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Irs Ez File

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Irs Ez File

Irs ez file 6. Irs ez file   Insurance Table of Contents What's New Introduction Topics - This chapter discusses: Useful Items - You may want to see: Deductible PremiumsSelf-Employed Health Insurance Deduction Nondeductible Premiums Capitalized Premiums When To Deduct Premiums What's New Retiree drug subsidy. Irs ez file  Beginning in 2013, sponsors of certain qualified retiree prescription drug plans must account for the subsidy received by reducing the amount of qualified retiree prescription drug plans expense by the subsidy received (taking into account the taxpayer's accounting method). Irs ez file For more information, see the retiree drug subsidy frequently asked questions on IRS. Irs ez file gov. Irs ez file Introduction You generally can deduct the ordinary and necessary cost of insurance as a business expense if it is for your trade, business, or profession. Irs ez file However, you may have to capitalize certain insurance costs under the uniform capitalization rules. Irs ez file For more information, see Capitalized Premiums , later. Irs ez file Topics - This chapter discusses: Deductible premiums Nondeductible premiums Capitalized premiums When to deduct premiums Useful Items - You may want to see: Publication 15-B Employer's Tax Guide to Fringe Benefits 525 Taxable and Nontaxable Income 538 Accounting Periods and Methods 547 Casualties, Disasters, and Thefts Form (and Instructions) 1040 U. Irs ez file S. Irs ez file Individual Income Tax Return See chapter 12 for information about getting publications and forms. Irs ez file Deductible Premiums You generally can deduct premiums you pay for the following kinds of insurance related to your trade or business. Irs ez file Insurance that covers fire, storm, theft, accident, or similar losses. Irs ez file Credit insurance that covers losses from business bad debts. Irs ez file Group hospitalization and medical insurance for employees, including long-term care insurance. Irs ez file If a partnership pays accident and health insurance premiums for its partners, it generally can deduct them as guaranteed payments to partners. Irs ez file If an S corporation pays accident and health insurance premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages subject to federal income tax withholding. Irs ez file See Publication 15-B. Irs ez file Liability insurance. Irs ez file Malpractice insurance that covers your personal liability for professional negligence resulting in injury or damage to patients or clients. Irs ez file Workers' compensation insurance set by state law that covers any claims for bodily injuries or job-related diseases suffered by employees in your business, regardless of fault. Irs ez file If a partnership pays workers' compensation premiums for its partners, it generally can deduct them as guaranteed payments to partners. Irs ez file If an S corporation pays workers' compensation premiums for its more-than-2% shareholder-employees, it generally can deduct them, but must also include them in the shareholder's wages. Irs ez file Contributions to a state unemployment insurance fund are deductible as taxes if they are considered taxes under state law. Irs ez file Overhead insurance that pays for business overhead expenses you have during long periods of disability caused by your injury or sickness. Irs ez file Car and other vehicle insurance that covers vehicles used in your business for liability, damages, and other losses. Irs ez file If you operate a vehicle partly for personal use, deduct only the part of the insurance premium that applies to the business use of the vehicle. Irs ez file If you use the standard mileage rate to figure your car expenses, you cannot deduct any car insurance premiums. Irs ez file Life insurance covering your officers and employees if you are not directly or indirectly a beneficiary under the contract. Irs ez file Business interruption insurance that pays for lost profits if your business is shut down due to a fire or other cause. Irs ez file Self-Employed Health Insurance Deduction You may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for yourself, your spouse, and your dependents. Irs ez file The insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. Irs ez file A child includes your son, daughter, stepchild, adopted child, or foster child. Irs ez file A foster child is any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction. Irs ez file One of the following statements must be true. Irs ez file You were self-employed and had a net profit for the year reported on Schedule C (Form 1040), Profit or Loss From Business; Schedule C-EZ (Form 1040), Net Profit From Business; or Schedule F (Form 1040), Profit or Loss From Farming. Irs ez file You were a partner with net earnings from self-employment for the year reported on Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Irs ez file , box 14, code A. Irs ez file You used one of the optional methods to figure your net earnings from self-employment on Schedule SE. Irs ez file You received wages in 2013 from an S corporation in which you were a more-than-2% shareholder. Irs ez file Health insurance premiums paid or reimbursed by the S corporation are shown as wages on Form W-2, Wage and Tax Statement. Irs ez file The insurance plan must be established, or considered to be established as discussed in the following bullets, under your business. Irs ez file For self-employed individuals filing a Schedule C, C-EZ, or F, a policy can be either in the name of the business or in the name of the individual. Irs ez file For partners, a policy can be either in the name of the partnership or in the name of the partner. Irs ez file You can either pay the premiums yourself or your partnership can pay them and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Irs ez file However, if the policy is in your name and you pay the premiums yourself, the partnership must reimburse you and report the premium amounts on Schedule K-1 (Form 1065) as guaranteed payments to be included in your gross income. Irs ez file Otherwise, the insurance plan will not be considered to be established under your business. Irs ez file For more-than-2% shareholders, a policy can be either in the name of the S corporation or in the name of the shareholder. Irs ez file You can either pay the premiums yourself or your S corporation can pay them and report the premium amounts on Form W-2 as wages to be included in your gross income. Irs ez file However, if the policy is in your name and you pay the premiums yourself, the S corporation must reimburse you and report the premium amounts on Form W-2 as wages to be included in your gross income. Irs ez file Otherwise, the insurance plan will not be considered to be established under your business. Irs ez file Medicare premiums you voluntarily pay to obtain insurance in your name that is similar to qualifying private health insurance can be used to figure the deduction. Irs ez file If you previously filed returns without using Medicare premiums to figure the deduction, you can file timely amended returns to refigure the deduction. Irs ez file For more information, see Form 1040X, Amended U. Irs ez file S. Irs ez file Individual Income Tax Return. Irs ez file Amounts paid for health insurance coverage from retirement plan distributions that were nontaxable because you are a retired public safety officer cannot be used to figure the deduction. Irs ez file Take the deduction on Form 1040, line 29. Irs ez file Qualified long-term care insurance. Irs ez file   You can include premiums paid on a qualified long-term care insurance contract when figuring your deduction. Irs ez file But, for each person covered, you can include only the smaller of the following amounts. Irs ez file The amount paid for that person. Irs ez file The amount shown below. Irs ez file Use the person's age at the end of the tax year. Irs ez file Age 40 or younger–$360 Age 41 to 50–$680 Age 51 to 60–$1,360 Age 61 to 70–$3,640 Age 71 or older–$4,550 Qualified long-term care insurance contract. Irs ez file   A qualified long-term care insurance contract is an insurance contract that only provides coverage of qualified long-term care services. Irs ez file The contract must meet all the following requirements. Irs ez file It must be guaranteed renewable. Irs ez file It must provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract may be used only to reduce future premiums or increase future benefits. Irs ez file It must not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed. Irs ez file It generally must not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. Irs ez file Qualified long-term care services. Irs ez file   Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and Maintenance or personal care services. Irs ez file The services must be required by a chronically ill individual and prescribed by a licensed health care practitioner. Irs ez file Worksheet 6-A. Irs ez file Self-Employed Health Insurance Deduction Worksheet Note. Irs ez file Use a separate worksheet for each trade or business under which an insurance plan is established. Irs ez file 1. Irs ez file Enter the total amount paid in 2013 for health insurance coverage established under your business for 2013 for you, your spouse, and your dependents. Irs ez file Your insurance can also cover your child who was under age 27 at the end of 2013, even if the child was not your dependent. Irs ez file But do not include the following. Irs ez file   Amounts for any month you were eligible to participate in a health plan subsidized by your or your spouse's employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. Irs ez file Any amounts paid from retirement plan distributions that were nontaxable because you are a retired public safety officer. Irs ez file Any amounts you included on Form 8885, line 4. Irs ez file Any qualified health insurance premiums you paid to “U. Irs ez file S. Irs ez file Treasury-HCTC. Irs ez file ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H. Irs ez file Any payments for qualified long-term care insurance (see line 2) 1. Irs ez file   2. Irs ez file For coverage under a qualified long-term care insurance contract, enter for each person covered the smaller of the following amounts. Irs ez file       a) Total payments made for that person during the year. Irs ez file       b) The amount shown below. Irs ez file Use the person's age at the end of the tax year. Irs ez file         $360— if that person is age 40 or younger          $680— if age 41 to 50         $1,360— if age 51 to 60         $3,640— if age 61 to 70         $4,550— if age 71 or older         Do not include payments for any month you were eligible to participate in a long-term care insurance plan subsidized by your or your spouse’s employer or the employer of either your dependent or your child who was under the age of 27 at the end of 2013. Irs ez file If more than one person is covered, figure separately the amount to enter for each person. Irs ez file Then enter the total of those amounts 2. Irs ez file   3. Irs ez file Add lines 1 and 2 3. Irs ez file   4. Irs ez file Enter your net profit* and any other earned income** from the trade or business under which the insurance plan is established. Irs ez file Do not include Conservation Reserve Program payments exempt from self-employment tax. Irs ez file If the business is an S corporation, skip to line 11 4. Irs ez file   5. Irs ez file Enter the total of all net profits* from: Schedule C (Form 1040), line 31; Schedule C-EZ (Form 1040), line 3; Schedule F (Form 1040), line 34; or Schedule K-1 (Form 1065), box 14, code A; plus any other income allocable to the profitable businesses. Irs ez file Do not include Conservation Reserve Program payments exempt from self-employment tax. Irs ez file See the Instructions for Schedule SE (Form 1040). Irs ez file Do not include any net losses shown on these schedules. Irs ez file 5. Irs ez file   6. Irs ez file Divide line 4 by line 5 6. Irs ez file   7. Irs ez file Multiply Form 1040, line 27, by the percentage on line 6 7. Irs ez file   8. Irs ez file Subtract line 7 from line 4 8. Irs ez file   9. Irs ez file Enter the amount, if any, from Form 1040, line 28, attributable to the same trade or business in which the insurance plan is established 9. Irs ez file   10. Irs ez file Subtract line 9 from line 8 10. Irs ez file   11. Irs ez file Enter your Medicare wages (Form W-2, box 5) from an S corporation in which you are a more-than-2% shareholder and in which the insurance plan is established 11. Irs ez file   12. Irs ez file Enter any amount from Form 2555, line 45, attributable to the amount entered on line 4 or 11 above, or any amount from Form 2555-EZ, line 18, attributable to the amount entered on line 11 above 12. Irs ez file   13. Irs ez file Subtract line 12 from line 10 or 11, whichever applies 13. Irs ez file   14. Irs ez file Enter the smaller of line 3 or line 13 here and on Form 1040, line 29. Irs ez file Do not include this amount when figuring any medical expense deduction on Schedule A (Form 1040). Irs ez file 14. Irs ez file   * If you used either optional method to figure your net earnings from self-employment from any business, do not enter your net profit from the business. Irs ez file Instead, enter the amount attributable to that business from Schedule SE (Form 1040), Section B, line 4b. Irs ez file * *Earned income includes net earnings and gains from the sale, transfer, or licensing of property you created. Irs ez file However, it does not include capital gain income. Irs ez file Chronically ill individual. Irs ez file   A chronically ill individual is a person who has been certified as one of the following. Irs ez file An individual who has been unable, due to loss of functional capacity for at least 90 days, to perform at least two activities of daily living without substantial assistance from another individual. Irs ez file Activities of daily living are eating, toileting, transferring (general mobility), bathing, dressing, and continence. Irs ez file An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Irs ez file The certification must have been made by a licensed health care practitioner within the previous 12 months. Irs ez file Benefits received. Irs ez file   For information on excluding benefits you receive from a long-term care contract from gross income, see Publication 525. Irs ez file Other coverage. Irs ez file   You cannot take the deduction for any month you were eligible to participate in any employer (including your spouse's) subsidized health plan at any time during that month, even if you did not actually participate. Irs ez file In addition, if you were eligible for any month or part of a month to participate in any subsidized health plan maintained by the employer of either your dependent or your child who was under age 27 at the end of 2013, do not use amounts paid for coverage for that month to figure the deduction. Irs ez file   These rules are applied separately to plans that provide long-term care insurance and plans that do not provide long-term care insurance. Irs ez file However, any medical insurance payments not deductible on Form 1040, line 29, can be included as medical expenses on Schedule A (Form 1040), Itemized Deductions, if you itemize deductions. Irs ez file Effect on itemized deductions. Irs ez file   Subtract the health insurance deduction from your medical insurance when figuring medical expenses on Schedule A (Form 1040) if you itemize deductions. Irs ez file Effect on self-employment tax. Irs ez file   For tax years beginning before or after 2010, you cannot subtract the self-employed health insurance deduction when figuring net earnings for your self-employment tax from the business under which the insurance plan is established, or considered to be established as discussed earlier. Irs ez file For more information, see Schedule SE (Form 1040). Irs ez file How to figure the deduction. Irs ez file   Generally, you can use the worksheet in the Form 1040 instructions to figure your deduction. Irs ez file However, if any of the following apply, you must use Worksheet 6-A in this chapter. Irs ez file You had more than one source of income subject to self-employment tax. Irs ez file You file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. Irs ez file You are using amounts paid for qualified long-term care insurance to figure the deduction. Irs ez file If you are claiming the health coverage tax credit, complete Form 8885, Health Coverage Tax Credit, before you figure this deduction. Irs ez file Health coverage tax credit. Irs ez file   You may be able to take this credit only if you were an eligible trade adjustment assistance (TAA) recipient, alternative TAA (ATAA) recipient, reemployment trade adjustment assistance (RTAA) recipient, or Pension Benefit Guaranty Corporation (PBGC) pension recipient. Irs ez file Use Form 8885 to figure the amount, if any, of this credit. Irs ez file   When figuring the amount to enter on line 1 of Worksheet 6-A, do not include the following. Irs ez file Any amounts you included on Form 8885, line 4. Irs ez file Any qualified health insurance premiums you paid to “U. Irs ez file S. Irs ez file Treasury-HCTC. Irs ez file ” Any health coverage tax credit advance payments shown in box 1 of Form 1099-H, Health Coverage Tax Credit (HCTC) Advance Payments. Irs ez file More than one health plan and business. Irs ez file   If you have more than one health plan during the year and each plan is established under a different business, you must use separate worksheets (Worksheet 6-A) to figure each plan's net earnings limit. Irs ez file Include the premium you paid under each plan on line 1 or line 2 of that separate worksheet and your net profit (or wages) from that business on line 4 (or line 11). Irs ez file For a plan that provides long-term care insurance, the total of the amounts entered for each person on line 2 of all worksheets cannot be more than the appropriate limit shown on line 2 for that person. Irs ez file Nondeductible Premiums You cannot deduct premiums on the following kinds of insurance. Irs ez file Self-insurance reserve funds. Irs ez file You cannot deduct amounts credited to a reserve set up for self-insurance. Irs ez file This applies even if you cannot get business insurance coverage for certain business risks. Irs ez file However, your actual losses may be deductible. Irs ez file See Publication 547. Irs ez file Loss of earnings. Irs ez file You cannot deduct premiums for a policy that pays for lost earnings due to sickness or disability. Irs ez file However, see the discussion on overhead insurance, item (8), under Deductible Premiums , earlier. Irs ez file Certain life insurance and annuities. Irs ez file For contracts issued before June 9, 1997, you cannot deduct the premiums on a life insurance policy covering you, an employee, or any person with a financial interest in your business if you are directly or indirectly a beneficiary of the policy. Irs ez file You are included among possible beneficiaries of the policy if the policy owner is obligated to repay a loan from you using the proceeds of the policy. Irs ez file A person has a financial interest in your business if the person is an owner or part owner of the business or has lent money to the business. Irs ez file For contracts issued after June 8, 1997, you generally cannot deduct the premiums on any life insurance policy, endowment contract, or annuity contract if you are directly or indirectly a beneficiary. Irs ez file The disallowance applies without regard to whom the policy covers. Irs ez file Partners. Irs ez file If, as a partner in a partnership, you take out an insurance policy on your own life and name your partners as beneficiaries to induce them to retain their investments in the partnership, you are considered a beneficiary. Irs ez file You cannot deduct the insurance premiums. Irs ez file Insurance to secure a loan. Irs ez file If you take out a policy on your life or on the life of another person with a financial interest in your business to get or protect a business loan, you cannot deduct the premiums as a business expense. Irs ez file Nor can you deduct the premiums as interest on business loans or as an expense of financing loans. Irs ez file In the event of death, the proceeds of the policy are generally not taxed as income even if they are used to liquidate the debt. Irs ez file Capitalized Premiums Under the uniform capitalization rules, you must capitalize the direct costs and part of the indirect costs for certain production or resale activities. Irs ez file Include these costs in the basis of property you produce or acquire for resale, rather than claiming them as a current deduction. Irs ez file You recover the costs through depreciation, amortization, or cost of goods sold when you use, sell, or otherwise dispose of the property. Irs ez file Indirect costs include premiums for insurance on your plant or facility, machinery, equipment, materials, property produced, or property acquired for resale. Irs ez file Uniform capitalization rules. Irs ez file   You may be subject to the uniform capitalization rules if you do any of the following, unless the property is produced for your use other than in a business or an activity carried on for profit. Irs ez file Produce real property or tangible personal property. Irs ez file For this purpose, tangible personal property includes a film, sound recording, video tape, book, or similar property. Irs ez file Acquire property for resale. Irs ez file However, these rules do not apply to the following property. Irs ez file Personal property you acquire for resale if your average annual gross receipts are $10 million or less for the 3 prior tax years. Irs ez file Property you produce if you meet either of the following conditions. Irs ez file Your indirect costs of producing the property are $200,000 or less. Irs ez file You use the cash method of accounting and do not account for inventories. Irs ez file More information. Irs ez file   For more information on these rules, see Uniform Capitalization Rules in Publication 538 and the regulations under Internal Revenue Code section 263A. Irs ez file When To Deduct Premiums You can usually deduct insurance premiums in the tax year to which they apply. Irs ez file Cash method. Irs ez file   If you use the cash method of accounting, you generally deduct insurance premiums in the tax year you actually paid them, even if you incurred them in an earlier year. Irs ez file However, see Prepayment , later. Irs ez file Accrual method. Irs ez file   If you use an accrual method of accounting, you cannot deduct insurance premiums before the tax year in which you incur a liability for them. Irs ez file In addition, you cannot deduct insurance premiums before the tax year in which you actually pay them (unless the exception for recurring items applies). Irs ez file For more information about the accrual method of accounting, see chapter 1. Irs ez file For information about the exception for recurring items, see Publication 538. Irs ez file Prepayment. Irs ez file   You cannot deduct expenses in advance, even if you pay them in advance. Irs ez file This rule applies to any expense paid far enough in advance to, in effect, create an asset with a useful life extending substantially beyond the end of the current tax year. Irs ez file   Expenses such as insurance are generally allocable to a period of time. Irs ez file You can deduct insurance expenses for the year to which they are allocable. Irs ez file Example. Irs ez file In 2013, you signed a 3-year insurance contract. Irs ez file Even though you paid the premiums for 2013, 2014, and 2015 when you signed the contract, you can only deduct the premium for 2013 on your 2013 tax return. Irs ez file You can deduct in 2014 and 2015 the premium allocable to those years. Irs ez file Dividends received. Irs ez file   If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends generally are income. Irs ez file For more information, see Recovery of amount deducted (tax benefit rule) in chapter 1 under How Much Can I Deduct. Irs ez file Prev  Up  Next   Home   More Online Publications
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Irs ez file Publication 555 - Main Content Table of Contents Domicile Community or Separate Property and Income Identifying Income, Deductions, and CreditsIncome Exemptions Deductions Credits, Taxes, and Payments Community Property Laws DisregardedRequesting relief. Irs ez file Equitable relief. Irs ez file Earned income. Irs ez file Trade or business income. Irs ez file Partnership income or loss. Irs ez file Separate property income. Irs ez file Social security benefits. Irs ez file Other income. Irs ez file End of the Community Preparing a Federal Income Tax ReturnJoint Return Versus Separate Returns Separate Return Preparation How To Get Tax HelpLow Income Taxpayer Clinics Domicile Whether you have community property and community income depends on the state where you are domiciled. Irs ez file If you and your spouse (or your registered domestic partner) have different domiciles, check the laws of each to see whether you have community property or community income. Irs ez file You have only one domicile even if you have more than one home. Irs ez file Your domicile is a permanent legal home that you intend to use for an indefinite or unlimited period, and to which, when absent, you intend to return. Irs ez file The question of your domicile is mainly a matter of your intention as indicated by your actions. Irs ez file You must be able to show that you intend a given place or state to be your permanent home. Irs ez file If you move into or out of a community property state during the year, you may or may not have community income. Irs ez file Factors considered in determining domicile include: Where you pay state income tax, Where you vote, Location of property you own, Your citizenship, Length of residence, and Business and social ties to the community. Irs ez file Amount of time spent. Irs ez file    The amount of time spent in one place does not always explain the difference between home and domicile. Irs ez file A temporary home or residence may continue for months or years while a domicile may be established the first moment you occupy the property. Irs ez file Your intent is the determining factor in proving where you have your domicile. Irs ez file    Note. Irs ez file When this publication refers to where you live, it means your domicile. Irs ez file Community or Separate Property and Income If you file a federal tax return separately from your spouse, you must report half of all community income and all of your separate income. Irs ez file Likewise, a registered domestic partner must report half of all community income and all of his or her separate income on his or her federal tax return. Irs ez file You each must attach your Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. Irs ez file Generally, the laws of the state in which you are domiciled govern whether you have community property and community income or separate property and separate income for federal tax purposes. Irs ez file The following is a summary of the general rules. Irs ez file These rules are also shown in Table 1. Irs ez file Community property. Irs ez file    Generally, community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. Irs ez file That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. Irs ez file That cannot be identified as separate property. Irs ez file Community income. Irs ez file    Generally, community income is income from: Community property. Irs ez file Salaries, wages, and other pay received for the services performed by you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. Irs ez file Real estate that is treated as community property under the laws of the state where the property is located. Irs ez file Note Separate property. Irs ez file    Generally, separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). Irs ez file Money earned while domiciled in a noncommunity property state. Irs ez file Property that you or your spouse (or your registered domestic partner) received separately as a gift or inheritance during your marriage (or registered domestic partnership). Irs ez file Property that you or your spouse (or your registered domestic partner) bought with separate funds, or acquired in exchange for separate property, during your marriage (or registered domestic partnership). Irs ez file Property that you and your spouse (or your registered domestic partner) converted from community property to separate property through an agreement valid under state law. Irs ez file The part of property bought with separate funds, if part was bought with community funds and part with separate funds. Irs ez file Separate income. Irs ez file    Generally, income from separate property is the separate income of the spouse (or the registered domestic partner) who owns the property. Irs ez file    In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. Irs ez file Table 1. Irs ez file General Rules — Property and Income: Community or Separate? Community property is property: That you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or your registered domestic partner) are domiciled in a community property state. Irs ez file (Includes the part of property bought with community property funds if part was bought with community funds and part with separate funds. Irs ez file ) That you and your spouse (or your registered domestic partner) agreed to convert from separate to community property. Irs ez file That cannot be identified as separate property. Irs ez file Separate property is: Property that you or your spouse (or your registered domestic partner) owned separately before your marriage (or registered domestic partnership). Irs ez file Money earned while domiciled in a noncommunity property state. Irs ez file Property either of you received as a gift or inherited separately during your marriage (or registered domestic partnership). Irs ez file Property bought with separate funds, or exchanged for separate property, during your marriage (or registered domestic partnership). Irs ez file Property that you and your spouse (or your registered domestic partner) agreed to convert from community to separate property through an agreement valid under state law. Irs ez file The part of property bought with separate funds, if part was bought with community funds and part with separate funds. Irs ez file Community income 1,2,3 is income from: Community property. Irs ez file Salaries, wages, or pay for services of you, your spouse (or your registered domestic partner), or both during your marriage (or registered domestic partnership) while domiciled in a community property state. Irs ez file Real estate that is treated as community property under the laws of the state where the property is located. Irs ez file Separate income 1,2 is income from: Separate property which belongs to the spouse (or registered domestic partner) who owns the property. Irs ez file 1In Idaho, Louisiana, Texas, and Wisconsin, income from most separate property is community income. Irs ez file 2Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year , later. Irs ez file In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. Irs ez file In other states, it is separate income. Irs ez file 3Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. Irs ez file See Community Property Laws Disregarded , later. Irs ez file Identifying Income, Deductions, and Credits If you file separate returns, you and your spouse (or your registered domestic partner) each must attach your Form 8958 to your Form 1040 to identify your community and separate income, deductions, credits, and other return amounts according to the laws of your state. Irs ez file Under special rules, income that can otherwise be characterized as community income may not be treated as community income for federal income tax purposes in certain situations. Irs ez file See Community Property Laws Disregarded, later. Irs ez file Check your state law if you are separated but do not meet the conditions discussed in Spouses living apart all year, later. Irs ez file In some states, the income you earn after you are separated and before a divorce decree is issued continues to be community income. Irs ez file In other states, it is separate income. Irs ez file Income The following is a discussion of the general effect of community property laws on the federal income tax treatment of certain items of income. Irs ez file Wages, earnings, and profits. Irs ez file    A spouse's (or your registered domestic partner's) wages, earnings, and net profits from a sole proprietorship are community income and must be evenly split. Irs ez file Dividends, interest, and rents. Irs ez file    Dividends, interest, and rents from community property are community income and must be evenly split. Irs ez file Dividends, interest, and rents from separate property are characterized in accordance with the discussion under Income from separate property , later. Irs ez file Example. Irs ez file If you and your spouse (or your registered domestic partner) buy a bond that is considered community property under your state laws, half the bond interest belongs to you and half belongs to your spouse. Irs ez file You each must show the bond interest and the split of that interest on your Form 8958, and report half the interest on your Form 1040. Irs ez file Attach your Form 8958 to your Form 1040. Irs ez file Alimony received. Irs ez file    Alimony or separate maintenance payments made prior to divorce are taxable to the payee spouse only to the extent they exceed 50% (his or her share) of the reportable community income. Irs ez file This is so because the payee spouse is already required to report half of the community income. Irs ez file See also Alimony paid , later. Irs ez file Gains and losses. Irs ez file    Gains and losses are classified as separate or community depending on how the property is held. Irs ez file For example, a loss on separate property, such as stock held separately, is a separate loss. Irs ez file On the other hand, a loss on community property, such as a casualty loss to your home held as community property, is a community loss. Irs ez file See Publication 544, Sales and Other Dispositions of Assets, for information on gains and losses. Irs ez file See Publication 547, Casualties, Disasters, and Thefts, for information on losses due to a casualty or theft. Irs ez file Withdrawals from individual retirement arrangements (IRAs) and Coverdell Education Savings Accounts (ESAs). Irs ez file    There are several kinds of individual retirement arrangements (IRAs). Irs ez file They are traditional IRAs (including SEP-IRAs), SIMPLE IRAs, and Roth IRAs. Irs ez file IRAs and ESAs by law are deemed to be separate property. Irs ez file Therefore, taxable IRA and ESA distributions are separate property, even if the funds in the account would otherwise be community property. Irs ez file These distributions are wholly taxable to the spouse (or registered domestic partner) whose name is on the account. Irs ez file That spouse (or registered domestic partner) is also liable for any penalties and additional taxes on the distributions. Irs ez file Pensions. Irs ez file    Generally, distributions from pensions will be characterized as community or separate income depending on the respective periods of participation in the pension while married (or during the registered domestic partnership) and domiciled in a community property state or in a noncommunity property state during the total period of participation in the pension. Irs ez file See the example under Civil service retirement , later. Irs ez file These rules may vary between states. Irs ez file Check your state law. Irs ez file Lump-sum distributions. Irs ez file    If you were born before January 2, 1936, and receive a lump-sum distribution from a qualified retirement plan, you may be able to choose an optional method of figuring the tax on the distribution. Irs ez file For the 10-year tax option, you must disregard community property laws. Irs ez file For more information, see Publication 575, Pension and Annuity Income, and Form 4972, Tax on Lump-Sum Distributions. Irs ez file Civil service retirement. Irs ez file    For income tax purposes, community property laws apply to annuities payable under the Civil Service Retirement Act (CSRS) or Federal Employee Retirement System (FERS). Irs ez file   Whether a civil service annuity is separate or community income depends on your marital status (or your status as a registered domestic partner) and domicile of the employee when the services were performed for which the annuity is paid. Irs ez file Even if you now live in a noncommunity property state and you receive a civil service annuity, it may be community income if it is based on services you performed while married (or during the registered domestic partnership) and domiciled in a community property state. Irs ez file   If a civil service annuity is a mixture of community income and separate income, it must be divided between the two kinds of income. Irs ez file The division is based on the employee's domicile and marital status (or registered domestic partnership) in community and noncommunity property states during his or her periods of service. Irs ez file Example. Irs ez file Henry Wright retired this year after 30 years of civil service. Irs ez file He and his wife were domiciled in a community property state during the past 15 years. Irs ez file Since half the service was performed while the Wrights were married and domiciled in a community property state, half the civil service retirement pay is considered to be community income. Irs ez file If Mr. Irs ez file Wright receives $1,000 a month in retirement pay, $500 is considered community income—half ($250) is his income and half ($250) is his wife's. Irs ez file Military retirement pay. Irs ez file    State community property laws apply to military retirement pay. Irs ez file Generally, the pay is either separate or community income based on the marital status and domicile of the couple while the member of the Armed Forces was in active military service. Irs ez file For example, military retirement pay for services performed during marriage and domicile in a community property state is community income. Irs ez file   Active military pay earned while married and domiciled in a community property state is also community income. Irs ez file This income is considered to be received half by the member of the Armed Forces and half by the spouse. Irs ez file Partnership income. Irs ez file    If an interest is held in a partnership, and income from the partnership is attributable to the efforts of either spouse (or registered domestic partner), the partnership income is community property. Irs ez file If it is merely a passive investment in a separate property partnership, the partnership income will be characterized in accordance with the discussion under Income from separate property , later. Irs ez file Tax-exempt income. Irs ez file    For spouses, community income exempt from federal tax generally keeps its exempt status for both spouses. Irs ez file For example, under certain circumstances, income earned outside the United States is tax exempt. Irs ez file If you earned income and met the conditions that made it exempt, the income is also exempt for your spouse even though he or she may not have met the conditions. Irs ez file Registered domestic partners should consult the particular exclusion provision to see if the exempt status applies to both. Irs ez file Income from separate property. Irs ez file    In some states, income from separate property is separate income. Irs ez file These states include Arizona, California, Nevada, New Mexico, and Washington. Irs ez file Other states characterize income from separate property as community income. Irs ez file These states include Idaho, Louisiana, Texas, and Wisconsin. Irs ez file Exemptions When you file separate returns, you must claim your own exemption amount for that year. Irs ez file (See your tax return instructions. Irs ez file ) You cannot divide the amount allowed as an exemption for a dependent between you and your spouse (or your registered domestic partner). Irs ez file When community funds provide support for more than one person, each of whom otherwise qualifies as a dependent, you and your spouse (or your registered domestic partner) may divide the number of dependency exemptions as explained in the following example. Irs ez file Example. Irs ez file Ron and Diane White have three dependent children and live in Nevada. Irs ez file If Ron and Diane file separately, only Ron can claim his own exemption, and only Diane can claim her own exemption. Irs ez file Ron and Diane can agree that one of them will claim the exemption for one, two, or all of their children and the other will claim any remaining exemptions. Irs ez file They cannot each claim half of the total exemption amount for their three children. Irs ez file Deductions If you file separate returns, your deductions generally depend on whether the expenses involve community or separate income. Irs ez file Business and investment expenses. Irs ez file    If you file separate returns, expenses incurred to earn or produce community business or investment income are generally divided equally between you and your spouse (or your registered domestic partner). Irs ez file Each of you is entitled to deduct one-half of the expenses on your separate returns. Irs ez file Expenses incurred by a spouse (or registered domestic partner) to produce separate business or investment income is deductible by the spouse (or the registered domestic partner) who earns the corresponding separate business or investment income. Irs ez file    Other limits may also apply to business and investment expenses. Irs ez file For more information, see Publication 535, Business Expenses, and Publication 550, Investment Income and Expenses. Irs ez file Alimony paid. Irs ez file    Payments that may otherwise qualify as alimony are not deductible by the payer if they are the recipient spouse's part of community income. Irs ez file They are deductible as alimony only to the extent they are more than that spouse's part of community income. Irs ez file Example. Irs ez file You live in a community property state. Irs ez file You are separated but the special rules explained later under Spouses living apart all year do not apply. Irs ez file Under a written agreement, you pay your spouse $12,000 of your $20,000 total yearly community income. Irs ez file Your spouse receives no other community income. Irs ez file Under your state law, earnings of a spouse living separately and apart from the other spouse continue as community property. Irs ez file On your separate returns, each of you must report $10,000 of the total community income. Irs ez file In addition, your spouse must report $2,000 as alimony received. Irs ez file You can deduct $2,000 as alimony paid. Irs ez file IRA deduction. Irs ez file    Deductions for IRA contributions cannot be split between spouses (or registered domestic partners). Irs ez file The deduction for each spouse (or each registered domestic partner) is figured separately and without regard to community property laws. Irs ez file Personal expenses. Irs ez file   Expenses that are paid out of separate funds, such as medical expenses, are deductible by the spouse who pays them. Irs ez file If these expenses are paid from community funds, divide the deduction equally between you and your spouse. Irs ez file Credits, Taxes, and Payments The following is a discussion of the general effect of community property laws on the treatment of certain credits, taxes, and payments on your separate return. Irs ez file Child tax credit. Irs ez file    You may be entitled to a child tax credit for each of your qualifying children. Irs ez file You must provide the name and identification number (usually the social security number) of each qualifying child on your return. Irs ez file See your tax return instructions for the maximum amount of the credit you can claim for each qualifying child. Irs ez file Limit on credit. Irs ez file    The credit is limited if your modified adjusted gross income (modified AGI) is above a certain amount. Irs ez file The amount at which the limitation (phaseout) begins depends on your filing status. Irs ez file Generally, your credit is limited to your tax liability unless you have three or more qualifying children. Irs ez file See your tax return instructions for more information. Irs ez file Self-employment tax. Irs ez file    For the effect of community property laws on the income tax treatment of income from a sole proprietorship and partnerships, see Wages, earnings, and profits and Partnership income , earlier. Irs ez file The following rules only apply to persons married for federal tax purposes. Irs ez file Registered domestic partners report community income for self-employment tax purposes the same way they do for income tax purposes. Irs ez file Sole proprietorship. Irs ez file    With regard to net income from a trade or business (other than a partnership) that is community income, self-employment tax is imposed on the spouse carrying on the trade or business. Irs ez file Partnerships. Irs ez file    All of the distributive share of a married partner's income or loss from a partnership trade or business is attributable to the partner for computing any self-employment tax, even if a portion of the partner's distributive share of income or loss is community income or loss that is otherwise attributable to the partner's spouse for income tax purposes. Irs ez file If both spouses are partners, any self-employment tax is allocated based on their distributive shares. Irs ez file Federal income tax withheld. Irs ez file    Report the credit for federal income tax withheld on community wages in the same manner as your wages. Irs ez file If you and your spouse file separate returns on which each of you reports half the community wages, each of you is entitled to credit for half the income tax withheld on those wages. Irs ez file Likewise, each registered domestic partner is entitled to credit for half the income tax withheld on those wages. Irs ez file Estimated tax payments. Irs ez file    In determining whether you must pay estimated tax, apply the estimated tax rules to your estimated income. Irs ez file These rules are explained in Publication 505. Irs ez file   If you think you may owe estimated tax and want to pay the tax separately (registered domestic partners must pay the tax separately), determine whether you must pay it by taking into account: Half the community income and deductions, All of your separate income and deductions, and Your own exemption and any exemptions for dependents that you may claim. Irs ez file   Whether you and your spouse pay estimated tax jointly or separately will not affect your choice of filing joint or separate income tax returns. Irs ez file   If you and your spouse paid estimated tax jointly but file separate income tax returns, either of you can claim all of the estimated tax paid, or you may divide it between you in any way that you agree upon. Irs ez file   If you cannot agree on how to divide it, the estimated tax you can claim equals the total estimated tax paid times the tax shown on your separate return, divided by the total of the tax shown on your return and your spouse's return. Irs ez file   If you paid your estimated taxes separately, you get credit for only the estimated taxes you paid. Irs ez file Earned income credit. Irs ez file    You may be entitled to an earned income credit (EIC). Irs ez file You cannot claim this credit if your filing status is married filing separately. Irs ez file   If you are married, but qualify to file as head of household under rules for married taxpayers living apart (see Publication 501, Exemptions, Standard Deduction, and Filing Information), and live in a state that has community property laws, your earned income for the EIC does not include any amount earned by your spouse that is treated as belonging to you under community property laws. Irs ez file That amount is not earned income for the EIC, even though you must include it in your gross income on your income tax return. Irs ez file Your earned income includes the entire amount you earned, even if part of it is treated as belonging to your spouse under your state's community property laws. Irs ez file The same rule applies to registered domestic partners. Irs ez file    This rule does not apply when determining your adjusted gross income (AGI) for the EIC. Irs ez file Your AGI includes that part of both your and your spouse's (or your registered domestic partner's) wages that you are required to include in gross income shown on your tax return. Irs ez file   For more information about the EIC, see Publication 596, Earned Income Credit (EIC). Irs ez file Overpayments. Irs ez file    The amount of an overpayment on a joint return is allocated under the community property laws of the state in which you are domiciled. Irs ez file If, under the laws of your state, community property is subject to premarital or other separate debts of either spouse, the full joint overpayment may be used to offset the obligation. Irs ez file If, under the laws of your state, community property is not subject to premarital or other separate debts of either spouse, only the portion of the joint overpayment allocated to the spouse liable for the obligation can be used to offset that liability. Irs ez file The portion allocated to the other spouse can be refunded. Irs ez file Community Property Laws Disregarded The following discussions are situations where special rules apply to community property and community income for spouses. Irs ez file These rules do not apply to registered domestic partners. Irs ez file Certain community income not treated as community income by one spouse. Irs ez file    Community property laws may not apply to an item of community income that you received but did not treat as community income. Irs ez file You are responsible for reporting all of that income item if: You treat the item as if only you are entitled to the income, and You do not notify your spouse of the nature and amount of the income by the due date for filing the return (including extensions). Irs ez file Relief from liability arising from community property law. Irs ez file    You are not responsible for the tax relating to an item of community income if all the following conditions are met. Irs ez file You did not file a joint return for the tax year. Irs ez file You did not include an item of community income in gross income. Irs ez file The item of community income you did not include is one of the following: Wages, salaries, and other compensation your spouse (or former spouse) received for services he or she performed as an employee. Irs ez file Income your spouse (or former spouse) derived from a trade or business he or she operated as a sole proprietor. Irs ez file Your spouse's (or former spouse's) distributive share of partnership income. Irs ez file Income from your spouse's (or former spouse's) separate property (other than income described in (a), (b), or (c)). Irs ez file Use the appropriate community property law to determine what is separate property. Irs ez file Any other income that belongs to your spouse (or former spouse) under community property law. Irs ez file You establish that you did not know of, and had no reason to know of, that community income. Irs ez file Under all facts and circumstances, it would not be fair to include the item of community income in your gross income. Irs ez file Requesting relief. Irs ez file    For information on how and when to request relief from liabilities arising from community property laws, see Community Property Laws in Publication 971, Innocent Spouse Relief. Irs ez file Equitable relief. Irs ez file    If you do not qualify for the relief discussed earlier under Relief from liability arising from community property law and are now liable for an underpaid or understated tax you believe should be paid only by your spouse (or former spouse), you may request equitable relief. Irs ez file To request equitable relief, you must file Form 8857, Request for Innocent Spouse Relief. Irs ez file Also see Publication 971. Irs ez file Spousal agreements. Irs ez file    In some states a married couple may enter into an agreement that affects the status of property or income as community or separate property. Irs ez file Check your state law to determine how it affects you. Irs ez file Nonresident alien spouse. Irs ez file    If you are a U. Irs ez file S. Irs ez file citizen or resident alien and you choose to treat your nonresident alien spouse as a U. Irs ez file S. Irs ez file resident for tax purposes and you are domiciled in a community property state or country, use the community property rules. Irs ez file You must file a joint return for the year you make the choice. Irs ez file You can file separate returns in later years. Irs ez file For details on making this choice, see Publication 519, U. Irs ez file S. Irs ez file Tax Guide for Aliens. Irs ez file   If you are a U. Irs ez file S. Irs ez file citizen or resident alien and do not choose to treat your nonresident alien spouse as a U. Irs ez file S. Irs ez file resident for tax purposes, treat your community income as explained next under Spouses living apart all year. Irs ez file However, you do not have to meet the four conditions discussed there. Irs ez file Spouses living apart all year. Irs ez file    If you are married at any time during the calendar year, special rules apply for reporting certain community income. Irs ez file You must meet all the following conditions for these special rules to apply. Irs ez file You and your spouse lived apart all year. Irs ez file You and your spouse did not file a joint return for a tax year beginning or ending in the calendar year. Irs ez file You and/or your spouse had earned income for the calendar year that is community income. Irs ez file You and your spouse have not transferred, directly or indirectly, any of the earned income in condition (3) above between yourselves before the end of the year. Irs ez file Do not take into account transfers satisfying child support obligations or transfers of very small amounts or value. Irs ez file If all these conditions are met, you and your spouse must report your community income as discussed next. Irs ez file See also Certain community income not treated as community income by one spouse , earlier. Irs ez file Earned income. Irs ez file    Treat earned income that is not trade or business or partnership income as the income of the spouse who performed the services to earn the income. Irs ez file Earned income is wages, salaries, professional fees, and other pay for personal services. Irs ez file   Earned income does not include amounts paid by a corporation that are a distribution of earnings and profits rather than a reasonable allowance for personal services rendered. Irs ez file Trade or business income. Irs ez file    Treat income and related deductions from a trade or business that is not a partnership as those of the spouse carrying on the trade or business. Irs ez file Partnership income or loss. Irs ez file    Treat income or loss from a trade or business carried on by a partnership as the income or loss of the spouse who is the partner. Irs ez file Separate property income. Irs ez file    Treat income from the separate property of one spouse as the income of that spouse. Irs ez file Social security benefits. Irs ez file    Treat social security and equivalent railroad retirement benefits as the income of the spouse who receives the benefits. Irs ez file Other income. Irs ez file    Treat all other community income, such as dividends, interest, rents, royalties, or gains, as provided under your state's community property law. Irs ez file Example. Irs ez file George and Sharon were married throughout the year but did not live together at any time during the year. Irs ez file Both domiciles were in a community property state. Irs ez file They did not file a joint return or transfer any of their earned income between themselves. Irs ez file During the year their incomes were as follows:   George Sharon Wages $20,000 $22,000 Consulting business 5,000   Partnership   10,000 Dividends from separate property 1,000 2,000 Interest from community property 500 500 Total $26,500 $34,500 Under the community property law of their state, all the income is considered community income. Irs ez file (Some states treat income from separate property as separate income—check your state law. Irs ez file ) Sharon did not take part in George's consulting business. Irs ez file Ordinarily, on their separate returns they would each report $30,500, half the total community income of $61,000 ($26,500 + $34,500). Irs ez file But because they meet the four conditions listed earlier under Spouses living apart all year , they must disregard community property law in reporting all their income (except the interest income) from community property. Irs ez file They each report on their returns only their own earnings and other income, and their share of the interest income from community property. Irs ez file George reports $26,500 and Sharon reports $34,500. Irs ez file Other separated spouses. Irs ez file    If you and your spouse are separated but do not meet the four conditions discussed earlier under Spouses living apart all year , you must treat your income according to the laws of your state. Irs ez file In some states, income earned after separation but before a decree of divorce continues to be community income. Irs ez file In other states, it is separate income. Irs ez file End of the Community The marital community may end in several ways. Irs ez file When the marital community ends, the community assets (money and property) are divided between the spouses. Irs ez file Similarly, a registered domestic partnership may end in several ways and the community assets must be divided between the registered domestic partners. Irs ez file Death of spouse. Irs ez file    If you own community property and your spouse dies, the total fair market value (FMV) of the community property, including the part that belongs to you, generally becomes the basis of the entire property. Irs ez file For this rule to apply, at least half the value of the community property interest must be includible in your spouse's gross estate, whether or not the estate must file a return (this rule does not apply to registered domestic partners). Irs ez file Example. Irs ez file Bob and Ann owned community property that had a basis of $80,000. Irs ez file When Bob died, his and Ann's community property had an FMV of $100,000. Irs ez file One-half of the FMV of their community interest was includible in Bob's estate. Irs ez file The basis of Ann's half of the property is $50,000 after Bob died (half of the $100,000 FMV). Irs ez file The basis of the other half to Bob's heirs is also $50,000. Irs ez file   For more information about the basis of assets, see Publication 551, Basis of Assets. Irs ez file    The above basis rule does not apply if your spouse died in 2010 and the spouse's executor elected out of the estate tax, in which case section 1022 will apply. Irs ez file See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for additional information. Irs ez file Divorce or separation. Irs ez file    If spouses divorce or separate, the (equal or unequal) division of community property in connection with the divorce or property settlement does not result in a gain or loss. Irs ez file For registered domestic partners, an unequal division of community property in a property settlement may result in a gain or loss. Irs ez file For information on the tax consequences of the division of property under a property settlement or divorce decree, see Publication 504. Irs ez file   Each spouse (or each registered domestic partner) is taxed on half the community income for the part of the year before the community ends. Irs ez file However, see Spouses living apart all year , earlier. Irs ez file Any income received after the community ends is separate income. Irs ez file This separate income is taxable only to the spouse (or the registered domestic partner) to whom it belongs. Irs ez file   An absolute decree of divorce or annulment ends the marital community in all community property states. Irs ez file A decree of annulment, even though it holds that no valid marriage ever existed, usually does not nullify community property rights arising during the “marriage. Irs ez file ” However, you should check your state law for exceptions. Irs ez file   A decree of legal separation or of separate maintenance may or may not end the marital community. Irs ez file The court issuing the decree may terminate the marital community and divide the property between the spouses. Irs ez file   A separation agreement may divide the community property between you and your spouse. Irs ez file It may provide that this property, along with future earnings and property acquired, will be separate property. Irs ez file This agreement may end the community. Irs ez file   In some states, the marital community ends when the spouses permanently separate, even if there is no formal agreement. Irs ez file Check your state law. Irs ez file   If you are a registered domestic partner, you should check your state law to determine when the community ends. Irs ez file Preparing a Federal Income Tax Return The following discussion does not apply to spouses who meet the conditions under Spouses living apart all year , discussed earlier. Irs ez file Those spouses must report their community income as explained in that discussion. Irs ez file Joint Return Versus Separate Returns Ordinarily, filing a joint return will give you a greater tax advantage than filing a separate return. Irs ez file But in some cases, your combined income tax on separate returns may be less than it would be on a joint return. Irs ez file This discussion concerning joint versus separate returns does not apply to registered domestic partners. Irs ez file The following rules apply if your filing status is married filing separately. Irs ez file You should itemize deductions if your spouse itemizes deductions, because you cannot claim the standard deduction. Irs ez file You cannot take the credit for child and dependent care expenses in most instances. Irs ez file You cannot take the earned income credit. Irs ez file You cannot exclude any interest income from qualified U. Irs ez file S. Irs ez file savings bonds that you used for higher education expenses. Irs ez file You cannot take the credit for the elderly or the disabled unless you lived apart from your spouse all year. Irs ez file You may have to include in income more of any social security benefits (including any equivalent railroad retirement benefits) you received during the year than you would on a joint return. Irs ez file You cannot deduct interest paid on a qualified student loan. Irs ez file You cannot take the education credits. Irs ez file You may have a smaller child tax credit than you would on a joint return. Irs ez file You cannot take the exclusion or credit for adoption expenses in most instances. Irs ez file Figure your tax both on a joint return and on separate returns under the community property laws of your state. Irs ez file You can then compare the tax figured under both methods and use the one that results in less tax. Irs ez file Separate Return Preparation If you file separate returns, you and your spouse must each report half of your combined community income and deductions in addition to your separate income and deductions. Irs ez file Each of you must complete and attach Form 8958 to your Form 1040 showing how you figured the amount you are reporting on your return. Irs ez file On the appropriate lines of your separate Form 1040, list only your share of the income and deductions on the appropriate lines of your separate tax returns (wages, interest, dividends, etc. Irs ez file ). Irs ez file The same reporting rule applies to registered domestic partners. Irs ez file For a discussion of the effect of community property laws on certain items of income, deductions, credits, and other return amounts, see Identifying Income, Deductions, and Credits , earlier. Irs ez file Attach your Form 8958 to your separate return showing how you figured the income, deductions, and federal income tax withheld that each of you reported. Irs ez file Form 8958 is used for married spouses in community property states who choose to file married filing separately. Irs ez file Form 8958 is also used for registered domestic partners who are domiciled in Nevada, Washington, or California. Irs ez file A registered domestic partner in Nevada, Washington, or California must follow state community property laws and report half the combined community income of the individual and his or her registered domestic partner. Irs ez file Extension of time to file. Irs ez file    An extension of time for filing your separate return does not extend the time for filing your spouse's (or your registered domestic partner's) separate return. Irs ez file If you and your spouse file a joint return, you cannot file separate returns after the due date for filing either separate return has passed. Irs ez file How To Get Tax Help Whether it's help with a tax issue, preparing your tax return or a need for a free publication or form, get the help you need the way you want it: online, use a smart phone, call or walk in to an IRS office or volunteer site near you. Irs ez file Free help with your tax return. Irs ez file    You can get free help preparing your return nationwide from IRS-certified volunteers. Irs ez file The Volunteer Income Tax Assistance (VITA) program helps low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers. Irs ez file The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs ez file Most VITA and TCE sites offer free electronic filing and all volunteers will let you know about credits and deductions you may be entitled to claim. Irs ez file In addition, some VITA and TCE sites provide taxpayers the opportunity to prepare their own return with help from an IRS-certified volunteer. Irs ez file To find the nearest VITA or TCE site, you can use the VITA Locator Tool on IRS. Irs ez file gov, download the IRS2Go app, or call 1-800-906-9887. Irs ez file   As part of the TCE program, AARP offers the Tax-Aide counseling program. Irs ez file To find the nearest AARP Tax-Aide site, visit AARP's website at www. Irs ez file aarp. Irs ez file org/money/taxaide or call 1-888-227-7669. Irs ez file For more information on these programs, go to IRS. Irs ez file gov and enter “VITA” in the search box. Irs ez file Internet. Irs ez file    IRS. Irs ez file gov and IRS2Go are ready when you are —24 hours a day, 7 days a week. Irs ez file Download the free IRS2Go app from the iTunes app store or from Google Play. Irs ez file Use it to check your refund status, order transcripts of your tax returns or tax account, watch the IRS YouTube channel, get IRS news as soon as it's released to the public, subscribe to filing season updates or daily tax tips, and follow the IRS Twitter news feed, @IRSnews, to get the latest federal tax news, including information about tax law changes and important IRS programs. Irs ez file Check the status of your 2013 refund with the Where's My Refund? application on IRS. Irs ez file gov or download the IRS2Go app and select the Refund Status option. Irs ez file The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs ez file Using these applications, you can start checking on the status of your return within 24 hours after we receive your e-filed return or 4 weeks after you mail a paper return. Irs ez file You will also be given a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs ez file The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs ez file Use the Interactive Tax Assistant (ITA) to research your tax questions. Irs ez file No need to wait on the phone or stand in line. Irs ez file The ITA is available 24 hours a day, 7 days a week, and provides you with a variety of tax information related to general filing topics, deductions, credits, and income. Irs ez file When you reach the response screen, you can print the entire interview and the final response for your records. Irs ez file New subject areas are added on a regular basis. Irs ez file  Answers not provided through ITA may be found in Tax Trails, one of the Tax Topics on IRS. Irs ez file gov which contain general individual and business tax information or by searching the IRS Tax Map, which includes an international subject index. Irs ez file You can use the IRS Tax Map, to search publications and instructions by topic or keyword. Irs ez file The IRS Tax Map integrates forms and publications into one research tool and provides single-point access to tax law information by subject. Irs ez file When the user searches the IRS Tax Map, they will be provided with links to related content in existing IRS publications, forms and instructions, questions and answers, and Tax Topics. Irs ez file Coming this filing season, you can immediately view and print for free all 5 types of individual federal tax transcripts (tax returns, tax account, record of account, wage and income statement, and certification of non-filing) using Get Transcript. Irs ez file You can also ask the IRS to mail a return or an account transcript to you. Irs ez file Only the mail option is available by choosing the Tax Records option on the IRS2Go app by selecting Mail Transcript on IRS. Irs ez file gov or by calling 1-800-908-9946. Irs ez file Tax return and tax account transcripts are generally available for the current year and the past three years. Irs ez file Determine if you are eligible for the EITC and estimate the amount of the credit with the Earned Income Tax Credit (EITC) Assistant. Irs ez file Visit Understanding Your IRS Notice or Letter to get answers to questions about a notice or letter you received from the IRS. Irs ez file If you received the First Time Homebuyer Credit, you can use the First Time Homebuyer Credit Account Look-up tool for information on your repayments and account balance. Irs ez file Check the status of your amended return using Where's My Amended Return? Go to IRS. Irs ez file gov and enter Where's My Amended Return? in the search box. Irs ez file You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs ez file It can take up to 3 weeks from the date you mailed it to show up in our system. Irs ez file Make a payment using one of several safe and convenient electronic payment options available on IRS. Irs ez file gov. Irs ez file Select the Payment tab on the front page of IRS. Irs ez file gov for more information. Irs ez file Determine if you are eligible and apply for an online payment agreement, if you owe more tax than you can pay today. Irs ez file Figure your income tax withholding with the IRS Withholding Calculator on IRS. Irs ez file gov. Irs ez file Use it if you've had too much or too little withheld, your personal situation has changed, you're starting a new job or you just want to see if you're having the right amount withheld. Irs ez file Determine if you might be subject to the Alternative Minimum Tax by using the Alternative Minimum Tax Assistant on IRS. Irs ez file gov. Irs ez file Request an Electronic Filing PIN by going to IRS. Irs ez file gov and entering Electronic Filing PIN in the search box. Irs ez file Download forms, instructions and publications, including accessible versions for people with disabilities. Irs ez file Locate the nearest Taxpayer Assistance Center (TAC) using the Office Locator tool on IRS. Irs ez file gov, or choose the Contact Us option on the IRS2Go app and search Local Offices. Irs ez file An employee can answer questions about your tax account or help you set up a payment plan. Irs ez file Before you visit, check the Office Locator on IRS. Irs ez file gov, or Local Offices under Contact Us on IRS2Go to confirm the address, phone number, days and hours of operation, and the services provided. Irs ez file If you have a special need, such as a disability, you can request an appointment. Irs ez file Call the local number listed in the Office Locator, or look in the phone book under United States Government, Internal Revenue Service. Irs ez file Apply for an Employer Identification Number (EIN). Irs ez file Go to IRS. Irs ez file gov and enter Apply for an EIN in the search box. Irs ez file Read the Internal Revenue Code, regulations, or other official guidance. Irs ez file Read Internal Revenue Bulletins. Irs ez file Sign up to receive local and national tax news and more by email. Irs ez file Just click on “subscriptions” above the search box on IRS. Irs ez file gov and choose from a variety of options. Irs ez file    Phone. Irs ez file You can call the IRS, or you can carry it in your pocket with the IRS2Go app on your smart phone or tablet. Irs ez file Download the free IRS2Go app from the iTunes app store or from Google Play. Irs ez file Call to locate the nearest volunteer help site, 1-800-906-9887 or you can use the VITA Locator Tool on IRS. Irs ez file gov, or download the IRS2Go app. Irs ez file Low-to-moderate income, elderly, people with disabilities, and limited English proficient taxpayers can get free help with their tax return from the nationwide Volunteer Income Tax Assistance (VITA) program. Irs ez file The Tax Counseling for the Elderly (TCE) program helps taxpayers age 60 and older with their tax returns. Irs ez file Most VITA and TCE sites offer free electronic filing. Irs ez file Some VITA and TCE sites provide IRS-certified volunteers who can help prepare your tax return. Irs ez file Through the TCE program, AARP offers the Tax-Aide counseling program; call 1-888-227-7669 to find the nearest Tax-Aide location. Irs ez file Call the automated Where's My Refund? information hotline to check the status of your 2013 refund 24 hours a day, 7 days a week at 1-800-829-1954. Irs ez file If you e-file, you can start checking on the status of your return within 24 hours after the IRS receives your tax return or 4 weeks after you've mailed a paper return. Irs ez file The IRS issues more than 9 out of 10 refunds in less than 21 days. Irs ez file Where's My Refund? will give you a personalized refund date as soon as the IRS processes your tax return and approves your refund. Irs ez file Before you call this automated hotline, have your 2013 tax return handy so you can enter your social security number, your filing status, and the exact whole dollar amount of your refund. Irs ez file The IRS updates Where's My Refund? every 24 hours, usually overnight, so you only need to check once a day. Irs ez file Note, the above information is for our automated hotline. Irs ez file Our live phone and walk-in assistors can research the status of your refund only if it's been 21 days or more since you filed electronically or more than 6 weeks since you mailed your paper return. Irs ez file Call the Amended Return Hotline, 1-866-464-2050, to check the status of your amended return. Irs ez file You can generally expect your amended return to be processed up to 12 weeks from the date we receive it. Irs ez file It can take up to 3 weeks from the date you mailed it to show up in our system. Irs ez file Call 1-800-TAX-FORM (1-800-829-3676) to order current-year forms, instructions, publications, and prior-year forms and instructions (limited to 5 years). Irs ez file You should receive your order within 10 business days. Irs ez file Call TeleTax, 1-800-829-4477, to listen to pre-recorded messages covering general and business tax information. Irs ez file If, between January and April 15, you still have questions about the Form 1040, 1040A, or 1040EZ (like filing requirements, dependents, credits, Schedule D, pensions and IRAs or self-employment taxes), call 1-800-829-1040. Irs ez file Call using TTY/TDD equipment, 1-800-829-4059 to ask tax questions or order forms and publications. Irs ez file The TTY/TDD telephone number is for people who are deaf, hard of hearing, or have a speech disability. Irs ez file These individuals can also contact the IRS through relay services such as the Federal Relay Service. Irs ez file    Walk-in. Irs ez file You can find a selection of forms, publications and services — in-person. Irs ez file Products. Irs ez file You can walk in to some post offices, libraries, and IRS offices to pick up certain forms, instructions, and publications. Irs ez file Some IRS offices, libraries, and city and county government offices have a collection of products available to photocopy from reproducible proofs. Irs ez file Services. Irs ez file You can walk in to your local TAC for face-to-face tax help. Irs ez file An employee can answer questions about your tax account or help you set up a payment plan. Irs ez file Before visiting, use the Office Locator tool on IRS. Irs ez file gov, or choose the Contact Us option on the IRS2Go app and search Local Offices for days and hours of operation, and services provided. Irs ez file    Mail. Irs ez file You can send your order for forms, instructions, and publications to the address below. Irs ez file You should receive a response within 10 business days after your request is received. Irs ez file Internal Revenue Service 1201 N. Irs ez file Mitsubishi Motorway Bloomington, IL 61705-6613   The Taxpayer Advocate Service Is Here to Help You. Irs ez file The Taxpayer Advocate Service (TAS) is your voice at the IRS. Irs ez file Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights. Irs ez file   What can TAS do for you? We can offer you free help with IRS problems that you can't resolve on your own. Irs ez file We know this process can be confusing, but the worst thing you can do is nothing at all! TAS can help if you can't resolve your tax problem and: Your problem is causing financial difficulties for you, your family, or your business. Irs ez file You face (or your business is facing) an immediate threat of adverse action. Irs ez file You've tried repeatedly to contact the IRS but no one has responded, or the IRS hasn't responded by the date promised. Irs ez file   If you qualify for our help, you'll be assigned to one advocate who'll be with you at every turn and will do everything possible to resolve your problem. Irs ez file Here's why we can help: TAS is an independent organization within the IRS. Irs ez file Our advocates know how to work with the IRS. Irs ez file Our services are free and tailored to meet your needs. Irs ez file We have offices in every state, the District of Columbia, and Puerto Rico. Irs ez file   How can you reach us? If you think TAS can help you, call your local advocate, whose number is in your local directory and at www. Irs ez file irs. Irs ez file gov/advocate, or call us toll-free at 1-877-777-4778. Irs ez file   How else does TAS help taxpayers?  TAS also works to resolve large-scale, systemic problems that affect many taxpayers. Irs ez file If you know of one of these broad issues, please report it to us through our Systemic Advocacy Management System at www. Irs ez file irs. Irs ez file gov/sams. Irs ez file Low Income Taxpayer Clinics Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals and tax collection disputes. Irs ez file Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Irs ez file Visit www. Irs ez file irs. Irs ez file gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List. Irs ez file Prev  Up  Next   Home   More Online Publications