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

Turbo State Tax Free

Filing 2012 Tax Return Late2008 Tax SoftwareHow To Fill Out A 1040ez Tax FormWhere Can I File My 2009 Taxes Online For Free1040ez Tax Forms1040ez InstructionsState Income TaxesWhere To File 2011 Federal Tax ReturnPrintable Tax Forms 1040ez1040x Tax FormFile 1040ez Online Free1040x For 2010Hr Block Free Tax FileMa Taxes Ng Army MilWhen Can I File An Amended Tax Return For 20131040ez Instructions1040ez On LineFree State And Federal Tax PreparationElectronic 1040x2011 Tax Form 1040File 1040x OnlineWhere Do I File My 2011 Federal Tax ReturnFederal Ez Tax Form 2013Free Federal And State Tax Filing 2014Where Can I Get 2012 Federal Tax FormsFree Income Tax Help1040 Ez Tax FormIrs Gov 1040ez2012 Federal Income Tax Forms 1040ezH And R Block Free FilingHow To File An Amendment On TaxesH R Block 2011 DownloadFree Taxes OnlineFile 2007 Taxes FreeTax Forms 2011 FederalCan I Amend My Taxes OnlineAmend 2010 Tax ReturnAmend 2010 Taxes1040x Online Free2011 Federal Tax Forms 1040 Ez

Turbo State Tax Free

Turbo state tax free Index Symbols $10,000, pagos en efectivo en exceso de, Introducción A Asistencia (see Ayuda con los impuestos) Ayuda (see Ayuda con los impuestos) Ayuda con los impuestos, Cómo Obtener Ayuda con los Impuestos D Defensor del Contribuyente, Servicio del Defensor del Contribuyente. Turbo state tax free F Formulario, ¿Quién tiene que presentar el Formulario 8300-SP? 8300-SP, ¿Quién tiene que presentar el Formulario 8300-SP? I Información adicional (see Ayuda con los impuestos) Informe de pagos en efectivo en exceso de $10,000, Introducción P Publicaciones (see Ayuda con los impuestos) Q Qué Hay de Nuevo, Qué Hay de Nuevo S Servicios gratuitos para los impuestos, Servicios gratuitos para los impuestos. Turbo state tax free T Transacciones en efectivo en exceso de $10,000, Introducción Prev  Up     Home   More Online Publications
Español

Japan 2011 Earthquake/Tsunami – U.S. Government Information


In the United States

Environmental Monitoring

The EPA has its radiation air monitoring (RadNet) data, frequently asked questions, and other resources on http://www.epa.gov/japan2011/. Here you can:

Food Safety

The U.S. Food and Drug Administration (FDA) has deemed that based on current information, there is no risk to the U.S. food supply.

In response to the ongoing situation in Japan, the EPA has taken steps to increase the level of nationwide monitoring of milk, precipitation, drinking water, and other potential exposure routes.

  • EPA conducts radiological monitoring of milk under its RADNET program
  • The U.S. Food and Drug Administration has jurisdiction over the safety, labeling and identity of milk and milk products in interstate commerce.
  • States have jurisdiction over those facilities located within their territory.

Results from a screening sample taken March 25 from Spokane, WA detected 0.8 pCi/L of iodine-131, which is more than 5,000 times lower than the Derived Intervention Level set by the U.S. Food and Drug Administration.

  • These types of findings are to be expected in the coming days and are far below levels of public health concern, including for infants and children.
  • Iodine-131 has a very short half-life of approximately eight days, and the level detected in milk and milk products is therefore expected to drop relatively quickly.

Radiation is all around us in our daily lives, and these findings are a miniscule amount compared to what people experience every day. For example, people are exposed to low levels of radiation on round trip cross country flights, watching television, and even from construction materials.

  • The U.S. Food and Drug Administration has jurisdiction over 80 percent of the food supply, including seafood, dairy, and produce. The U.S. Department of Agriculture regulates meat, poultry, and processed egg products, while FDA regulates all other food products.
  • The U.S. Department of Agriculture has stated that Japan has not exported any beef products to the United States for nearly a year.
  • The U.S. Department of Agriculture has stated that Japan is not currently eligible to export any poultry or processed egg products to the U.S.
  • The U.S. Food and Drug Administration and Customs and Border Protection carefully screen all food products for unsafe substances, including radiological material at Ports of Entry.
  • Learn more about keeping food safe during an emergency.

Potassium Iodide (KI)

The Centers for Disease Control (CDC) does not recommend that people in the United States take potassium iodide supplements (also called KI) in response to the damaged nuclear reactors in Japan.

  • Only take KI on the advice of emergency management officials, public health officials, or your doctor.
  • There are health risks associated with taking KI.

Food, Mail, Ships, and Cargo from Japan

The U.S. Customs and Border Protection (CBP) is monitoring developments in Japan carefully and uses several types of radiation detection equipment in air and sea ports, mail facilities, and elsewhere to ensure safety.

  • CBP and the U.S. Food and Drug Administration carefully screen all food products for unsafe substances, including radiological material, at Ports of Entry.
  • All inbound travelers, baggage, and cargo are screened for radiological materials.
  • CBP employs radiation monitors at international mail facilities.

American Citizens in Japan

American Embassy in Japan

All U.S. citizens in Japan should continue to carefully monitor the situation and follow the guidance of the U.S. and Japanese governments.

Authorized Departures

The U.S. government has authorized the voluntary departure from Japan of eligible family members of U.S. government personnel assigned to the U.S. Embassy in Tokyo, the U.S. Consulate in Nagoya, the Foreign Service Institute Field School in Yokohama, and U.S. Forces Japan.

Evacuations

Travel to and from Japan

Disaster Preparedness

The tragic events in Japan remind us that disasters can strike at any time. The best way to make sure your family is taken care of when disaster strikes is to be prepared.

Additional Information

  • Earthquake in Japan – See facts from the U.S. Geological Survey about the 9.0 earthquake.
  • Earthquake Preparedness and Response – The U.S. Centers for Disease Control and Prevention provides helpful tips on how to prepare for an earthquake and what to do during a quake.
  • Earthquakes, Flooding, and Radiation – The National Institutes of Health provides information and resources about natural disasters and their effects.
  • Tsunami Health Effects – The U.S. Centers for Disease Control and Prevention describes the immediate, secondary, and long-term health effects of a tsunami.
  • Tsunami Preparedness – The Federal Emergency Management Agency explains what a tsunami is and provides guidance on what to do during a tsunami watch or warning.
  • Radiation – Read about the assistance and expertise that the U.S. Department of Energy is providing to Japanese response and recovery efforts.

The Turbo State Tax Free

Turbo state tax free 23. Turbo state tax free   Interest Expense Table of Contents Introduction Useful Items - You may want to see: Home Mortgage InterestAmount Deductible Points Mortgage Insurance Premiums Form 1098, Mortgage Interest Statement Investment InterestInvestment Property Allocation of Interest Expense Limit on Deduction Items You Cannot DeductPersonal Interest Allocation of Interest How To ReportMore than one borrower. Turbo state tax free Mortgage proceeds used for business or investment. Turbo state tax free Introduction This chapter discusses what interest expenses you can deduct. Turbo state tax free Interest is the amount you pay for the use of borrowed money. Turbo state tax free The following are types of interest you can deduct as itemized deductions on Schedule A (Form 1040). Turbo state tax free Home mortgage interest, including certain points and mortgage insurance premiums. Turbo state tax free Investment interest. Turbo state tax free This chapter explains these deductions. Turbo state tax free It also explains where to deduct other types of interest and lists some types of interest you cannot deduct. Turbo state tax free Use Table 23-1 to find out where to get more information on various types of interest, including investment interest. Turbo state tax free Useful Items - You may want to see: Publication 936 Home Mortgage Interest Deduction 550 Investment Income and Expenses Home Mortgage Interest Generally, home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home). Turbo state tax free The loan may be a mortgage to buy your home, a second mortgage, a line of credit, or a home equity loan. Turbo state tax free You can deduct home mortgage interest if all the following conditions are met. Turbo state tax free You file Form 1040 and itemize deductions on Schedule A (Form 1040). Turbo state tax free The mortgage is a secured debt on a qualified home in which you have an ownership interest. Turbo state tax free (Generally, your mortgage is a secured debt if you put your home up as collateral to protect the interest of the lender. Turbo state tax free The term “qualified home” means your main home or second home. Turbo state tax free For details, see Publication 936. Turbo state tax free )  Both you and the lender must intend that the loan be repaid. Turbo state tax free Amount Deductible In most cases, you can deduct all of your home mortgage interest. Turbo state tax free How much you can deduct depends on the date of the mortgage, the amount of the mortgage, and how you use the mortgage proceeds. Turbo state tax free Fully deductible interest. Turbo state tax free   If all of your mortgages fit into one or more of the following three categories at all times during the year, you can deduct all of the interest on those mortgages. Turbo state tax free (If any one mortgage fits into more than one category, add the debt that fits in each category to your other debt in the same category. Turbo state tax free )   The three categories are as follows: Mortgages you took out on or before October 13, 1987 (called grandfathered debt). Turbo state tax free Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2013 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately). Turbo state tax free Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2013 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2). Turbo state tax free The dollar limits for the second and third categories apply to the combined mortgages on your main home and second home. Turbo state tax free   See Part II of Publication 936 for more detailed definitions of grandfathered, home acquisition, and home equity debt. Turbo state tax free    You can use Figure 23-A to check whether your home mortgage interest is fully deductible. Turbo state tax free Figure 23-A. Turbo state tax free Is My Home Mortgage Interest Fully Deductible? Please click here for the text description of the image. Turbo state tax free Figure 23-A. Turbo state tax free Is My Interest Fully Deductible? Limits on deduction. Turbo state tax free   You cannot fully deduct interest on a mortgage that does not fit into any of the three categories listed earlier. Turbo state tax free If this applies to you, see Part II of Publication 936 to figure the amount of interest you can deduct. Turbo state tax free Special Situations This section describes certain items that can be included as home mortgage interest and others that cannot. Turbo state tax free It also describes certain special situations that may affect your deduction. Turbo state tax free Late payment charge on mortgage payment. Turbo state tax free   You can deduct as home mortgage interest a late payment charge if it was not for a specific service performed in connection with your mortgage loan. Turbo state tax free Mortgage prepayment penalty. Turbo state tax free   If you pay off your home mortgage early, you may have to pay a penalty. Turbo state tax free You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan. Turbo state tax free Sale of home. Turbo state tax free   If you sell your home, you can deduct your home mortgage interest (subject to any limits that apply) paid up to, but not including, the date of sale. Turbo state tax free Example. Turbo state tax free John and Peggy Harris sold their home on May 7. Turbo state tax free Through April 30, they made home mortgage interest payments of $1,220. Turbo state tax free The settlement sheet for the sale of the home showed $50 interest for the 6-day period in May up to, but not including, the date of sale. Turbo state tax free Their mortgage interest deduction is $1,270 ($1,220 + $50). Turbo state tax free Prepaid interest. Turbo state tax free   If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. Turbo state tax free You can deduct in each year only the interest that qualifies as home mortgage interest for that year. Turbo state tax free However, there is an exception that applies to points, discussed later. Turbo state tax free Mortgage interest credit. Turbo state tax free   You may be able to claim a mortgage interest credit if you were issued a mortgage credit certificate (MCC) by a state or local government. Turbo state tax free Figure the credit on Form 8396, Mortgage Interest Credit. Turbo state tax free If you take this credit, you must reduce your mortgage interest deduction by the amount of the credit. Turbo state tax free   For more information on the credit, see chapter 37. Turbo state tax free Ministers' and military housing allowance. Turbo state tax free   If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you can still deduct your home mortgage interest. Turbo state tax free Hardest Hit Fund and Emergency Homeowners' Loan Programs. Turbo state tax free   You can use a special method to compute your deduction for mortgage interest and real estate taxes on your main home if you meet the following two conditions. Turbo state tax free You received assistance under: A State Housing Finance Agency (State HFA) Hardest Hit Fund program in which program payments could be used to pay mortgage interest, or An Emergency Homeowners' Loan Program administered by the Department of Housing and Urban Development (HUD) or a state. Turbo state tax free You meet the rules to deduct all of the mortgage interest on your loan and all of the real estate taxes on your main home. Turbo state tax free If you meet these tests, then you can deduct all of the payments you actually made during the year to your mortgage servicer, the State HFA, or HUD on the home mortgage (including the amount shown on box 3 of Form 1098-MA, Mortgage Assistance Payments), but not more than the sum of the amounts shown on Form 1098, Mortgage Interest Statement, in box 1 (mortgage interest received from payer(s) / borrower(s)), box 4 (mortgage insurance premiums) and box 5 (real property taxes). Turbo state tax free However, you are not required to use this special method to compute your deduction for mortgage interest and real estate taxes on your main home. Turbo state tax free Mortgage assistance payments under section 235 of the National Housing Act. Turbo state tax free   If you qualify for mortgage assistance payments for lower-income families under section 235 of the National Housing Act, part or all of the interest on your mortgage may be paid for you. Turbo state tax free You cannot deduct the interest that is paid for you. Turbo state tax free No other effect on taxes. Turbo state tax free   Do not include these mortgage assistance payments in your income. Turbo state tax free Also, do not use these payments to reduce other deductions, such as real estate taxes. Turbo state tax free Divorced or separated individuals. Turbo state tax free   If a divorce or separation agreement requires you or your spouse or former spouse to pay home mortgage interest on a home owned by both of you, the payment of interest may be alimony. Turbo state tax free See the discussion of Payments for jointly-owned home in chapter 18. Turbo state tax free Redeemable ground rents. Turbo state tax free   If you make annual or periodic rental payments on a redeemable ground rent, you can deduct them as mortgage interest. Turbo state tax free   Payments made to end the lease and to buy the lessor's entire interest in the land are not deductible as mortgage interest. Turbo state tax free For more information, see Publication 936. Turbo state tax free Nonredeemable ground rents. Turbo state tax free   Payments on a nonredeemable ground rent are not mortgage interest. Turbo state tax free You can deduct them as rent if they are a business expense or if they are for rental property. Turbo state tax free Reverse mortgages. Turbo state tax free   A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. Turbo state tax free With a reverse mortgage, you retain title to your home. Turbo state tax free Depending on the plan, your reverse mortgage becomes due with interest when you move, sell your home, reach the end of a pre-selected loan period, or die. Turbo state tax free Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable. Turbo state tax free Any interest (including original issue discount) accrued on a reverse mortgage is not deductible until the loan is paid in full. Turbo state tax free Your deduction may be limited because a reverse mortgage loan generally is subject to the limit on Home Equity Debt discussed in Publication 936. Turbo state tax free Rental payments. Turbo state tax free   If you live in a house before final settlement on the purchase, any payments you make for that period are rent and not interest. Turbo state tax free This is true even if the settlement papers call them interest. Turbo state tax free You cannot deduct these payments as home mortgage interest. Turbo state tax free Mortgage proceeds invested in tax-exempt securities. Turbo state tax free   You cannot deduct the home mortgage interest on grandfathered debt or home equity debt if you used the proceeds of the mortgage to buy securities or certificates that produce tax-free income. Turbo state tax free “Grandfathered debt” and “home equity debt” are defined earlier under Amount Deductible. Turbo state tax free Refunds of interest. Turbo state tax free   If you receive a refund of interest in the same tax year you paid it, you must reduce your interest expense by the amount refunded to you. Turbo state tax free If you receive a refund of interest you deducted in an earlier year, you generally must include the refund in income in the year you receive it. Turbo state tax free However, you need to include it only up to the amount of the deduction that reduced your tax in the earlier year. Turbo state tax free This is true whether the interest overcharge was refunded to you or was used to reduce the outstanding principal on your mortgage. Turbo state tax free    If you received a refund of interest you overpaid in an earlier year, you generally will receive a Form 1098, Mortgage Interest Statement, showing the refund in box 3. Turbo state tax free For information about Form 1098, see Form 1098, Mortgage Interest Statement , later. Turbo state tax free   For more information on how to treat refunds of interest deducted in earlier years, see Recoveries in chapter 12. Turbo state tax free Points The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Turbo state tax free Points may also be called loan origination fees, maximum loan charges, loan discount, or discount points. Turbo state tax free A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. Turbo state tax free See Points paid by the seller , later. Turbo state tax free General Rule You generally cannot deduct the full amount of points in the year paid. Turbo state tax free Because they are prepaid interest, you generally deduct them ratably over the life (term) of the mortgage. Turbo state tax free See Deduction Allowed Ratably , next. Turbo state tax free For exceptions to the general rule, see Deduction Allowed in Year Paid , later. Turbo state tax free Deduction Allowed Ratably If you do not meet the tests listed under Deduction Allowed in Year Paid , later, the loan is not a home improvement loan, or you choose not to deduct your points in full in the year paid, you can deduct the points ratably (equally) over the life of the loan if you meet all the following tests. Turbo state tax free You use the cash method of accounting. Turbo state tax free This means you report income in the year you receive it and deduct expenses in the year you pay them. Turbo state tax free Most individuals use this method. Turbo state tax free Your loan is secured by a home. Turbo state tax free (The home does not need to be your main home. Turbo state tax free ) Your loan period is not more than 30 years. Turbo state tax free If your loan period is more than 10 years, the terms of your loan are the same as other loans offered in your area for the same or longer period. Turbo state tax free Either your loan amount is $250,000 or less, or the number of points is not more than: 4, if your loan period is 15 years or less, or 6, if your loan period is more than 15 years. Turbo state tax free Deduction Allowed in Year Paid You can fully deduct points in the year paid if you meet all the following tests. Turbo state tax free (You can use Figure 23-B as a quick guide to see whether your points are fully deductible in the year paid. Turbo state tax free ) Your loan is secured by your main home. Turbo state tax free (Your main home is the one you ordinarily live in most of the time. Turbo state tax free ) Paying points is an established business practice in the area where the loan was made. Turbo state tax free The points paid were not more than the points generally charged in that area. Turbo state tax free You use the cash method of accounting. Turbo state tax free This means you report income in the year you receive it and deduct expenses in the year you pay them. Turbo state tax free (If you want more information about this method, see Accounting Methods in chapter 1. Turbo state tax free ) The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes. Turbo state tax free The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. Turbo state tax free The funds you provided are not required to have been applied to the points. Turbo state tax free They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. Turbo state tax free You cannot have borrowed these funds from your lender or mortgage broker. Turbo state tax free You use your loan to buy or build your main home. Turbo state tax free The points were computed as a percentage of the principal amount of the mortgage. Turbo state tax free The amount is clearly shown on the settlement statement (such as the Settlement Statement, Form HUD-1) as points charged for the mortgage. Turbo state tax free The points may be shown as paid from either your funds or the seller's. Turbo state tax free Figure 23-B. Turbo state tax free Are My Points Fully Deductible This Year? Please click here for the text description of the image. Turbo state tax free Figure 23-B. Turbo state tax free Are My Points Fully Deductible This Year? Note. Turbo state tax free If you meet all of these tests, you can choose to either fully deduct the points in the year paid, or deduct them over the life of the loan. Turbo state tax free Home improvement loan. Turbo state tax free   You can also fully deduct in the year paid points paid on a loan to improve your main home, if tests (1) through (6) are met. Turbo state tax free Second home. Turbo state tax free You cannot fully deduct in the year paid points you pay on loans secured by your second home. Turbo state tax free You can deduct these points only over the life of the loan. Turbo state tax free Refinancing. Turbo state tax free   Generally, points you pay to refinance a mortgage are not deductible in full in the year you pay them. Turbo state tax free This is true even if the new mortgage is secured by your main home. Turbo state tax free   However, if you use part of the refinanced mortgage proceeds to improve your main home and you meet the first 6 tests listed under Deduction Allowed in Year Paid , earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. Turbo state tax free You can deduct the rest of the points over the life of the loan. Turbo state tax free Example 1. Turbo state tax free In 1998, Bill Fields got a mortgage to buy a home. Turbo state tax free In 2013, Bill refinanced that mortgage with a 15-year $100,000 mortgage loan. Turbo state tax free The mortgage is secured by his home. Turbo state tax free To get the new loan, he had to pay three points ($3,000). Turbo state tax free Two points ($2,000) were for prepaid interest, and one point ($1,000) was charged for services, in place of amounts that ordinarily are stated separately on the settlement statement. Turbo state tax free Bill paid the points out of his private funds, rather than out of the proceeds of the new loan. Turbo state tax free The payment of points is an established practice in the area, and the points charged are not more than the amount generally charged there. Turbo state tax free Bill's first payment on the new loan was due July 1. Turbo state tax free He made six payments on the loan in 2013 and is a cash basis taxpayer. Turbo state tax free Bill used the funds from the new mortgage to repay his existing mortgage. Turbo state tax free Although the new mortgage loan was for Bill's continued ownership of his main home, it was not for the purchase or improvement of that home. Turbo state tax free He cannot deduct all of the points in 2013. Turbo state tax free He can deduct two points ($2,000) ratably over the life of the loan. Turbo state tax free He deducts $67 [($2,000 ÷ 180 months) × 6 payments] of the points in 2013. Turbo state tax free The other point ($1,000) was a fee for services and is not deductible. Turbo state tax free Example 2. Turbo state tax free The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Turbo state tax free Bill deducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2013. Turbo state tax free His deduction is $500 ($2,000 × 25%). Turbo state tax free Bill also deducts the ratable part of the remaining $1,500 ($2,000 − $500) that must be spread over the life of the loan. Turbo state tax free This is $50 [($1,500 ÷ 180 months) × 6 payments] in 2013. Turbo state tax free The total amount Bill deducts in 2013 is $550 ($500 + $50). Turbo state tax free Special Situations This section describes certain special situations that may affect your deduction of points. Turbo state tax free Original issue discount. Turbo state tax free   If you do not qualify to either deduct the points in the year paid or deduct them ratably over the life of the loan, or if you choose not to use either of these methods, the points reduce the issue price of the loan. Turbo state tax free This reduction results in original issue discount, which is discussed in chapter 4 of Publication 535. Turbo state tax free Amounts charged for services. Turbo state tax free   Amounts charged by the lender for specific services connected to the loan are not interest. Turbo state tax free Examples of these charges are: Appraisal fees, Notary fees, and Preparation costs for the mortgage note or deed of trust. Turbo state tax free You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. Turbo state tax free Points paid by the seller. Turbo state tax free   The term “points” includes loan placement fees that the seller pays to the lender to arrange financing for the buyer. Turbo state tax free Treatment by seller. Turbo state tax free   The seller cannot deduct these fees as interest. Turbo state tax free But they are a selling expense that reduces the amount realized by the seller. Turbo state tax free See chapter 15 for information on selling your home. Turbo state tax free Treatment by buyer. Turbo state tax free    The buyer reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them. Turbo state tax free If all the tests under Deduction Allowed in Year Paid , earlier, are met, the buyer can deduct the points in the year paid. Turbo state tax free If any of those tests are not met, the buyer deducts the points over the life of the loan. Turbo state tax free   For information about basis, see chapter 13. Turbo state tax free Funds provided are less than points. Turbo state tax free   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the funds you provided were less than the points charged to you (test (6)), you can deduct the points in the year paid, up to the amount of funds you provided. Turbo state tax free In addition, you can deduct any points paid by the seller. Turbo state tax free Example 1. Turbo state tax free When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). Turbo state tax free You meet all the tests for deducting points in the year paid, except the only funds you provided were a $750 down payment. Turbo state tax free Of the $1,000 charged for points, you can deduct $750 in the year paid. Turbo state tax free You spread the remaining $250 over the life of the mortgage. Turbo state tax free Example 2. Turbo state tax free The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. Turbo state tax free In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). Turbo state tax free You spread the remaining $250 over the life of the mortgage. Turbo state tax free You must reduce the basis of your home by the $1,000 paid by the seller. Turbo state tax free Excess points. Turbo state tax free   If you meet all the tests in Deduction Allowed in Year Paid , earlier, except that the points paid were more than generally paid in your area (test (3)), you deduct in the year paid only the points that are generally charged. Turbo state tax free You must spread any additional points over the life of the mortgage. Turbo state tax free Mortgage ending early. Turbo state tax free   If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. Turbo state tax free However, if you refinance the mortgage with the same lender, you cannot deduct any remaining balance of spread points. Turbo state tax free Instead, deduct the remaining balance over the term of the new loan. Turbo state tax free    A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event. Turbo state tax free Example. Turbo state tax free Dan paid $3,000 in points in 2002 that he had to spread out over the 15-year life of the mortgage. Turbo state tax free He deducts $200 points per year. Turbo state tax free Through 2012, Dan has deducted $2,200 of the points. Turbo state tax free Dan prepaid his mortgage in full in 2013. Turbo state tax free He can deduct the remaining $800 of points in 2013. Turbo state tax free Limits on deduction. Turbo state tax free   You cannot fully deduct points paid on a mortgage unless the mortgage fits into one of the categories listed earlier under Fully deductible interest . Turbo state tax free See Publication 936 for details. Turbo state tax free Mortgage Insurance Premiums You can treat amounts you paid during 2013 for qualified mortgage insurance as home mortgage interest. Turbo state tax free The insurance must be in connection with home acquisition debt and the insurance contract must have been issued after 2006. Turbo state tax free Qualified mortgage insurance. Turbo state tax free   Qualified mortgage insurance is mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, or the Rural Housing Service, and private mortgage insurance (as defined in section 2 of the Homeowners Protection Act of 1998 as in effect on December 20, 2006). Turbo state tax free   Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. Turbo state tax free If provided by the Rural Housing Service, it is commonly known as a guarantee fee. Turbo state tax free These fees can be deducted fully in 2013 if the mortgage insurance contract was issued in 2013. Turbo state tax free Contact the mortgage insurance issuer to determine the deductible amount if it is not reported in box 4 of Form 1098. Turbo state tax free Special rules for prepaid mortgage insurance. Turbo state tax free   Generally, if you paid premiums for qualified mortgage insurance that are allocable to periods after the close of the tax year, such premiums are treated as paid in the period to which they are allocated. Turbo state tax free You must allocate the premiums over the shorter of the stated term of the mortgage or 84 months, beginning with the month the insurance was obtained. Turbo state tax free No deduction is allowed for the unamortized balance if the mortgage is satisfied before its term. Turbo state tax free This paragraph does not apply to qualified mortgage insurance provided by the Department of Veterans Affairs or the Rural Housing Service. Turbo state tax free See the Example below. Turbo state tax free Example. Turbo state tax free Ryan purchased a home in May of 2012 and financed the home with a 15-year mortgage. Turbo state tax free Ryan also prepaid all of the $9,240 in private mortgage insurance required at the time of closing in May. Turbo state tax free Since the $9,240 in private mortgage insurance is allocable to periods after 2012, Ryan must allocate the $9,240 over the shorter of the life of the mortgage or 84 months. Turbo state tax free Ryan's adjusted gross income (AGI) for 2012 is $76,000. Turbo state tax free Ryan can deduct $880 ($9,240 ÷ 84 × 8 months) for qualified mortgage insurance premiums in 2012. Turbo state tax free For 2013, Ryan can deduct $1,320 ($9,240 ÷ 84 × 12 months) if his AGI is $100,000 or less. Turbo state tax free In this example, the mortgage insurance premiums are allocated over 84 months, which is shorter than the life of the mortgage of 15 years (180 months). Turbo state tax free Limit on deduction. Turbo state tax free   If your adjusted gross income on Form 1040, line 38, is more than $100,000 ($50,000 if your filing status is married filing separately), the amount of your mortgage insurance premiums that are otherwise deductible is reduced and may be eliminated. Turbo state tax free See Line 13 in the instructions for Schedule A (Form 1040) and complete the Mortgage Insurance Premiums Deduction Worksheet to figure the amount you can deduct. Turbo state tax free If your adjusted gross income is more than $109,000 ($54,500 if married filing separately), you cannot deduct your mortgage insurance premiums. Turbo state tax free Form 1098, Mortgage Interest Statement If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. Turbo state tax free You will receive the statement if you pay interest to a person (including a financial institution or a cooperative housing corporation) in the course of that person's trade or business. Turbo state tax free A governmental unit is a person for purposes of furnishing the statement. Turbo state tax free The statement for each year should be sent to you by January 31 of the following year. Turbo state tax free A copy of this form will also be sent to the IRS. Turbo state tax free The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. Turbo state tax free However, it should not show any interest that was paid for you by a government agency. Turbo state tax free As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. Turbo state tax free However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. Turbo state tax free See Points , earlier, to determine whether you can deduct points not shown on Form 1098. Turbo state tax free Prepaid interest on Form 1098. Turbo state tax free   If you prepaid interest in 2013 that accrued in full by January 15, 2014, this prepaid interest may be included in box 1 of Form 1098. Turbo state tax free However, you cannot deduct the prepaid amount for January 2014 in 2013. Turbo state tax free (See Prepaid interest , earlier. Turbo state tax free ) You will have to figure the interest that accrued for 2014 and subtract it from the amount in box 1. Turbo state tax free You will include the interest for January 2014 with the other interest you pay for 2014. Turbo state tax free See How To Report , later. Turbo state tax free Refunded interest. Turbo state tax free   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. Turbo state tax free See Refunds of interest , earlier. Turbo state tax free Mortgage insurance premiums. Turbo state tax free   The amount of mortgage insurance premiums you paid during 2013 may be shown in box 4 of Form 1098. Turbo state tax free See Mortgage Insurance Premiums, earlier. Turbo state tax free Investment Interest This section discusses interest expenses you may be able to deduct as an investor. Turbo state tax free If you borrow money to buy property you hold for investment, the interest you pay is investment interest. Turbo state tax free You can deduct investment interest subject to the limit discussed later. Turbo state tax free However, you cannot deduct interest you incurred to produce tax-exempt income. Turbo state tax free Nor can you deduct interest expenses on straddles. Turbo state tax free Investment interest does not include any qualified home mortgage interest or any interest taken into account in computing income or loss from a passive activity. Turbo state tax free Investment Property Property held for investment includes property that produces interest, dividends, annuities, or royalties not derived in the ordinary course of a trade or business. Turbo state tax free It also includes property that produces gain or loss (not derived in the ordinary course of a trade or business) from the sale or trade of property producing these types of income or held for investment (other than an interest in a passive activity). Turbo state tax free Investment property also includes an interest in a trade or business activity in which you did not materially participate (other than a passive activity). Turbo state tax free Partners, shareholders, and beneficiaries. Turbo state tax free   To determine your investment interest, combine your share of investment interest from a partnership, S corporation, estate, or trust with your other investment interest. Turbo state tax free Allocation of Interest Expense If you borrow money for business or personal purposes as well as for investment, you must allocate the debt among those purposes. Turbo state tax free Only the interest expense on the part of the debt used for investment purposes is treated as investment interest. Turbo state tax free The allocation is not affected by the use of property that secures the debt. Turbo state tax free Limit on Deduction Generally, your deduction for investment interest expense is limited to the amount of your net investment income. Turbo state tax free You can carry over the amount of investment interest that you could not deduct because of this limit to the next tax year. Turbo state tax free The interest carried over is treated as investment interest paid or accrued in that next year. Turbo state tax free You can carry over disallowed investment interest to the next tax year even if it is more than your taxable income in the year the interest was paid or accrued. Turbo state tax free Net Investment Income Determine the amount of your net investment income by subtracting your investment expenses (other than interest expense) from your investment income. Turbo state tax free Investment income. Turbo state tax free    This generally includes your gross income from property held for investment (such as interest, dividends, annuities, and royalties). Turbo state tax free Investment income does not include Alaska Permanent Fund dividends. Turbo state tax free It also does not include qualified dividends or net capital gain unless you choose to include them. Turbo state tax free Choosing to include qualified dividends. Turbo state tax free   Investment income generally does not include qualified dividends, discussed in chapter 8. Turbo state tax free However, you can choose to include all or part of your qualified dividends in investment income. Turbo state tax free   You make this choice by completing Form 4952, line 4g, according to its instructions. Turbo state tax free   If you choose to include any amount of your qualified dividends in investment income, you must reduce your qualified dividends that are eligible for the lower capital gains tax rates by the same amount. Turbo state tax free Choosing to include net capital gain. Turbo state tax free   Investment income generally does not include net capital gain from disposing of investment property (including capital gain distributions from mutual funds). Turbo state tax free However, you can choose to include all or part of your net capital gain in investment income. Turbo state tax free    You make this choice by completing Form 4952, line 4g, according to its instructions. Turbo state tax free   If you choose to include any amount of your net capital gain in investment income, you must reduce your net capital gain that is eligible for the lower capital gains tax rates by the same amount. Turbo state tax free    Before making either choice, consider the overall effect on your tax liability. Turbo state tax free Compare your tax if you make one or both of these choices with your tax if you do not. Turbo state tax free Investment income of child reported on parent's return. Turbo state tax free    Investment income includes the part of your child's interest and dividend income that you choose to report on your return. Turbo state tax free If the child does not have qualified dividends, Alaska Permanent Fund dividends, or capital gain distributions, this is the amount on line 6 of Form 8814, Parents' Election To Report Child's Interest and Dividends. Turbo state tax free Child's qualified dividends. Turbo state tax free   If part of the amount you report is your child's qualified dividends, that part (which is reported on Form 1040, line 9b) generally does not count as investment income. Turbo state tax free However, you can choose to include all or part of it in investment income, as explained under Choosing to include qualified dividends , earlier. Turbo state tax free   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured next under Child's Alaska Permanent Fund dividends). Turbo state tax free Child's Alaska Permanent Fund dividends. Turbo state tax free   If part of the amount you report is your child's Alaska Permanent Fund dividends, that part does not count as investment income. Turbo state tax free To figure the amount of your child's income that you can consider your investment income, start with the amount on Form 8814, line 6. Turbo state tax free Multiply that amount by a percentage that is equal to the Alaska Permanent Fund dividends divided by the total amount on Form 8814, line 4. Turbo state tax free Subtract the result from the amount on Form 8814, line 12. Turbo state tax free Child's capital gain distributions. Turbo state tax free    If part of the amount you report is your child's capital gain distributions, that part (which is reported on Schedule D, line 13, or Form 1040, line 13) generally does not count as investment income. Turbo state tax free However, you can choose to include all or part of it in investment income, as explained in Choosing to include net capital gain , earlier. Turbo state tax free   Your investment income also includes the amount on Form 8814, line 12 (or, if applicable, the reduced amount figured under Child's Alaska Permanent Fund dividends , earlier). Turbo state tax free Investment expenses. Turbo state tax free   Investment expenses are your allowed deductions (other than interest expense) directly connected with the production of investment income. Turbo state tax free Investment expenses that are included as a miscellaneous itemized deduction on Schedule A (Form 1040) are allowable deductions after applying the 2% limit that applies to miscellaneous itemized deductions. Turbo state tax free Use the smaller of: The investment expenses included on Schedule A (Form 1040), line 23, or The amount on Schedule A, line 27. Turbo state tax free Losses from passive activities. Turbo state tax free   Income or expenses that you used in computing income or loss from a passive activity are not included in determining your investment income or investment expenses (including investment interest expense). Turbo state tax free See Publication 925, Passive Activity and At-Risk Rules, for information about passive activities. Turbo state tax free Form 4952 Use Form 4952, Investment Interest Expense Deduction, to figure your deduction for investment interest. Turbo state tax free Exception to use of Form 4952. Turbo state tax free   You do not have to complete Form 4952 or attach it to your return if you meet all of the following tests. Turbo state tax free Your investment interest expense is not more than your investment income from interest and ordinary dividends minus any qualified dividends. Turbo state tax free You do not have any other deductible investment expenses. Turbo state tax free You have no carryover of investment interest expense from 2012. Turbo state tax free If you meet all of these tests, you can deduct all of your investment interest. Turbo state tax free More Information For more information on investment interest, see Interest Expenses in chapter 3 of Publication 550. Turbo state tax free Items You Cannot Deduct Some interest payments are not deductible. Turbo state tax free Certain expenses similar to interest also are not deductible. Turbo state tax free Nondeductible expenses include the following items. Turbo state tax free Personal interest (discussed later). Turbo state tax free Service charges (however, see Other Expenses (Line 23) in chapter 28). Turbo state tax free Annual fees for credit cards. Turbo state tax free Loan fees. Turbo state tax free Credit investigation fees. Turbo state tax free Interest to purchase or carry tax-exempt securities. Turbo state tax free Penalties. Turbo state tax free   You cannot deduct fines and penalties paid to a government for violations of law, regardless of their nature. Turbo state tax free Personal Interest Personal interest is not deductible. Turbo state tax free Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. Turbo state tax free It includes the following items. Turbo state tax free Interest on car loans (unless you use the car for business). Turbo state tax free Interest on federal, state, or local income tax. Turbo state tax free Finance charges on credit cards, retail installment contracts, and revolving charge accounts incurred for personal expenses. Turbo state tax free Late payment charges by a public utility. Turbo state tax free You may be able to deduct interest you pay on a qualified student loan. Turbo state tax free For details, see Publication 970, Tax Benefits for Education. Turbo state tax free Allocation of Interest If you use the proceeds of a loan for more than one purpose (for example, personal and business), you must allocate the interest on the loan to each use. Turbo state tax free However, you do not have to allocate home mortgage interest if it is fully deductible, regardless of how the funds are used. Turbo state tax free You allocate interest (other than fully deductible home mortgage interest) on a loan in the same way as the loan itself is allocated. Turbo state tax free You do this by tracing disbursements of the debt proceeds to specific uses. Turbo state tax free For details on how to do this, see chapter 4 of Publication 535. Turbo state tax free How To Report You must file Form 1040 to deduct any home mortgage interest expense on your tax return. Turbo state tax free Where you deduct your interest expense generally depends on how you use the loan proceeds. Turbo state tax free See Table 23-1 for a summary of where to deduct your interest expense. Turbo state tax free Home mortgage interest and points. Turbo state tax free   Deduct the home mortgage interest and points reported to you on Form 1098 on Schedule A (Form 1040), line 10. Turbo state tax free If you paid more deductible interest to the financial institution than the amount shown on Form 1098, show the larger deductible amount on line 10. Turbo state tax free Attach a statement explaining the difference and print “See attached” next to line 10. Turbo state tax free    Deduct home mortgage interest that was not reported to you on Form 1098 on Schedule A (Form 1040), line 11. Turbo state tax free If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and taxpayer identification number (TIN) on the dotted lines next to line 11. Turbo state tax free The seller must give you this number and you must give the seller your TIN. Turbo state tax free A Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Turbo state tax free Failure to meet any of these requirements may result in a $50 penalty for each failure. Turbo state tax free The TIN can be either a social security number, an individual taxpayer identification number (issued by the Internal Revenue Service), or an employer identification number. Turbo state tax free See Social Security Number (SSN) in chapter 1 for more information about TINs. Turbo state tax free    If you can take a deduction for points that were not reported to you on Form 1098, deduct those points on Schedule A (Form 1040), line 12. Turbo state tax free   Deduct mortgage insurance premiums on Schedule A (Form 1040), line 13. Turbo state tax free More than one borrower. Turbo state tax free   If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Turbo state tax free Show how much of the interest each of you paid, and give the name and address of the person who received the form. Turbo state tax free Deduct your share of the interest on Schedule A (Form 1040), line 11, and print “See attached” next to the line. Turbo state tax free Also, deduct your share of any qualified mortgage insurance premiums on Schedule A (Form 1040), line 13. Turbo state tax free   Similarly, if you are the payer of record on a mortgage on which there are other borrowers entitled to a deduction for the interest shown on the Form 1098 you received, deduct only your share of the interest on Schedule A (Form 1040), line 10. Turbo state tax free You should let each of the other borrowers know what his or her share is. Turbo state tax free Mortgage proceeds used for business or investment. Turbo state tax free    If your home mortgage interest deduction is limited, but all or part of the mortgage proceeds were used for business, investment, or other deductible activities, see Table 23-1. Turbo state tax free It shows where to deduct the part of your excess interest that is for those activities. Turbo state tax free Investment interest. Turbo state tax free    Deduct investment interest, subject to certain limits discussed in Publication 550, on Schedule A (Form 1040), line 14. Turbo state tax free Amortization of bond premium. Turbo state tax free   There are various ways to treat the premium you pay to buy taxable bonds. Turbo state tax free See Bond Premium Amortization in Publication 550. Turbo state tax free Income-producing rental or royalty interest. Turbo state tax free   Deduct interest on a loan for income-producing rental or royalty property that is not used in your business in Part I of Schedule E (Form 1040). Turbo state tax free Example. Turbo state tax free You rent out part of your home and borrow money to make repairs. Turbo state tax free You can deduct only the interest payment for the rented part in Part I of Schedule E (Form 1040). Turbo state tax free Deduct the rest of the interest payment on Schedule A (Form 1040) if it is deductible home mortgage interest. Turbo state tax free Table 23-1. Turbo state tax free Where To Deduct Your Interest Expense IF you have . Turbo state tax free . Turbo state tax free . Turbo state tax free THEN deduct it on . Turbo state tax free . Turbo state tax free . Turbo state tax free AND for more information go to . Turbo state tax free . Turbo state tax free . Turbo state tax free deductible student loan interest Form 1040, line 33, or Form 1040A, line 18 Publication 970. Turbo state tax free deductible home mortgage interest and points reported on Form 1098 Schedule A (Form 1040), line 10 Publication 936. Turbo state tax free deductible home mortgage interest not reported on Form 1098 Schedule A (Form 1040), line 11 Publication 936. Turbo state tax free deductible points not reported on Form 1098 Schedule A (Form 1040), line 12 Publication 936. Turbo state tax free deductible mortgage insurance premiums Schedule A (Form 1040), line 13 Publication 936. Turbo state tax free deductible investment interest (other than incurred to produce rents or royalties) Schedule A (Form 1040), line 14 Publication 550. Turbo state tax free deductible business interest (non-farm) Schedule C or C-EZ (Form 1040) Publication 535. Turbo state tax free deductible farm business interest Schedule F (Form 1040) Publications 225 and 535. Turbo state tax free deductible interest incurred to produce rents or royalties Schedule E (Form 1040) Publications 527 and 535. Turbo state tax free personal interest not deductible. Turbo state tax free Prev  Up  Next   Home   More Online Publications