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Tax Form For College Students

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Tax Form For College Students

Tax form for college students Publication 535 - Introductory Material Table of Contents IntroductionOrdering forms and publications. Tax form for college students Tax questions. Tax form for college students Future Developments What's New for 2013 What's New for 2014 Reminders Introduction This publication discusses common business expenses and explains what is and is not deductible. Tax form for college students The general rules for deducting business expenses are discussed in the opening chapter. Tax form for college students The chapters that follow cover specific expenses and list other publications and forms you may need. Tax form for college students Comments and suggestions. Tax form for college students   We welcome your comments about this publication and your suggestions for future editions. Tax form for college students   You can send your comments to: Internal Revenue Service Tax Forms and Publications SE:W:CAR:MP:TFP 1111 Constitution Ave. Tax form for college students NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Tax form for college students Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Tax form for college students   You can send us comments from www. Tax form for college students irs. Tax form for college students gov/formspubs/. Tax form for college students Click on “More Information” and then on “Give us feedback. Tax form for college students ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax publications. Tax form for college students Ordering forms and publications. Tax form for college students   Visit www. Tax form for college students irs. Tax form for college students gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. Tax form for college students Internal Revenue Service 1201 N. Tax form for college students Mitsubishi Motorway Bloomington, IL 61705-6613 We cannot answer tax questions sent to either the “Comments and suggestions” or “Ordering forms and publications” address. Tax form for college students Tax questions. Tax form for college students   If you have a tax-related question, please go to Help With Tax Questions on IRS. Tax form for college students gov. Tax form for college students If you've looked around our site and still didn't find the answer to your general tax question, please call our toll-free tax assistance line at 1-800-829-1040 for individual tax questions or 1-800-829-4933 for business tax questions. Tax form for college students Future Developments For the latest information about developments related to Publication 535, such as legislation enacted after it was published, go to www. Tax form for college students irs. Tax form for college students gov/pub535. Tax form for college students What's New for 2013 The following items highlight some changes in the tax law for 2013. Tax form for college students Optional safe harbor method to determine the business use of a home deduction. Tax form for college students  Beginning in 2013, you can use the optional safe harbor method to determine the deduction for the business use of your home. Tax form for college students For more information, see chapter 1. Tax form for college students Standard mileage rate. Tax form for college students  Beginning in 2013, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56. Tax form for college students 5 cents per mile. Tax form for college students For more information, see chapter 11. Tax form for college students Additional Medicare Tax. Tax form for college students  Beginning in 2013, a 0. Tax form for college students 9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than: $125,000 if married filing separately, $250,000 if married filing jointly, or $200,000 if single, head of household, or qualifying widow(er) with dependent child. Tax form for college students Medicare wages and self-employment income are combined to determine if your income exceeds the threshold. Tax form for college students RRTA compensation should be separately compared to the threshold. Tax form for college students For more information, see chapter 5 or visit www. Tax form for college students irs. Tax form for college students gov and enter the following words in the search box: Additional Medicare Tax. Tax form for college students Retiree drug subsidy. Tax form for college students  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). Tax form for college students For more information, visit www. Tax form for college students irs. Tax form for college students gov and enter the following words in the search box: Retiree drug subsidy. Tax form for college students What's New for 2014 The following item highlights a change in the tax law for 2014. Tax form for college students Standard mileage rate. Tax form for college students  Beginning in 2014, the standard mileage rate for the cost of operating your car, van, pickup, or panel truck for each mile of business use is 56 cents per mile. Tax form for college students Film and television productions costs. Tax form for college students  The election to expense film and television production costs does not apply to productions that begin in 2014. Tax form for college students For more information, see chapter 7. Tax form for college students Reminders The following reminders and other items may help you file your tax return. Tax form for college students IRS e-file (Electronic Filing) You can file your tax returns electronically using an IRS e-file option. Tax form for college students The benefits of IRS e-file include faster refunds, increased accuracy, and acknowledgment of IRS receipt of your return. Tax form for college students You can use one of the following IRS e-file options. Tax form for college students Use an authorized IRS e-file provider. Tax form for college students Use a personal computer. Tax form for college students Visit a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site. Tax form for college students For details on these fast filing methods, see your income tax package. Tax form for college students Form 1099 MISC. Tax form for college students  File Form 1099-MISC, Miscellaneous Income, for each person to whom you have paid during the year in the course of your trade or business at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, and crop insurance proceeds. Tax form for college students See the Instructions for Form 1099-MISC for more information and additional reporting requirements. Tax form for college students Photographs of missing children. Tax form for college students  The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children. Tax form for college students Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Tax form for college students You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) (24-hours a day, 7 days a week) if you recognize a child. Tax form for college students Prev  Up  Next   Home   More Online Publications
 
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IRS Radio PSAs

The latest IRS radio Public Service Announcements (PSA) can be played during calendar year 2014. The files are :30 and :60 in English and Spanish MP3 format. The PSA files and text transcripts of each recording are downloadable.

 

2014 Radio PSAs

:30 :60 Format - English

Topics Text Script Seconds
Choosing a Preparer Text :30
Choosing a Preparer Text :60
Common Error Text :30
Earned Income Tax Credit (EITC) Text :30
EITC "The List" Text :30
Identity Theft Text :30
IRS Free File - Costs Less Than Text :30
Last Minute Tips (extensions) Text :30
Online Tax Tools Text :30
Payment Options Text :30
Q&A Text :30
Refunds Text :30
Self-Help Options Text :30
Taxpayer Montage Text :30
Transcripts Text :30
VITA-TCE Text :30
     

 

2014 Radio PSAs

:30 :60 Format - Spanish

Topics Text Script Seconds
Cómo Elegir un Preparador Texto :30
Cómo Elegir un Preparador Texto :60
Consejo Tributario de Último Minuto Texto :30
Crédito Tributario por Ingreso del Trabajo Texto :30
Errores Comunes Texto :30
Herramientas De impuestos Disponibles en Línea Texto :30
Montaje Texto :30
Opciones de Pago/Planes de Pago Texto :30
Programa de Voluntarios – VITA/TCE Texto :30
Rembolsos Texto :30
Respuestas a Preguntas Tributarias Texto :30
Robo de Identidad Texto :30
Transcripciones Texto :30
     

 

2013 - Filing Your Taxes Radio PSAs

:30 :60 Format - English

Topic Text Script Seconds
Taxpayer Needs Montage Text :30
Common Errors Text :30
Filing an Extension Text :30
Free Tax Prep Text :30
Identity Theft Text :30
Payment Options Text :30
Refund Expectations Text :30
Transcripts Text :30

 

2013 - Filing Your Taxes Radio PSAs

:30 :60 Format - Spanish

Topics

Text script

Seconds

Errores Comunes Text :30
Consejos de Ultimo Minuto (extensiones) Text :30
Montage de Contribuyente Text :30

 

IRS Free File - Less Taxing

:15 :30 :60 Format - English

Topics

Text script

Seconds

IRS Free File - Less Taxing

Text

:15

IRS Free File - Less Taxing

Text

:30

IRS Free File - Less Taxing

Text

:60

 

IRS Free File - Es Más Sencillo

:15 :30 :60 Format - Spanish

Topics

Text script

Seconds

IRS Free File - es más sencillo

Text

:15

IRS Free File - es más sencillo

Text

:30

IRS Free File - es más sencillo

Text

:60

A copy of the text transcript for audio files will be provided as quickly as we can prepare it, usually within 24 hours.

Due to the large size of the audio clips, we advise that you right click on the link and ‘Save Target As’—in order to save the file to your desktop, to re-open from your computer.

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Page Last Reviewed or Updated: 17-Mar-2014

The Tax Form For College Students

Tax form for college students 10. Tax form for college students   Business Bad Debts Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: Definition of Business Bad DebtAccrual method. Tax form for college students Cash method. Tax form for college students Debt acquired from a decedent. Tax form for college students Liquidation. Tax form for college students Types of Business Bad Debts When a Debt Becomes Worthless How To Claim a Business Bad DebtSpecific Charge-Off Method Nonaccrual-Experience Method Recovery of a Bad DebtNet operating loss (NOL) carryover. Tax form for college students Introduction You have a bad debt if you cannot collect money owed to you. Tax form for college students A bad debt is either a business bad debt or a nonbusiness bad debt. Tax form for college students This chapter discusses only business bad debts. Tax form for college students Generally, a business bad debt is one that comes from operating your trade or business. Tax form for college students You can deduct business bad debts on Schedule C (Form 1040) or your applicable business income tax return. Tax form for college students All other bad debts are nonbusiness bad debts and are deductible only as short-term capital losses. Tax form for college students For more information on nonbusiness bad debts, see Publication 550. Tax form for college students Topics - This chapter discusses: Definition of business bad debt When a debt becomes worthless How to claim a business bad debt Recovery of a bad debt Useful Items - You may want to see: Publication 525 Taxable and Nontaxable Income 536 Net Operating Losses (NOLs) for Individuals, Estates, and Trusts 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 556 Examination of Returns, Appeal Rights, and Claims for Refund Form (and Instructions) Schedule C (Form 1040) Profit or Loss From Business 1040X Amended U. Tax form for college students S. Tax form for college students Individual Income Tax Return 1045 Application for Tentative Refund 1139 Corporation Application for Tentative Refund 3115 Application for Change in Accounting Method See chapter 12 for information about getting publications and forms. Tax form for college students Definition of Business Bad Debt A business bad debt is a loss from the worthlessness of a debt that was either: Created or acquired in your trade or business, or Closely related to your trade or business when it became partly or totally worthless. Tax form for college students A debt is closely related to your trade or business if your primary motive for incurring the debt is business related. Tax form for college students Bad debts of a corporation (other than an S corporation) are always business bad debts. Tax form for college students Credit sales. Tax form for college students   Business bad debts are mainly the result of credit sales to customers. Tax form for college students Goods that have been sold, but not yet paid for, and services that have been performed, but not yet paid for, are recorded in your books as either accounts receivable or notes receivable. Tax form for college students After a reasonable period of time, if you have tried to collect the amount due, but are unable to do so, the uncollectible part becomes a business bad debt. Tax form for college students   Accounts or notes receivable valued at fair market value (FMV) when received are deductible only at that value, even though the FMV may be less than the face value. Tax form for college students If you purchased an account receivable for less than its face value, and the receivable subsequently becomes worthless, the most you are allowed to deduct is the amount you paid to acquire it. Tax form for college students    You can claim a business bad debt deduction only if the amount owed to you was previously included in gross income. Tax form for college students This applies to amounts owed to you from all sources of taxable income, including sales, services, rents, and interest. Tax form for college students Accrual method. Tax form for college students   If you use the accrual method of accounting, you generally report income as you earn it. Tax form for college students You can only claim a bad debt deduction for an uncollectible receivable if you have previously included the uncollectible amount in income. Tax form for college students   If you qualify, you can use the nonaccrual-experience method of accounting discussed later. Tax form for college students Under this method, you do not have to accrue income that, based on your experience, you do not expect to collect. Tax form for college students Cash method. Tax form for college students   If you use the cash method of accounting, you generally report income when you receive payment. Tax form for college students You cannot claim a bad debt deduction for amounts owed to you because you never included those amounts in income. Tax form for college students For example, a cash basis architect cannot claim a bad debt deduction if a client fails to pay the bill because the architect's fee was never included in income. Tax form for college students Debts from a former business. Tax form for college students   If you sell your business but retain its receivables, these debts are business debts because they arose out of your trade or business. Tax form for college students If any of these receivables subsequently become worthless, the loss is still a business bad debt. Tax form for college students Debt acquired from a decedent. Tax form for college students   The character of a loss from debts of a business acquired from a decedent is determined in the same way as debts acquired on the purchase of a business. Tax form for college students The executor of the decedent's estate treats any loss from the debts as a business bad debt if the debts were closely related to the decedent's trade or business when they became worthless. Tax form for college students Otherwise, a loss from these debts becomes a nonbusiness bad debt for the decedent's estate. Tax form for college students Liquidation. Tax form for college students   If you liquidate your business and some of the accounts receivable that you retain become worthless, they become business bad debts. Tax form for college students Types of Business Bad Debts Business bad debts may result from the following. Tax form for college students Loans to clients and suppliers. Tax form for college students   If you loan money to a client, supplier, employee, or distributor for a business reason and you are unable to collect the loan after attempting to do so, you have a business bad debt. Tax form for college students Debts owed by political parties. Tax form for college students   If a political party (or other organization that accepts contributions or spends money to influence elections) owes you money and the debt becomes worthless, you can claim a bad debt deduction only if all of the following requirements are met. Tax form for college students You use the accrual method of accounting. Tax form for college students The debt arose from the sale of goods or services in the ordinary course of your trade or business. Tax form for college students More than 30% of your receivables accrued in the year of the sale were from sales to political parties. Tax form for college students You made substantial and continuing efforts to collect on the debt. Tax form for college students Loan or capital contribution. Tax form for college students   You cannot claim a bad debt deduction for a loan you made to a corporation if, based on the facts and circumstances, the loan is actually a contribution to capital. Tax form for college students Debts of an insolvent partner. Tax form for college students   If your business partnership breaks up and one of your former partners becomes insolvent, you may have to pay more than your pro rata share of the partnership's debts. Tax form for college students If you pay any part of the insolvent partner's share of the debts, you can claim a bad debt deduction for the amount you paid that is attributable to the insolvent partner's share. Tax form for college students Business loan guarantee. Tax form for college students   If you guarantee a debt that subsequently becomes worthless, the debt can qualify as a business bad debt if all the following requirements are met. Tax form for college students You made the guarantee in the course of your trade or business. Tax form for college students You have a legal duty to pay the debt. Tax form for college students You made the guarantee before the debt became worthless. Tax form for college students You meet this requirement if you reasonably expected you would not have to pay the debt without full reimbursement from the borrower. Tax form for college students You received reasonable consideration for making the guarantee. Tax form for college students You meet this requirement if you made the guarantee in accord with normal business practice or for a good faith business purpose. Tax form for college students Example. Tax form for college students Jane Zayne owns the Zayne Dress Company. Tax form for college students She guaranteed payment of a $20,000 note for Elegant Fashions, a dress outlet. Tax form for college students Elegant Fashions is one of Zayne's largest clients. Tax form for college students Elegant Fashions later defaulted on the loan. Tax form for college students As a result, Ms. Tax form for college students Zayne paid the remaining balance of the loan in full to the bank. Tax form for college students She can claim a business bad debt deduction only for the amount she paid, since her guarantee was made in the course of her trade or business for a good faith business purpose. Tax form for college students She was motivated by the desire to retain one of her better clients and keep a sales outlet. Tax form for college students Deductible in the year paid. Tax form for college students   If you make a payment on a loan you guaranteed, you can deduct it in the year paid, unless you have rights against the borrower. Tax form for college students Rights against a borrower. Tax form for college students   When you make payment on a loan you guaranteed, you may have the right to take the place of the lender. Tax form for college students The debt is then owed to you. Tax form for college students If you have this right, or some other right to demand payment from the borrower, you cannot claim a bad debt deduction until these rights become partly or totally worthless. Tax form for college students Joint debtor. Tax form for college students   If two or more debtors jointly owe you money, your inability to collect from one does not enable you to deduct a proportionate amount as a bad debt. Tax form for college students Sale of mortgaged property. Tax form for college students   If mortgaged or pledged property is sold for less than the debt, the unpaid, uncollectible balance of the debt is a bad debt. Tax form for college students When a Debt Becomes Worthless A debt becomes worthless when there is no longer any chance the amount owed will be paid. Tax form for college students This may occur when the debt is due or prior to that date. Tax form for college students To demonstrate worthlessness, you must only show that you have taken reasonable steps to collect the debt but were unable to do so. Tax form for college students It is not necessary to go to court if you can show that a judgment from the court would be uncollectible. Tax form for college students Bankruptcy of your debtor is generally good evidence of the worthlessness of at least a part of an unsecured and unpreferred debt. Tax form for college students Property received for debt. Tax form for college students   If you receive property in partial settlement of a debt, reduce the debt by the property's FMV, which becomes the property's basis. Tax form for college students You can deduct the remaining debt as a bad debt if and when it becomes worthless. Tax form for college students   If you later sell the property for more than its basis, any gain on the sale is due to the appreciation of the property. Tax form for college students It is not a recovery of a bad debt. Tax form for college students For information on the sale of an asset, see Publication 544. Tax form for college students How To Claim a Business Bad Debt There are two methods to claim a business bad debt. Tax form for college students The specific charge-off method. Tax form for college students The nonaccrual-experience method. Tax form for college students Generally, you must use the specific charge-off method. Tax form for college students However, you may use the nonaccrual-experience method if you meet the requirements discussed later under Nonaccrual-Experience Method . Tax form for college students Specific Charge-Off Method If you use the specific charge-off method, you can deduct specific business bad debts that become either partly or totally worthless during the tax year. Tax form for college students However, with respect to partly worthless bad debts, your deduction is limited to the amount you charged off on your books during the year. Tax form for college students Partly worthless debts. Tax form for college students   You can deduct specific bad debts that become partly uncollectible during the tax year. Tax form for college students Your tax deduction is limited to the amount you charge off on your books during the year. Tax form for college students You do not have to charge off and deduct your partly worthless debts annually. Tax form for college students You can delay the charge off until a later year. Tax form for college students However, you cannot deduct any part of a debt after the year it becomes totally worthless. Tax form for college students Significantly modified debt. Tax form for college students   An exception to the charge-off rule exists for debt which has been significantly modified and on which the holder recognized gain. Tax form for college students For more information, see Regulations section 1. Tax form for college students 166-3(a)(3). Tax form for college students Deduction disallowed. Tax form for college students   Generally, you can claim a partial bad debt deduction only in the year you make the charge-off on your books. Tax form for college students If, under audit, the IRS does not allow your deduction and the debt becomes partly worthless in a later tax year, you can deduct the amount you charged off in that year plus the disallowed amount charged off in the earlier year. Tax form for college students The charge-off in the earlier year, unless reversed on your books, fulfills the charge-off requirement for the later year. Tax form for college students Totally worthless debts. Tax form for college students   If a debt becomes totally worthless in the current tax year, you can deduct the entire amount, less any amount deducted in an earlier tax year when the debt was only partly worthless. Tax form for college students   You do not have to make an actual charge-off on your books to claim a bad debt deduction for a totally worthless debt. Tax form for college students However, you may want to do so. Tax form for college students If you do not and the IRS later rules the debt is only partly worthless, you will not be allowed a deduction for the debt in that tax year because a deduction of a partly worthless bad debt is limited to the amount actually charged off. Tax form for college students See Partly worthless debts, earlier. Tax form for college students Filing a claim for refund. Tax form for college students   If you did not deduct a bad debt on your original return for the year it became worthless, you can file a claim for a credit or refund. Tax form for college students If the bad debt was totally worthless, you must file the claim by the later of the following dates. Tax form for college students 7 years from the date your original return was due (not including extensions). Tax form for college students 2 years from the date you paid the tax. Tax form for college students   If the claim is for a partly worthless bad debt, you must file the claim by the later of the following dates. Tax form for college students 3 years from the date you filed your original return. Tax form for college students 2 years from the date you paid the tax. Tax form for college students You may have longer to file the claim if you were unable to manage your financial affairs due to a physical or mental impairment. Tax form for college students Such an impairment requires proof of existence. Tax form for college students   For details and more information about filing a claim, see Publication 556. Tax form for college students Use one of the following forms to file a claim. Tax form for college students For more information, see the instructions for the applicable form. Tax form for college students Table 10-1. Tax form for college students Forms Used To File a Claim IF you filed as a. Tax form for college students . Tax form for college students . Tax form for college students THEN file. Tax form for college students . Tax form for college students . Tax form for college students Sole proprietor or farmer Form 1040X Corporation Form 1120X S corporation Form 1120S and check box H(4) Partnership Form 1065X if filing on paper or  Form 1065 and check box G(5) if filing electronically Nonaccrual-Experience Method If you use an accrual method of accounting and qualify under the rules explained in this section, you can use the nonaccrual-experience method for bad debts. Tax form for college students Under this method, you do not accrue service related income you expect to be uncollectible. Tax form for college students Because the expected uncollectible amounts are not included in income, these amounts are not later deducted from income. Tax form for college students Generally, you can use the nonaccrual-experience method for accounts receivable for services you performed only if: The services are provided in the fields of accounting, actuarial science, architecture, consulting, engineering, health, law, or the performing arts, or You meet the $5 million gross receipts test for all prior years. Tax form for college students Service related income. Tax form for college students   You can use the nonaccrual-experience method only for amounts earned by performing services. Tax form for college students You cannot use this method for amounts owed to you from activities such as lending money, selling goods, or acquiring receivables or other rights to receive payment. Tax form for college students Gross receipts test. Tax form for college students   To find out if you meet the $5 million gross receipts test for all prior years, you must figure the average annual gross receipts for each prior year. Tax form for college students If your average annual gross receipts for any year exceeds $5 million, you cannot use the non-accural experience method. Tax form for college students   The average annual gross receipts for any year is the average of gross receipts from the year in question and the 2 previous years. Tax form for college students For example, if you were figuring the average annual gross receipts for 2013, you would average your gross receipts for 2011, 2012, and 2013. Tax form for college students Interest or penalty charged. Tax form for college students   Generally, you cannot use the nonaccrual-experience method for amounts due on which you charge interest or a late payment penalty. Tax form for college students However, do not treat a discount offered for early payment as the charging of interest or a penalty if both the following apply. Tax form for college students You otherwise accrue the full amount due as gross income at the time you provide the services. Tax form for college students You treat the discount allowed for early payment as an adjustment to gross income in the year of payment. Tax form for college students Change in accounting method. Tax form for college students   Generally, you must obtain consent to change to a nonaccrual-experience method (other than one of the safe harbor methods) or to change from one method to another. Tax form for college students See Form 3115 and the Instructions for Form 3115 for more information. Tax form for college students Recovery of a Bad Debt If you claim a deduction for a bad debt on your income tax return and later recover (collect) all or part of it, you may have to include all or part of the recovery in gross income. Tax form for college students The amount you include is limited to the amount you actually deducted. Tax form for college students However, you can exclude the amount deducted that did not reduce your tax. Tax form for college students Report the recovery as “Other income” on the appropriate business form or schedule. Tax form for college students See Recoveries in Publication 525 for more information. Tax form for college students Net operating loss (NOL) carryover. Tax form for college students   If a bad debt deduction increases an NOL carryover that has not expired before the beginning of the tax year in which the recovery takes place, you treat the deduction as having reduced your tax. Tax form for college students A bad debt deduction that contributes to a NOL helps lower taxes in the year to which you carry the NOL. Tax form for college students For more information about NOLs, see Publication 536. Tax form for college students Also, see the Instructions for Form 1045, and the Instructions for Form 1139. Tax form for college students Prev  Up  Next   Home   More Online Publications