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

1. Get Answers

Your online questions are customized to your unique tax situation.

2. Maximize your Refund

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

3. E-File for FREE

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

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

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

Taxslayer

Military TaxTax Act OnlineForm 1040x FillableFile 2007 Taxes Online FreeH And R Block Free EditionAmendment On TaxesH&r Block Free 1040ezFree 1040ez FilingE-file State Return For FreeFederal Amended Tax FormsH & R Block Free Tax FilingTaxslayer ComFree Turbo Tax Filing 2013H & R Block Free FileTax AmendmentIrs Form 1040x 2014File A Tax Extension Online For Free1040 Ez 2010 FormHow To Efile 2011 TaxesHandr Block ComHow To File Tax Return For 2012How Do I Complete A 1040x FormsTurbotax Login2012 Federal Tax Forms 1040ezFederal Tax Forms 2007H And R Block Free EfileHr Free File2012 Free State Tax FilingIrs Amended ReturnWww.irs Tax Form 1040ez For 2012How Do I File An Amended Federal Tax ReturnIrs Form 1040ezH&r Block Ez FormFiling Military TaxesForm 1040ez 2013How To File Amended Tax ReturnFile 2011 TaxFree Taxes OnlineIrs Tax FormsCan You File A 1040x Online

Taxslayer

Taxslayer Publication 3920 - Main Contents Table of Contents Tax ForgivenessYears Eligible for Tax Forgiveness Amount of Tax Forgiven Refund of Taxes Paid How To Claim Tax Forgiveness Payments to SurvivorsSeptember 11th Victim Compensation Fund of 2001 Qualified Disaster Relief Payments Disability Payments Death Benefits Canceled Debt Payments to Survivors of Public Safety Officers Postponed Tax DeadlinesCovered area. Taxslayer Disaster Area Losses Estate Tax Reduction Structured Settlement Factoring Transactions Illustrated Worksheets B and C Additional Worksheets How To Get Tax Help Tax Forgiveness The IRS will forgive the federal income tax liabilities of decedents who died as a result of the Oklahoma City attack, September 11 attacks, and anthrax attacks. Taxslayer Income tax is forgiven for these decedents whether they were killed in an attack or in rescue or recovery operations. Taxslayer Any forgiven tax liability owed to the IRS will not have to be paid. Taxslayer Any forgiven tax liability that has already been paid will be refunded. Taxslayer (See Refund of Taxes Paid, later. Taxslayer ) To determine the amount of tax to be forgiven, read Years Eligible for Tax Forgiveness first. Taxslayer Then read Amount of Tax Forgiven. Taxslayer Decedents whose total forgiven tax liability for all eligible years is less than $10,000 are entitled to $10,000 minimum relief. Taxslayer Even decedents who were not required to file tax returns for the eligible tax years are entitled to $10,000 minimum relief. Taxslayer See Minimum Amount of Relief later under Amount of Tax Forgiven. Taxslayer Years Eligible for Tax Forgiveness The following paragraphs explain which years are eligible for tax forgiveness. Taxslayer Oklahoma City attack. Taxslayer   For those who died from this attack, income tax is forgiven for 1994 and all later years up to and including the year of death. Taxslayer Example 1. Taxslayer A man was killed in the bombing of the federal building in Oklahoma City on April 19, 1995. Taxslayer His income tax is forgiven for 1994 and 1995. Taxslayer Example 2. Taxslayer A woman was wounded while walking outside the federal building in Oklahoma City on April 19, 1995. Taxslayer She subsequently died of her wounds in 1996. Taxslayer Her income tax is forgiven for 1994, 1995, and 1996. Taxslayer September 11 attacks and anthrax attacks. Taxslayer   For those who die from these attacks, income tax is forgiven for 2000 and all later years up to and including the year of death. Taxslayer Example 1. Taxslayer A Pentagon employee died in the September 11 attack. Taxslayer Her income tax is forgiven for 2000 and 2001. Taxslayer Example 2. Taxslayer A visitor to the World Trade Center died in 2002 of wounds he sustained in the September 11 attack. Taxslayer His income tax liability is forgiven for 2000, 2001, and 2002. Taxslayer Amount of Tax Forgiven The IRS will forgive the decedent's income tax liability for all years eligible for tax forgiveness. Taxslayer On a joint return, only the decedent's part of the joint income tax liability is eligible for forgiveness. Taxslayer To figure the tax to be forgiven, use the following worksheets. Taxslayer Use Worksheet A for any eligible year the decedent filed a return as single, married filing separately, head of household, or qualifying widow(er). Taxslayer Use Worksheet B for any eligible year the decedent filed a joint return. Taxslayer See the illustrated Worksheet B near the end of this publication. Taxslayer Do not complete Worksheet A or B if the decedent was not required to file tax returns for the eligible tax years. Taxslayer Instead, complete Worksheet C and file a return for the decedent's last tax year. Taxslayer See Minimum Amount of Relief, later. Taxslayer If you need assistance, call the IRS at 1–866–562–5227 Monday through Friday during the following times. Taxslayer In English–7 a. Taxslayer m. Taxslayer to 10 p. Taxslayer m. Taxslayer local time. Taxslayer In Spanish–8 a. Taxslayer m. Taxslayer to 9:30 p. Taxslayer m. Taxslayer local time. Taxslayer Both spouses died. Taxslayer   If both spouses died as a result of a terrorist attack and they filed a joint return for an eligible tax year, fill out Worksheet B for each spouse for that year. Taxslayer Do this to determine if each spouse qualifies for the minimum relief of $10,000 (discussed later under Minimum Amount of Relief). Taxslayer If you are certain that neither spouse's total forgiven tax liability for all eligible years is less than $10,000, skip Worksheet B. Taxslayer However, attach a computation of the forgiven tax liability to the final income tax return or amended tax return for each eligible year. Taxslayer The forgiven tax liability is the total tax shown on the joint return minus the taxes listed in the instructions for line 4 of Worksheet B. Taxslayer Residents of community property states. Taxslayer   If the decedent was domiciled in a community property state and the spouse reported half the community income on a separate return, the surviving spouse can get a refund of taxes paid on his or her share of the decedent's income for the eligible years. Taxslayer Also, all of the decedent's income taxes paid for the eligible years will be refunded to either the executor or administrator of the estate, or to the surviving spouse if there is no legal representative. Taxslayer Worksheet B. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Taxslayer 1       2 Enter the decedent's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 2       3 Enter the decedent's total tax. Taxslayer See the instructions. Taxslayer 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Taxslayer See the instructions. Taxslayer 4       5 Subtract line 4 from line 3. Taxslayer 5       6 Enter the surviving spouse's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 6       7 Enter the surviving spouse's total tax. Taxslayer See the instructions. Taxslayer 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Taxslayer 8       9 Subtract line 8 from line 7. Taxslayer 9       10 Add lines 5 and 9. Taxslayer 10       11 Enter the total tax from the joint return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 11       12 Add lines 4 and 8. Taxslayer 12       13 Subtract line 12 from line 11. Taxslayer 13       14 Divide line 5 by line 10. Taxslayer Enter the result as a decimal. Taxslayer 14       15 Tax to be forgiven. Taxslayer Multiply line 13 by line 14 and enter the result. Taxslayer 15       Note. Taxslayer If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Worksheet B. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Taxslayer 1       2 Enter the decedent's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 2       3 Enter the decedent's total tax. Taxslayer See the instructions. Taxslayer 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Taxslayer See the instructions. Taxslayer 4       5 Subtract line 4 from line 3. Taxslayer 5       6 Enter the surviving spouse's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 6       7 Enter the surviving spouse's total tax. Taxslayer See the instructions. Taxslayer 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Taxslayer 8       9 Subtract line 8 from line 7. Taxslayer 9       10 Add lines 5 and 9. Taxslayer 10       11 Enter the total tax from the joint return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 11       12 Add lines 4 and 8. Taxslayer 12       13 Subtract line 12 from line 11. Taxslayer 13       14 Divide line 5 by line 10. Taxslayer Enter the result as a decimal. Taxslayer 14       15 Tax to be forgiven. Taxslayer Multiply line 13 by line 14 and enter the result. Taxslayer 15       Note. Taxslayer If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Instructions for Worksheet B Table 1. Taxslayer Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Taxslayer * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Taxslayer ** File Form 4506 to get a transcript of the decedent's account. Taxslayer Table 1. Taxslayer Total Tax Line on Decedent's Return Note: Use this table to find the total tax line on the decedent's income tax return. Taxslayer * Form 1994 1995 1996 2000 2001 1040 Line 53 Line 54 Line 51 Line 57 Line 58 1040A Line 27 Line 28 Line 28 Line 35 File Form 1040 1040EZ Line 9 Line 10 Line 10 Line 10 TeleFile Tax Record ** Line E Line J Line K 1040NR Line 51 Line 52 Line 49 Line 54 Line 54 1040NR–EZ N/A Line 17 Line 17 Line 18 File Form 1040NR * Line numbers for the 2002 forms were not available when this publication went to print. Taxslayer ** File Form 4506 to get a transcript of the decedent's account. Taxslayer Lines 2 and 6. Taxslayer   Allocate income and deductions in the same manner they would have been allocated if the spouses had filed separate returns. Taxslayer   Allocate wages and salaries to the spouse who performed the services and received the Form W-2. Taxslayer Business and investment income (including capital gains) are generally allocated to the spouse who owned the business or investment that produced the income. Taxslayer Income from a jointly owned business or investment should be allocated equally between the spouses unless there is evidence that shows a different allocation is appropriate. Taxslayer   Allocate business deductions to the owner of the business. Taxslayer Allocate personal deductions (such as itemized deductions for mortgage interest and taxes) equally between the spouses unless there is evidence that shows a different allocation is appropriate. Taxslayer Lines 3 and 7. Taxslayer   Figure the total tax as if a separate return had been filed. Taxslayer The total tax is the tax that would have been entered on the tax return line shown in Table 1 if a separate return had been filed. Taxslayer When figuring the tax using the Tax Table or Tax Rate Schedule, use the “Married filing separately” column in the Tax Table or Tax Rate Schedule Y-2. Taxslayer   When figuring the total tax, allocate credits and other taxes, if any, in the same manner as they would have been allocated if the spouses had filed separate returns. Taxslayer If a credit would not have been allowed on a separate return, allocate the credit shown on the joint return between the spouses. Taxslayer Examples of credits generally not allowed on a separate return are the child and dependent care credit, credit for the elderly, adoption credit, education credits, and earned income credit. Taxslayer Line 4. Taxslayer   Enter the total, if any, of the following taxes. Taxslayer Self-employment tax. Taxslayer Social security and Medicare tax on tip income not reported to employer. Taxslayer Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Taxslayer Tax on excess accumulation in qualified retirement plans. Taxslayer Household employment taxes. Taxslayer Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Taxslayer Tax on golden parachute payments. Taxslayer Minimum Amount of Relief The minimum amount of relief is $10,000. Taxslayer If the decedent's total forgiven tax liability for all eligible years is less than $10,000, the difference between $10,000 and the total forgiven tax liability for those years will be treated as a tax payment for the decedent's last tax year. Taxslayer The IRS will refund the difference as explained under Refund of Taxes Paid. Taxslayer Use Worksheet C to figure the additional tax payment. Taxslayer But first complete Worksheet A or B, unless the decedent was not required to file tax returns for the eligible tax years. Taxslayer Example 1. Taxslayer An individual who died in the September 11 attacks had an income tax liability of $-0- for 2000 and $6,400 for 2001. Taxslayer The $6,400 is eligible for forgiveness. Taxslayer The IRS will forgive $6,400 and treat the difference between $10,000 and $6,400 ($3,600) as a tax payment for 2001. Taxslayer Example 2. Taxslayer A child who died in the September 11 attacks had no (-0-) income tax liability for 2000 or 2001. Taxslayer The IRS will treat $10,000 as a tax payment for 2001. Taxslayer Income received after date of death. Taxslayer   Generally, income of the decedent received after the date of death must be reported on Form 1041 if the estate has gross income for the tax year of $600 or more. Taxslayer Examples are the final paycheck or dividends on stock owned by the decedent. Taxslayer However, this income is exempt from income tax and is not included on Form 1041 if it is received: After the date of the decedent's death, and Before the end of the decedent's tax year (determined without regard to death). Taxslayer Nonqualifying income. Taxslayer   The following income is not exempt from tax. Taxslayer The tax on it is not eligible for forgiveness. Taxslayer Deferred compensation that would have been payable if the death had occurred because of an event other than these attacks. Taxslayer Amounts that would not have been payable but for an action taken after September 11, 2001. Taxslayer The following are examples of nonqualifying income. Taxslayer Amounts payable from a qualified retirement plan or IRA to the beneficiary or estate of the decedent. Taxslayer Amounts payable only as death or survivor's benefits from pre-existing arrangements that would have been paid if the death had occurred for another reason. Taxslayer Income received as a result of adjustments made by the decedent's employer to a plan or arrangement to accelerate the vesting of restricted property or the payment of nonqualified deferred compensation after the date of the attack. Taxslayer Interest on savings bonds cashed by the beneficiary of the decedent. Taxslayer If you are responsible for the estate of a decedent, see Publication 559. Taxslayer Publication 559 discusses how to complete and file federal income tax returns and explains your responsibility to pay any taxes due. Taxslayer Instructions for lines 2–9 of Worksheet C. Taxslayer   The tax that would have been payable on the exempt income (discussed earlier) must be considered when determining whether a decedent is entitled to the $10,000 minimum relief. Taxslayer To figure the tax that would have been payable, you can use lines 2 through 9 of Worksheet C. Taxslayer Or, if special requirements are met, you can use the alternative computation instead. Taxslayer See Alternative computation, later. Taxslayer   You have to use lines 2–9 (or the alternative computation) to figure the tax that would have been payable even if Form 1041 was not required to be filed. Taxslayer Use Form 1041 to figure what the taxable income would be without including the exempt income. Taxslayer Then enter that taxable income (even if a negative number) on line 2 of Worksheet C (or line 1 of Worksheet D, Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C)). Taxslayer Alternative computation. Taxslayer   Instead of using lines 2–8 of Worksheet C to figure the tax on exempt income (line 9 of Worksheet C), you may be able to use Worksheet D. Taxslayer You can use Worksheet D to figure the tax on the exempt income payable by the estate and its beneficiaries only if both of the following requirements are met. Taxslayer The estate claimed an income distribution deduction on line 18 (Form 1041). Taxslayer Each beneficiary submits the information necessary to refigure the income tax payable on the exempt income received from the decedent's estate. Taxslayer If requirement (2) is met but requirement (1) is not, you can still use Worksheet D if: Form 1041 was not required because exempt income was received, and The estate would have claimed an income distribution deduction if the exempt income were taxable. Taxslayer If you use this alternative computation, skip lines 2–8 of Worksheet C and enter the amount from line 8 of Worksheet D on line 9 of Worksheet C. Taxslayer Complete the rest of Worksheet C to determine the additional payment allowed. Taxslayer Worksheet C. Taxslayer Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Taxslayer Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Taxslayer 1 Minimum relief amount. Taxslayer Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Taxslayer 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Taxslayer 3       4 Add lines 2 and 3. Taxslayer 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 5       6 Add lines 4 and 5. Taxslayer 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Taxslayer 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Taxslayer 8       9 Tax on exempt income. Taxslayer Subtract line 8 from line 7. Taxslayer 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Taxslayer If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Taxslayer 10       11 Add lines 9 and 10. Taxslayer 11   12 Additional payment allowed. Taxslayer If line 11 is $10,000 or more, enter -0- and stop here. Taxslayer No additional amount is allowed as a tax payment. Taxslayer Otherwise, subtract line 11 from line 1 and enter the result. Taxslayer 12   Note. Taxslayer The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Taxslayer Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Taxslayer If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Taxslayer Write "Sec. Taxslayer 692(d)(2) Payment" and the amount to the right of the entry space. Taxslayer Also indicate whether a Form 1041 is being filed for the decedent's estate. Taxslayer If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Taxslayer Write “Sec. Taxslayer 692(d)(2) Payment” on the dotted line to the left of the entry space. Taxslayer Worksheet C. Taxslayer Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Taxslayer Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Taxslayer 1 Minimum relief amount. Taxslayer Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Taxslayer 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Taxslayer 3       4 Add lines 2 and 3. Taxslayer 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 5       6 Add lines 4 and 5. Taxslayer 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Taxslayer 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Taxslayer 8       9 Tax on exempt income. Taxslayer Subtract line 8 from line 7. Taxslayer 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Taxslayer If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Taxslayer 10       11 Add lines 9 and 10. Taxslayer 11   12 Additional payment allowed. Taxslayer If line 11 is $10,000 or more, enter -0- and stop here. Taxslayer No additional amount is allowed as a tax payment. Taxslayer Otherwise, subtract line 11 from line 1 and enter the result. Taxslayer 12   Note. Taxslayer The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Taxslayer Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Taxslayer If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Taxslayer Write "Sec. Taxslayer 692(d)(2) Payment" and the amount to the right of the entry space. Taxslayer Also indicate whether a Form 1041 is being filed for the decedent's estate. Taxslayer If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Taxslayer Write “Sec. Taxslayer 692(d)(2) Payment” on the dotted line to the left of the entry space. Taxslayer Worksheet D. Taxslayer Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Taxslayer 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Taxslayer 5   6 Estate's tax on exempt income. Taxslayer Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Taxslayer Figure the total tax that would have been payable by all beneficiaries. Taxslayer Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Taxslayer Add the amounts by which each beneficiary's income tax is increased. Taxslayer 7   8 Add lines 6 and 7. Taxslayer Enter this amount on line 9 of Worksheet C. Taxslayer 8   Worksheet D. Taxslayer Alternative Computation of Tax on Exempt Income (Line 9 of Worksheet C) 1 Enter the taxable income from line 22 (Form 1041) 1   2 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 2   3 Add lines 1 and 2 3   4 Figure the tax on line 3 using Schedule G (Form 1041). Taxslayer 4   5 Figure the tax on line 1 using Schedule G (Form 1041). Taxslayer 5   6 Estate's tax on exempt income. Taxslayer Subtract line 5 from line 4 6   7 Beneficiaries' tax on exempt income. Taxslayer Figure the total tax that would have been payable by all beneficiaries. Taxslayer Do this by including in each beneficiary's gross income the exempt income received from the decedent's estate and refiguring the income tax. Taxslayer Add the amounts by which each beneficiary's income tax is increased. Taxslayer 7   8 Add lines 6 and 7. Taxslayer Enter this amount on line 9 of Worksheet C. Taxslayer 8   Refund of Taxes Paid The IRS will refund the following forgiven income tax liabilities. Taxslayer Income tax liabilities that have been paid. Taxslayer Income tax liabilities treated as paid because the total tax liability for all years eligible for tax forgiveness is less than $10,000. Taxslayer See Minimum Amount of Relief, earlier. Taxslayer Example 1. Taxslayer A man who died in the September 11 attacks had an income tax liability of $7,500 for 2000 and $6,500 for 2001. Taxslayer The total, $14,000, is eligible for tax forgiveness. Taxslayer However, he paid only $13,000 of that amount. Taxslayer The IRS will refund the $13,000 paid. Taxslayer Example 2. Taxslayer A child who died in the September 11 attacks had no income tax liability for 2000 or 2001. Taxslayer The child qualifies for the minimum relief of $10,000. Taxslayer The $10,000 is treated as a tax payment for 2001 and will be refunded. Taxslayer Period for filing a claim for credit or refund. Taxslayer   To obtain a tax refund on a previously filed income tax return, file an amended return (Form 1040X or an amended Form 1041) within 3 years from the time the return was filed or 2 years from the time the tax was paid, whichever is later. Taxslayer For example, you have until April 15, 2004, to file an amended return on a 2000 Form 1040, 1040A, or 1040EZ that was filed by April 16, 2001, and for which the tax was paid when due. Taxslayer To obtain a refund on a return that has not been filed, file the return within 3 years of the original due date of the return. Taxslayer Extension of time for victims of Oklahoma City attack. Taxslayer   The period described above has been extended for victims of the Oklahoma City attack. Taxslayer Survivors and personal representatives of these victims have until January 22, 2003, to file an original or amended return. Taxslayer How To Claim Tax Forgiveness Use the following procedures to claim income tax forgiveness. Taxslayer Which Form To Use The form you use depends on whether an income tax return for the eligible year was already filed for the decedent. Taxslayer Return required but not yet filed. Taxslayer   File Form 1040 if the decedent was a U. Taxslayer S. Taxslayer citizen or resident. Taxslayer File Form 1040NR if the decedent was a nonresident alien. Taxslayer A nonresident alien is someone who is not a U. Taxslayer S. Taxslayer citizen or resident. Taxslayer Return required and already filed. Taxslayer   File a separate Form 1040X for each year you are claiming tax relief. Taxslayer Return not required and not filed. Taxslayer   File Form 1040 only for the year of death if the decedent was a U. Taxslayer S. Taxslayer citizen or resident. Taxslayer File Form 1040NR if the decedent was a nonresident alien. Taxslayer Return not required but already filed. Taxslayer   File Form 1040X only for the year of death. Taxslayer How to complete the returns. Taxslayer   Fill out Form 1040 or 1040NR according to its instructions but do not reduce the decedent's tax liability by any taxes that will be forgiven. Taxslayer Attach to each return a computation of the income tax to be forgiven or a copy of Worksheet A or B. Taxslayer If filing Form 1040 or Form 1040NR, also attach any Forms W–2. Taxslayer If the total forgiven tax liability for all eligible years is less than $10,000, attach to the decedent's final return a computation of the additional tax payment allowed or a copy of Worksheet C. Taxslayer Also, please write one of the following across the top of page 1 of each return. Taxslayer KITA—Oklahoma City KITA—9/11 KITA—Anthrax “KITA” means “killed in terrorist attack. Taxslayer ” Need a copy of a previously filed return?   You will find it easier to prepare Form 1040X if you have a copy of the decedent's previously filed tax return. Taxslayer If you need a copy, use Form 4506. Taxslayer The IRS will provide a free copy of the tax return if you write “DISASTER” in the top margin of Form 4506. Taxslayer Attach Letters Testamentary or other evidence to establish that you are authorized to act for the decedent's estate. Taxslayer Send Form 4506 to the address shown in the form instructions. Taxslayer Taxpayer identification number. Taxslayer   A taxpayer identification number must be furnished on the decedent's returns. Taxslayer This is usually the decedent's social security number (SSN). Taxslayer However, a nonresident alien who is not eligible to get an SSN should have an individual taxpayer identification number (ITIN). Taxslayer If the decedent was a nonresident alien, had neither an SSN nor an ITIN, and was not required to file a U. Taxslayer S. Taxslayer income tax return for any tax year, do not apply for an ITIN. Taxslayer You may claim a refund by filing Form 1040NR without an SSN or ITIN. Taxslayer Necessary Documents Please attach the following documents to the return or amended return. Taxslayer Proof of death. Taxslayer   Attach a copy of the death certificate. Taxslayer If the Department of Defense issued DD Form 1300, Report of Casualty, you can attach that form instead of the death certificate. Taxslayer Form 1310. Taxslayer   You must send Form 1310 with all returns and claims for refund, unless either of the following applies. Taxslayer You are a surviving spouse filing an original or amended joint return with the decedent. Taxslayer You are a personal representative filing an original Form 1040 or Form 1040NR for the decedent and a court certificate showing your appointment is attached to the return. Taxslayer A personal representative is an executor or administrator of a decedent's estate, as certified or appointed by the court. Taxslayer A copy of the decedent's will cannot be accepted as evidence that you are the personal representative. Taxslayer      If you have proof of death but do not have enough tax information to file a timely claim for a refund, file Form 1040X with Form 1310. Taxslayer Include a statement saying an amended return will be filed as soon as the necessary tax information is available. Taxslayer Where To File The IRS has set up a special office for processing returns and claims for tax forgiveness. Taxslayer Use one of the addresses shown below. Taxslayer Where you file the returns or claims depends on whether you use the U. Taxslayer S. Taxslayer Postal Service or a private delivery service. Taxslayer Please do not send these returns or claims to any of the addresses shown in the tax form instructions. Taxslayer U. Taxslayer S. Taxslayer Postal Service. Taxslayer   If you use the U. Taxslayer S. Taxslayer Postal Service, file these returns and claims at the following address. Taxslayer Internal Revenue Service P. Taxslayer O. Taxslayer Box 4053 Woburn, MA 01888 Private delivery service. Taxslayer   Private delivery services cannot deliver items to P. Taxslayer O. Taxslayer boxes. Taxslayer If you use a private delivery service, file these returns and claims at the following address. Taxslayer Internal Revenue Service Stop 661 310 Lowell St. Taxslayer Andover, MA 01810 Designated private delivery services. Taxslayer   You can use the following private delivery services to file these returns and claims. Taxslayer Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service. Taxslayer DHL Worldwide Express (DHL): DHL “Same Day” Service, and DHL USA Overnight. Taxslayer Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, and FedEx 2Day. Taxslayer United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A. Taxslayer M. Taxslayer , UPS Worldwide Express Plus, and UPS Worldwide Express. Taxslayer The private delivery service can tell you how to get written proof of the mailing date. Taxslayer Payments to Survivors The following section discusses the tax treatment of certain amounts received by survivors. Taxslayer September 11th Victim Compensation Fund of 2001 Payments from the September 11th Victim Compensation Fund of 2001 are not included in income. Taxslayer Qualified Disaster Relief Payments Qualified disaster relief payments are not included in income. Taxslayer These payments are not subject to income tax, self-employment tax, or employment taxes (social security, Medicare, and federal unemployment taxes). Taxslayer No withholding applies to these payments. Taxslayer Qualified disaster relief payments include payments you receive (regardless of the source) after September 10, 2001, for the following expenses. Taxslayer Reasonable and necessary personal, family, living, or funeral expenses incurred as a result of a terrorist attack. Taxslayer Reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence due to a terrorist attack. Taxslayer (A personal residence can be a rented residence or one you own. Taxslayer ) Reasonable and necessary expenses incurred for the repair or replacement of the contents of a personal residence due to a terrorist attack. Taxslayer Qualified disaster relief payments also include the following. Taxslayer Payments made by common carriers (for example, American Airlines and United Airlines regarding the September 11 attacks) because of death or physical injury incurred as a result of a terrorist attack. Taxslayer Amounts paid by a federal, state, or local government in connection with a terrorist attack to those affected by the attack. Taxslayer Qualified disaster relief payments do not include: Insurance or other reimbursements for expenses, or Income replacement payments, such as payments of lost wages, lost business income, or unemployment compensation. Taxslayer Disability Payments For tax years ending after September 10, 2001, disability payments for injuries incurred as a direct result of a terrorist attack directed against the United States (or its allies), whether outside or within the United States, are not included in income. Taxslayer Death Benefits Payments received by an individual or the estate of a decedent from the employer of an employee who died as a result of the Oklahoma City or September 11 terrorist attacks, or as a result of the anthrax attacks, are not included in income. Taxslayer Only the amount that exceeds the benefits that would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack is excludable. Taxslayer However, the exclusion does apply to incidental death benefits paid under a qualified retirement plan even if these amounts would have been payable if the death had occurred for a reason other than a terrorist or anthrax attack. Taxslayer If you included death benefits in income on a previously filed return and they are now excludable under the above rule, file Form 1040X to amend that return. Taxslayer For information on the period for filing Form 1040X, see Period for filing claim for credit or refund earlier under Refund of Taxes Paid. Taxslayer If that period has expired, you are granted an extension. Taxslayer You have until January 22, 2003, to file Form 1040X to exclude the death benefits. Taxslayer On top of page 1 of Form 1040X, write “Extension of Limitations Under PL 107–134, sec. Taxslayer 102(b)(2). Taxslayer ” Canceled Debt Canceled debt is not included in your income (or the income of the estate) if: You (or the estate) were liable, or became liable, for the debt of a decedent, and The debt was canceled after September 10, 2001, and before January 1, 2002, because the decedent died as a result of the September 11 attacks or anthrax attacks. Taxslayer The lender is not required to report the canceled debt on Form 1099–C, Cancellation of Debt. Taxslayer Payments to Survivors of Public Safety Officers If you are a survivor of a public safety officer who died in the line of duty, certain amounts you receive are not included in income. Taxslayer Bureau of Justice Assistance payments. Taxslayer   If you are a surviving dependent of a public safety officer (law enforcement officer or firefighter) who died in the line of duty, do not include in your income the death benefit paid to you by the Bureau of Justice Assistance. Taxslayer Government plan annuity. Taxslayer   If you receive a survivor annuity as the child or spouse (or former spouse) of a public safety officer who was killed in the line of duty, you generally do not have to include it in income. Taxslayer This exclusion applies to the amount of the annuity based on the officer's service as a public safety officer. Taxslayer For this purpose, the term public safety officer includes police and law enforcement officers, firefighters, and rescue squad and ambulance crews. Taxslayer More information. Taxslayer   For more information, see Publication 559. Taxslayer Postponed Tax Deadlines The IRS may postpone for up to 1 year certain tax deadlines of taxpayers who are affected by a terrorist attack. Taxslayer The tax deadlines the IRS may postpone include those for filing income and employment tax returns, paying income and employment taxes, and making contributions to a traditional IRA or Roth IRA. Taxslayer If any tax deadline is postponed, the IRS will publicize the postponement in the affected area and publish a news release, revenue ruling, revenue procedure, notice, announcement, or other guidance in the Internal Revenue Bulletin (IRB). Taxslayer Affected taxpayers. Taxslayer   If the IRS postpones a tax deadline, the following taxpayers are eligible for the postponement. Taxslayer Any individual whose main home is located in a covered area (defined later). Taxslayer Any business entity or sole proprietor whose principal place of business is located in a covered area. Taxslayer Any individual, business entity, or sole proprietor whose records needed to meet a postponed deadline are maintained in a covered area. Taxslayer The main home or principal place of business does not have to be located in the covered area. Taxslayer Any estate or trust whose tax records necessary to meet a postponed tax deadline are maintained in a covered area. Taxslayer Any individual who is a relief worker affiliated with a recognized government or philanthropic organization and who is assisting in a covered area. Taxslayer The spouse on a joint return with a taxpayer who is eligible for postponements. Taxslayer Any other person determined by the IRS to be affected by a terrorist attack. Taxslayer Covered area. Taxslayer   This is an area in which a terrorist attack took place and in which the IRS has decided to postpone tax deadlines for up to 1 year. Taxslayer Abatement of interest. Taxslayer   The IRS may abate (forgive) the interest on any underpaid income tax for the length of any postponement. Taxslayer Disaster Area Losses If your property was damaged or destroyed as a result of the September 11 attacks, you can choose to deduct your disaster loss on your 2000 return (or amended return) rather than on your 2001 return. Taxslayer You must make this choice to deduct your loss on your 2000 return by the later of the following dates. Taxslayer The due date (without extensions) for filing your 2001 income tax return (April 15, 2002, if you are a calendar year taxpayer). Taxslayer The due date (with extensions) for the 2000 return. Taxslayer For more information about disaster area losses, see Publication 547. Taxslayer Estate Tax Reduction The federal estate tax is reduced for taxable estates of individuals who died as a result of the Oklahoma City attack, the September 11 attacks, and the anthrax attacks. Taxslayer The estate tax is computed using a new rate schedule on page 25 of the November 2001 revision of the instructions for Form 706. Taxslayer The estate tax is reduced by credits against the estate tax, including the unified credit and the state death tax credit. Taxslayer These credits may reduce or eliminate the estate tax due. Taxslayer A special rule extends until January 22, 2003, the period of time allowed to file a claim for a refund of estate taxes that have been paid. Taxslayer Recovery from the September 11th Victim Compensation Fund. Taxslayer   The value of claims for a decedent's pain and suffering is normally included in the gross estate. Taxslayer However, if the estate chooses to seek recovery from this fund, the IRS has determined that, in view of the unique circumstances of this situation and the high likelihood that such claims will be valued at a nominal or zero amount, the claims will be valued at zero for estate tax purposes. Taxslayer Thus, there are no federal estate tax consequences if an estate or beneficiary receives a recovery from this fund. Taxslayer Which estates must file a return. Taxslayer   For decedents dying in 2001, Form 706 must be filed by the executor for the estate of every U. Taxslayer S. Taxslayer citizen or resident whose gross estate, plus adjusted taxable gifts and specific exemption, is more than $675,000. Taxslayer Form 706 must be filed within 9 months after the date of decedent's death unless you receive an extension of time to file. Taxslayer Use Form 4768, Application for Extension of Time To File a Return and/or Pay U. Taxslayer S. Taxslayer Estate (and Generation-Skipping Transfer) Taxes, to apply for an extension. Taxslayer Where to file. Taxslayer   Returns on which the new rate schedule is used should be sent to the following address, which was not available when Form 706 went to print. Taxslayer Internal Revenue Service E & G Department/Stop 824T 201 W. Taxslayer Rivercenter Blvd. Taxslayer Covington, KY 41011 More information. Taxslayer   For more information on the federal estate tax, see the instructions for Form 706. Taxslayer Structured Settlement Factoring Transactions A person who acquires payment rights in a structured settlement arrangement after February 21, 2002, may be subject to a 40% excise tax unless the transfer of the payment rights was approved in advance in a qualified order. Taxslayer The excise tax is figured on the excess of the undiscounted amount of the payments being acquired over the total amount actually paid to acquire them. Taxslayer However, this tax will not apply to transactions entered into from February 22, 2002, to July 1, 2002, if certain requirements are met. Taxslayer For information about these requirements, see Internal Revenue Code section 5891. Taxslayer Worksheet B Illustrated. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Taxslayer 1 2000 2001   2 Enter the decedent's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 2 $17,259 $14,295   3 Enter the decedent's total tax. Taxslayer See the instructions. Taxslayer 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Taxslayer See the instructions. Taxslayer 4 3,532 3,109   5 Subtract line 4 from line 3. Taxslayer 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions for line 2. Taxslayer 6 29,025 29,850   7 Enter the surviving spouse's total tax. Taxslayer See the instructions. Taxslayer 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Taxslayer 8 0 0   9 Subtract line 8 from line 7. Taxslayer 9 5,277 5,391   10 Add lines 5 and 9. Taxslayer 10 7,868 7,532   11 Enter the total tax from the joint return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 11 10,789 9,728   12 Add lines 4 and 8. Taxslayer 12 3,532 3,109   13 Subtract line 12 from line 11. Taxslayer 13 7,257 6,619   14 Divide line 5 by line 10. Taxslayer Enter the result as a decimal. Taxslayer 14 . Taxslayer 329 . Taxslayer 284   15 Tax to be forgiven. Taxslayer Multiply line 13 by line 14 and enter the result. Taxslayer 15 $2,388 $1,880   Note. Taxslayer If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Worksheet B Illustrated. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Taxslayer 1 2000 2001   2 Enter the decedent's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 2 $17,259 $14,295   3 Enter the decedent's total tax. Taxslayer See the instructions. Taxslayer 3 6,123 5,250   4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Taxslayer See the instructions. Taxslayer 4 3,532 3,109   5 Subtract line 4 from line 3. Taxslayer 5 2,591 2,141   6 Enter the surviving spouse's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions for line 2. Taxslayer 6 29,025 29,850   7 Enter the surviving spouse's total tax. Taxslayer See the instructions. Taxslayer 7 5,277 5,391   8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Taxslayer 8 0 0   9 Subtract line 8 from line 7. Taxslayer 9 5,277 5,391   10 Add lines 5 and 9. Taxslayer 10 7,868 7,532   11 Enter the total tax from the joint return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 11 10,789 9,728   12 Add lines 4 and 8. Taxslayer 12 3,532 3,109   13 Subtract line 12 from line 11. Taxslayer 13 7,257 6,619   14 Divide line 5 by line 10. Taxslayer Enter the result as a decimal. Taxslayer 14 . Taxslayer 329 . Taxslayer 284   15 Tax to be forgiven. Taxslayer Multiply line 13 by line 14 and enter the result. Taxslayer 15 $2,388 $1,880   Note. Taxslayer If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Illustrated Worksheets B and C A wife lost her husband in the September 11 attack on the World Trade Center. Taxslayer They filed a joint return for 2000 and the wife chose to file a joint return as a surviving spouse for 2001. Taxslayer The returns for 2000 and 2001 showed the following income, deductions, and tax liabilities. Taxslayer After the husband died, his estate received income of $4,000. Taxslayer Of that amount, $1,000 is net profit from Schedule C received before the end of 2001. Taxslayer This net profit is exempt from income tax as explained earlier under Income received after date of death. Taxslayer The wife files Form 1041 because the gross income of the estate for the tax year ($3,000) is $600 or more. Taxslayer To determine how much of the husband's tax liability for 2000 and 2001 is to be forgiven, the wife completes Worksheet B. Taxslayer She also completes Worksheet C because the forgiven tax liabilities for 2000 and 2001 (line 15 of Worksheet B) total less than $10,000. Taxslayer To claim tax relief for 2000, the wife files Form 1040X and attaches a copy of Worksheet B. Taxslayer To claim tax relief for 2001, she files Form 1040 and attaches copies of Worksheets B and C. Taxslayer   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728   2000 2001 Wages (wife) $35,000 $36,000 Net profit from Schedule C, Profit or Loss From Business (husband) 25,000 22,000 Interest income (joint account) 1,000 1,100 Deduction for ½ of self-employment tax (husband) (1,766) (1,555) Standard deduction (7,350) (7,600) Personal exemptions (2) (5,600) (5,800) Taxable income $46,284 $44,145 Joint income tax liability $7,257 $6,619 Plus: Self-employment tax (husband) 3,532 3,109 Total tax liability $10,789 $9,728 Worksheet C Illustrated. Taxslayer Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Taxslayer Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Taxslayer 1 Minimum relief amount. Taxslayer Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Taxslayer 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Taxslayer 3 0     4 Add lines 2 and 3. Taxslayer 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 5 1,000     6 Add lines 4 and 5. Taxslayer 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Taxslayer 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Taxslayer 8 435     9 Tax on exempt income. Taxslayer Subtract line 8 from line 7. Taxslayer 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Taxslayer If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Taxslayer 10 4,268     11 Add lines 9 and 10. Taxslayer 11 $4,543 12 Additional payment allowed. Taxslayer If line 11 is $10,000 or more, enter -0- and stop here. Taxslayer No additional amount is allowed as a tax payment. Taxslayer Otherwise, subtract line 11 from line 1 and enter the result. Taxslayer 12 $5,457 Note. Taxslayer The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Taxslayer Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Taxslayer If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Taxslayer Write "Sec. Taxslayer 692(d)(2) Payment" and the amount to the right of the entry space. Taxslayer Also indicate whether a Form 1041 is being filed for the decedent's estate. Taxslayer If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Taxslayer Write “Sec. Taxslayer 692(d)(2) Payment” on the dotted line to the left of the entry space. Taxslayer Worksheet C Illustrated. Taxslayer Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum relief of $10,000. Taxslayer Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Taxslayer 1 Minimum relief amount. Taxslayer Note: Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Taxslayer 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2 2,400     3 Enter the distribution deduction from line 18 (Form 1041) . Taxslayer 3 0     4 Add lines 2 and 3. Taxslayer 4 2,400     5 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 5 1,000     6 Add lines 4 and 5. Taxslayer 6 3,400     7 Figure the tax on line 6 using Schedule G (Form 1041). Taxslayer 7 710     8 Figure the tax on line 4 using Schedule G (Form 1041). Taxslayer 8 435     9 Tax on exempt income. Taxslayer Subtract line 8 from line 7. Taxslayer 9 275     10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Taxslayer If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Taxslayer 10 4,268     11 Add lines 9 and 10. Taxslayer 11 $4,543 12 Additional payment allowed. Taxslayer If line 11 is $10,000 or more, enter -0- and stop here. Taxslayer No additional amount is allowed as a tax payment. Taxslayer Otherwise, subtract line 11 from line 1 and enter the result. Taxslayer 12 $5,457 Note. Taxslayer The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Taxslayer Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Taxslayer If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Taxslayer Write "Sec. Taxslayer 692(d)(2) Payment" and the amount to the right of the entry space. Taxslayer Also indicate whether a Form 1041 is being filed for the decedent's estate. Taxslayer If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Taxslayer Write “Sec. Taxslayer 692(d)(2) Payment” on the dotted line to the left of the entry space. Taxslayer Additional Worksheets The following additional worksheets are provided for your convenience. Taxslayer Worksheet A. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Taxslayer 1       2 Enter the total tax from the decedent's income tax return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Taxslayer (These taxes are not eligible for forgiveness. Taxslayer )           a Self-employment tax. Taxslayer 3a         b Social security and Medicare tax on tip income not reported to employer. Taxslayer 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Taxslayer 3c         d Tax on excess accumulation in qualified retirement plans. Taxslayer 3d         e Household employment taxes. Taxslayer 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Taxslayer 3f         g Tax on golden parachute payments. Taxslayer 3g       4 Add lines 3a through 3g. Taxslayer 4       5 Tax to be forgiven. Taxslayer Subtract line 4 from line 2. Taxslayer 5       Note. Taxslayer If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Worksheet A. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Return as Single, Married Filing Separately, Head of Household, or Qualifying Widow(er))         (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for tax forgiveness. Taxslayer 1       2 Enter the total tax from the decedent's income tax return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 2       3 Enter the following taxes, if any, shown on the decedent's income tax return. Taxslayer (These taxes are not eligible for forgiveness. Taxslayer )           a Self-employment tax. Taxslayer 3a         b Social security and Medicare tax on tip income not reported to employer. Taxslayer 3b         c Tax on excess contributions to IRAs, Coverdell education savings accounts (formerly Ed IRAs), or Archer MSAs (formerly medical savings accounts). Taxslayer 3c         d Tax on excess accumulation in qualified retirement plans. Taxslayer 3d         e Household employment taxes. Taxslayer 3e         f Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance. Taxslayer 3f         g Tax on golden parachute payments. Taxslayer 3g       4 Add lines 3a through 3g. Taxslayer 4       5 Tax to be forgiven. Taxslayer Subtract line 4 from line 2. Taxslayer 5       Note. Taxslayer If the total of columns (A), (B), and (C) of line 5 (including any amounts shown on line 15 of Worksheet B) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 5 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Worksheet B. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Taxslayer 1       2 Enter the decedent's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 2       3 Enter the decedent's total tax. Taxslayer See the instructions. Taxslayer 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Taxslayer See the instructions. Taxslayer 4       5 Subtract line 4 from line 3. Taxslayer 5       6 Enter the surviving spouse's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 6       7 Enter the surviving spouse's total tax. Taxslayer See the instructions. Taxslayer 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Taxslayer 8       9 Subtract line 8 from line 7. Taxslayer 9       10 Add lines 5 and 9. Taxslayer 10       11 Enter the total tax from the joint return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 11       12 Add lines 4 and 8. Taxslayer 12       13 Subtract line 12 from line 11. Taxslayer 13       14 Divide line 5 by line 10. Taxslayer Enter the result as a decimal. Taxslayer 14       15 Tax to be forgiven. Taxslayer Multiply line 13 by line 14 and enter the result. Taxslayer 15       Note. Taxslayer If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Worksheet B. Taxslayer Figuring the Tax To Be Forgiven (For Decedents Who Filed a Joint Return)       (A) First Eligible Year (1994 or 2000) (B) Second Eligible Year (1995 or 2001) (C) Third Eligible Year (1996 or 2002) 1 Enter the years eligible for forgiveness. Taxslayer 1       2 Enter the decedent's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 2       3 Enter the decedent's total tax. Taxslayer See the instructions. Taxslayer 3       4 Enter the total, if any, of the decedent's taxes not eligible for forgiveness. Taxslayer See the instructions. Taxslayer 4       5 Subtract line 4 from line 3. Taxslayer 5       6 Enter the surviving spouse's taxable income. Taxslayer Figure taxable income as if a separate return had been filed. Taxslayer See the instructions. Taxslayer 6       7 Enter the surviving spouse's total tax. Taxslayer See the instructions. Taxslayer 7       8 Enter the total, if any, of the surviving spouse's taxes listed in the instructions for line 4. Taxslayer 8       9 Subtract line 8 from line 7. Taxslayer 9       10 Add lines 5 and 9. Taxslayer 10       11 Enter the total tax from the joint return. Taxslayer See Table 1 on page 5 for the line number for years before 2002. Taxslayer 11       12 Add lines 4 and 8. Taxslayer 12       13 Subtract line 12 from line 11. Taxslayer 13       14 Divide line 5 by line 10. Taxslayer Enter the result as a decimal. Taxslayer 14       15 Tax to be forgiven. Taxslayer Multiply line 13 by line 14 and enter the result. Taxslayer 15       Note. Taxslayer If the total of columns (A), (B), and (C) of line 15 (including any amounts shown on line 5 of Worksheet A) is less than $10,000, also complete Worksheet C. Taxslayer Attach the computation of the tax to be forgiven or a copy of this worksheet to the decedent's final income tax return or amended tax return (Form 1040X) for each year listed on line 1. Taxslayer If filing Form 1040X for an eligible year, enter the amount from line 15 above on Form 1040X in column B of line 10 as a decrease in tax. Taxslayer The IRS will determine the amount to be refunded. Taxslayer Worksheet C. Taxslayer Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Taxslayer Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Taxslayer 1 Minimum tax forgiveness. Taxslayer Note. Taxslayer Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Taxslayer 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Taxslayer 3       4 Add lines 2 and 3. Taxslayer 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 5       6 Add lines 4 and 5. Taxslayer 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Taxslayer 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Taxslayer 8       9 Tax on exempt income. Taxslayer Subtract line 8 from line 7. Taxslayer 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Taxslayer If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Taxslayer 10       11 Add lines 9 and 10. Taxslayer 11   12 Additional payment allowed. Taxslayer If line 11 is $10,000 or more, enter -0- and stop here. Taxslayer No additional amount is allowed as a tax payment. Taxslayer Otherwise, subtract line 11 from line 1 and enter the result. Taxslayer 12   Note. Taxslayer The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Taxslayer Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Taxslayer If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Taxslayer Write "Sec. Taxslayer 692(d)(2) Payment" and the amount to the right of the entry space. Taxslayer Also indicate whether a Form 1041 is being filed for the decedent's estate. Taxslayer If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Taxslayer Write “Sec. Taxslayer 692(d)(2) Payment” on the dotted line to the left of the entry space. Taxslayer Worksheet C. Taxslayer Amount Treated as Tax Payment for Decedent's Last Tax Year Caution: The decedent is entitled to minimum tax forgiveness of $10,000. Taxslayer Complete this worksheet only if the total tax forgiven for all eligible years is less than $10,000. Taxslayer 1 Minimum tax forgiveness. Taxslayer Note. Taxslayer Before completing lines 2–9, see Instructions for lines 2–9 of Worksheet C. Taxslayer 1 $10,000 2 Enter the taxable income from line 22 (Form 1041) 2       3 Enter the distribution deduction from line 18 (Form 1041) . Taxslayer 3       4 Add lines 2 and 3. Taxslayer 4       5 Enter exempt income received after death minus expenses allocable to exempt income. Taxslayer (See Income received after date of death on page 5. Taxslayer ) 5       6 Add lines 4 and 5. Taxslayer 6       7 Figure the tax on line 6 using Schedule G (Form 1041). Taxslayer 7       8 Figure the tax on line 4 using Schedule G (Form 1041). Taxslayer 8       9 Tax on exempt income. Taxslayer Subtract line 8 from line 7. Taxslayer 9       10 Enter the total of columns (A)–(C) from line 5 of Worksheet A or line 15 of Worksheet B. Taxslayer If the decedent was not required to file tax returns for the eligible tax years, enter -0-. Taxslayer 10       11 Add lines 9 and 10. Taxslayer 11   12 Additional payment allowed. Taxslayer If line 11 is $10,000 or more, enter -0- and stop here. Taxslayer No additional amount is allowed as a tax payment. Taxslayer Otherwise, subtract line 11 from line 1 and enter the result. Taxslayer 12   Note. Taxslayer The amount on line 12 is allowed as a tax payment for the decedent's last tax year (usually 1995 or 2001). Taxslayer Attach the computation of the additional payment allowed or a copy of this worksheet to the original or amended income tax return for the decedent's last tax year. Taxslayer If filing Form 1040, include the amount from line 12 above on the “Other payments” line of the form. Taxslayer Write "Sec. Taxslayer 692(d)(2) Payment" and the amount to the right of the entry space. Taxslayer Also indicate whether a Form 1041 is being filed for the decedent's estate. Taxslayer If filing Form 1040X, include the amount from line 12 above on Form 1040X on line 15, columns (B) and (C). Taxslayer Write “Sec. Taxslayer 692(d)(2) Payment” on the dotted line to the left of the entry space. Taxslayer How To Get Tax Help Special IRS assistance. Taxslayer   The IRS is providing special help for those affected by the terrorist attacks, as well as survivors and personal representatives of the victims. Taxslayer We have set up a special toll-free number for people who may have trouble filing or paying their taxes because they were affected by the terrorist attacks, or who have other tax issues related to the attacks. Taxslayer Call 1–866–562–5227 Monday through Friday In English–7 a. Taxslayer m. Taxslayer to 10 p. Taxslayer m. Taxslayer local time In Spanish–8 a. Taxslayer m. Taxslayer to 9:30 p. Taxslayer m. Taxslayer local time   The IRS web site at www. Taxslayer irs. Taxslayer gov has notices and other tax relief information. Taxslayer Check it periodically for any new guidance or to see if Congress has enacted new legislation. Taxslayer   Business taxpayers affected by the attacks can e-mail their questions to corp. Taxslayer disaster. Taxslayer relief@irs. Taxslayer gov. Taxslayer   For current information on Presidentially declared disaster areas, check the Federal Emergency Management Agency Web site at www. Taxslayer fema. Taxslayer gov. Taxslayer Other help from the IRS. Taxslayer   You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. Taxslayer By selecting the method that is best for you, you will have quick and easy access to tax help. Taxslayer Contacting your Taxpayer Advocate. Taxslayer   If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate. Taxslayer   The Taxpayer Advocate represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. Taxslayer While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review. Taxslayer   To contact your Taxpayer Advocate: Call the Taxpayer Advocate at 1–877–777–4778. Taxslayer Call the IRS at 1–800–829–1040. Taxslayer Call, write, or fax the Taxpayer Advocate office in your area. Taxslayer Call 1–800–829–4059 if you are a TTY/TDD user. Taxslayer   For more information, see Publication 1546, The Taxpayer Advocate Service of the IRS. Taxslayer Free tax services. Taxslayer   To find out what services are available, get Publication 910, Guide to Free Tax Services. Taxslayer It contains a list of free tax publications and an index of tax topics. Taxslayer It also describes other free tax information services, including tax education and assistance programs and a list of TeleTax topics. Taxslayer Personal computer. Taxslayer With your personal computer and modem, you can access the IRS on the Internet at www. Taxslayer irs. Taxslayer gov. Taxslayer While visiting our web site, you can: Find answers to questions you may have. Taxslayer Download forms and publications or search for forms and pub
Español

Getting to and Leaving the U.S.

Find resources on visas, embassies, currency, driving, and more.

Entering the U.S.

Back to Top

Leaving the U.S.

Back to Top

The Taxslayer

Taxslayer Index A Actual knowledge Innocent spouse relief, Actual Knowledge or Reason To Know Separation of liability relief, Actual Knowledge Assistance (see Tax help) B Burden of proof, separation of liability, Burden of proof. Taxslayer C Comments on publication, Comments and suggestions. Taxslayer Community property law, relief from liability arising from, Community Property Laws Community property laws, Community Property Laws D Decedent, Form 8857 filed by or on behalf of a decedent. Taxslayer Domestic violence (separation of liability), Exception for spousal abuse or domestic violence. Taxslayer E Equitable relief Conditions for getting, Conditions for Getting Equitable Relief Factors for determining whether to grant, Factors for Determining Whether To Grant Equitable Relief Refunds, Refunds Under Equitable Relief Erroneous items, Erroneous Items Executors (see Decedent) F Flowcharts, Flowcharts Form 8857 Filled-in example, Filled-in Form 8857 For decedent, Form 8857 filed by or on behalf of a decedent. Taxslayer Tax Court review, Tax Court Review of Request When to file, When to file Form 8857. Taxslayer Free tax services, How To Get Tax Help H Help (see Tax help) How to request relief, How To Request Relief I Indications of unfairness Innocent spouse relief, Indications of Unfairness for Innocent Spouse Relief Injured spouse relief, Publication 971 - Additional Material Innocent spouse relief, Innocent Spouse Relief J Joint and several liability, Publication 971 - Additional Material L Limitations on Relief, Limitations on Relief M More information (see Tax help) N No joint return filed, Relief for Married Persons Who Did Not File Joint Returns P Partial relief, innocent spouse relief, Partial relief when a portion of erroneous item is unknown. Taxslayer Publications (see Tax help) Q Questions & Answers, Publication 971 - Additional Material R Reason to know, Actual Knowledge or Reason To Know Refunds, Refunds Limit on amount of refund, Limit on Amount of Refund Proof required, Proof Required Under equitable relief, Refunds Under Equitable Relief S Separation of liability relief, Separation of Liability Relief Spousal abuse, The IRS Must Contact Your Spouse or Former Spouse, Exception for spousal abuse or domestic violence. Taxslayer Spousal notification, The IRS Must Contact Your Spouse or Former Spouse, Publication 971 - Additional Material Suggestions for publication, Comments and suggestions. Taxslayer T Tax Court review, Tax Court Review of Request Tax help, How To Get Tax Help Taxpayer Advocate, Taxpayer Advocate Service. Taxslayer TEFRA partnership proceedings, Exception for agreements relating to TEFRA partnership proceedings. Taxslayer Transferee liability, Transferee liability not affected by innocent spouse relief provisions. Taxslayer Transfers of property to avoid tax, Transfers of Property To Avoid Tax TTY/TDD information, How To Get Tax Help U Underpaid tax, Equitable Relief Understated tax, Understated Tax United States Tax Court, Tax Court Review of Request W When to file Form 8857, When to file Form 8857. Taxslayer Prev  Up     Home   More Online Publications