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Irs 2012 Tax Form 1040

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Irs 2012 Tax Form 1040

Irs 2012 tax form 1040 Publication 4492-A - Main Contents Table of Contents DefinitionsKansas Disaster Area Storms and Tornadoes Casualty and Theft Losses Replacement Period for Nonrecognition of Gain Net Operating Losses IRAs and Other Retirement PlansDefinitions Taxation of Qualified Recovery Assistance Distributions Repayment of Qualified Recovery Assistance Distributions How To Report Qualified Recovery Assistance Distributions Repayment of Qualified Distributions for the Purchase or Construction of a Main Home Loans From Qualified Plans Additional Tax Relief for BusinessesSpecial Depreciation Allowance Increased Section 179 Deduction Employee Retention Credit Demolition and Clean-up Costs Request for Copy or Transcript of Tax Return How To Get Tax HelpLow Income Taxpayer Clinics (LITCs). Irs 2012 tax form 1040 Definitions The following definitions are used throughout this publication. Irs 2012 tax form 1040 Kansas Disaster Area The Kansas disaster area covers the Kansas counties of Barton, Clay, Cloud, Comanche, Dickinson, Edwards, Ellsworth, Kiowa, Leavenworth, Lyon, McPherson, Osage, Osborne, Ottawa, Phillips, Pottawatomie, Pratt, Reno, Rice, Riley, Saline, Shawnee, Smith, and Stafford. Irs 2012 tax form 1040 Storms and Tornadoes The term “storms and tornadoes” as used in this publication, refers to the storms and tornadoes that began on May 4, 2007, and affected the Kansas disaster area (defined above). Irs 2012 tax form 1040 Casualty and Theft Losses The following paragraphs explain changes to casualty and theft losses that occurred in the Kansas disaster area. Irs 2012 tax form 1040 Limits on personal casualty or theft losses in the Kansas disaster area. Irs 2012 tax form 1040   Losses of personal use property that arose in the Kansas disaster area after May 3, 2007, are not subject to the $100 or 10% of adjusted gross income limits. Irs 2012 tax form 1040 Qualifying losses include losses from casualties and thefts that arose in the disaster area and that were attributable to the storms and tornadoes. Irs 2012 tax form 1040 When to deduct the loss. Irs 2012 tax form 1040   Casualty and theft losses are generally deductible only in the year the casualty occurred or the theft was discovered. Irs 2012 tax form 1040 However, the Kansas disaster area is a Presidentially declared disaster. Irs 2012 tax form 1040 Therefore, you could have elected to deduct losses from these storms and tornadoes on your tax return for the previous year. Irs 2012 tax form 1040 The deadline for making this election has expired. Irs 2012 tax form 1040   The following special instructions explain how to complete your forms if you deduct the loss in 2007 or elected to deduct the loss in 2006. Irs 2012 tax form 1040 Special instructions for individuals who file Form 4684 to claim a Kansas disaster area casualty or theft loss for 2007 or are amending their 2006 return. Irs 2012 tax form 1040   Individuals filing or amending their 2007 tax return or amending their 2006 tax return for casualty or theft losses that were attributable to the storms and tornadoes should enter “Kansas Disaster Area” at the top of Form 1040 or 1040X. Irs 2012 tax form 1040 They must also complete and attach the 2006 version of Form 4684 for either year and enter “Kansas Disaster Area” on the top and on the dotted line next to line 11 and enter -0- on line 11. Irs 2012 tax form 1040 Individuals filing or amending their 2007 tax return should cross out “2006” and enter “2007” at the top of Form 4684. Irs 2012 tax form 1040 They must also enter the amount from line 21 of that form on line 20 of Schedule A (Form 1040). Irs 2012 tax form 1040 Replacement Period for Nonrecognition of Gain Generally, an involuntary conversion occurs when property is damaged, destroyed, stolen, seized, requisitioned, or condemned, and you receive other property or money in payment, such as insurance or a condemnation award. Irs 2012 tax form 1040 Generally, you do not have to report a gain (if any) if you replace the property within 2 years (4 years for a main home in a Presidentially declared disaster area). Irs 2012 tax form 1040 However, for property that was involuntarily converted after May 3, 2007, as a result of the storms and tornadoes, a 5-year replacement period applies if substantially all of the use of the replacement property is in the Kansas disaster area. Irs 2012 tax form 1040 For more information, see the Instructions for Form 4684. Irs 2012 tax form 1040 Net Operating Losses Qualified recovery assistance loss. Irs 2012 tax form 1040   Generally, you can carry a net operating loss (NOL) back to the 2 tax years before the NOL year. Irs 2012 tax form 1040 However, the portion of an NOL that is a qualified recovery assistance loss can be carried back to the 5 tax years before the NOL year. Irs 2012 tax form 1040 In addition, the 90% limit on the alternative tax NOL deduction (ATNOLD) does not apply to such portion of the ATNOLD. Irs 2012 tax form 1040   A qualified recovery assistance loss is the smaller of: The excess of the NOL for the year over the specified liability loss for the year to which a 10-year carryback applies, or The total of the following deductions (to the extent they are taken into account in computing the NOL for the tax year): Qualified recovery assistance casualty loss (as defined below), Moving expenses paid or incurred after May 3, 2007, and before January 1, 2010, for the employment of an individual whose main home was in the Kansas disaster area before May 4, 2007, who was unable to remain in that home because of the storms and tornadoes, and whose main job location (after the move) is in the Kansas disaster area, Temporary housing expenses paid or incurred after May 3, 2007, and before January 1, 2010, to house employees of the taxpayer whose main job location is in the Kansas disaster area, Depreciation or amortization allowable for any qualified recovery assistance property (even if you elected not to claim the special recovery assistance depreciation allowance for such property) for the year placed in service, and Repair expenses (including expenses for the removal of debris) paid or incurred after May 3, 2007, and before January 1, 2010, for any damage from the storms and tornadoes to property located in the Kansas disaster area. Irs 2012 tax form 1040 Qualified recovery assistance casualty loss. Irs 2012 tax form 1040   A qualified recovery assistance casualty loss is any deductible section 1231 loss of property located in the Kansas disaster area if the loss was caused by the storms and tornadoes. Irs 2012 tax form 1040 For this purpose, the amount of the loss is reduced by any recognized gain from an involuntary conversion caused by the storms and tornadoes of property located in the Kansas disaster area. Irs 2012 tax form 1040 Any such loss taken into account in figuring your qualified recovery assistance loss is not eligible for the election to be treated as having occurred in the previous tax year. Irs 2012 tax form 1040 Amended return. Irs 2012 tax form 1040   If you have already filed your 2007 tax return and then carried your NOL back 2 years, you may file an amended return to carry back for 5 years your NOL attributable to a qualified recovery assistance loss. Irs 2012 tax form 1040 More information. Irs 2012 tax form 1040    For more information on NOLs, see Publication 536. Irs 2012 tax form 1040 IRAs and Other Retirement Plans New rules provide for tax-favored withdrawals, repayments, and loans from certain retirement plans for individuals who suffered economic losses as a result of the storms and tornadoes. Irs 2012 tax form 1040 Definitions Qualified recovery assistance distribution. Irs 2012 tax form 1040   Except as provided below, a qualified recovery assistance distribution is any distribution you received and designated as such from an eligible retirement plan if all of the following apply. Irs 2012 tax form 1040 The distribution was made after May 3, 2007, and before January 1, 2009. Irs 2012 tax form 1040 Your main home was located in the Kansas disaster area on May 4, 2007. Irs 2012 tax form 1040 You sustained an economic loss because of the storms and tornadoes. Irs 2012 tax form 1040 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs 2012 tax form 1040   If (1) through (3) above apply, you can generally designate any distribution (including periodic payments and required minimum distributions) from an eligible retirement plan as a qualified recovery assistance distribution, regardless of whether the distribution was made on account of the storms and tornadoes. Irs 2012 tax form 1040 Qualified recovery assistance distributions are permitted without regard to your need or the actual amount of your economic loss. Irs 2012 tax form 1040   The total of your qualified recovery assistance distributions from all plans is limited to $100,000. Irs 2012 tax form 1040 If you have distributions in excess of $100,000 from more than one type of plan, such as a 401(k) plan and an IRA, you may allocate the $100,000 limit among the plans any way you choose. Irs 2012 tax form 1040   A reduction or offset after May 3, 2007, of your account balance in an eligible retirement plan in order to repay a loan can also be designated as a qualified recovery assistance distribution. Irs 2012 tax form 1040 Eligible retirement plan. Irs 2012 tax form 1040   An eligible retirement plan can be any of the following. Irs 2012 tax form 1040 A qualified pension, profit-sharing, or stock bonus plan (including a 401(k) plan). Irs 2012 tax form 1040 A qualified annuity plan. Irs 2012 tax form 1040 A tax-sheltered annuity contract. Irs 2012 tax form 1040 A governmental section 457 deferred compensation plan. Irs 2012 tax form 1040 A traditional, SEP, SIMPLE, or Roth IRA. Irs 2012 tax form 1040 Main home. Irs 2012 tax form 1040   Generally, your main home is the home where you live most of the time. Irs 2012 tax form 1040 A temporary absence due to special circumstances, such as illness, education, business, military service, evacuation, or vacation, will not change your main home. Irs 2012 tax form 1040 Taxation of Qualified Recovery Assistance Distributions Qualified recovery assistance distributions are included in income in equal amounts over three years. Irs 2012 tax form 1040 However, if you elect, you can include the entire distribution in your income in the year it was received. Irs 2012 tax form 1040 Qualified recovery assistance distributions are not subject to the additional 10% tax (or the additional 25% tax for certain distributions from SIMPLE IRAs) on early distributions from qualified retirement plans (including IRAs). Irs 2012 tax form 1040 However, any distributions you receive in excess of the $100,000 qualified recovery assistance distribution limit may be subject to the additional tax on early distributions. Irs 2012 tax form 1040 For more information, see How To Report Qualified Recovery Assistance Distributions on page 4. Irs 2012 tax form 1040 Repayment of Qualified Recovery Assistance Distributions If you choose, you generally can repay any portion of a qualified recovery assistance distribution that is eligible for tax-free rollover treatment to an eligible retirement plan. Irs 2012 tax form 1040 Also, you can repay a qualified recovery assistance distribution made on account of a hardship from a retirement plan. Irs 2012 tax form 1040 However, see Exceptions below for qualified recovery assistance distributions you cannot repay. Irs 2012 tax form 1040 You have three years from the day after the date you received the distribution to make a repayment. Irs 2012 tax form 1040 Amounts that are repaid are treated as a qualified rollover and are not included in income. Irs 2012 tax form 1040 Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Irs 2012 tax form 1040 See Form 8915 for more information on how to report repayments. Irs 2012 tax form 1040 Exceptions. Irs 2012 tax form 1040   You cannot repay the following types of distributions. Irs 2012 tax form 1040 Qualified recovery assistance distributions received as a beneficiary (other than a surviving spouse). Irs 2012 tax form 1040 Required minimum distributions. Irs 2012 tax form 1040 Periodic payments (other than from an IRA) that are for: A period of 10 years or more, Your life or life expectancy, or The joint lives or joint life expectancies of you and your beneficiary. Irs 2012 tax form 1040 How To Report Qualified Recovery Assistance Distributions You will need the following information to correctly report any 2007 or 2008 qualified recovery assistance distributions. Irs 2012 tax form 1040 2007 Qualified Recovery Assistance Distributions If you received a distribution after May 3, 2007, from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. Irs 2012 tax form 1040 See Qualified recovery assistance distribution on page 3. Irs 2012 tax form 1040 If you have not filed your 2007 income tax return, see Form 8915 and Form 8606 on this page to see how to complete these forms for any qualified recovery assistance distributions. Irs 2012 tax form 1040 Be sure to attach Form 8915 and Form 8606 (if required) to your 2007 income tax return. Irs 2012 tax form 1040 If you have filed your 2007 income tax return, you will need to amend your return to designate any distributions as qualified recovery assistance distributions. Irs 2012 tax form 1040 You can amend your 2007 income tax return by using Form 1040X. Irs 2012 tax form 1040 You will need to complete and attach Form 8915 and Form 8606 (if required) to your amended income tax return for any qualified recovery assistance distributions. Irs 2012 tax form 1040 See Form 8915 and Form 8606 on this page. Irs 2012 tax form 1040 Form 8915. Irs 2012 tax form 1040   For a 2007 qualified recovery assistance distribution, complete the 2005 Form 8915, Qualified Hurricane Retirement Plan Distributions and Repayments. Irs 2012 tax form 1040 Before you complete the form, modify the form as follows. Irs 2012 tax form 1040 Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. Irs 2012 tax form 1040 ” To the right of the title, cross out “2005” and enter “2007. Irs 2012 tax form 1040 ” In Part I, at the top of column (a), cross out “2005” and enter “2007. Irs 2012 tax form 1040 ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. Irs 2012 tax form 1040 ” On lines 10 and 11, cross out “2005” and enter “2007. Irs 2012 tax form 1040 ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. Irs 2012 tax form 1040 ” On line 12, cross out “hurricane” and enter “recovery assistance. Irs 2012 tax form 1040 ” On lines 13 and 14, cross out “line 15b” and “line 25b. Irs 2012 tax form 1040 ” On lines 18 and 19, cross out “2005” and enter “2007. Irs 2012 tax form 1040 ”   You can now complete Form 8915. Irs 2012 tax form 1040 For the instructions, use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions. Irs 2012 tax form 1040 See Example 1 on page 5 to see how to complete Form 8915. Irs 2012 tax form 1040 Form 8606. Irs 2012 tax form 1040   For a 2007 qualified recovery assistance distribution, complete or amend the 2007 Form 8606, Nondeductible IRAs. Irs 2012 tax form 1040 Before you complete or amend the form, use the following additional instructions. Irs 2012 tax form 1040 Form 8606, Part I. Irs 2012 tax form 1040    On line 6, subtract any repayments of qualified recovery assistance distributions from the amount you would otherwise enter on line 6. Irs 2012 tax form 1040 Do not enter an amount less than -0-. Irs 2012 tax form 1040 Include on line 7 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. Irs 2012 tax form 1040 Complete line 15 as follows. Irs 2012 tax form 1040 If all of your distributions are qualified recovery assistance distributions, enter the amount from line 15 on Form 8915, line 13. Irs 2012 tax form 1040 Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. Irs 2012 tax form 1040 If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 15 by a fraction. Irs 2012 tax form 1040 The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 7. Irs 2012 tax form 1040 Enter the result in the white space in the bottom margin of the form under line 15. Irs 2012 tax form 1040 To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 13. Irs 2012 tax form 1040 Then, subtract this amount from the amount on line 15 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. Irs 2012 tax form 1040 Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. Irs 2012 tax form 1040 To the left of this amount, enter “Other distributions. Irs 2012 tax form 1040 ” Form 8606, Part III. Irs 2012 tax form 1040    Include on line 19 the amount of any qualified recovery assistance distributions that you received even if they were later repaid. Irs 2012 tax form 1040 Complete line 25 as follows. Irs 2012 tax form 1040 If all of your distributions are qualified recovery assistance distributions, enter the amount from line 25 on Form 8915, line 14. Irs 2012 tax form 1040 Do not enter this amount on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. Irs 2012 tax form 1040 If you have qualified recovery assistance distributions as well as other distributions, you will need to multiply the amount on line 25 by a fraction. Irs 2012 tax form 1040 The numerator of the fraction is your total qualified recovery assistance distributions and the denominator is the amount from Form 8606, line 21. Irs 2012 tax form 1040 Enter the result in the white space in the bottom margin of the form under line 25. Irs 2012 tax form 1040 To the left of this amount, enter “Qualified recovery assistance distributions” and also enter this amount on Form 8915, line 14. Irs 2012 tax form 1040 Then, subtract this amount from the amount on line 25 and include the result on Form 1040, line 15b; Form 1040A, line 11b; or Form 1040NR, line 16b. Irs 2012 tax form 1040 Also, enter this amount on Form 8606 under your qualified recovery assistance distributions. Irs 2012 tax form 1040 To the left of this amount, enter “Other distributions. Irs 2012 tax form 1040 ” Example 1. Irs 2012 tax form 1040   On May 4, 2007, Margaret Maple lost her home due to the tornadoes on that day. Irs 2012 tax form 1040 Her home was located in the Kansas disaster area. Irs 2012 tax form 1040 On July 31, 2007, Margaret took out $30,000 from her 401(k) plan and an additional $15,000 from her traditional IRA in order to rebuild her home. Irs 2012 tax form 1040 Margaret has not filed her 2007 return yet but would like to designate the $45,000 in distributions from her retirement plans as qualified recovery assistance distributions. Irs 2012 tax form 1040 Since the distributions occurred in 2007, Margaret would modify and complete the 2005 Form 8915 as discussed on page 4. Irs 2012 tax form 1040 Margaret would also need to complete Form 8606 since her distribution from her traditional IRA has nondeductible contributions from previous years. Irs 2012 tax form 1040   In addition to the $15,000 qualified recovery assistance distribution on July 31, 2007, Margaret received an additional distribution of $15,000 from her traditional IRA on October 31, 2007, that she did not designate as a qualified recovery assistance distribution. Irs 2012 tax form 1040 Because Margaret has a qualified recovery assistance distribution as well as a distribution not so designated, Margaret must allocate the amount on Form 8606, line 15 to both distributions, as discussed earlier. Irs 2012 tax form 1040 Margaret's qualified recovery assistance distributions are $13,125 ($26,250 × $15,000 ÷ $30,000). Irs 2012 tax form 1040 Margaret enters in the white space in the bottom margin of Form 8606, the following, “Qualified recovery assistance distributions $13,125. Irs 2012 tax form 1040 ” This amount is then reported on Form 8915, line 13. Irs 2012 tax form 1040 Below this entry, Margaret enters “Other distributions $13,125,” and includes this amount on Form 1040, line 15b. Irs 2012 tax form 1040 See Margaret's modified 2005 Form 8915 and 2007 Form 8606 shown on pages 6 through 8. Irs 2012 tax form 1040 This image is too large to be displayed in the current screen. Irs 2012 tax form 1040 Please click the link to view the image. Irs 2012 tax form 1040 2005 Form 8915, page 1, Illustrated Example 1. Irs 2012 tax form 1040 This image is too large to be displayed in the current screen. Irs 2012 tax form 1040 Please click the link to view the image. Irs 2012 tax form 1040 2005 Form 8915, page 2, Illustrated Example 1 This image is too large to be displayed in the current screen. Irs 2012 tax form 1040 Please click the link to view the image. Irs 2012 tax form 1040 Form 8606, page 1, Illustrated Example 1 2008 Qualified Recovery Assistance Distributions If you received a distribution in 2008 from an eligible retirement plan, you may be able to designate it as a qualified recovery assistance distribution. Irs 2012 tax form 1040 See Qualified recovery assistance distribution on page 3. Irs 2012 tax form 1040 You will need to complete and attach Form 8915 and Form 8606 (if required) to your 2008 income tax return for any qualified recovery assistance distributions. Irs 2012 tax form 1040 See Form 8915 and Form 8606 below. Irs 2012 tax form 1040 Form 8915. Irs 2012 tax form 1040   For a 2008 qualified recovery assistance distribution, you will need to complete the 2006 Form 8915. Irs 2012 tax form 1040 Before you complete the form, modify the form as follows. Irs 2012 tax form 1040 Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. Irs 2012 tax form 1040 ” To the right of the title, cross out “2006” and enter “2008. Irs 2012 tax form 1040 ” In the first sentence of Part I and on line 1, cross out “hurricane” and enter “recovery assistance,” cross out “2006” and enter “2008,” and cross out “2005” and enter “2007. Irs 2012 tax form 1040 ” At the top of column (a) cross out “2006” and enter “2008. Irs 2012 tax form 1040 ” In Part II, cross out “Hurricane” in the title and enter “Recovery Assistance. Irs 2012 tax form 1040 ” On lines 12, 14, and 15, cross out “2005” and enter “2007. Irs 2012 tax form 1040 ” On lines 17 and 19, cross out “2006” and enter “2008. Irs 2012 tax form 1040 ” In Part III, cross out “Hurricane” in the title and enter “Recovery Assistance. Irs 2012 tax form 1040 ” On line 21, cross out “hurricane” and enter “recovery assistance. Irs 2012 tax form 1040 ” On lines 22 and 23, cross out “line 15b” and “line 25b. Irs 2012 tax form 1040 ” On lines 27, 29, and 30, cross out “2005” and enter “2007. Irs 2012 tax form 1040 ” On lines 32 and 34, cross out “2006” and enter “2008. Irs 2012 tax form 1040 ”   You can now complete Form 8915. Irs 2012 tax form 1040 For the instructions, use the applicable dates and terms in this publication instead of those used in the 2006 Form 8915 instructions. Irs 2012 tax form 1040 Example 2. Irs 2012 tax form 1040   On June 15, 2008, Margaret Maple, from the previous example, took out $15,000 from her 401(k) plan that she is designating as a qualified recovery assistance distribution. Irs 2012 tax form 1040 Since the distribution occurred in 2008, Margaret would modify and complete the 2006 Form 8915 as discussed above. Irs 2012 tax form 1040 Also, since Margaret is including her 2007 recovery assistance distributions in income over 3 years, she reports the applicable amount of those distributions on the modified 2006 Form 8915. Irs 2012 tax form 1040 See Margaret's modified 2006 Form 8915 shown on pages 9 and 10. Irs 2012 tax form 1040 This image is too large to be displayed in the current screen. Irs 2012 tax form 1040 Please click the link to view the image. Irs 2012 tax form 1040 2006 Form 8915, page 1, Illustrated Example 2 This image is too large to be displayed in the current screen. Irs 2012 tax form 1040 Please click the link to view the image. Irs 2012 tax form 1040 2006 Form 8915, page 2, Illustrated Example 2 Form 8606. Irs 2012 tax form 1040   For a 2008 qualified recovery assistance distribution, you may need to complete the 2008 Form 8606. Irs 2012 tax form 1040 Before you complete Form 8606, use the additional instructions outlined in Form 8606, Part I, on page 4 and Form 8606, Part III, on this page. Irs 2012 tax form 1040 Repayment of Qualified Distributions for the Purchase or Construction of a Main Home If you received a qualified distribution to purchase or construct a main home in the Kansas disaster area, you can repay part or all of that distribution after May 3, 2007, but no later than October 22, 2008, to an eligible retirement plan. Irs 2012 tax form 1040 For this purpose, an eligible retirement plan is any plan, annuity, or IRA to which a qualified rollover can be made. Irs 2012 tax form 1040 To be a qualified distribution, the distribution must meet all of the following requirements. Irs 2012 tax form 1040 The distribution is a hardship distribution from a 401(k) plan, a hardship distribution from a tax-sheltered annuity contract, or a qualified first-time homebuyer distribution from an IRA. Irs 2012 tax form 1040 The distribution was received after November 4, 2006, and before May 5, 2007. Irs 2012 tax form 1040 The distribution was to be used to purchase or construct a main home in the Kansas disaster area that was not purchased or constructed because of the storms and tornadoes. Irs 2012 tax form 1040 Amounts that are repaid before October 23, 2008, are treated as a qualified rollover and are not included in income. Irs 2012 tax form 1040 Also, for purposes of the one-rollover-per-year limitation for IRAs, a repayment to an IRA is not considered a qualified rollover. Irs 2012 tax form 1040 A qualified distribution not repaid before October 23, 2008, may be taxable for 2006 or 2007 and subject to the additional 10% tax (or the additional 25% tax for certain SIMPLE IRAs) on early distributions. Irs 2012 tax form 1040 You must file Form 8915 if you received a qualified distribution that you repaid, in whole or in part, before October 23, 2008. Irs 2012 tax form 1040 See How to report, next, for information on completing Form 8915. Irs 2012 tax form 1040 How to report. Irs 2012 tax form 1040   To report the repayment of a qualified distribution for the purchase or construction of a main home that was not purchased or constructed due to the storms and tornadoes, use the 2005 Form 8915, Part IV. Irs 2012 tax form 1040 Before you complete the form, modify the form as follows. Irs 2012 tax form 1040 Cross out “Hurricane” in the title at the top of the form and enter “Recovery Assistance. Irs 2012 tax form 1040 ” To the right of the title, cross out “2005” and enter “2006” or “2007. Irs 2012 tax form 1040 ” Enter only the year the distribution was received. Irs 2012 tax form 1040 Cross out “Hurricane” in the title of Part IV and enter “Kansas. Irs 2012 tax form 1040 ” In the sentence below the title of Part IV, cross out “March 1, 2006” and enter “October 23, 2008. Irs 2012 tax form 1040 ” On line 24, cross out “March 1, 2006” and enter “October 23, 2008. Irs 2012 tax form 1040 ” You can now complete Part IV of Form 8915. Irs 2012 tax form 1040 Use the applicable dates and terms in this publication instead of those used in the 2005 Form 8915 instructions to complete the form. Irs 2012 tax form 1040 Attach Form 8915 to your original or amended return for the year of the distribution. Irs 2012 tax form 1040 Amended return. Irs 2012 tax form 1040   If you repay part or all of a qualified distribution by October 22, 2008, you will need to file an amended return for that part of a distribution that was previously included in income. Irs 2012 tax form 1040 Loans From Qualified Plans The following benefits are available to qualified individuals. Irs 2012 tax form 1040 Increases to the limits for distributions treated as loans from employer plans. Irs 2012 tax form 1040 A 1-year suspension for payments due on plan loans. Irs 2012 tax form 1040 Qualified individual. Irs 2012 tax form 1040   You are a qualified individual if your main home on May 4, 2007, was located in the Kansas disaster area and you had an economic loss because of the storms and tornadoes. Irs 2012 tax form 1040 Examples of an economic loss include, but are not limited to: Loss, damage to, or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other cause; Loss related to displacement from your home; or Loss of livelihood due to temporary or permanent layoffs. Irs 2012 tax form 1040 Limits on plan loans. Irs 2012 tax form 1040   The $50,000 limit for distributions treated as plan loans is increased to $100,000. Irs 2012 tax form 1040 In addition, the limit based on 50% of your vested accrued benefit is increased to 100% of that benefit. Irs 2012 tax form 1040 If your home was located in the Kansas disaster area, the higher limits apply only to loans received during the period beginning on May 22, 2008, and ending on December 31, 2008. Irs 2012 tax form 1040 One-year suspension of loan payments. Irs 2012 tax form 1040   Payments on plan loans outstanding after May 3, 2007, may be suspended for 1 year by the plan administrator. Irs 2012 tax form 1040 To qualify for the suspension, the due date for any loan payment must occur during the period beginning on May 4, 2007, and ending on December 31, 2008. Irs 2012 tax form 1040 Additional Tax Relief for Businesses Special Depreciation Allowance You can take a special depreciation allowance for qualified recovery assistance property (as defined below) you acquire after May 4, 2007. Irs 2012 tax form 1040 The special allowance is an additional deduction of 50% of the property's depreciable basis (after any section 179 deduction and before figuring your regular depreciation deduction). Irs 2012 tax form 1040 The special allowance applies only for the first year the property is placed in service. Irs 2012 tax form 1040 The special allowance is deductible for both the regular tax and the alternative minimum tax (AMT). Irs 2012 tax form 1040 There is no AMT adjustment required for any depreciation figured on the remaining basis of the property. Irs 2012 tax form 1040 You can elect not to deduct the special allowance for qualified recovery assistance property. Irs 2012 tax form 1040 If you make this election for any property, it applies to all property in the same class placed in service during the year. Irs 2012 tax form 1040 Qualified recovery assistance property. Irs 2012 tax form 1040   Property that qualifies for the special allowance for qualified recovery assistance property includes the following. Irs 2012 tax form 1040 Tangible property depreciated under the modified accelerated cost recovery system (MACRS) with a recovery period of 20 years or less. Irs 2012 tax form 1040 Water utility property. Irs 2012 tax form 1040 Computer software that is readily available for purchase by the general public, is subject to a nonexclusive license, and has not been substantially modified. Irs 2012 tax form 1040 (The cost of some computer software is treated as part of the cost of hardware and is depreciated under MACRS. Irs 2012 tax form 1040 ) Qualified leasehold improvement property. Irs 2012 tax form 1040 Nonresidential real property and residential rental property. Irs 2012 tax form 1040   For more information on this property, see Publication 946. Irs 2012 tax form 1040 Other tests to be met. Irs 2012 tax form 1040   To be qualified recovery assistance property, the property must also meet all of the following tests. Irs 2012 tax form 1040 You must have acquired the property, by purchase, after May 4, 2007, but only if no binding written contract for the acquisition was in effect before May 5, 2007. Irs 2012 tax form 1040 The property must be placed in service before 2009 (2010 in the case of nonresidential real property and residential rental property). Irs 2012 tax form 1040 Substantially all of the use of the property must be in the Kansas disaster area and in the active conduct of your trade or business in the Kansas disaster area. Irs 2012 tax form 1040 The original use of the property in the Kansas disaster area must begin with you after May 4, 2007. Irs 2012 tax form 1040 Used property can be qualified recovery assistance property if it has not previously been used within the Kansas disaster area. Irs 2012 tax form 1040 Also, additional capital expenditures you incurred after May 4, 2007, to recondition or rebuild your property meet the original use test if the original use of the property in the Kansas disaster area began with you. Irs 2012 tax form 1040 Excepted property. Irs 2012 tax form 1040   Qualified recovery assistance property does not include any of the following. Irs 2012 tax form 1040 Property required to be depreciated using the Alternative Depreciation System (ADS). Irs 2012 tax form 1040 Property any portion of which is financed with the proceeds of a tax-exempt obligation under section 103. Irs 2012 tax form 1040 Property for which you are claiming a commercial revitalization deduction. Irs 2012 tax form 1040 Property in the same class as that for which you elected not to claim the special allowance for qualified recovery assistance property. Irs 2012 tax form 1040 Property placed in service and disposed of in the same tax year. Irs 2012 tax form 1040 Property converted from business use to personal use in the same tax year it is placed in service. Irs 2012 tax form 1040 Property converted from personal use to business use in the same or later tax year may be qualified recovery assistance property. Irs 2012 tax form 1040 Recapture of special allowance. Irs 2012 tax form 1040   If, in any year after the year you claim the special allowance, the property ceases to be qualified recovery assistance property, you may have to recapture as ordinary income any excess benefit you received from claiming the special allowance. Irs 2012 tax form 1040 Amended return. Irs 2012 tax form 1040   If you have already filed your tax return, you may have to amend that return to claim any special allowance. Irs 2012 tax form 1040 Additional guidance will be published on how you may claim, or elect not to claim, the special allowance if you have already filed your tax return. Irs 2012 tax form 1040 Increased Section 179 Deduction An increased section 179 deduction is allowable for qualified section 179 recovery assistance property (as defined later) placed in service in the Kansas disaster area. Irs 2012 tax form 1040 Increased dollar limit. Irs 2012 tax form 1040   The limit on the section 179 deduction ($125,000 for 2007, $250,000 for 2008) is increased by the smaller of: $100,000, or The cost of qualified section 179 recovery assistance property placed in service during the year (including such property placed in service by your spouse, even if you are filing a separate return). Irs 2012 tax form 1040   The amount for which you can make the election is reduced if the cost of all section 179 property you placed in service during the year exceeds $500,000 for 2007 and $800,000 for 2008 increased by the smaller of: $600,000, or The cost of qualified section 179 recovery assistance property placed in service during the year. Irs 2012 tax form 1040 Qualified section 179 recovery assistance property. Irs 2012 tax form 1040   Qualified section 179 recovery assistance property is section 179 property that is qualified recovery assistance property (explained earlier under Special Depreciation Allowance). Irs 2012 tax form 1040 Section 179 property does not include nonresidential real property or residential rental property. Irs 2012 tax form 1040 For more information, including the requirements that must be met for property to qualify for the section 179 deduction, see chapter 2 of Publication 946. Irs 2012 tax form 1040 Amended return. Irs 2012 tax form 1040   If you have already filed your tax return, you may have to amend that return for any increased section 179 deduction. Irs 2012 tax form 1040 Employee Retention Credit An eligible employer who conducted an active trade or business in the Kansas disaster area can claim the employee retention credit. Irs 2012 tax form 1040 The credit is 40% of qualified wages for each eligible employee (up to a maximum of $6,000 in qualified wages per employee). Irs 2012 tax form 1040 Generally, you must reduce your deduction for salaries and wages by the amount of this credit (before the tax liability limit). Irs 2012 tax form 1040 Use Form 5884-A to claim the credit. Irs 2012 tax form 1040 See Form 5884-A later. Irs 2012 tax form 1040 The following rules and definitions apply. Irs 2012 tax form 1040 Employers affected by the storms and tornadoes. Irs 2012 tax form 1040   The following definitions apply to employers affected by the storms and tornadoes. Irs 2012 tax form 1040 Eligible employer. Irs 2012 tax form 1040   For this purpose, an eligible employer is any employer who meets all of the following. Irs 2012 tax form 1040 Employed an average of not more than 200 employees on business days during the tax year before May 4, 2007. Irs 2012 tax form 1040 Conducted an active trade or business on May 4, 2007, in the Kansas disaster area. Irs 2012 tax form 1040 Whose trade or business was inoperable on any day after May 4, 2007, and before January 1, 2008, because of damage caused by the storms and tornadoes. Irs 2012 tax form 1040 Eligible employee. Irs 2012 tax form 1040   For this purpose, an eligible employee is an employee whose principal place of employment on May 4, 2007, with the eligible employer was in the Kansas disaster area. Irs 2012 tax form 1040 An employee is not an eligible employee for purposes of the storms and tornadoes if the employee is treated as an eligible employee for the work opportunity credit. Irs 2012 tax form 1040 Qualified wages. Irs 2012 tax form 1040   Qualified wages are wages you paid or incurred before January 1, 2008, (up to $6,000 per employee) for an eligible employee beginning on the date your trade or business first became inoperable at the employee's principal place of employment immediately before May 4, 2007, and ending on the date your trade or business resumed significant operations at that place. Irs 2012 tax form 1040 In addition, the wages must have been paid or incurred after May 4, 2007. Irs 2012 tax form 1040    This includes wages paid even if the employee performed no services, performed services at a place of employment other than the principal place of employment, or performed services at the principal place of employment before significant operations resumed. Irs 2012 tax form 1040    Wages qualifying for the credit generally have the same meaning as wages subject to the Federal Unemployment Tax Act (FUTA). Irs 2012 tax form 1040 Qualified wages also include amounts you paid for medical or hospitalization expenses in connection with sickness or accident disability. Irs 2012 tax form 1040 Qualified wages for any employee must be reduced by the amount of any work supplementation payment you received under the Social Security Act. Irs 2012 tax form 1040   For agricultural employees, if the work performed by any employee during more than half of any pay period qualified under FUTA as agricultural labor, that employee's wages subject to social security and Medicare taxes are qualified wages. Irs 2012 tax form 1040 For a special rule that applies to railroad employees, see section 51(h)(1)(B). Irs 2012 tax form 1040   Qualified wages do not include the following. Irs 2012 tax form 1040 Wages paid to your dependent or a related individual. Irs 2012 tax form 1040 See section 51(i)(1). Irs 2012 tax form 1040 Wages paid to any employee during the period for which you received payment for the employee from a federally funded on-the-job training program. Irs 2012 tax form 1040 Wages for services of replacement workers during a strike or lockout. Irs 2012 tax form 1040 Form 5884-A. Irs 2012 tax form 1040   Use Section A of Form 5884-A (Rev. Irs 2012 tax form 1040 October 2006) to claim the employer retention credit. Irs 2012 tax form 1040 Section B does not apply to the Kansas disaster area. Irs 2012 tax form 1040 Before you complete the form, modify the form as follows. Irs 2012 tax form 1040 Cross out “Hurricane Katrina, Rita, or Wilma” in the title at the top of the form and enter “Kansas Storms and Tornadoes. Irs 2012 tax form 1040 ” On line 1a cross out “Hurricane Katrina” and enter “Kansas Storms and Tornadoes,” cross out “August 28, 2005,” and enter “May 4, 2007,” and cross out “January 1, 2006,” and enter “January 1, 2008. Irs 2012 tax form 1040 ”   Complete the form as instructed. Irs 2012 tax form 1040 Lines 1b and 1c do not apply. Irs 2012 tax form 1040 Include the amount from Form 5884-A, line 4 in the amount entered on Form 3800, line 1x. Irs 2012 tax form 1040 On the dotted line to the left of line 1x, enter “5884-A. Irs 2012 tax form 1040 ” Use the applicable dates and terms in this publication instead of those used in the Form 5884-A instructions. Irs 2012 tax form 1040 Amended return. Irs 2012 tax form 1040   You may have to amend a previously filed return to claim the employee retention credit. Irs 2012 tax form 1040 Demolition and Clean-up Costs You can elect to deduct 50% of any qualified recovery assistance clean-up costs for the tax year in which the costs are paid or incurred, instead of capitalizing them. Irs 2012 tax form 1040 Qualified recovery assistance clean-up costs are any amounts paid or incurred after May 3, 2007, and before January 1, 2010, for the removal of debris from, or the demolition of structures on, real property located in the Kansas disaster area that is: Held by you for use in a trade or business or for the production of income, or Inventory or other property held primarily for sale to customers in the ordinary course of your trade or business. Irs 2012 tax form 1040 Amended return. Irs 2012 tax form 1040   If you have already filed your tax return, you may have to amend that return to claim the 50% of any qualified recovery assistance clean-up costs. Irs 2012 tax form 1040 Request for Copy or Transcript of Tax Return Request for copy of tax return. Irs 2012 tax form 1040   You can use Form 4506 to order a copy of your tax return. Irs 2012 tax form 1040 Generally, there is a $39. Irs 2012 tax form 1040 00 fee (subject to change) for requesting each copy of a tax return. Irs 2012 tax form 1040 If your main home, principal place of business, or tax records are located in a Presidentially declared disaster area, the fee will be waived if the assigned disaster designation (for example, “Kansas Storms”) is written in red across the top of the form when filed. Irs 2012 tax form 1040 Request for transcript of tax return. Irs 2012 tax form 1040   You can use Form 4506-T to order a free transcript of your tax return. Irs 2012 tax form 1040 A transcript provides most of the line entries from a tax return and usually contains the information that a third party requires. Irs 2012 tax form 1040 You can also call 1-800-829-1040 to order a transcript. Irs 2012 tax form 1040 How To Get Tax Help You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get information from the IRS in several ways. Irs 2012 tax form 1040 By selecting the method that is best for you, you will have quick and easy access to tax help. Irs 2012 tax form 1040 Contacting your Taxpayer Advocate. Irs 2012 tax form 1040   The Taxpayer Advocate Service (TAS) is an independent organization within the IRS whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe that an IRS system or procedure is not working as it should. Irs 2012 tax form 1040   You can contact the TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059 to see if you are eligible for assistance. Irs 2012 tax form 1040 You can also call or write to your local taxpayer advocate, whose phone number and address are listed in your local telephone directory and in Publication 1546, Taxpayer Advocate Service — Your Voice at the IRS. Irs 2012 tax form 1040 You can file Form 911, Request for Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order), or ask an IRS employee to complete it on your behalf. Irs 2012 tax form 1040 For more information, go to www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov/advocate. Irs 2012 tax form 1040 Low Income Taxpayer Clinics (LITCs). Irs 2012 tax form 1040   LITCs are independent organizations that provide low income taxpayers with representation in federal tax controversies with the IRS for free or for a nominal charge. Irs 2012 tax form 1040 The clinics also provide tax education and outreach for taxpayers who speak English as a second language. Irs 2012 tax form 1040 Publication 4134, Low Income Taxpayer Clinic List, provides information on clinics in your area. Irs 2012 tax form 1040 It is available at www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov or your local IRS office. Irs 2012 tax form 1040 Free tax services. Irs 2012 tax form 1040   To find out what services are available, get Publication 910, IRS Guide to Free Tax Services. Irs 2012 tax form 1040 It contains lists of free tax information sources, including publications, services, and free tax education and assistance programs. Irs 2012 tax form 1040 It also has an index of over 100 TeleTax topics, (recorded tax information) you can listen to on your telephone. Irs 2012 tax form 1040   Accessible versions of IRS published products are available on request in a variety of alternative formats for people with disabilities. Irs 2012 tax form 1040 Free help with your return. Irs 2012 tax form 1040   Free help in preparing your return is available nationwide from IRS-trained volunteers. Irs 2012 tax form 1040 The Volunteer Income Tax Assistance (VITA) program is designed to help low-income taxpayers and Tax Counseling for the Elderly (TCE) program is designed to assist taxpayers age 60 and older with their tax returns. Irs 2012 tax form 1040 Many VITA sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs 2012 tax form 1040 To find a site near you, call 1-800-829-1040. Irs 2012 tax form 1040 Or to find the nearest AARP TaxAide site, visit AARP's website at www. Irs 2012 tax form 1040 aarp. Irs 2012 tax form 1040 org/taxaide or call 1-888-227-7669. Irs 2012 tax form 1040 For more information on these programs, go to www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov and enter keyword “VITA” in the upper right-hand corner. Irs 2012 tax form 1040 Internet. Irs 2012 tax form 1040 You can access the IRS website at www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov 24 hours a day, 7 days a week to: E-file your return. Irs 2012 tax form 1040 Find out about commercial tax preparation and e-file services available free to eligible taxpayers. Irs 2012 tax form 1040 Check the status of your refund. Irs 2012 tax form 1040 Click on Where's My Refund. Irs 2012 tax form 1040 Wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Irs 2012 tax form 1040 Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Irs 2012 tax form 1040 Download forms, instructions, and publications. Irs 2012 tax form 1040 Order IRS products online. Irs 2012 tax form 1040 Research your tax questions online. Irs 2012 tax form 1040 Search publications online by topic or keyword. Irs 2012 tax form 1040 View Internal Revenue Bulletins (IRBs) published in the last few years. Irs 2012 tax form 1040 Figure your withholding allowances using the withholding calculator online at www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov/individuals. Irs 2012 tax form 1040 Determine if Form 6251 must be filed using our Alternative Minimum Tax (AMT) Assistant. Irs 2012 tax form 1040 Sign up to receive local and national tax news by email. Irs 2012 tax form 1040 Get information on starting and operating a small business. Irs 2012 tax form 1040 Phone. Irs 2012 tax form 1040 Many services are available by phone. Irs 2012 tax form 1040 Ordering forms, instructions, and publications. Irs 2012 tax form 1040 Call 1-800-829-3676 to order current-year forms, instructions, and publications, and prior-year forms and instructions. Irs 2012 tax form 1040 You should receive your order within 10 days. Irs 2012 tax form 1040 Asking tax questions. Irs 2012 tax form 1040 Call the IRS with your tax questions at 1-800-829-1040. Irs 2012 tax form 1040 Solving problems. Irs 2012 tax form 1040 You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers. Irs 2012 tax form 1040 An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Irs 2012 tax form 1040 Call your local Taxpayer Assistance Center for an appointment. Irs 2012 tax form 1040 To find the number, go to www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs 2012 tax form 1040 TTY/TDD equipment. Irs 2012 tax form 1040 If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax questions or to order forms and publications. Irs 2012 tax form 1040 TeleTax topics. Irs 2012 tax form 1040 Call 1-800-829-4477 to listen to pre-recorded messages covering various tax topics. Irs 2012 tax form 1040 Refund information. Irs 2012 tax form 1040 To check the status of your refund, call 1-800-829-4477 and press 1 for automated refund information or call 1-800-829-1954. Irs 2012 tax form 1040 Be sure to wait at least 6 weeks from the date you filed your return (3 weeks if you filed electronically). Irs 2012 tax form 1040 Have your tax return available because you will need to know your social security number, your filing status, and the exact whole dollar amount of your refund. Irs 2012 tax form 1040 Evaluating the quality of our telephone services. Irs 2012 tax form 1040 To ensure IRS representatives give accurate, courteous, and professional answers, we use several methods to evaluate the quality of our telephone services. Irs 2012 tax form 1040 One method is for a second IRS representative to listen in on or record random telephone calls. Irs 2012 tax form 1040 Another is to ask some callers to complete a short survey at the end of the call. Irs 2012 tax form 1040 Walk-in. Irs 2012 tax form 1040 Many products and services are available on a walk-in basis. Irs 2012 tax form 1040 Products. Irs 2012 tax form 1040 You can walk in to many post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs 2012 tax form 1040 Some IRS offices, libraries, grocery stores, copy centers, city and county government offices, credit unions, and office supply stores have a collection of products available to print from a CD or photocopy from reproducible proofs. Irs 2012 tax form 1040 Also, some IRS offices and libraries have the Internal Revenue Code, regulations, Internal Revenue Bulletins, and Cumulative Bulletins available for research purposes. Irs 2012 tax form 1040 Services. Irs 2012 tax form 1040 You can walk in to your local Taxpayer Assistance Center every business day for personal, face-to-face tax help. Irs 2012 tax form 1040 An employee can explain IRS letters, request adjustments to your tax account, or help you set up a payment plan. Irs 2012 tax form 1040 If you need to resolve a tax problem, have questions about how the tax law applies to your individual tax return, or you're more comfortable talking with someone in person, visit your local Taxpayer Assistance Center where you can spread out your records and talk with an IRS representative face-to-face. Irs 2012 tax form 1040 No appointment is necessary — just walk in. Irs 2012 tax form 1040 If you prefer, you can call your local Center and leave a message requesting an appointment to resolve a tax account issue. Irs 2012 tax form 1040 A representative will call you back within 2 business days to schedule an in-person appointment at your convenience. Irs 2012 tax form 1040 If you have an ongoing, complex tax account problem or a special need, such as a disability, an appointment may be requested. Irs 2012 tax form 1040 All other issues will be handled without an appointment. Irs 2012 tax form 1040 To find the number of your local office, go to www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov/localcontacts or look in the phone book under United States Government, Internal Revenue Service. Irs 2012 tax form 1040 Mail. Irs 2012 tax form 1040 You can send your order for forms, instructions, and publications to the address below. Irs 2012 tax form 1040 You should receive a response within 10 days after your request is received. Irs 2012 tax form 1040 Internal Revenue Service 1201 N. Irs 2012 tax form 1040 Mitsubishi Motorway Bloomington, IL 61705-6613 CD/DVD for tax products. Irs 2012 tax form 1040 You can order Publication 1796, IRS Tax Products CD/DVD, and obtain: Current-year forms, instructions, and publications. Irs 2012 tax form 1040 Prior-year forms, instructions, and publications. Irs 2012 tax form 1040 Bonus: Historical Tax Products DVD - Ships with the final release. Irs 2012 tax form 1040 IRS Tax Map: an electronic research tool and finding aid. Irs 2012 tax form 1040 Tax law frequently asked questions (FAQ). Irs 2012 tax form 1040 Tax Topics from the IRS telephone response system. Irs 2012 tax form 1040 Fill-in, print, and save features for most tax forms. Irs 2012 tax form 1040 Internal Revenue Bulletins. Irs 2012 tax form 1040 Toll-free and email technical support. Irs 2012 tax form 1040 The CD/DVD is released twice during the year in January and March. Irs 2012 tax form 1040 Purchase the CD/DVD from National Technical Information Service (NTIS) at www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov/cdorders for $35 (no handling fee) or call 1-877-CDFORMS (1-877-233-6767) toll free to buy the CD/DVD for $35 (plus a $5 handling fee). Irs 2012 tax form 1040 Price is subject to change. Irs 2012 tax form 1040 CD for small businesses. Irs 2012 tax form 1040 Publication 3207, The Small Business Resource Guide CD, is a must for every small business owner or any taxpayer about to start a business. Irs 2012 tax form 1040 This year's CD includes: Helpful information, such as how to prepare a business plan, find financing for your business, and much more. Irs 2012 tax form 1040 All the business tax forms, instructions, and publications needed to successfully manage a business. Irs 2012 tax form 1040 Tax law changes. Irs 2012 tax form 1040 Tax Map: an electronic research tool and finding aid. Irs 2012 tax form 1040 Web links to various government agencies, business associations, and IRS organizations. Irs 2012 tax form 1040 “Rate the Product” survey—your opportunity to suggest changes for future editions. Irs 2012 tax form 1040 A site map of the CD to help you navigate the pages of the CD with ease. Irs 2012 tax form 1040 An interactive “Teens in Biz” module that gives practical tips for teens about starting their own business, creating a business plan, and filing taxes. Irs 2012 tax form 1040 An updated version of this CD is available each year in early April. Irs 2012 tax form 1040 You can get a free copy by calling 1-800-829-3676 or by visiting www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov/smallbiz. Irs 2012 tax form 1040 Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Controlled Foreign Corporations

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  • Data are taken from Form 5471 - Information Return of U.S. Persons With Respect to Certain Foreign Corporations.
  • For U.S. income tax purposes, a foreign corporation is "controlled" if U.S. shareholders own more than 50% of its outstanding voting stock.
  • Data are also available for the One-Time Dividend Received Deduction reported on Form 8895.

Statistical Tables     SOI Bulletin Articles     Metadata   
 


Statistical Tables

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U.S. Corporations and Their Controlled Foreign Corporations
     Data Presented: Number, Assets, Receipts, Earnings, Taxes, Distributions, Subpart F Income, and Related Party Transactions
     Classified by: Selected NAICS Industrial Sector*
     Tax Years: 2008     2006     2004   
 
     Classified by: Selected Country of Incorporation
     Tax Years: 2008     2006     2004   
 
     Classified by: Selected Country of Incorporation and NAICS Industrial Sector*
     Tax Years: 2008     2006     2004   
 
U.S. Corporations with Total Assets of $500 Million or More and Their 7,500 Largest Controlled Foreign Corporations
     Data Presented: Number, Assets, Receipts, Earnings, Taxes, Distributions, and Subpart F Income
     Classified by: Selected NAICS Industrial Sector*
     Tax Years: 2002   2000   1998   1996   1994   1992   1988
 
     Classified by: Selected Country of Incorporation
     Tax Years: 2002   2000   1998   1996   1994   1992   1988
 
     Classified by: Selected Country of Incorporation and NAICS Industrial Sector*
     Tax Years: 2002   2000   1998   1996   1994   1988


 

U.S. Corporations with Total Assets of $500 Million or More and Their 7,500 Largest Controlled Foreign Corporations
     Data Presented: Number, Assets, Receipts, and Earnings, Standard Industrial Classification (SIC) and North American Industry Classification System (NAICS)
     Classified by: Selected NAICS Industrial Sector
     Tax Year: 1998


*Note:  For Tax Years prior to 1998, industry data are presented by Standard Industry Classification (SIC).  Industry data for Tax Years 1998 to present are presented by North American Industry Classification System (NAICS)


SOI Bulletin Articles

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Page Last Reviewed or Updated: 15-Jan-2014

The Irs 2012 Tax Form 1040

Irs 2012 tax form 1040 31. Irs 2012 tax form 1040   Tax on Unearned Income of Certain Children Table of Contents What's New Introduction Useful Items - You may want to see: Which Parent's Return To UseParents Who Do Not File a Joint Return Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, lines A–C) Step 1. Irs 2012 tax form 1040 Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Irs 2012 tax form 1040 Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Irs 2012 tax form 1040 Figuring the Child's Tax (Form 8615, Part III) What's New Net Investment Income Tax. Irs 2012 tax form 1040 . Irs 2012 tax form 1040  For tax years beginning after December 31, 2012, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax (NIIT). Irs 2012 tax form 1040 NIIT is a 3. Irs 2012 tax form 1040 8% tax on the lesser of the net investment income or the excess of the child's modified adjusted gross income (MAGI) over the threshold amount. Irs 2012 tax form 1040 Use Form 8960, Net Investment Income Tax, to figure this tax. Irs 2012 tax form 1040 For more information on NIIT, go to www. Irs 2012 tax form 1040 irs. Irs 2012 tax form 1040 gov and enter “Net Investment Income Tax” in the search box. Irs 2012 tax form 1040 Introduction This chapter discusses the following two rules that may affect the tax on unearned income of certain children. Irs 2012 tax form 1040 If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. Irs 2012 tax form 1040 (See Parent's Election To Report Child's Interest and Dividends , later. Irs 2012 tax form 1040 ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Irs 2012 tax form 1040 (See Tax for Certain Children Who Have Unearned Income , later. Irs 2012 tax form 1040 ) For these rules, the term “child” includes a legally adopted child and a stepchild. Irs 2012 tax form 1040 These rules apply whether or not the child is a dependent. Irs 2012 tax form 1040 Useful Items - You may want to see: Publication 929 Tax Rules for Children and Dependents Form (and Instructions) 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. Irs 2012 tax form 1040 The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . Irs 2012 tax form 1040 Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. Irs 2012 tax form 1040 Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Irs 2012 tax form 1040 Parents are married. Irs 2012 tax form 1040   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Irs 2012 tax form 1040 Parents not living together. Irs 2012 tax form 1040   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. Irs 2012 tax form 1040 If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Irs 2012 tax form 1040   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in chapter 2. Irs 2012 tax form 1040 Parents are divorced. Irs 2012 tax form 1040   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. Irs 2012 tax form 1040 Custodial parent remarried. Irs 2012 tax form 1040   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Irs 2012 tax form 1040 Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Irs 2012 tax form 1040 Do not use the return of the noncustodial parent. Irs 2012 tax form 1040   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Irs 2012 tax form 1040 If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Irs 2012 tax form 1040 Parents never married. Irs 2012 tax form 1040   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. Irs 2012 tax form 1040 If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Irs 2012 tax form 1040 Widowed parent remarried. Irs 2012 tax form 1040   If a widow or widower remarries, the new spouse is treated as the child's other parent. Irs 2012 tax form 1040 The rules explained earlier under Custodial parent remarried apply. Irs 2012 tax form 1040 Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. Irs 2012 tax form 1040 If you do, your child will not have to file a return. Irs 2012 tax form 1040 You can make this election only if all the following conditions are met. Irs 2012 tax form 1040 Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Irs 2012 tax form 1040 Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Irs 2012 tax form 1040 The child's gross income was less than $10,000. Irs 2012 tax form 1040 The child is required to file a return unless you make this election. Irs 2012 tax form 1040 The child does not file a joint return for the year. Irs 2012 tax form 1040 No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. Irs 2012 tax form 1040 No federal income tax was taken out of your child's income under the backup withholding rules. Irs 2012 tax form 1040 You are the parent whose return must be used when applying the special tax rules for children. Irs 2012 tax form 1040 (See Which Parent's Return To Use , earlier. Irs 2012 tax form 1040 ) These conditions are also shown in Figure 31-A. Irs 2012 tax form 1040 Certain January 1 birthdays. Irs 2012 tax form 1040   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Irs 2012 tax form 1040 You cannot make this election for such a child unless the child was a full-time student. Irs 2012 tax form 1040   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Irs 2012 tax form 1040 You cannot make this election for such a child. Irs 2012 tax form 1040 Full-time student. Irs 2012 tax form 1040   A full-time student is a child who during some part of each of any 5 calendar months of the year was enrolled as a full-time student at a school, or took a full-time on-farm training course given by a school or a state, county, or local government agency. Irs 2012 tax form 1040 A school includes a technical, trade, or mechanical school. Irs 2012 tax form 1040 It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Irs 2012 tax form 1040 How to make the election. Irs 2012 tax form 1040   Make the election by attaching Form 8814 to your Form 1040. Irs 2012 tax form 1040 (If you make this election, you cannot file Form 1040A or Form 1040EZ. Irs 2012 tax form 1040 ) Attach a separate Form 8814 for each child for whom you make the election. Irs 2012 tax form 1040 You can make the election for one or more children and not for others. Irs 2012 tax form 1040 Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Irs 2012 tax form 1040 Rate may be higher. Irs 2012 tax form 1040   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. Irs 2012 tax form 1040 This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Irs 2012 tax form 1040 However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. Irs 2012 tax form 1040 Deductions you cannot take. Irs 2012 tax form 1040   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. Irs 2012 tax form 1040 The additional standard deduction if the child is blind. Irs 2012 tax form 1040 The deduction for a penalty on an early withdrawal of your child's savings. Irs 2012 tax form 1040 Itemized deductions (such as your child's investment expenses or charitable contributions). Irs 2012 tax form 1040 Reduced deductions or credits. Irs 2012 tax form 1040   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return including the following. Irs 2012 tax form 1040 Deduction for contributions to a traditional individual retirement arrangement (IRA). Irs 2012 tax form 1040 Deduction for student loan interest. Irs 2012 tax form 1040 Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Irs 2012 tax form 1040 Credit for child and dependent care expenses. Irs 2012 tax form 1040 Child tax credit. Irs 2012 tax form 1040 Education tax credits. Irs 2012 tax form 1040 Earned income credit. Irs 2012 tax form 1040 Penalty for underpayment of estimated tax. Irs 2012 tax form 1040   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. Irs 2012 tax form 1040 If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. Irs 2012 tax form 1040 See chapter 4 for more information. Irs 2012 tax form 1040 Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Irs 2012 tax form 1040 Only the amount over $2,000 is added to your income. Irs 2012 tax form 1040 The amount over $2,000 is shown on Form 8814, line 6. Irs 2012 tax form 1040 Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Irs 2012 tax form 1040 Include the amount from Form 8814, line 12, on Form 1040, line 21. Irs 2012 tax form 1040 Enter “Form 8814” on the dotted line next to line 21. Irs 2012 tax form 1040 If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040, line 21. Irs 2012 tax form 1040 Capital gain distributions and qualified dividends. Irs 2012 tax form 1040   If your child's dividend income included any capital gain distributions, see Capital gain distributions under Figuring Child's Income in Publication 929, Part 2. Irs 2012 tax form 1040 If your child's dividend income included any qualified dividends, see Qualified dividends under Figuring Child's Income in Publication 929, Part 2. Irs 2012 tax form 1040 Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. Irs 2012 tax form 1040 This tax is added to the tax figured on your income. Irs 2012 tax form 1040 This additional tax is the smaller of: 10% × (your child's gross income − $1,000), or $100. Irs 2012 tax form 1040 Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44. Irs 2012 tax form 1040 Check box a on Form 1040, line 44. Irs 2012 tax form 1040 Figure 31-A. Irs 2012 tax form 1040 Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Irs 2012 tax form 1040 Figure 31–A. Irs 2012 tax form 1040 Can You Include Your Child's Income On Your Tax Return? Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Irs 2012 tax form 1040 If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. Irs 2012 tax form 1040 Attach the completed form to the child's Form 1040 or Form 1040A. Irs 2012 tax form 1040 When Form 8615 must be filed. Irs 2012 tax form 1040   Form 8615 must be filed for a child if all of the following statements are true. Irs 2012 tax form 1040 The child's investment income was more than $2,000. Irs 2012 tax form 1040 The child is required to file a return for 2013. Irs 2012 tax form 1040 The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. Irs 2012 tax form 1040 At least one of the child's parents was alive at the end of 2013. Irs 2012 tax form 1040 The child does not file a joint return for 2013. Irs 2012 tax form 1040 These conditions are also shown in  Figure 31-B. Irs 2012 tax form 1040 Earned income. Irs 2012 tax form 1040   Earned income includes salaries, wages, tips, and other payments received for personal services performed. Irs 2012 tax form 1040 It does not include unearned income as defined later in this chapter. Irs 2012 tax form 1040 Support. Irs 2012 tax form 1040   Your child's support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. Irs 2012 tax form 1040 To figure your child's support, count support provided by you, your child, and others. Irs 2012 tax form 1040 However, a scholarship received by your child is not considered support if your child is a full-time student. Irs 2012 tax form 1040 See chapter 3 for details about support. Irs 2012 tax form 1040 Certain January 1 birthdays. Irs 2012 tax form 1040   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Irs 2012 tax form 1040 Figure 31-B. Irs 2012 tax form 1040 Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Irs 2012 tax form 1040 Figure 31-B. Irs 2012 tax form 1040 Do You Have To Use Form 8615 To Figure Your Child's Tax?    IF a child was born on. Irs 2012 tax form 1040 . Irs 2012 tax form 1040 . Irs 2012 tax form 1040 THEN, at the end of 2013, the child is considered to be. Irs 2012 tax form 1040 . Irs 2012 tax form 1040 . Irs 2012 tax form 1040 January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Irs 2012 tax form 1040 The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Irs 2012 tax form 1040  **This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. Irs 2012 tax form 1040  ***Do not use Form 8615 for this child. Irs 2012 tax form 1040 Providing Parental Information (Form 8615, lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Irs 2012 tax form 1040 (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Irs 2012 tax form 1040 ) On line C, check the box for the parent's filing status. Irs 2012 tax form 1040 See Which Parent's Return To Use at the beginning of this chapter for information on which parent's return information must be used on Form 8615. Irs 2012 tax form 1040 Parent with different tax year. Irs 2012 tax form 1040   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. Irs 2012 tax form 1040 Parent's return information not known timely. Irs 2012 tax form 1040   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. Irs 2012 tax form 1040   You can use any reasonable estimate. Irs 2012 tax form 1040 This includes using information from last year's return. Irs 2012 tax form 1040 If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Irs 2012 tax form 1040    When you get the correct information, file an amended return on Form 1040X, Amended U. Irs 2012 tax form 1040 S. Irs 2012 tax form 1040 Individual Income Tax Return. Irs 2012 tax form 1040   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Irs 2012 tax form 1040 S. Irs 2012 tax form 1040 Individual Income Tax Return. Irs 2012 tax form 1040 Extensions are discussed in chapter 1. Irs 2012 tax form 1040 Step 1. Irs 2012 tax form 1040 Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. Irs 2012 tax form 1040 To do that, use Form 8615, Part I. Irs 2012 tax form 1040 Line 1 (unearned income). Irs 2012 tax form 1040   If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Irs 2012 tax form 1040 Adjusted gross income is shown on Form 1040, line 38, or Form 1040A, line 22. Irs 2012 tax form 1040 Form 1040EZ cannot be used if Form 8615 must be filed. Irs 2012 tax form 1040   If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. Irs 2012 tax form 1040   However, if the child has: excluded any foreign earned income, deducted either a loss from self-employment, or deducted a net operating loss from another year, then use the Alternate Worksheet for Form 8615, Line 1, in Publication 929 to figure the amount to enter on Form 8615, line 1. Irs 2012 tax form 1040 Unearned income defined. Irs 2012 tax form 1040   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. Irs 2012 tax form 1040 It includes taxable interest, dividends (including capital gain distributions), capital gains, unemployment compensation, the taxable part of social security and pension payments, and certain distributions from trusts. Irs 2012 tax form 1040 Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). Irs 2012 tax form 1040 Nontaxable income. Irs 2012 tax form 1040   For this purpose, unearned income includes only amounts the child must include in total income. Irs 2012 tax form 1040 Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Irs 2012 tax form 1040 Income from property received as a gift. Irs 2012 tax form 1040   A child's unearned income includes all income produced by property belonging to the child. Irs 2012 tax form 1040 This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. Irs 2012 tax form 1040   A child's unearned income includes income produced by property given as a gift to the child. Irs 2012 tax form 1040 This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Irs 2012 tax form 1040 Example. Irs 2012 tax form 1040 Amanda Black, age 13, received the following income. Irs 2012 tax form 1040 Dividends — $800 Wages — $2,100 Taxable interest — $1,200 Tax-exempt interest — $100 Net capital gains — $100 The dividends were qualified dividends on stock given to her by her grandparents. Irs 2012 tax form 1040 Amanda's unearned income is $2,100. Irs 2012 tax form 1040 This is the total of the dividends ($800), taxable interest ($1,200), and net capital gains ($100). Irs 2012 tax form 1040 Her wages are earned (not unearned) income because they are received for work actually done. Irs 2012 tax form 1040 Her tax-exempt interest is not included because it is nontaxable. Irs 2012 tax form 1040 Trust income. Irs 2012 tax form 1040   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. Irs 2012 tax form 1040   However, for purposes of completing Form 8615, a taxable distribution from a qualified disability trust is considered earned income, not unearned income. Irs 2012 tax form 1040 Line 2 (deductions). Irs 2012 tax form 1040   If the child does not itemize deductions on Schedule A (Form 1040), enter $2,000 on line 2. Irs 2012 tax form 1040   If the child does itemize deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29, that are directly connected with the production of unearned income entered on line 1, or $2,000. Irs 2012 tax form 1040 Directly connected. Irs 2012 tax form 1040   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. Irs 2012 tax form 1040 These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Irs 2012 tax form 1040   These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Irs 2012 tax form 1040 Only the amount greater than 2% of the child's adjusted gross income can be deducted. Irs 2012 tax form 1040 See chapter 28 for more information. Irs 2012 tax form 1040 Example 1. Irs 2012 tax form 1040 Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2% limit) that are directly connected with his unearned income. Irs 2012 tax form 1040 His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Irs 2012 tax form 1040 Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly connected itemized deductions of $300. Irs 2012 tax form 1040 Example 2. Irs 2012 tax form 1040 Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Irs 2012 tax form 1040 She has no other income. Irs 2012 tax form 1040 She has itemized deductions of $1,050 (net of the 2% limit) that are directly connected with the production of her unearned income. Irs 2012 tax form 1040 Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Irs 2012 tax form 1040 The amount on line 2 is $2,050. Irs 2012 tax form 1040 This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Irs 2012 tax form 1040 Line 3. Irs 2012 tax form 1040   Subtract line 2 from line 1 and enter the result on this line. Irs 2012 tax form 1040 If zero or less, do not complete the rest of the form. Irs 2012 tax form 1040 However, you must still attach Form 8615 to the child's tax return. Irs 2012 tax form 1040 Figure the tax on the child's taxable income in the normal manner. Irs 2012 tax form 1040 Line 4 (child's taxable income). Irs 2012 tax form 1040   Enter on line 4 the child's taxable income from Form 1040, line 43, or Form 1040A, line 27. Irs 2012 tax form 1040   However, if the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, see the Form 8615 instructions or Pub. Irs 2012 tax form 1040 929. Irs 2012 tax form 1040 Line 5 (net unearned income). Irs 2012 tax form 1040   A child's net unearned income cannot be more than his or her taxable income. Irs 2012 tax form 1040 Enter on Form 8615, line 5, the smaller of line 3 or line 4. Irs 2012 tax form 1040 This is the child's net unearned income. Irs 2012 tax form 1040   If zero or less, do not complete the rest of the form. Irs 2012 tax form 1040 However, you must still attach Form 8615 to the child's tax return. Irs 2012 tax form 1040 Figure the tax on the child's taxable income in the normal manner. Irs 2012 tax form 1040 Step 2. Irs 2012 tax form 1040 Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. Irs 2012 tax form 1040 The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. Irs 2012 tax form 1040 When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. Irs 2012 tax form 1040 For example, do not refigure the medical expense deduction. Irs 2012 tax form 1040 Figure the tentative tax on Form 8615, lines 6 through 13. Irs 2012 tax form 1040 Note. Irs 2012 tax form 1040 If the child or parent has any capital gains or losses, get Publication 929 for help in completing Form 8615, Part II. Irs 2012 tax form 1040 Line 6 (parent's taxable income). Irs 2012 tax form 1040   Enter on line 6 the parent's taxable income from Form 1040, line 43, Form 1040A, line 27, or Form 1040EZ, line 6. Irs 2012 tax form 1040   If the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) was used to figure the parent's tax, enter the amount from line 3 of that worksheet instead of the parent's taxable income. Irs 2012 tax form 1040 Line 7 (net unearned income of other children). Irs 2012 tax form 1040   If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. Irs 2012 tax form 1040 Do not include the amount from line 5 of the Form 8615 being completed. Irs 2012 tax form 1040 Example. Irs 2012 tax form 1040 Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Irs 2012 tax form 1040 The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon — $800 Jerry — $600 Mike — $1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. Irs 2012 tax form 1040 Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Irs 2012 tax form 1040 Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Irs 2012 tax form 1040 Other children's information not available. Irs 2012 tax form 1040   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. Irs 2012 tax form 1040 See Parent's return information not known timely , earlier. Irs 2012 tax form 1040 Line 11 (tentative tax). Irs 2012 tax form 1040   Subtract line 10 from line 9 and enter the result on this line. Irs 2012 tax form 1040 This is the tentative tax. Irs 2012 tax form 1040   If line 7 is blank, skip lines 12a and 12b and enter the amount from line 11 on line 13. Irs 2012 tax form 1040 Also skip the discussion for lines 12a and 12b that follows. Irs 2012 tax form 1040 Lines 12a and 12b (dividing the tentative tax). Irs 2012 tax form 1040   If an amount is entered on line 7, divide the tentative tax shown on line 11 among the children according to each child's share of the total net unearned income. Irs 2012 tax form 1040 This is done on lines 12a, 12b, and 13. Irs 2012 tax form 1040 Add the amount on line 7 to the amount on line 5 and enter the total on line 12a. Irs 2012 tax form 1040 Divide the amount on line 5 by the amount on line 12a and enter the result, as a decimal, on line 12b. Irs 2012 tax form 1040 Example. Irs 2012 tax form 1040 In the earlier example under Line 7 (net unearned income of other children), Sharon's Form 8615 shows $1,600 on line 7. Irs 2012 tax form 1040 The amount entered on line 12a is $2,400, the total of the amounts on lines 5 and 7 ($800 + $1,600). Irs 2012 tax form 1040 The decimal on line 12b is  . Irs 2012 tax form 1040 333, figured as follows and rounded to three places. Irs 2012 tax form 1040   $800 = . Irs 2012 tax form 1040 333     $2,400   Step 3. Irs 2012 tax form 1040 Figuring the Child's Tax (Form 8615, Part III) The final step in figuring a child's tax using Form 8615 is to determine the larger of: The total of: The child's share of the tentative tax based on the parent's tax rate, plus The tax on the child's taxable income in excess of net unearned income, figured at the child's tax rate, or The tax on the child's taxable income, figured at the child's tax rate. Irs 2012 tax form 1040 This is the child's tax. Irs 2012 tax form 1040 It is figured on Form 8615, lines 14 through 18. Irs 2012 tax form 1040 Alternative minimum tax. Irs 2012 tax form 1040   A child may be subject to alternative minimum tax (AMT) if he or she has certain items given preferential treatment under the tax law. Irs 2012 tax form 1040 See Alternative Minimum Tax (AMT) in chapter 30. Irs 2012 tax form 1040    For more information on who is liable for AMT and how to figure it, see Form 6251, Alternative Minimum Tax—Individuals. Irs 2012 tax form 1040 For information on special limits that apply to a child who files Form 6251, see Certain Children Under Age 24 in the Instructions for Form 6251. Irs 2012 tax form 1040 Prev  Up  Next   Home   More Online Publications