do not file Form 2210 or 2210-F if your underpayment was due to a federally declared disaster. Information about tax returns for students If you still owe a penalty after the automatic waiver is applied, we will send you a bill. Information about tax returns for students   Individuals, estates, and trusts not in a covered disaster area but whose books, records, or tax professionals' offices are in a covered area are also entitled to relief. Information about tax returns for students Also eligible are relief workers affiliated with a recognized government or charitable organization assisting in the relief activities in a covered disaster area. Information about tax returns for students If you meet either of these eligibility requirements, you must call the IRS disaster hotline at 1-866-562-5227 and identify yourself as eligible for this relief. Information about tax returns for students   Details on the applicable disaster postponement period can be found at IRS. Information about tax returns for students gov. Information about tax returns for students Enter Tax Relief in Disaster Situations. Information about tax returns for students Select the federally declared disaster that affected you. Information about tax returns for students    Worksheet 4-1. Information about tax returns for students 2013 Form 2210, Schedule AI—Line 12 Qualified Dividends and Capital Gain Tax Worksheet Note. Information about tax returns for students To figure the annualized entries for lines 2, 3, and 5 below, multiply the expected amount for the period by the  annualization amount on line 2 of Schedule AI for the same period. Information about tax returns for students                   1. Information about tax returns for students Enter line 11 of your Schedule AI, or line 3 from Worksheet 4-2 1. Information about tax returns for students       2. Information about tax returns for students Enter your annualized qualified dividends for the period 2. Information about tax returns for students           3. Information about tax returns for students Are you filing Schedule D?               □ Yes. Information about tax returns for students Enter the smaller of your annualized amount from line 15 or line 16 of Schedule D. Information about tax returns for students If either line 15 or line 16 is blank or a loss, enter -0-. Information about tax returns for students 3. Information about tax returns for students             □ No. Information about tax returns for students Enter your annualized capital gain distributions from Form 1040, line 13             4. Information about tax returns for students Add lines 2 and 3   4. Information about tax returns for students           5. Information about tax returns for students If you are claiming investment interest expense on Form 4952, enter your annualized amount from line 4g of that form. Information about tax returns for students Otherwise, enter -0-   5. Information about tax returns for students           6. Information about tax returns for students Subtract line 5 from line 4. Information about tax returns for students If zero or less, enter -0- 6. Information about tax returns for students       7. Information about tax returns for students Subtract line 6 from line 1. Information about tax returns for students If zero or less, enter -0- 7. Information about tax returns for students       8. Information about tax returns for students Enter: $36,900 if single or married filing separately, $73,800 if married filing jointly or qualifying widow(er), $49,400 if head of household. Information about tax returns for students 8. Information about tax returns for students       9. Information about tax returns for students Enter the smaller of line 1 or line 8 9. Information about tax returns for students       10. Information about tax returns for students Enter the smaller of line 7 or line 9 10. Information about tax returns for students       11. Information about tax returns for students Subtract line 10 from line 9. Information about tax returns for students This amount is taxed at 0% 11. Information about tax returns for students       12. Information about tax returns for students Enter the smaller of line 1 or line 6 12. Information about tax returns for students       13. Information about tax returns for students Enter the amount from line 11 13. Information about tax returns for students       14. Information about tax returns for students Subtract line 13 from line 12 14. Information about tax returns for students       15. Information about tax returns for students Multiply line 14 by 15% (. Information about tax returns for students 15) 15. Information about tax returns for students   16. Information about tax returns for students Figure the tax on the amount on line 7. Information about tax returns for students If the amount on line 7 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Information about tax returns for students If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 16. Information about tax returns for students   17. Information about tax returns for students Add lines 15 and 16 17. Information about tax returns for students   18. Information about tax returns for students Figure the tax on the amount on line 1. Information about tax returns for students If the amount on line 1 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Information about tax returns for students If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 18. Information about tax returns for students   19. Information about tax returns for students Tax on all taxable income. Information about tax returns for students Enter the smaller of line 17 or line 18. Information about tax returns for students Also enter this amount on line 12 of Schedule AI in the appropriate column. Information about tax returns for students However, if you are using this worksheet to figure the tax on the amount on line 3 of Worksheet 4-2, enter the amount from line 19 on Worksheet 4-2, line 4 19. Information about tax returns for students   Worksheet 4-2. Information about tax returns for students 2013 Form 2210, Schedule AI—Line 12 Foreign Earned Income Tax Worksheet Before you begin:If Schedule AI, line 11, is zero for the period, do not complete this worksheet. Information about tax returns for students             1. Information about tax returns for students Enter the amount from line 11 of Schedule AI for the period 1. Information about tax returns for students   2. Information about tax returns for students Enter the annualized amount* of foreign earned income and housing amount excluded or deducted (from  Form 2555, lines 45 and 50, or Form 2555-EZ, line 18) in figuring the amount entered for the period on line 1  of Schedule AI 2. Information about tax returns for students   3. Information about tax returns for students Add lines 1 and 2 3. Information about tax returns for students   4. Information about tax returns for students Tax on the amount on line 3. Information about tax returns for students Use the Tax Table, Tax Computation Worksheet, Form 8615**, Qualified Dividends and Capital Gain Tax Worksheet***, or Schedule D Tax Worksheet***, whichever applies. Information about tax returns for students See the 2013 Instructions for Form 1040, line 44, to find out which tax computation method to use. Information about tax returns for students (Note. Information about tax returns for students You do not have to use the same method for each period on Schedule AI. Information about tax returns for students ) 4. Information about tax returns for students   5. Information about tax returns for students Tax on the amount on line 2. Information about tax returns for students If the amount on line 2 is less than $100,000, use the Tax Table in the 2013 Form 1040 instructions to figure this tax. Information about tax returns for students If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet in the 2013 Form 1040 instructions 5. Information about tax returns for students   6. Information about tax returns for students Subtract line 5 from line 4. Information about tax returns for students Enter the result here and on line 12 of Schedule AI. Information about tax returns for students If zero or less,  enter -0- 6. Information about tax returns for students             * To figure the annualized amount for line 2, multiply the exclusion or deduction for the period by the annualization amount on line 2 of Schedule AI for the same period. Information about tax returns for students     ** If you use Form 8615 to figure the tax on line 4 above, enter the amount from line 3 above on line 4 of Form 8615. Information about tax returns for students If the child's parent files Form 2555 or 2555-EZ, enter the amounts from lines 3 and 4 of the parent's Foreign Earned Income Tax Worksheet on lines 6 and 10, respectively, of Form 8615. Information about tax returns for students Complete the rest of Form 8615 according to its instructions. Information about tax returns for students Then complete lines 5 and 6 above. Information about tax returns for students     *** Enter the amount from line 3 above on line 1 of the Qualified Dividends and Capital Gain Tax Worksheet (or Worksheet 4-1 in this chapter) or the Schedule D Tax Worksheet, whichever worksheet you use to figure the tax on line 4 above. Information about tax returns for students Complete that worksheet through line 6 (line 10 if you use the Schedule D Tax Worksheet). Information about tax returns for students Next, determine if you have a capital gain excess. Information about tax returns for students     Figuring capital gain excess. Information about tax returns for students To find out if you have a capital gain excess for the appropriate period, subtract line 11 of Schedule AI from line 6 of Worksheet 4-1 or your Qualified Dividends and Capital Gain Tax Worksheet (line 10 of your Schedule D Tax Worksheet). Information about tax returns for students If the result is more than zero, that amount is your capital gain excess. Information about tax returns for students     No capital gain excess. Information about tax returns for students If you do not have a capital gain excess, complete the rest of Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or the Schedule D Tax Worksheet according to the worksheet's instructions. Information about tax returns for students Then complete lines 5 and 6 above. Information about tax returns for students     Capital gain excess. Information about tax returns for students If you have a capital gain excess, complete a second Worksheet 4-1, Qualified Dividends and Capital Gain Tax Worksheet, or Schedule D Tax Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Information about tax returns for students Then complete lines 5 and 6 above. Information about tax returns for students     Make the modifications below only for purposes of filling out Worksheet 4-2 above. Information about tax returns for students     a. Information about tax returns for students Reduce (but not below zero) the amount you otherwise would enter on line 3 of your Worksheet 4-1, line 3 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 9 of your Schedule D Tax Worksheet by your capital gain excess. Information about tax returns for students     b. Information about tax returns for students Reduce (but not below zero) the amount you otherwise would enter on line 2 of your Worksheet 4-1, line 2 of your Qualified Dividends and Capital Gain Tax Worksheet, or line 6 of your Schedule D Tax Worksheet by any of your capital gain excess not used in (a) above. Information about tax returns for students     c. Information about tax returns for students Reduce (but not below zero) the amount on your Schedule D (Form 1040), line 18, by your capital gain excess. Information about tax returns for students     d. Information about tax returns for students Include your capital gain excess as a loss on line 16 of your Unrecaptured Section 1250 Gain Worksheet in the 2013 Instructions for Schedule D (Form 1040). Information about tax returns for students   Prev  Up  Next   Home   More Online Publications
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The Information About Tax Returns For Students

Information about tax returns for students Internal Revenue Bulletin:  2012-14  April 2, 2012  Rev. Information about tax returns for students Proc. Information about tax returns for students 2012-23 Table of Contents SECTION 1. Information about tax returns for students PURPOSE SECTION 2. Information about tax returns for students BACKGROUND SECTION 3. Information about tax returns for students SCOPE SECTION 4. Information about tax returns for students APPLICATION. Information about tax returns for students 01 Limitations on Depreciation Deductions for Certain Automobiles. Information about tax returns for students . Information about tax returns for students 02 Inclusions in Income of Lessees of Passenger Automobiles. Information about tax returns for students SECTION 5. Information about tax returns for students EFFECTIVE DATE SECTION 6. Information about tax returns for students DRAFTING INFORMATION SECTION 1. Information about tax returns for students PURPOSE This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans. Information about tax returns for students The tables detailing these depreciation limitations and lessee inclusion amounts reflect the automobile price inflation adjustments required by § 280F(d)(7) of the Internal Revenue Code. Information about tax returns for students SECTION 2. Information about tax returns for students BACKGROUND . Information about tax returns for students 01 For owners of passenger automobiles, § 280F(a) imposes dollar limitations on the depreciation deduction for the year the taxpayer places the passenger automobile in service and for each succeeding year. Information about tax returns for students For passenger automobiles placed in service after 1988, § 280F(d)(7) requires the Internal Revenue Service to increase the amounts allowable as depreciation deductions by a price inflation adjustment amount. Information about tax returns for students The method of calculating this price inflation amount for trucks and vans placed in service in or after calendar year 2003 uses a different CPI “automobile component” (the “new trucks” component) than that used in the price inflation amount calculation for other passenger automobiles (the “new cars” component), resulting in somewhat higher depreciation deductions for trucks and vans. Information about tax returns for students This change reflects the higher rate of price inflation for trucks and vans since 1988. Information about tax returns for students . Information about tax returns for students 02 Section 401(a) of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Pub. Information about tax returns for students L. Information about tax returns for students No. Information about tax returns for students 111-312, 124 Stat. Information about tax returns for students 3296 (Dec. Information about tax returns for students 17, 2010) (the “Act”) extended the 50 percent additional first year depreciation deduction under § 168(k) to qualified property acquired by the taxpayer after December 31, 2007, and before January 1, 2013, if no written binding contract for the acquisition of the property existed before January 1, 2008, and if the taxpayer places the property in service generally before January 1, 2013. Information about tax returns for students Section 168(k)(2)(F)(i) increases the first year depreciation allowed under § 280F(a)(1)(A)(i) by $8,000 for passenger automobiles to which the additional first year depreciation deduction under § 168(k) (hereinafter, referred to as “§ 168(k) additional first year depreciation deduction”) applies. Information about tax returns for students . Information about tax returns for students 03 Section 168(k)(2)(D)(i) provides that the § 168(k) additional first year depreciation deduction does not apply to any property required to be depreciated under the alternative depreciation system of § 168(g), including property described in § 280F(b)(1). Information about tax returns for students Section 168(k)(2)(D)(iii) permits a taxpayer to elect out of the § 168(k) additional first year depreciation deduction for any class of property. Information about tax returns for students Section 168(k)(4), as amended by the Act, permits a corporation to elect to increase the alternative minimum tax (“AMT”) credit limitation under § 53(c), instead of claiming the § 168(k) additional first year depreciation deduction for all eligible qualified property placed in service after December 31, 2010, that is round 2 extension property (as defined in § 168(k)(4)(I)(iv)). Information about tax returns for students Accordingly, this revenue procedure provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction applies. Information about tax returns for students This revenue procedure also provides tables for passenger automobiles for which the § 168(k) additional first year depreciation deduction does not apply, either because taxpayer (1) purchased the passenger automobile used; (2) did not use the passenger automobile during 2012 more than 50 percent for business purposes; (3) elected out of the § 168(k) additional first year depreciation deduction pursuant to § 168(k)(2)(D)(iii); or (4) elected to increase the § 53 AMT credit limitation in lieu of claiming § 168(k) additional first year depreciation. Information about tax returns for students . Information about tax returns for students 04 Section 280F(c) requires a reduction in the deduction allowed to the lessee of a leased passenger automobile. Information about tax returns for students The reduction must be substantially equivalent to the limitations on the depreciation deductions imposed on owners of passenger automobiles. Information about tax returns for students Under § 1. Information about tax returns for students 280F-7(a) of the Income Tax Regulations, this reduction requires a lessee to include in gross income an amount determined by applying a formula to the amount obtained from a table. Information about tax returns for students One table applies to lessees of trucks and vans and another table applies to all other passenger automobiles. Information about tax returns for students Each table shows inclusion amounts for a range of fair market values for each taxable year after the passenger automobile is first leased. Information about tax returns for students SECTION 3. Information about tax returns for students SCOPE . Information about tax returns for students 01 The limitations on depreciation deductions in section 4. Information about tax returns for students 01(2) of this revenue procedure apply to passenger automobiles (other than leased passenger automobiles) that are placed in service by the taxpayer in calendar year 2012, and continue to apply for each taxable year that the passenger automobile remains in service. Information about tax returns for students . Information about tax returns for students 02 The tables in section 4. Information about tax returns for students 02 of this revenue procedure apply to leased passenger automobiles for which the lease term begins during calendar year 2012. Information about tax returns for students Lessees of these passenger automobiles must use these tables to determine the inclusion amount for each taxable year during which the passenger automobile is leased. Information about tax returns for students See Rev. Information about tax returns for students Proc. Information about tax returns for students 2007-30, 2007-1 C. Information about tax returns for students B. Information about tax returns for students 1104, for passenger automobiles first leased during calendar year 2007; Rev. Information about tax returns for students Proc. Information about tax returns for students 2008-22, 2008-1 C. Information about tax returns for students B. Information about tax returns for students 658, for passenger automobiles first leased during calendar year 2008; Rev. Information about tax returns for students Proc. Information about tax returns for students 2009-24, 2009-17 I. Information about tax returns for students R. Information about tax returns for students B. Information about tax returns for students 885, for passenger automobiles first leased during calendar year 2009; Rev. Information about tax returns for students Proc. Information about tax returns for students 2010-18, 2010-9 I. Information about tax returns for students R. Information about tax returns for students B. Information about tax returns for students 427, as amplified and modified by section 4. Information about tax returns for students 03 of Rev. Information about tax returns for students Proc. Information about tax returns for students 2011-21, 2011-12 I. Information about tax returns for students R. Information about tax returns for students B. Information about tax returns for students 560, for passenger automobiles first leased during calendar year 2010; and Rev. Information about tax returns for students Proc. Information about tax returns for students 2011-21, for passenger automobiles first leased during calendar year 2011. Information about tax returns for students SECTION 4. Information about tax returns for students APPLICATION . Information about tax returns for students 01 Limitations on Depreciation Deductions for Certain Automobiles. Information about tax returns for students (1) Amount of the inflation adjustment. Information about tax returns for students (a) Passenger automobiles (other than trucks or vans). Information about tax returns for students Under § 280F(d)(7)(B)(i), the automobile price inflation adjustment for any calendar year is the percentage (if any) by which the CPI automobile component for October of the preceding calendar year exceeds the CPI automobile component for October 1987. Information about tax returns for students Section 280F(d)(7)(B)(ii) defines the term “CPI automobile component” as the automobile component of the Consumer Price Index for all Urban Consumers published by the Department of Labor. Information about tax returns for students The new car component of the CPI was 115. Information about tax returns for students 2 for October 1987 and 143. Information about tax returns for students 419 for October 2011. Information about tax returns for students The October 2011 index exceeded the October 1987 index by 28. Information about tax returns for students 219. Information about tax returns for students Therefore, the automobile price inflation adjustment for 2012 for passenger automobiles (other than trucks and vans) is 24. Information about tax returns for students 5 percent (28. Information about tax returns for students 219/115. Information about tax returns for students 2 x 100%). Information about tax returns for students The dollar limitations in § 280F(a) are multiplied by a factor of 0. Information about tax returns for students 245, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations applicable to passenger automobiles (other than trucks and vans) for calendar year 2012. Information about tax returns for students This adjustment applies to all passenger automobiles (other than trucks and vans) that are first placed in service in calendar year 2012. Information about tax returns for students (b) Trucks and vans. Information about tax returns for students To determine the dollar limitations for trucks and vans first placed in service during calendar year 2012, the Service uses the new truck component of the CPI instead of the new car component. Information about tax returns for students The new truck component of the CPI was 112. Information about tax returns for students 4 for October 1987 and 146. Information about tax returns for students 607 for October 2011. Information about tax returns for students The October 2011 index exceeded the October 1987 index by 34. Information about tax returns for students 207. Information about tax returns for students Therefore, the automobile price inflation adjustment for 2012 for trucks and vans is 30. Information about tax returns for students 43 percent (34. Information about tax returns for students 207/112. Information about tax returns for students 4 x 100%). Information about tax returns for students The dollar limitations in § 280F(a) are multiplied by a factor of 0. Information about tax returns for students 3043, and the resulting increases, after rounding to the nearest $100, are added to the 1988 limitations to give the depreciation limitations for trucks and vans. Information about tax returns for students This adjustment applies to all trucks and vans that are first placed in service in calendar year 2012. Information about tax returns for students (2) Amount of the limitation. Information about tax returns for students Tables 1 through 4 contain the dollar amount of the depreciation limitation for each taxable year for passenger automobiles a taxpayer places in service in calendar year 2012. Information about tax returns for students Use Table 1 for a passenger automobile (other than a truck or van), and Table 2 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction applies. Information about tax returns for students Use Table 3 for a passenger automobile (other than a truck or van), and Table 4 for a truck or van, placed in service in calendar year 2012 for which the § 168(k) additional first year depreciation deduction does not apply. Information about tax returns for students REV. Information about tax returns for students PROC. Information about tax returns for students 2012-23 TABLE 1 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Information about tax returns for students PROC. Information about tax returns for students 2012-23 TABLE 2 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES Tax Year Amount 1st Tax Year $11,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 REV. Information about tax returns for students PROC. Information about tax returns for students 2012-23 TABLE 3 DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,160 2nd Tax Year $5,100 3rd Tax Year $3,050 Each Succeeding Year $1,875 REV. Information about tax returns for students PROC. Information about tax returns for students 2012-23 TABLE 4 DEPRECIATION LIMITATIONS FOR TRUCKS AND VANS PLACED IN SERVICE IN CALENDAR YEAR 2012 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION DOES NOT APPLY Tax Year Amount 1st Tax Year $3,360 2nd Tax Year $5,300 3rd Tax Year $3,150 Each Succeeding Year $1,875 . Information about tax returns for students 02 Inclusions in Income of Lessees of Passenger Automobiles. Information about tax returns for students A taxpayer must follow the procedures in § 1. Information about tax returns for students 280F-7(a) for determining the inclusion amounts for passenger automobiles first leased in calendar year 2012. Information about tax returns for students In applying these procedures, lessees of passenger automobiles other than trucks and vans should use Table 5 of this revenue procedure, while lessees of trucks and vans should use Table 6 of this revenue procedure. Information about tax returns for students REV. Information about tax returns for students PROC. Information about tax returns for students 2012-23 TABLE 5 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES (THAT ARE NOT TRUCKS OR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $18,500 $19,000 2 4 5 6 8 19,000 19,500 2 4 7 7 9 19,500 20,000 2 5 8 8 10 20,000 20,500 3 5 9 10 11 20,500 21,000 3 6 9 12 12 21,000 21,500 3 7 10 12 14 21,500 22,000 3 8 11 13 16 22,000 23,000 4 8 13 15 17 23,000 24,000 4 10 15 17 20 24,000 25,000 5 11 17 19 23 25,000 26,000 6 12 19 21 26 26,000 27,000 6 14 20 24 28 27,000 28,000 7 15 22 26 31 28,000 29,000 7 16 25 28 33 29,000 30,000 8 18 25 32 35 30,000 31,000 9 19 27 34 38 31,000 32,000 9 20 30 36 41 32,000 33,000 10 21 32 38 43 33,000 34,000 10 23 33 41 46 34,000 35,000 11 24 35 43 49 35,000 36,000 12 25 37 45 52 36,000 37,000 12 27 39 47 54 37,000 38,000 13 28 41 49 57 38,000 39,000 13 29 43 52 59 39,000 40,000 14 30 45 54 62 40,000 41,000 14 32 47 56 65 41,000 42,000 15 33 49 58 68 42,000 43,000 16 34 51 61 70 43,000 44,000 16 36 52 63 73 44,000 45,000 17 37 54 66 75 45,000 46,000 17 38 57 67 78 46,000 47,000 18 39 59 70 80 47,000 48,000 19 40 61 72 83 48,000 49,000 19 42 62 75 86 49,000 50,000 20 43 64 77 89 50,000 51,000 20 45 66 79 91 51,000 52,000 21 46 68 81 94 52,000 53,000 21 47 70 84 96 53,000 54,000 22 48 72 86 99 54,000 55,000 23 49 74 88 102 55,000 56,000 23 51 76 90 104 56,000 57,000 24 52 78 92 107 57,000 58,000 24 54 79 95 110 58,000 59,000 25 55 81 97 113 59,000 60,000 26 56 83 100 115 60,000 62,000 26 58 86 103 119 62,000 64,000 28 60 90 108 124 64,000 66,000 29 63 94 112 129 66,000 68,000 30 66 97 117 135 68,000 70,000 31 68 102 121 140 70,000 72,000 32 71 105 126 145 72,000 74,000 33 74 109 130 151 74,000 76,000 35 76 113 135 156 76,000 78,000 36 78 117 140 161 78,000 80,000 37 81 120 145 166 80,000 85,000 39 86 127 152 176 85,000 90,000 42 92 137 163 189 90,000 95,000 45 98 147 175 202 95,000 100,000 48 105 155 187 215 100,000 110,000 52 115 170 203 235 110,000 120,000 58 127 189 227 262 120,000 130,000 64 140 208 250 288 130,000 140,000 70 153 227 272 315 140,000 150,000 75 166 246 296 340 150,000 160,000 81 179 265 318 368 160,000 170,000 87 192 284 341 394 170,000 180,000 93 204 304 364 420 180,000 190,000 99 217 323 387 446 190,000 200,000 105 230 342 409 473 200,000 210,000 111 243 361 432 499 210,000 220,000 116 256 380 455 526 220,000 230,000 122 269 399 478 552 230,000 240,000 128 282 418 501 578 240,000 and up 134 294 437 524 605 REV. Information about tax returns for students PROC. Information about tax returns for students 2012-23 TABLE 6 DOLLAR AMOUNTS FOR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2012 Fair Market Value of Truck or Van Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th & Later $19,000 $19,500 1 4 5 6 7 19,500 20,000 2 4 6 7 9 20,000 20,500 2 5 7 8 10 20,500 21,000 2 5 8 10 11 21,000 21,500 3 6 9 10 13 21,500 22,000 3 6 10 12 14 22,000 23,000 3 8 11 14 15 23,000 24,000 4 9 13 16 18 24,000 25,000 4 10 15 19 21 25,000 26,000 5 11 17 21 24 26,000 27,000 6 12 19 23 26 27,000 28,000 6 14 21 25 29 28,000 29,000 7 15 23 27 32 29,000 30,000 7 17 24 30 34 30,000 31,000 8 18 26 32 37 31,000 32,000 9 19 28 34 40 32,000 33,000 9 20 31 36 42 33,000 34,000 10 21 33 39 44 34,000 35,000 10 23 34 41 48 35,000 36,000 11 24 36 44 50 36,000 37,000 12 25 38 46 53 37,000 38,000 12 27 40 48 55 38,000 39,000 13 28 42 50 58 39,000 40,000 13 29 44 53 60 40,000 41,000 14 31 45 55 63 41,000 42,000 14 32 48 57 66 42,000 43,000 15 33 50 59 69 43,000 44,000 16 34 52 61 72 44,000 45,000 16 36 53 64 74 45,000 46,000 17 37 55 66 77 46,000 47,000 17 38 58 68 79 47,000 48,000 18 40 59 70 82 48,000 49,000 19 41 61 73 84 49,000 50,000 19 42 63 75 87 50,000 51,000 20 43 65 78 89 51,000 52,000 20 45 66 80 93 52,000 53,000 21 46 68 83 95 53,000 54,000 21 48 70 84 98 54,000 55,000 22 49 72 87 100 55,000 56,000 23 50 74 89 103 56,000 57,000 23 51 76 92 105 57,000 58,000 24 52 78 94 108 58,000 59,000 24 54 80 96 111 59,000 60,000 25 55 82 98 114 60,000 62,000 26 57 85 101 118 62,000 64,000 27 60 88 106 123 64,000 66,000 28 62 93 110 128 66,000 68,000 29 65 96 115 134 68,000 70,000 30 67 100 120 139 70,000 72,000 32 70 103 125 144 72,000 74,000 33 72 108 129 149 74,000 76,000 34 75 111 134 155 76,000 78,000 35 78 115 138 160 78,000 80,000 36 80 119 143 165 80,000 85,000 38 85 125 151 175 85,000 90,000 41 91 135 163 187 90,000 95,000 44 98 144 174 201 95,000 100,000 47 104 154 185 214 100,000 110,000 52 113 169 202 234 110,000 120,000 57 127 187 225 261 120,000 130,000 63 139 207 248 287 130,000 140,000 69 152 226 271 313 140,000 150,000 75 165 245 294 339 150,000 160,000 81 178 264 316 366 160,000 170,000 87 190 283 340 392 170,000 180,000 92 204 302 362 419 180,000 190,000 98 216 322 385 445 190,000 200,000 104 229 340 409 471 200,000 210,000 110 242 359 431 498 210,000 220,000 116 255 378 454 524 220,000 230,000 122 267 398 477 551 230,000 240,000 127 281 416 500 577 240,000 and up 133 294 435 523 603 SECTION 5. Information about tax returns for students EFFECTIVE DATE This revenue procedure applies to passenger automobiles that a taxpayer first places in service or first leases during calendar year 2012. Information about tax returns for students SECTION 6. Information about tax returns for students DRAFTING INFORMATION The principal author of this revenue procedure is Bernard P. Information about tax returns for students Harvey of the Office of Associate Chief Counsel (Income Tax & Accounting). Information about tax returns for students For further information regarding this revenue procedure, contact Mr. Information about tax returns for students Harvey at (202) 622-4930 (not a toll-free call). Information about tax returns for students Prev  Up  Next   Home   More Internal Revenue Bulletins