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

Turbotax 2011 Online

Irs FileDo State TaxesAmended Tax Return FormFree Electronic Tax FilingPrintable 1040ez Tax FormIrs Form 1040 EzCan I Still File 2012 TaxesHow To Amend 1040File State Tax Only20131040ezIncome Tax ReturnIrs Gov Tax FormsFiling My State Taxes FreeFile Income Tax Extension FreeForm 1040ez 2014Free State Tax EfileFederal Income Tax Rates 2012Form 1040-xFree Tax Software 2011Blank Printable 1040ez FormFederal Tax Form 10402012 Amended Tax Return2006 TaxesTax Amendment Form 2011Turbo TaxFile Taxes For FreeFile State Tax Online1040 2012 Tax FormHow Do I Amend My 2009 Tax ReturnWww Free State Tax ReturnHow To File A Amended Tax ReturnPrint Free 1040ez Tax FormFree State Tax Filing1040ez Form 2012Filing Taxes For FreeFile Federal Taxes OnlineWhere's My Amended ReturnIrs Gov Freefilefillableforms1040a InstructionsState Income Tax E File

Turbotax 2011 Online

Turbotax 2011 online 5. Turbotax 2011 online   Table and Worksheets for the Self-Employed Table of Contents Community property laws. Turbotax 2011 online As discussed in chapters 2 and 4, if you are self-employed, you must use the rate table or rate worksheet and deduction worksheet to figure your deduction for contributions you made for yourself to a SEP-IRA or qualified plan. Turbotax 2011 online First, use either the rate table or rate worksheet to find your reduced contribution rate. Turbotax 2011 online Then complete the deduction worksheet to figure your deduction for contributions. Turbotax 2011 online The table and the worksheets in chapter 5 apply only to self-employed individuals who have only one defined contribution plan, such as a profit-sharing plan. Turbotax 2011 online A SEP plan is treated as a profit-sharing plan. Turbotax 2011 online However, do not use this worksheet for SARSEPs. Turbotax 2011 online Rate table for self-employed. Turbotax 2011 online   If your plan's contribution rate is a whole percentage (for example, 12% rather than 12½%), you can use the table on the next page to find your reduced contribution rate. Turbotax 2011 online Otherwise, use the rate worksheet provided below. Turbotax 2011 online   First, find your plan contribution rate (the contribution rate stated in your plan) in Column A of the table. Turbotax 2011 online Then read across to the rate under Column B. Turbotax 2011 online Enter the rate from Column B in step 4 of the Deduction Worksheet for Self-Employed on this page. Turbotax 2011 online    Example. Turbotax 2011 online You are a sole proprietor with no employees. Turbotax 2011 online If your plan's contribution rate is 10% of a participant's compensation, your rate is 0. Turbotax 2011 online 090909. Turbotax 2011 online Enter this rate in step 4 of the Deduction Worksheet for Self-Employed on this page. Turbotax 2011 online Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. Turbotax 2011 online For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. Turbotax 2011 online       *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. Turbotax 2011 online       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. Turbotax 2011 online     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27             Step 3           Net earnings from self-employment. Turbotax 2011 online Subtract step 2 from step 1     Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed     Step 5           Multiply step 3 by step 4     Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate)     Step 7           Enter the smaller of step 5 or step 6     Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. Turbotax 2011 online         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. Turbotax 2011 online       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. Turbotax 2011 online Do not enter more than $17,500     Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. Turbotax 2011 online         • Otherwise, skip steps 16 through 18 and go to step 19. Turbotax 2011 online       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. Turbotax 2011 online Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. Turbotax 2011 online     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17. Turbotax 2011 online     Step 21           Subtract step 20 from step 19. Turbotax 2011 online This is your maximum deductible contribution. Turbotax 2011 online                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. Turbotax 2011 online   Rate worksheet for self-employed. Turbotax 2011 online   If your plan's contribution rate is not a whole percentage (for example, 10½%), you cannot use the Rate Table for Self-Employed. Turbotax 2011 online Use the following worksheet instead. Turbotax 2011 online Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. Turbotax 2011 online 105)   2) Rate in line 1 plus 1 (for example, 0. Turbotax 2011 online 105 + 1 = 1. Turbotax 2011 online 105)   3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. Turbotax 2011 online 105 ÷ 1. Turbotax 2011 online 105 = 0. Turbotax 2011 online 095)   Figuring your deduction. Turbotax 2011 online   Now that you have your self-employed rate from either the rate table or rate worksheet, you can figure your maximum deduction for contributions for yourself by completing the Deduction Worksheet for Self-Employed. Turbotax 2011 online Community property laws. Turbotax 2011 online   If you reside in a community property state and you are married and filing a separate return, disregard community property laws for step 1 of the Deduction Worksheet for Self-Employed. Turbotax 2011 online Enter on step 1 the total net profit you actually earned. Turbotax 2011 online Rate Table for Self-Employed Column A  If the plan contri- bution rate is: (shown as %) Column B  Your rate is: (shown as decimal) 1 . Turbotax 2011 online 009901 2 . Turbotax 2011 online 019608 3 . Turbotax 2011 online 029126 4 . Turbotax 2011 online 038462 5 . Turbotax 2011 online 047619 6 . Turbotax 2011 online 056604 7 . Turbotax 2011 online 065421 8 . Turbotax 2011 online 074074 9 . Turbotax 2011 online 082569 10 . Turbotax 2011 online 090909 11 . Turbotax 2011 online 099099 12 . Turbotax 2011 online 107143 13 . Turbotax 2011 online 115044 14 . Turbotax 2011 online 122807 15 . Turbotax 2011 online 130435 16 . Turbotax 2011 online 137931 17 . Turbotax 2011 online 145299 18 . Turbotax 2011 online 152542 19 . Turbotax 2011 online 159664 20 . Turbotax 2011 online 166667 21 . Turbotax 2011 online 173554 22 . Turbotax 2011 online 180328 23 . Turbotax 2011 online 186992 24 . Turbotax 2011 online 193548 25* . Turbotax 2011 online 200000* *The deduction for annual employer contributions (other than elective deferrals) to a SEP plan, a profit-sharing plan, or a money purchase plan cannot be more than 20% of your net earnings (figured without deducting contributions for yourself) from the business that has the plan. Turbotax 2011 online Example. Turbotax 2011 online You are a sole proprietor with no employees. Turbotax 2011 online The terms of your plan provide that you contribute 8½% (. Turbotax 2011 online 085) of your compensation to your plan. Turbotax 2011 online Your net profit from line 31, Schedule C (Form 1040) is $200,000. Turbotax 2011 online You have no elective deferrals or catch-up contributions. Turbotax 2011 online Your self-employment tax deduction on line 27 of Form 1040 is $9,728. Turbotax 2011 online See the filled-in portions of both Schedule SE (Form 1040), Self-Employment Income, and Form 1040, later. Turbotax 2011 online You figure your self-employed rate and maximum deduction for employer contributions you made for yourself as follows. Turbotax 2011 online Deduction Worksheet for Self-Employed   Step 1           Enter your net profit from line 31, Schedule C (Form 1040); line 3, Schedule C-EZ (Form 1040); line 34, Schedule F (Form 1040)*; or box 14, code A**, Schedule K-1 (Form 1065)*. Turbotax 2011 online For information on other income included in net profit from self-employment, see the Instructions for Schedule SE, Form 1040. Turbotax 2011 online $200,000     *Reduce this amount by any amount reported on Schedule SE (Form 1040), line 1b. Turbotax 2011 online       **General partners should reduce this amount by the same additional expenses subtracted from box 14, code A to determine the amount on line 1 or 2 of Schedule SE. Turbotax 2011 online     Step 2           Enter your deduction for self-employment tax from Form 1040, line 27 9,728           Step 3           Net earnings from self-employment. Turbotax 2011 online Subtract step 2 from step 1 190,272   Step 4           Enter your rate from the Rate Table for Self-Employed or Rate Worksheet for Self-Employed 0. Turbotax 2011 online 078   Step 5           Multiply step 3 by step 4 14,841   Step 6           Multiply $255,000 by your plan contribution rate (not the reduced rate) 21,675   Step 7           Enter the smaller of step 5 or step 6 14,841   Step 8           Contribution dollar limit $51,000     • If you made any elective deferrals to your self-employed plan, go to step 9. Turbotax 2011 online         • Otherwise, skip steps 9 through 20 and enter the smaller of step 7 or step 8 on step 21. Turbotax 2011 online       Step 9           Enter your allowable elective deferrals (including designated Roth contributions) made to your self-employed plan during 2013. Turbotax 2011 online Do not enter more than $17,500 N/A   Step 10           Subtract step 9 from step 8     Step 11           Subtract step 9 from step 3       Step 12           Enter one-half of step 11     Step 13           Enter the smallest of step 7, 10, or 12     Step 14           Subtract step 13 from step 3     Step 15           Enter the smaller of step 9 or step 14       • If you made catch-up contributions, go to step 16. Turbotax 2011 online         • Otherwise, skip steps 16 through 18 and go to step 19. Turbotax 2011 online       Step 16           Subtract step 15 from step 14     Step 17           Enter your catch-up contributions (including designated Roth contributions), if any. Turbotax 2011 online Do not enter more than $5,500     Step 18           Enter the smaller of step 16 or step 17     Step 19           Add steps 13, 15, and 18. Turbotax 2011 online     Step 20           Enter the amount of designated Roth contributions included on lines 9 and 17     Step 21           Subtract step 20 from step 19. Turbotax 2011 online This is your maximum deductible contribution $14,841                 Next: Enter your actual contribution, not to exceed your maximum deductible contribution, on Form 1040, line 28. Turbotax 2011 online   See the filled-in Deduction Worksheet for Self-Employed on this page. Turbotax 2011 online Rate Worksheet for Self-Employed 1) Plan contribution rate as a decimal (for example, 10½% = 0. Turbotax 2011 online 105) 0. Turbotax 2011 online 085 2) Rate in line 1 plus 1 (for example, 0. Turbotax 2011 online 105 + 1 = 1. Turbotax 2011 online 105) 1. Turbotax 2011 online 085 3) Self-employed rate as a decimal rounded to at least 3 decimal places (line 1 ÷ line 2) (for example, 0. Turbotax 2011 online 105 ÷ 1. Turbotax 2011 online 105 = 0. Turbotax 2011 online 095) 0. Turbotax 2011 online 078 This image is too large to be displayed in the current screen. Turbotax 2011 online Please click the link to view the image. Turbotax 2011 online Portion of Form 1040 and Portion of Schedule SE Prev  Up  Next   Home   More Online Publications
Español

Hurricanes

During the storm: stay inside; keep away from windows; and follow directions from your local emergency officials.

The Turbotax 2011 Online

Turbotax 2011 online 22. Turbotax 2011 online   Taxes Table of Contents IntroductionIndian tribal government. Turbotax 2011 online Useful Items - You may want to see: Tests To Deduct Any Tax Income TaxesState and Local Income Taxes Foreign Income Taxes General Sales TaxesMotor vehicles. Turbotax 2011 online Real Estate TaxesReal estate taxes for prior years. Turbotax 2011 online Examples. Turbotax 2011 online Form 1099-S. Turbotax 2011 online Real Estate-Related Items You Cannot Deduct Personal Property Taxes Taxes and Fees You Cannot Deduct Where To Deduct Introduction This chapter discusses which taxes you can deduct if you itemize deductions on Schedule A (Form 1040). Turbotax 2011 online It also explains which taxes you can deduct on other schedules or forms and which taxes you cannot deduct. Turbotax 2011 online This chapter covers the following topics. Turbotax 2011 online Income taxes (federal, state, local, and foreign). Turbotax 2011 online General sales taxes (state and local). Turbotax 2011 online Real estate taxes (state, local, and foreign). Turbotax 2011 online Personal property taxes (state and local). Turbotax 2011 online Taxes and fees you cannot deduct. Turbotax 2011 online Use Table 22-1 as a guide to determine which taxes you can deduct. Turbotax 2011 online The end of the chapter contains a section that explains which forms you use to deduct different types of taxes. Turbotax 2011 online Business taxes. Turbotax 2011 online   You can deduct certain taxes only if they are ordinary and necessary expenses of your trade or business or of producing income. Turbotax 2011 online For information on these taxes, see Publication 535, Business Expenses. Turbotax 2011 online State or local taxes. Turbotax 2011 online   These are taxes imposed by the 50 states, U. Turbotax 2011 online S. Turbotax 2011 online possessions, or any of their political subdivisions (such as a county or city), or by the District of Columbia. Turbotax 2011 online Indian tribal government. Turbotax 2011 online   An Indian tribal government recognized by the Secretary of the Treasury as performing substantial government functions will be treated as a state for purposes of claiming a deduction for taxes. Turbotax 2011 online Income taxes, real estate taxes, and personal property taxes imposed by that Indian tribal government (or by any of its subdivisions that are treated as political subdivisions of a state) are deductible. Turbotax 2011 online General sales taxes. Turbotax 2011 online   These are taxes imposed at one rate on retail sales of a broad range of classes of items. Turbotax 2011 online Foreign taxes. Turbotax 2011 online   These are taxes imposed by a foreign country or any of its political subdivisions. Turbotax 2011 online Useful Items - You may want to see: Publication 514 Foreign Tax Credit for Individuals 530 Tax Information for Homeowners Form (and Instructions) Schedule A (Form 1040) Itemized Deductions Schedule E (Form 1040) Supplemental Income and Loss 1116 Foreign Tax Credit Tests To Deduct Any Tax The following two tests must be met for you to deduct any tax. Turbotax 2011 online The tax must be imposed on you. Turbotax 2011 online You must pay the tax during your tax year. Turbotax 2011 online The tax must be imposed on you. Turbotax 2011 online   In general, you can deduct only taxes imposed on you. Turbotax 2011 online   Generally, you can deduct property taxes only if you are an owner of the property. Turbotax 2011 online If your spouse owns the property and pays the real estate taxes, the taxes are deductible on your spouse's separate return or on your joint return. Turbotax 2011 online You must pay the tax during your tax year. Turbotax 2011 online   If you are a cash basis taxpayer, you can deduct only those taxes you actually paid during your tax year. Turbotax 2011 online If you pay your taxes by check, the day you mail or deliver the check is the date of payment, provided the check is honored by the financial institution. Turbotax 2011 online If you use a pay-by-phone account (such as a credit card or electronic funds withdrawal), the date reported on the statement of the financial institution showing when payment was made is the date of payment. Turbotax 2011 online If you contest a tax liability and are a cash basis taxpayer, you can deduct the tax only in the year you actually pay it (or transfer money or other property to provide for satisfaction of the contested liability). Turbotax 2011 online See Publication 538, Accounting Periods and Methods, for details. Turbotax 2011 online    If you use an accrual method of accounting, see Publication 538 for more information. Turbotax 2011 online Income Taxes This section discusses the deductibility of state and local income taxes (including employee contributions to state benefit funds) and foreign income taxes. Turbotax 2011 online State and Local Income Taxes You can deduct state and local income taxes. Turbotax 2011 online However, you can elect to deduct state and local general sales taxes instead of state and local income taxes. Turbotax 2011 online See General Sales Taxes , later. Turbotax 2011 online Exception. Turbotax 2011 online    You cannot deduct state and local income taxes you pay on income that is exempt from federal income tax, unless the exempt income is interest income. Turbotax 2011 online For example, you cannot deduct the part of a state's income tax that is on a cost-of-living allowance exempt from federal income tax. Turbotax 2011 online What To Deduct Your deduction may be for withheld taxes, estimated tax payments, or other tax payments as follows. Turbotax 2011 online Withheld taxes. Turbotax 2011 online   You can deduct state and local income taxes withheld from your salary in the year they are withheld. Turbotax 2011 online Your Form(s) W-2 will show these amounts. Turbotax 2011 online Forms W-2G, 1099-G, 1099-R, and 1099-MISC may also show state and local income taxes withheld. Turbotax 2011 online Estimated tax payments. Turbotax 2011 online   You can deduct estimated tax payments you made during the year to a state or local government. Turbotax 2011 online However, you must have a reasonable basis for making the estimated tax payments. Turbotax 2011 online Any estimated state or local tax payments that are not made in good faith at the time of payment are not deductible. Turbotax 2011 online For example, you made an estimated state income tax payment. Turbotax 2011 online However, the estimate of your state tax liability shows that you will get a refund of the full amount of your estimated payment. Turbotax 2011 online You had no reasonable basis to believe you had any additional liability for state income taxes and you cannot deduct the estimated tax payment. Turbotax 2011 online Refund applied to taxes. Turbotax 2011 online   You can deduct any part of a refund of prior-year state or local income taxes that you chose to have credited to your 2013 estimated state or local income taxes. Turbotax 2011 online    Do not reduce your deduction by either of the following items. Turbotax 2011 online Any state or local income tax refund (or credit) you expect to receive for 2013. Turbotax 2011 online Any refund of (or credit for) prior-year state and local income taxes you actually received in 2013. Turbotax 2011 online   However, part or all of this refund (or credit) may be taxable. Turbotax 2011 online See Refund (or credit) of state or local income taxes , later. Turbotax 2011 online Separate federal returns. Turbotax 2011 online   If you and your spouse file separate state, local, and federal income tax returns, you each can deduct on your federal return only the amount of your own state and local income tax that you paid during the tax year. Turbotax 2011 online Joint state and local returns. Turbotax 2011 online   If you and your spouse file joint state and local returns and separate federal returns, each of you can deduct on your separate federal return a part of the total state and local income taxes paid during the tax year. Turbotax 2011 online You can deduct only the amount of the total taxes that is proportionate to your gross income compared to the combined gross income of you and your spouse. Turbotax 2011 online However, you cannot deduct more than the amount you actually paid during the year. Turbotax 2011 online You can avoid this calculation if you and your spouse are jointly and individually liable for the full amount of the state and local income taxes. Turbotax 2011 online If so, you and your spouse can deduct on your separate federal returns the amount you each actually paid. Turbotax 2011 online Joint federal return. Turbotax 2011 online   If you file a joint federal return, you can deduct the total of the state and local income taxes both of you paid. Turbotax 2011 online Contributions to state benefit funds. Turbotax 2011 online    As an employee, you can deduct mandatory contributions to state benefit funds withheld from your wages that provide protection against loss of wages. Turbotax 2011 online For example, certain states require employees to make contributions to state funds providing disability or unemployment insurance benefits. Turbotax 2011 online Mandatory payments made to the following state benefit funds are deductible as state income taxes on Schedule A (Form 1040), line 5. Turbotax 2011 online Alaska Unemployment Compensation Fund. Turbotax 2011 online California Nonoccupational Disability Benefit Fund. Turbotax 2011 online New Jersey Nonoccupational Disability Benefit Fund. Turbotax 2011 online New Jersey Unemployment Compensation Fund. Turbotax 2011 online New York Nonoccupational Disability Benefit Fund. Turbotax 2011 online Pennsylvania Unemployment Compensation Fund. Turbotax 2011 online Rhode Island Temporary Disability Benefit Fund. Turbotax 2011 online Washington State Supplemental Workmen's Compensation Fund. Turbotax 2011 online    Employee contributions to private or voluntary disability plans are not deductible. Turbotax 2011 online Refund (or credit) of state or local income taxes. Turbotax 2011 online   If you receive a refund of (or credit for) state or local income taxes in a year after the year in which you paid them, you may have to include the refund in income on Form 1040, line 10, in the year you receive it. Turbotax 2011 online This includes refunds resulting from taxes that were overwithheld, applied from a prior year return, not figured correctly, or figured again because of an amended return. Turbotax 2011 online If you did not itemize your deductions in the previous year, do not include the refund in income. Turbotax 2011 online If you deducted the taxes in the previous year, include all or part of the refund on Form 1040, line 10, in the year you receive the refund. Turbotax 2011 online For a discussion of how much to include, see Recoveries in chapter 12. Turbotax 2011 online Foreign Income Taxes Generally, you can take either a deduction or a credit for income taxes imposed on you by a foreign country or a U. Turbotax 2011 online S. Turbotax 2011 online possession. Turbotax 2011 online However, you cannot take a deduction or credit for foreign income taxes paid on income that is exempt from U. Turbotax 2011 online S. Turbotax 2011 online tax under the foreign earned income exclusion or the foreign housing exclusion. Turbotax 2011 online For information on these exclusions, see Publication 54, Tax Guide for U. Turbotax 2011 online S. Turbotax 2011 online Citizens and Resident Aliens Abroad. Turbotax 2011 online For information on the foreign tax credit, see Publication 514. Turbotax 2011 online General Sales Taxes You can elect to deduct state and local general sales taxes, instead of state and local income taxes, as an itemized deduction on Schedule A (Form 1040), line 5b. Turbotax 2011 online You can use either your actual expenses or the state and local sales tax tables to figure your sales tax deduction. Turbotax 2011 online Actual expenses. Turbotax 2011 online   Generally, you can deduct the actual state and local general sales taxes (including compensating use taxes) if the tax rate was the same as the general sales tax rate. Turbotax 2011 online However, sales taxes on food, clothing, medical supplies, and motor vehicles are deductible as a general sales tax even if the tax rate was less than the general sales tax rate. Turbotax 2011 online If you paid sales tax on a motor vehicle at a rate higher than the general sales tax rate, you can deduct only the amount of tax that you would have paid at the general sales tax rate on that vehicle. Turbotax 2011 online If you use the actual expenses method, you must have receipts to show the general sales taxes paid. Turbotax 2011 online Do not include sales taxes paid on items used in your trade or business. Turbotax 2011 online Motor vehicles. Turbotax 2011 online   For purposes of this section, motor vehicles include cars, motorcycles, motor homes, recreational vehicles, sport utility vehicles, trucks, vans, and off-road vehicles. Turbotax 2011 online This also includes sales taxes on a leased motor vehicle, but not on vehicles used in your trade or business. Turbotax 2011 online Optional sales tax tables. Turbotax 2011 online   Instead of using your actual expenses, you can figure your state and local general sales tax deduction using the state and local sales tax tables in the Instructions for Schedule A (Form 1040). Turbotax 2011 online You may also be able to add the state and local general sales taxes paid on certain specified items. Turbotax 2011 online   Your applicable table amount is based on the state where you live, your income, and the number of exemptions claimed on your tax return. Turbotax 2011 online Your income is your adjusted gross income plus any nontaxable items such as the following. Turbotax 2011 online Tax-exempt interest. Turbotax 2011 online Veterans' benefits. Turbotax 2011 online Nontaxable combat pay. Turbotax 2011 online Workers' compensation. Turbotax 2011 online Nontaxable part of social security and railroad retirement benefits. Turbotax 2011 online Nontaxable part of IRA, pension, or annuity distributions, excluding rollovers. Turbotax 2011 online Public assistance payments. Turbotax 2011 online If you lived in different states during the same tax year, you must prorate your applicable table amount for each state based on the days you lived in each state. Turbotax 2011 online See the Instructions for Schedule A (Form 1040), line 5, for details. Turbotax 2011 online Real Estate Taxes Deductible real estate taxes are any state, local, or foreign taxes on real property levied for the general public welfare. Turbotax 2011 online You can deduct these taxes only if they are based on the assessed value of the real property and charged uniformly against all property under the jurisdiction of the taxing authority. Turbotax 2011 online Deductible real estate taxes generally do not include taxes charged for local benefits and improvements that increase the value of the property. Turbotax 2011 online They also do not include itemized charges for services (such as trash collection) assessed against specific property or certain people, even if the charge is paid to the taxing authority. Turbotax 2011 online For more information about taxes and charges that are not deductible, see Real Estate-Related Items You Cannot Deduct , later. Turbotax 2011 online Tenant-shareholders in a cooperative housing corporation. Turbotax 2011 online   Generally, if you are a tenant-stockholder in a cooperative housing corporation, you can deduct the amount paid to the corporation that represents your share of the real estate taxes the corporation paid or incurred for your dwelling unit. Turbotax 2011 online The corporation should provide you with a statement showing your share of the taxes. Turbotax 2011 online For more information, see Special Rules for Cooperatives in Publication 530. Turbotax 2011 online Division of real estate taxes between buyers and sellers. Turbotax 2011 online   If you bought or sold real estate during the year, the real estate taxes must be divided between the buyer and the seller. Turbotax 2011 online   The buyer and the seller must divide the real estate taxes according to the number of days in the real property tax year (the period to which the tax is imposed relates) that each owned the property. Turbotax 2011 online The seller is treated as paying the taxes up to, but not including, the date of sale. Turbotax 2011 online The buyer is treated as paying the taxes beginning with the date of sale. Turbotax 2011 online This applies regardless of the lien dates under local law. Turbotax 2011 online Generally, this information is included on the settlement statement provided at the closing. Turbotax 2011 online    If you (the seller) cannot deduct taxes until they are paid because you use the cash method of accounting, and the buyer of your property is personally liable for the tax, you are considered to have paid your part of the tax at the time of the sale. Turbotax 2011 online This lets you deduct the part of the tax to the date of sale even though you did not actually pay it. Turbotax 2011 online However, you must also include the amount of that tax in the selling price of the property. Turbotax 2011 online The buyer must include the same amount in his or her cost of the property. Turbotax 2011 online   You figure your deduction for taxes on each property bought or sold during the real property tax year as follows. Turbotax 2011 online Worksheet 22-1. Turbotax 2011 online Figuring Your Real Estate Tax Deduction 1. Turbotax 2011 online Enter the total real estate taxes for the real property tax year   2. Turbotax 2011 online Enter the number of days in the real property tax year that you owned the property   3. Turbotax 2011 online Divide line 2 by 365 (for leap years, divide line 2 by 366) . Turbotax 2011 online 4. Turbotax 2011 online Multiply line 1 by line 3. Turbotax 2011 online This is your deduction. Turbotax 2011 online Enter it on Schedule A (Form 1040), line 6   Note. Turbotax 2011 online Repeat steps 1 through 4 for each property you bought or sold during the real property tax year. Turbotax 2011 online Your total deduction is the sum of the line 4 amounts for all of the properties. Turbotax 2011 online Real estate taxes for prior years. Turbotax 2011 online   Do not divide delinquent taxes between the buyer and seller if the taxes are for any real property tax year before the one in which the property is sold. Turbotax 2011 online Even if the buyer agrees to pay the delinquent taxes, the buyer cannot deduct them. Turbotax 2011 online The buyer must add them to the cost of the property. Turbotax 2011 online The seller can deduct these taxes paid by the buyer. Turbotax 2011 online However, the seller must include them in the selling price. Turbotax 2011 online Examples. Turbotax 2011 online   The following examples illustrate how real estate taxes are divided between buyer and seller. Turbotax 2011 online Example 1. Turbotax 2011 online Dennis and Beth White's real property tax year for both their old home and their new home is the calendar year, with payment due August 1. Turbotax 2011 online The tax on their old home, sold on May 7, was $620. Turbotax 2011 online The tax on their new home, bought on May 3, was $732. Turbotax 2011 online Dennis and Beth are considered to have paid a proportionate share of the real estate taxes on the old home even though they did not actually pay them to the taxing authority. Turbotax 2011 online On the other hand, they can claim only a proportionate share of the taxes they paid on their new property even though they paid the entire amount. Turbotax 2011 online Dennis and Beth owned their old home during the real property tax year for 126 days (January 1 to May 6, the day before the sale). Turbotax 2011 online They figure their deduction for taxes on their old home as follows. Turbotax 2011 online Worksheet 22-1. Turbotax 2011 online Figuring Your Real Estate Tax Deduction — Taxes on Old Home 1. Turbotax 2011 online Enter the total real estate taxes for the real property tax year $620 2. Turbotax 2011 online Enter the number of days in the real property tax year that you owned the property 126 3. Turbotax 2011 online Divide line 2 by 365 (for leap years, divide line 2 by 366) . Turbotax 2011 online 3452 4. Turbotax 2011 online Multiply line 1 by line 3. Turbotax 2011 online This is your deduction. Turbotax 2011 online Enter it on Schedule A (Form 1040), line 6 $214 Since the buyers of their old home paid all of the taxes, Dennis and Beth also include the $214 in the selling price of the old home. Turbotax 2011 online (The buyers add the $214 to their cost of the home. Turbotax 2011 online ) Dennis and Beth owned their new home during the real property tax year for 243 days (May 3 to December 31, including their date of purchase). Turbotax 2011 online They figure their deduction for taxes on their new home as follows. Turbotax 2011 online Worksheet 22-1. Turbotax 2011 online Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Turbotax 2011 online Enter the total real estate taxes for the real property tax year $732 2. Turbotax 2011 online Enter the number of days in the real property tax year that you owned the property 243 3. Turbotax 2011 online Divide line 2 by 365 (for leap years, divide line 2 by 366) . Turbotax 2011 online 6658 4. Turbotax 2011 online Multiply line 1 by line 3. Turbotax 2011 online This is your deduction. Turbotax 2011 online Enter it on Schedule A (Form 1040), line 6 $487 Since Dennis and Beth paid all of the taxes on the new home, they add $245 ($732 paid less $487 deduction) to their cost of the new home. Turbotax 2011 online (The sellers add this $245 to their selling price and deduct the $245 as a real estate tax. Turbotax 2011 online ) Dennis and Beth's real estate tax deduction for their old and new homes is the sum of $214 and $487, or $701. Turbotax 2011 online They will enter this amount on Schedule A (Form 1040), line 6. Turbotax 2011 online Example 2. Turbotax 2011 online George and Helen Brown bought a new home on May 3, 2013. Turbotax 2011 online Their real property tax year for the new home is the calendar year. Turbotax 2011 online Real estate taxes for 2012 were assessed in their state on January 1, 2013. Turbotax 2011 online The taxes became due on May 31, 2013, and October 31, 2013. Turbotax 2011 online The Browns agreed to pay all taxes due after the date of purchase. Turbotax 2011 online Real estate taxes for 2012 were $680. Turbotax 2011 online They paid $340 on May 31, 2013, and $340 on October 31, 2013. Turbotax 2011 online These taxes were for the 2012 real property tax year. Turbotax 2011 online The Browns cannot deduct them since they did not own the property until 2013. Turbotax 2011 online Instead, they must add $680 to the cost of their new home. Turbotax 2011 online In January 2014, the Browns receive their 2013 property tax statement for $752, which they will pay in 2014. Turbotax 2011 online The Browns owned their new home during the 2013 real property tax year for 243 days (May 3 to December 31). Turbotax 2011 online They will figure their 2014 deduction for taxes as follows. Turbotax 2011 online Worksheet 22-1. Turbotax 2011 online Figuring Your Real Estate Tax Deduction — Taxes on New Home 1. Turbotax 2011 online Enter the total real estate taxes for the real property tax year $752 2. Turbotax 2011 online Enter the number of days in the real property tax year that you owned the property 243 3. Turbotax 2011 online Divide line 2 by 365 (for leap years, divide line 2 by 366) . Turbotax 2011 online 6658 4. Turbotax 2011 online Multiply line 1 by line 3. Turbotax 2011 online This is your deduction. Turbotax 2011 online Claim it on Schedule A (Form 1040), line 6 $501 The remaining $251 ($752 paid less $501 deduction) of taxes paid in 2014, along with the $680 paid in 2013, is added to the cost of their new home. Turbotax 2011 online Because the taxes up to the date of sale are considered paid by the seller on the date of sale, the seller is entitled to a 2013 tax deduction of $931. Turbotax 2011 online This is the sum of the $680 for 2012 and the $251 for the 122 days the seller owned the home in 2013. Turbotax 2011 online The seller must also include the $931 in the selling price when he or she figures the gain or loss on the sale. Turbotax 2011 online The seller should contact the Browns in January 2014 to find out how much real estate tax is due for 2013. Turbotax 2011 online Form 1099-S. Turbotax 2011 online   For certain sales or exchanges of real estate, the person responsible for closing the sale (generally the settlement agent) prepares Form 1099-S, Proceeds From Real Estate Transactions, to report certain information to the IRS and to the seller of the property. Turbotax 2011 online Box 2 of Form 1099-S is for the gross proceeds from the sale and should include the portion of the seller's real estate tax liability that the buyer will pay after the date of sale. Turbotax 2011 online The buyer includes these taxes in the cost basis of the property, and the seller both deducts this amount as a tax paid and includes it in the sales price of the property. Turbotax 2011 online   For a real estate transaction that involves a home, any real estate tax the seller paid in advance but that is the liability of the buyer appears on Form 1099-S, box 5. Turbotax 2011 online The buyer deducts this amount as a real estate tax, and the seller reduces his or her real estate tax deduction (or includes it in income) by the same amount. Turbotax 2011 online See Refund (or rebate) , later. Turbotax 2011 online Taxes placed in escrow. Turbotax 2011 online   If your monthly mortgage payment includes an amount placed in escrow (put in the care of a third party) for real estate taxes, you may not be able to deduct the total amount placed in escrow. Turbotax 2011 online You can deduct only the real estate tax that the third party actually paid to the taxing authority. Turbotax 2011 online If the third party does not notify you of the amount of real estate tax that was paid for you, contact the third party or the taxing authority to find the proper amount to show on your return. Turbotax 2011 online Tenants by the entirety. Turbotax 2011 online   If you and your spouse held property as tenants by the entirety and you file separate federal returns, each of you can deduct only the taxes each of you paid on the property. Turbotax 2011 online Divorced individuals. Turbotax 2011 online   If your divorce or separation agreement states that you must pay the real estate taxes for a home owned by you and your spouse, part of your payments may be deductible as alimony and part as real estate taxes. Turbotax 2011 online See Taxes and insurance in chapter 18 for more information. Turbotax 2011 online Ministers' and military housing allowances. Turbotax 2011 online   If you are a minister or a member of the uniformed services and receive a housing allowance that you can exclude from income, you still can deduct all of the real estate taxes you pay on your home. Turbotax 2011 online Refund (or rebate). Turbotax 2011 online   If you received a refund or rebate in 2013 of real estate taxes you paid in 2013, you must reduce your deduction by the amount refunded to you. Turbotax 2011 online If you received a refund or rebate in 2013 of real estate taxes you deducted in an earlier year (either as an itemized deduction or an increase to your standard deduction), you generally must include the refund or rebate in income in the year you receive it. Turbotax 2011 online However, the amount you include in income is limited to the amount of the deduction that reduced your tax in the earlier year. Turbotax 2011 online For more information, see Recoveries in chapter 12. Turbotax 2011 online Table 22-1. Turbotax 2011 online Which Taxes Can You Deduct? Type of Tax You Can Deduct You Cannot Deduct Fees and Charges Fees and charges that are expenses of your trade or business or of producing income. Turbotax 2011 online Fees and charges that are not expenses of your trade or business or of producing income, such as fees for driver's licenses, car inspections, parking, or charges for water bills (see Taxes and Fees You Cannot Deduct ). Turbotax 2011 online     Fines and penalties. Turbotax 2011 online Income Taxes State and local income taxes. Turbotax 2011 online Federal income taxes. Turbotax 2011 online   Foreign income taxes. Turbotax 2011 online     Employee contributions to state funds listed under Contributions to state benefit funds . Turbotax 2011 online Employee contributions to private or voluntary disability plans. Turbotax 2011 online     State and local general sales taxes if you choose to deduct state and local income taxes. Turbotax 2011 online General Sales Taxes State and local general sales taxes, including compensating use taxes. Turbotax 2011 online State and local income taxes if you choose to deduct state and local general sales taxes. Turbotax 2011 online Other Taxes Taxes that are expenses of your trade or business. Turbotax 2011 online Federal excise taxes, such as tax on gasoline, that are not expenses of your trade or business or of producing income. Turbotax 2011 online   Taxes on property producing rent or royalty income. Turbotax 2011 online Per capita taxes. Turbotax 2011 online   Occupational taxes. Turbotax 2011 online See chapter 28. Turbotax 2011 online     One-half of self-employment tax paid. Turbotax 2011 online   Personal Property Taxes State and local personal property taxes. Turbotax 2011 online Customs duties that are not expenses of your trade or business or of producing income. Turbotax 2011 online Real Estate Taxes State and local real estate taxes. Turbotax 2011 online Real estate taxes that are treated as imposed on someone else (see Division of real estate taxes between buyers and sellers ). Turbotax 2011 online   Foreign real estate taxes. Turbotax 2011 online Taxes for local benefits (with exceptions). Turbotax 2011 online See Real Estate-Related Items You Cannot Deduct . Turbotax 2011 online   Tenant's share of real estate taxes paid by  cooperative housing corporation. Turbotax 2011 online Trash and garbage pickup fees (with exceptions). Turbotax 2011 online See Real Estate-Related Items You Cannot Deduct . Turbotax 2011 online     Rent increase due to higher real estate taxes. Turbotax 2011 online     Homeowners' association charges. Turbotax 2011 online Real Estate-Related Items You Cannot Deduct Payments for the following items generally are not deductible as real estate taxes. Turbotax 2011 online Taxes for local benefits. Turbotax 2011 online Itemized charges for services (such as trash and garbage pickup fees). Turbotax 2011 online Transfer taxes (or stamp taxes). Turbotax 2011 online Rent increases due to higher real estate taxes. Turbotax 2011 online Homeowners' association charges. Turbotax 2011 online Taxes for local benefits. Turbotax 2011 online   Deductible real estate taxes generally do not include taxes charged for local benefits and improvements tending to increase the value of your property. Turbotax 2011 online These include assessments for streets, sidewalks, water mains, sewer lines, public parking facilities, and similar improvements. Turbotax 2011 online You should increase the basis of your property by the amount of the assessment. Turbotax 2011 online   Local benefit taxes are deductible only if they are for maintenance, repair, or interest charges related to those benefits. Turbotax 2011 online If only a part of the taxes is for maintenance, repair, or interest, you must be able to show the amount of that part to claim the deduction. Turbotax 2011 online If you cannot determine what part of the tax is for maintenance, repair, or interest, none of it is deductible. Turbotax 2011 online    Taxes for local benefits may be included in your real estate tax bill. Turbotax 2011 online If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Turbotax 2011 online You should use the rules above to determine if the local benefit tax is deductible. Turbotax 2011 online Contact the taxing authority if you need additional information about a specific charge on your real estate tax bill. Turbotax 2011 online Itemized charges for services. Turbotax 2011 online    An itemized charge for services assessed against specific property or certain people is not a tax, even if the charge is paid to the taxing authority. Turbotax 2011 online For example, you cannot deduct the charge as a real estate tax if it is: A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use), A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged to each homeowner for trash collection), or A flat fee charged for a single service provided by your government (such as a $30 charge for mowing your lawn because it was allowed to grow higher than permitted under your local ordinance). Turbotax 2011 online    You must look at your real estate tax bill to determine if any nondeductible itemized charges, such as those listed above, are included in the bill. Turbotax 2011 online If your taxing authority (or mortgage lender) does not furnish you a copy of your real estate tax bill, ask for it. Turbotax 2011 online Exception. Turbotax 2011 online   Service charges used to maintain or improve services (such as trash collection or police and fire protection) are deductible as real estate taxes if: The fees or charges are imposed at a like rate against all property in the taxing jurisdiction, The funds collected are not earmarked; instead, they are commingled with general revenue funds, and Funds used to maintain or improve services are not limited to or determined by the amount of these fees or charges collected. Turbotax 2011 online Transfer taxes (or stamp taxes). Turbotax 2011 online   Transfer taxes and similar taxes and charges on the sale of a personal home are not deductible. Turbotax 2011 online If they are paid by the seller, they are expenses of the sale and reduce the amount realized on the sale. Turbotax 2011 online If paid by the buyer, they are included in the cost basis of the property. Turbotax 2011 online Rent increase due to higher real estate taxes. Turbotax 2011 online   If your landlord increases your rent in the form of a tax surcharge because of increased real estate taxes, you cannot deduct the increase as taxes. Turbotax 2011 online Homeowners' association charges. Turbotax 2011 online   These charges are not deductible because they are imposed by the homeowners' association, rather than the state or local government. Turbotax 2011 online Personal Property Taxes Personal property tax is deductible if it is a state or local tax that is: Charged on personal property, Based only on the value of the personal property, and Charged on a yearly basis, even if it is collected more or less than once a year. Turbotax 2011 online A tax that meets the above requirements can be considered charged on personal property even if it is for the exercise of a privilege. Turbotax 2011 online For example, a yearly tax based on value qualifies as a personal property tax even if it is called a registration fee and is for the privilege of registering motor vehicles or using them on the highways. Turbotax 2011 online If the tax is partly based on value and partly based on other criteria, it may qualify in part. Turbotax 2011 online Example. Turbotax 2011 online Your state charges a yearly motor vehicle registration tax of 1% of value plus 50 cents per hundredweight. Turbotax 2011 online You paid $32 based on the value ($1,500) and weight (3,400 lbs. Turbotax 2011 online ) of your car. Turbotax 2011 online You can deduct $15 (1% × $1,500) as a personal property tax because it is based on the value. Turbotax 2011 online The remaining $17 ($. Turbotax 2011 online 50 × 34), based on the weight, is not deductible. Turbotax 2011 online Taxes and Fees You Cannot Deduct Many federal, state, and local government taxes are not deductible because they do not fall within the categories discussed earlier. Turbotax 2011 online Other taxes and fees, such as federal income taxes, are not deductible because the tax law specifically prohibits a deduction for them. Turbotax 2011 online See Table 22-1. Turbotax 2011 online Taxes and fees that are generally not deductible include the following items. Turbotax 2011 online Employment taxes. Turbotax 2011 online This includes social security, Medicare, and railroad retirement taxes withheld from your pay. Turbotax 2011 online However, one-half of self-employment tax you pay is deductible. Turbotax 2011 online In addition, the social security and other employment taxes you pay on the wages of a household worker may be included in medical expenses that you can deduct or child care expenses that allow you to claim the child and dependent care credit. Turbotax 2011 online For more information, see chapters 21 and 32. Turbotax 2011 online Estate, inheritance, legacy, or succession taxes. Turbotax 2011 online However, you can deduct the estate tax attributable to income in respect of a decedent if you, as a beneficiary, must include that income in your gross income. Turbotax 2011 online In that case, deduct the estate tax as a miscellaneous deduction that is not subject to the 2%-of-adjusted-gross-income limit. Turbotax 2011 online For more information, see Publication 559, Survivors, Executors, and Administrators. Turbotax 2011 online Federal income taxes. Turbotax 2011 online This includes income taxes withheld from your pay. Turbotax 2011 online Fines and penalties. Turbotax 2011 online You cannot deduct fines and penalties paid to a government for violation of any law, including related amounts forfeited as collateral deposits. Turbotax 2011 online Gift taxes. Turbotax 2011 online License fees. Turbotax 2011 online You cannot deduct license fees for personal purposes (such as marriage, driver's, and dog license fees). Turbotax 2011 online Per capita taxes. Turbotax 2011 online You cannot deduct state or local per capita taxes. Turbotax 2011 online Many taxes and fees other than those listed above are also nondeductible, unless they are ordinary and necessary expenses of a business or income producing activity. Turbotax 2011 online For other nondeductible items, see Real Estate-Related Items You Cannot Deduct , earlier. Turbotax 2011 online Where To Deduct You deduct taxes on the following schedules. Turbotax 2011 online State and local income taxes. Turbotax 2011 online    These taxes are deducted on Schedule A (Form 1040), line 5, even if your only source of income is from business, rents, or royalties. Turbotax 2011 online Check box a on line 5. Turbotax 2011 online General sales taxes. Turbotax 2011 online   Sales taxes are deducted on Schedule A (Form 1040), line 5. Turbotax 2011 online You must check box b on line 5. Turbotax 2011 online If you elect to deduct sales taxes, you cannot deduct state and local income taxes on Schedule A (Form 1040), line 5, box a. Turbotax 2011 online Foreign income taxes. Turbotax 2011 online   Generally, income taxes you pay to a foreign country or U. Turbotax 2011 online S. Turbotax 2011 online possession can be claimed as an itemized deduction on Schedule A (Form 1040), line 8, or as a credit against your U. Turbotax 2011 online S. Turbotax 2011 online income tax on Form 1040, line 47. Turbotax 2011 online To claim the credit, you may have to complete and attach Form 1116. Turbotax 2011 online For more information, see chapter 37, the Form 1040 instructions, or Publication 514. Turbotax 2011 online Real estate taxes and personal property taxes. Turbotax 2011 online    Real estate and personal property taxes are deducted on Schedule A (Form 1040), lines 6 and 7, respectively, unless they are paid on property used in your business, in which case they are deducted on Schedule C, Schedule C-EZ, or Schedule F (Form 1040). Turbotax 2011 online Taxes on property that produces rent or royalty income are deducted on Schedule E (Form 1040). Turbotax 2011 online Self-employment tax. Turbotax 2011 online    Deduct one-half of your self-employment tax on Form 1040, line 27. Turbotax 2011 online Other taxes. Turbotax 2011 online    All other deductible taxes are deducted on Schedule A (Form 1040), line 8. Turbotax 2011 online Prev  Up  Next   Home   More Online Publications