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

Where Can I Efile My State Taxes For Free

File Prior Year Taxes Online1040ez Tax Instructions2009 State Tax FormsHow Do I File Taxes On UnemploymentEz 1040 Form 2012Income Taxes FreeIrs State Tax ReturnI Need Tax Instruction Booklet For 1040ez2008 Amended Tax Return InstructionsDo I File Taxes Amend Previous YearsFree Irs FilingFile Form 1040x Online1040x 2008H And R Block 1040xTax Amendment Form 2013H And R Block Login2012 Tax Forms Ez2012 Tax FormVita Tax Program 2012 LocationsUnemployment Taxes 2011Taxes For StudentsFile Taxes From 2012Quicktax1040 Ez Form 2013Irs.gov/form1040x1040 State Tax Form1040ez2012Federal Income Tax Ez FormTurbo Tax Self EmployedE File Tax ReturnsIrs 1040x 2010Minimum Earnings For Filing TaxesHow To File 2010 Taxes Late TurbotaxCan I Fill 2010 Taxes This YearNeed Print 1040x FormAmend 2011 Federal Tax ReturnFree Filing For 2012 TaxesWww Taxslayer Com MilitaryTax Forms 1040ezH&rblock Online

Where Can I Efile My State Taxes For Free

Where can i efile my state taxes for free Index A Accelerated death benefits, Accelerated Death Benefits Accounting periods Change in, standard deduction not allowed, Persons not eligible for the standard deduction. Where can i efile my state taxes for free Accrued leave payment Disability retirement and, Accrued leave payment. Where can i efile my state taxes for free Adjusted gross income (AGI), Adjustments to Income Adjustments to income, Adjustments to Income Age Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Where can i efile my state taxes for free Age 65, Qualified Individual American Association of Retired Persons (AARP), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Where can i efile my state taxes for free Annuities, Pensions and Annuities Assistance (see Tax help) B Base amount, social security benefits, Base Amount Benefits Accident or health, Other compensation. Where can i efile my state taxes for free Long-term care, Long-Term Care Insurance Contracts No-fault insurance, Other compensation. Where can i efile my state taxes for free Sickness and injury, Sickness and Injury Benefits Social security, Are Any of Your Benefits Taxable? Veterans', Veterans' benefits. Where can i efile my state taxes for free Bequests, Gifts and inheritances. Where can i efile my state taxes for free Blind persons Standard deduction for, Higher standard deduction for blindness. Where can i efile my state taxes for free C Child and dependent care credit, Child and Dependent Care Credit Children Standard deduction for, Standard Deduction for Dependents Chronically ill persons, Chronically ill individual. Where can i efile my state taxes for free Chronically ill, defined, Terminally or chronically ill defined. Where can i efile my state taxes for free Compensation For services, Compensation for Services Loss or disfigurement, Other compensation. Where can i efile my state taxes for free Contributions Foreign employment, Foreign employment contributions. Where can i efile my state taxes for free Pension or annuity, Cost. Where can i efile my state taxes for free Cost, pension or annuity, Cost. Where can i efile my state taxes for free Credit Child and dependent care, Child and Dependent Care Credit Earned income, Earned Income Credit (EIC) The elderly or the disabled, Credit for the Elderly or the Disabled Credit for the elderly or the disabled, Credit for the Elderly or the Disabled D Death benefit, accelerated, Accelerated Death Benefits Decedents, Dependents. Where can i efile my state taxes for free Standard deduction, Decedent's final return. Where can i efile my state taxes for free Deductions Generally, Deductions Insurance premiums, Medical Insurance Premiums Itemized, Itemized Deductions Meals and lodging, Meals and Lodging Medical and dental, Medical and Dental Expenses Standard, Standard Deduction Dependents, Dependents. Where can i efile my state taxes for free Standard deduction for, Standard Deduction for Dependents Disabilities, individuals with Ownership and use test, Exception to use test for individuals with a disability. Where can i efile my state taxes for free Disability Person with, Persons with disabilities. Where can i efile my state taxes for free Physician's statement, Physician's statement. Where can i efile my state taxes for free Total and permanent, Permanent and total disability. Where can i efile my state taxes for free Disability income, Disability Pensions, Other compensation. Where can i efile my state taxes for free , Disability income. Where can i efile my state taxes for free Distributions, retirement plan, Retirement Plan Distributions Drugs (see Medicines) Dual-status taxpayers Standard deduction, Persons not eligible for the standard deduction. Where can i efile my state taxes for free E Early distributions, tax, Tax on Early Distributions Earned income credit, Earned Income Credit (EIC) Elderly or disabled credit, Credit for the Elderly or the Disabled Elderly persons Standard deduction for age 65 or older, Higher standard deduction for age (65 or older). Where can i efile my state taxes for free Employment tax withholding, Reminders Employment taxes, Employment taxes. Where can i efile my state taxes for free Endowment proceeds, Endowment Contract Proceeds Estimated tax, Tax Withholding and Estimated Tax, Estimated Tax, Who Must Make Estimated Tax Payments Excess accumulation, tax on, Tax on Excess Accumulation Exclusion, gain on sale of home, Maximum Amount of Exclusion F Federal Employees Compensation Act (FECA) payments, Federal Employees' Compensation Act (FECA). Where can i efile my state taxes for free Filing requirements Decedents, Dependents. Where can i efile my state taxes for free General requirements, General Requirements Surviving spouse, Surviving spouse. Where can i efile my state taxes for free Final return for decedent Standard deduction, Decedent's final return. Where can i efile my state taxes for free First-time homebuyer credit Recapture, Repaying the first-time homebuyer credit because you sold your home. Where can i efile my state taxes for free Form, Credit for the Elderly or the Disabled, Physician's statement. Where can i efile my state taxes for free 1099-R, Form 1099-R. Where can i efile my state taxes for free , Form 1099-R. Where can i efile my state taxes for free 5329, Form 5329. Where can i efile my state taxes for free 8853, Accelerated Death Benefits Schedule R, Credit for the Elderly or the Disabled, Physician's statement. Where can i efile my state taxes for free W-4P, Withholding. Where can i efile my state taxes for free Free tax services, Free help with your tax return. Where can i efile my state taxes for free G Gain on sale of home (see Sale of home) General rule, pension or annuity, Pensions and Annuities Gifts, Gifts and inheritances. Where can i efile my state taxes for free H Help (see Tax help) Home care (see Nursing services) Home improvements, Home Improvements Home, sale of, Sale of Home Hospital services, Hospital Services Household help, Household Help I Income Adjustments, Adjustments to Income Disability, Disability Pensions, Disability income. Where can i efile my state taxes for free Gross, defined, Gross income. Where can i efile my state taxes for free Nontaxable, Taxable and Nontaxable Income Sale of home, Sale of Home Self-employment, Self-employed persons. Where can i efile my state taxes for free Taxable, Taxable and Nontaxable Income Individual retirement arrangement (IRA) Adjustments to income, Individual Retirement Arrangement (IRA) Contributions and Deductions Contributions, Contributions. Where can i efile my state taxes for free Deductible contribution, Deductible contribution. Where can i efile my state taxes for free Distributions, Individual Retirement Arrangements (IRAs) Inheritances, Gifts and inheritances. Where can i efile my state taxes for free Injury benefits, Sickness and Injury Benefits, Cost paid by you. Where can i efile my state taxes for free Insurance Accident and health, Other compensation. Where can i efile my state taxes for free , Medical Insurance Premiums Benefits, long-term care, Long-Term Care Insurance Contracts Benefits, no-fault insurance, Other compensation. Where can i efile my state taxes for free Life insurance proceeds, Life Insurance Proceeds Proceeds paid after death, Life Insurance Proceeds Proceeds paid before death, Accelerated Death Benefits Insurance premiums for retired public safety officers, Insurance Premiums for Retired Public Safety Officers Itemized deductions, Itemized Deductions Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Where can i efile my state taxes for free L Life insurance proceeds, Life Insurance Proceeds Long-term care, Long-Term Care Chronically ill individuals, Chronically ill individual. Where can i efile my state taxes for free Maintenance and personal care services, Maintenance and personal care services. Where can i efile my state taxes for free Qualified insurance contracts, Qualified long-term care insurance contracts. Where can i efile my state taxes for free Qualified services, Qualified long-term care services. Where can i efile my state taxes for free Long-term care insurance, Long-Term Care Insurance Contracts Loss or disfigurement compensation, Other compensation. Where can i efile my state taxes for free Lump-sum distributions, Lump-sum distributions. Where can i efile my state taxes for free Lump-sum election, social security, Lump-Sum Election M Maintenance and personal care services, Maintenance and personal care services. Where can i efile my state taxes for free Married filing separately Itemized deductions One spouse has itemized so other must as well, Persons not eligible for the standard deduction. Where can i efile my state taxes for free Married taxpayers Age 65 or older spouse Standard deduction, Spouse 65 or older or blind. Where can i efile my state taxes for free Blind spouse Standard deduction, Spouse 65 or older or blind. Where can i efile my state taxes for free Meals and lodging expenses, Meals and Lodging Medical expenses, Medical and Dental Expenses Medicare, Medicare Part A. Where can i efile my state taxes for free , Medicare Part B. Where can i efile my state taxes for free , Medicare Part D. Where can i efile my state taxes for free Benefits, Medicare. Where can i efile my state taxes for free Medicines, Medicines Imported, Imported medicines and drugs. Where can i efile my state taxes for free Military retirement pay, Military Retirement Pay Minimum distributions, Tax on Excess Accumulation Minimum wage, Substantial gainful activity. Where can i efile my state taxes for free Missing children, Reminders Mortgage assistance payments, Mortgage assistance payments. Where can i efile my state taxes for free N Nonperiodic distributions, Nonperiodic Distributions Nonqualified use, Period of nonqualified use. Where can i efile my state taxes for free Nonresident aliens Standard deduction, Persons not eligible for the standard deduction. Where can i efile my state taxes for free Nontaxable income, Payments from a state fund for victims of crime. Where can i efile my state taxes for free Accident or health insurance benefits, Other compensation. Where can i efile my state taxes for free Bequests, Gifts and inheritances. Where can i efile my state taxes for free Generally, Taxable and Nontaxable Income Gifts, Gifts and inheritances. Where can i efile my state taxes for free Inheritances, Gifts and inheritances. Where can i efile my state taxes for free Mortgage assistance payments, Mortgage assistance payments. Where can i efile my state taxes for free No-fault insurance benefits, Other compensation. Where can i efile my state taxes for free Nutrition program for elderly, Nutrition Program for the Elderly. Where can i efile my state taxes for free Public assistance payments, Welfare benefits. Where can i efile my state taxes for free Sickness and injury benefits, Sickness and Injury Benefits Veterans' benefits, Veterans' benefits. Where can i efile my state taxes for free Winter energy use, Payments to reduce cost of winter energy use. Where can i efile my state taxes for free Workers' compensation, Workers' Compensation Nursing home, Nursing home. Where can i efile my state taxes for free Nursing services, Nursing Services Chronically ill individuals, Chronically ill individual. Where can i efile my state taxes for free Nutrition program for elderly, Nutrition Program for the Elderly. Where can i efile my state taxes for free O Old-age, survivors, and disability insurance benefits (OASDI), Old-age, survivors, and disability insurance benefits (OASDI). Where can i efile my state taxes for free Other items, Other Items Overall limitation, Overall limitation. Where can i efile my state taxes for free P Payments, estimated tax, Estimated Tax Pensions, Pensions and Annuities Pensions, disability, Disability Pensions Photographs, missing children, Reminders Physician's statement, disability, Physician's statement. Where can i efile my state taxes for free Prepaid insurance premiums, Prepaid insurance premiums. Where can i efile my state taxes for free Preparer, paid, Reminders Preparing your return, Return preparation assistance. Where can i efile my state taxes for free Profit-sharing plan, Retirement and profit-sharing plans. Where can i efile my state taxes for free Public assistance payments, Welfare benefits. Where can i efile my state taxes for free Publications (see Tax help) Q Qualified retirement plan, Tax on Early Distributions R Railroad retirement benefits, Railroad Retirement Benefits, Social Security and Equivalent Railroad Retirement Benefits Repayments Social security benefits, Repayment of Benefits Reporting pension income, How to report. Where can i efile my state taxes for free Residence, sale of, Sale of Home Retirement plans, distributions, Retirement Plan Distributions Returns Decedent, Dependents. Where can i efile my state taxes for free Executors and administrators, Dependents. Where can i efile my state taxes for free Filing requirements, 2013 Filing Requirements Surviving spouse, Surviving spouse. Where can i efile my state taxes for free Reverse mortgages, Reverse Mortgages S Salaries (see Compensation) Sale of Home First-time homebuyer credit, Repaying the first-time homebuyer credit because you sold your home. Where can i efile my state taxes for free Surviving spouse, Reminders Sale of home, Sale of Home Self-employed, Self-employed persons. Where can i efile my state taxes for free Short tax year Change in annual accounting period, Persons not eligible for the standard deduction. Where can i efile my state taxes for free Sickness and injury benefits, Sickness and Injury Benefits Simplified method, Pensions and Annuities Social security benefits, Social Security and Equivalent Railroad Retirement Benefits Standard deduction, Standard Deduction Age 65 or older, Higher standard deduction for age (65 or older). Where can i efile my state taxes for free Blind persons, Higher standard deduction for blindness. Where can i efile my state taxes for free Dependents, Standard Deduction for Dependents Final return of decedent, Decedent's final return. Where can i efile my state taxes for free Married filing separately One spouse has itemized, Persons not eligible for the standard deduction. Where can i efile my state taxes for free Starting date, annuity, Cost. Where can i efile my state taxes for free State fund for victims of crime, Payments from a state fund for victims of crime. Where can i efile my state taxes for free Substantial gainful activity, Substantial gainful activity. Where can i efile my state taxes for free Surrender of Iife insurance, Surrender of policy for cash. Where can i efile my state taxes for free Surviving Spouse, Reminders Surviving spouse, Surviving spouse. Where can i efile my state taxes for free Surviving spouse, insurance, Surviving spouse. Where can i efile my state taxes for free Survivors of retirees, Survivors of retirees. Where can i efile my state taxes for free T Tax Early distributions, Tax on Early Distributions Estimated, Tax Withholding and Estimated Tax, Estimated Tax Excess accumulation, Tax on Excess Accumulation Tax counseling for the elderly (TCE), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Where can i efile my state taxes for free Tax help, How To Get Tax Help Tax option, 10-year, Lump-sum distributions. Where can i efile my state taxes for free Tax return preparers, Reminders Taxable income, Taxable and Nontaxable Income Taxation of benefits, Are Any of Your Benefits Taxable? Terminally ill, defined, Terminally or chronically ill defined. Where can i efile my state taxes for free Total and permanent disability, defined, Permanent and total disability. Where can i efile my state taxes for free Transportation expenses, Transportation TTY/TDD information, How To Get Tax Help U U. Where can i efile my state taxes for free S. Where can i efile my state taxes for free citizen or resident, U. Where can i efile my state taxes for free S. Where can i efile my state taxes for free citizen or resident alien. Where can i efile my state taxes for free Unemployment compensation, Unemployment compensation. Where can i efile my state taxes for free V Veterans' benefits, Veterans' benefits. Where can i efile my state taxes for free Viatical settlement, Accelerated Death Benefits Victims of crime, Payments from a state fund for victims of crime. Where can i efile my state taxes for free Volunteer income tax assistance (VITA), Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Where can i efile my state taxes for free Volunteer work, Volunteer work. Where can i efile my state taxes for free W Wages (see Compensation) Winter energy use payments, Payments to reduce cost of winter energy use. Where can i efile my state taxes for free Withholding Employment tax, Reminders Pensions and annuities, Withholding. Where can i efile my state taxes for free Workers' compensation, Workers' Compensation Worksheets, social security, Which worksheet to use. Where can i efile my state taxes for free Prev  Up     Home   More Online Publications
Español

The Where Can I Efile My State Taxes For Free

Where can i efile my state taxes for free 5. Where can i efile my state taxes for free   Business Income Table of Contents Introduction Kinds of IncomeBartering for Property or Services Real Estate Rents Personal Property Rents Interest and Dividend Income Canceled Debt Other Income Items That Are Not IncomeAmount you can exclude. Where can i efile my state taxes for free Short-term lease. Where can i efile my state taxes for free Retail space. Where can i efile my state taxes for free Qualified long-term real property. Where can i efile my state taxes for free Guidelines for Selected Occupations Accounting for Your Income Introduction This chapter primarily explains business income and how to account for it on your tax return, what items are not considered income, and gives guidelines for selected occupations. Where can i efile my state taxes for free If there is a connection between any income you receive and your business, the income is business income. Where can i efile my state taxes for free A connection exists if it is clear that the payment of income would not have been made if you did not have the business. Where can i efile my state taxes for free You can have business income even if you are not involved in the activity on a regular full-time basis. Where can i efile my state taxes for free Income from work you do on the side in addition to your regular job can be business income. Where can i efile my state taxes for free You report most business income, such as income from selling your products or services, on Schedule C or C-EZ. Where can i efile my state taxes for free But you report the income from the sale of business assets, such as land and office buildings, on other forms instead of Schedule C or C-EZ. Where can i efile my state taxes for free For information on selling business assets, see chapter 3. Where can i efile my state taxes for free Nonemployee compensation. Where can i efile my state taxes for free Business income includes amounts you received in your business that were properly shown on Forms 1099-MISC. Where can i efile my state taxes for free This includes amounts reported as nonemployee compensation in box 7 of the form. Where can i efile my state taxes for free You can find more information in the instructions on the back of the Form 1099-MISC you received. Where can i efile my state taxes for free Kinds of Income You must report on your tax return all income you receive from your business unless it is excluded by law. Where can i efile my state taxes for free In most cases, your business income will be in the form of cash, checks, and credit card charges. Where can i efile my state taxes for free But business income can be in other forms, such as property or services. Where can i efile my state taxes for free These and other types of income are explained next. Where can i efile my state taxes for free If you are a U. Where can i efile my state taxes for free S. Where can i efile my state taxes for free citizen who has business income from sources outside the United States (foreign income), you must report that income on your tax return unless it is exempt from tax under U. Where can i efile my state taxes for free S. Where can i efile my state taxes for free law. Where can i efile my state taxes for free If you live outside the United States, you may be able to exclude part or all of your foreign-source business income. Where can i efile my state taxes for free For details, see Publication 54, Tax Guide for U. Where can i efile my state taxes for free S. Where can i efile my state taxes for free Citizens and Resident Aliens Abroad. Where can i efile my state taxes for free Bartering for Property or Services Bartering is an exchange of property or services. Where can i efile my state taxes for free You must include in your gross receipts, at the time received, the fair market value of property or services you receive in exchange for something else. Where can i efile my state taxes for free If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as the fair market value unless the value can be shown to be otherwise. Where can i efile my state taxes for free Example 1. Where can i efile my state taxes for free You are a self-employed lawyer. Where can i efile my state taxes for free You perform legal services for a client, a small corporation. Where can i efile my state taxes for free In payment for your services, you receive shares of stock in the corporation. Where can i efile my state taxes for free You must include the fair market value of the shares in income. Where can i efile my state taxes for free Example 2. Where can i efile my state taxes for free You are an artist and create a work of art to compensate your landlord for the rent-free use of your apartment. Where can i efile my state taxes for free You must include the fair rental value of the apartment in your gross receipts. Where can i efile my state taxes for free Your landlord must include the fair market value of the work of art in his or her rental income. Where can i efile my state taxes for free Example 3. Where can i efile my state taxes for free You are a self-employed accountant. Where can i efile my state taxes for free Both you and a house painter are members of a barter club, an organization that each year gives its members a directory of members and the services each member provides. Where can i efile my state taxes for free Members get in touch with other members directly and bargain for the value of the services to be performed. Where can i efile my state taxes for free In return for accounting services you provided for the house painter's business, the house painter painted your home. Where can i efile my state taxes for free You must include in gross receipts the fair market value of the services you received from the house painter. Where can i efile my state taxes for free The house painter must include the fair market value of your accounting services in his or her gross receipts. Where can i efile my state taxes for free Example 4. Where can i efile my state taxes for free You are a member of a barter club that uses credit units to credit or debit members' accounts for goods or services provided or received. Where can i efile my state taxes for free As soon as units are credited to your account, you can use them to buy goods or services or sell or transfer the units to other members. Where can i efile my state taxes for free You must include the value of credit units you received in your gross receipts for the tax year in which the units are credited to your account. Where can i efile my state taxes for free The dollar value of units received for services by an employee of the club, who can use the units in the same manner as other members, must be included in the employee's gross income for the tax year in which received. Where can i efile my state taxes for free It is wages subject to social security and Medicare taxes (FICA), federal unemployment taxes (FUTA), and income tax withholding. Where can i efile my state taxes for free See Publication 15 (Circular E), Employer's Tax Guide. Where can i efile my state taxes for free Example 5. Where can i efile my state taxes for free You operate a plumbing business and use the cash method of accounting. Where can i efile my state taxes for free You join a barter club and agree to provide plumbing services to any member for a specified number of hours. Where can i efile my state taxes for free Each member has access to a directory that lists the members of the club and the services available. Where can i efile my state taxes for free Members contact each other directly and request services to be performed. Where can i efile my state taxes for free You are not required to provide services unless requested by another member, but you can use as many of the offered services as you wish without paying a fee. Where can i efile my state taxes for free You must include the fair market value of any services you receive from club members in your gross receipts when you receive them even if you have not provided any services to club members. Where can i efile my state taxes for free Information returns. Where can i efile my state taxes for free   If you are involved in a bartering transaction, you may have to file either of the following forms. Where can i efile my state taxes for free Form 1099-B, Proceeds From Broker and Barter Exchange Transactions. Where can i efile my state taxes for free Form 1099-MISC, Miscellaneous Income. Where can i efile my state taxes for free For information about these forms, see the General Instructions for Certain Information Returns. Where can i efile my state taxes for free Real Estate Rents If you are a real estate dealer who receives income from renting real property or an owner of a hotel, motel, etc. Where can i efile my state taxes for free , who provides services (maid services, etc. Where can i efile my state taxes for free ) for guests, report the rental income and expenses on Schedule C or C-EZ. Where can i efile my state taxes for free If you are not a real estate dealer or the kind of owner described in the preceding sentence, report the rental income and expenses on Schedule E. Where can i efile my state taxes for free For more information, see Publication 527, Residential Rental Property (Including Rental of Vacation Homes). Where can i efile my state taxes for free Real estate dealer. Where can i efile my state taxes for free   You are a real estate dealer if you are engaged in the business of selling real estate to customers with the purpose of making a profit from those sales. Where can i efile my state taxes for free Rent you receive from real estate held for sale to customers is subject to SE tax. Where can i efile my state taxes for free However, rent you receive from real estate held for speculation or investment is not subject to SE tax. Where can i efile my state taxes for free Trailer park owner. Where can i efile my state taxes for free   Rental income from a trailer park is subject to SE tax if you are a self-employed trailer park owner who provides trailer lots and facilities and substantial services for the convenience of your tenants. Where can i efile my state taxes for free    You generally are considered to provide substantial services for tenants if they are primarily for the tenants' convenience and normally are not provided to maintain the lots in a condition for occupancy. Where can i efile my state taxes for free Services are substantial if the compensation for the services makes up a material part of the tenants' rental payments. Where can i efile my state taxes for free   Examples of services that are not normally provided for the tenants' convenience include supervising and maintaining a recreational hall provided by the park, distributing a monthly newsletter to tenants, operating a laundry facility, and helping tenants buy or sell their trailers. Where can i efile my state taxes for free   Examples of services that are normally provided to maintain the lots in a condition for tenant occupancy include city sewerage, electrical connections, and roadways. Where can i efile my state taxes for free Hotels, boarding houses, and apartments. Where can i efile my state taxes for free   Rental income you receive for the use or occupancy of hotels, boarding houses, or apartment houses is subject to SE tax if you provide services for the occupants. Where can i efile my state taxes for free   Generally, you are considered to provide services for the occupants if the services are primarily for their convenience and are not services normally provided with the rental of rooms for occupancy only. Where can i efile my state taxes for free An example of a service that is not normally provided for the convenience of the occupants is maid service. Where can i efile my state taxes for free However, providing heat and light, cleaning stairways and lobbies, and collecting trash are services normally provided for the occupants' convenience. Where can i efile my state taxes for free Prepaid rent. Where can i efile my state taxes for free   Advance payments received under a lease that does not put any restriction on their use or enjoyment are income in the year you receive them. Where can i efile my state taxes for free This is true no matter what accounting method or period you use. Where can i efile my state taxes for free Lease bonus. Where can i efile my state taxes for free   A bonus you receive from a lessee for granting a lease is an addition to the rent. Where can i efile my state taxes for free Include it in your gross receipts in the year received. Where can i efile my state taxes for free Lease cancellation payments. Where can i efile my state taxes for free   Report payments you receive from your lessee for canceling a lease in your gross receipts in the year received. Where can i efile my state taxes for free Payments to third parties. Where can i efile my state taxes for free   If your lessee makes payments to someone else under an agreement to pay your debts or obligations, include the payments in your gross receipts when the lessee makes the payments. Where can i efile my state taxes for free A common example of this kind of income is a lessee's payment of your property taxes on leased real property. Where can i efile my state taxes for free Settlement payments. Where can i efile my state taxes for free   Payments you receive in settlement of a lessee's obligation to restore the leased property to its original condition are income in the amount that the payments exceed the adjusted basis of the leasehold improvements destroyed, damaged, removed, or disconnected by the lessee. Where can i efile my state taxes for free Personal Property Rents If you are in the business of renting personal property (equipment, vehicles, formal wear, etc. Where can i efile my state taxes for free ), include the rental amount you receive in your gross receipts on Schedule C or C-EZ. Where can i efile my state taxes for free Prepaid rent and other payments described in the preceding Real Estate Rents discussion can also be received for renting personal property. Where can i efile my state taxes for free If you receive any of those payments, include them in your gross receipts as explained in that discussion. Where can i efile my state taxes for free Interest and Dividend Income Interest and dividends may be considered business income. Where can i efile my state taxes for free Interest. Where can i efile my state taxes for free   Interest received on notes receivable that you have accepted in the ordinary course of business is business income. Where can i efile my state taxes for free Interest received on loans is business income if you are in the business of lending money. Where can i efile my state taxes for free Uncollectible loans. Where can i efile my state taxes for free   If a loan payable to you becomes uncollectible during the tax year and you use an accrual method of accounting, you must include in gross income interest accrued up to the time the loan became uncollectible. Where can i efile my state taxes for free If the accrued interest later becomes uncollectible, you may be able to take a bad debt deduction. Where can i efile my state taxes for free See Bad Debts in chapter 8. Where can i efile my state taxes for free Unstated interest. Where can i efile my state taxes for free   If little or no interest is charged on an installment sale, you may have to treat a part of each payment as unstated interest. Where can i efile my state taxes for free See Unstated Interest and Original Issue Discount (OID) in Publication 537, Installment Sales. Where can i efile my state taxes for free Dividends. Where can i efile my state taxes for free   Generally, dividends are business income to dealers in securities. Where can i efile my state taxes for free For most sole proprietors and statutory employees, however, dividends are nonbusiness income. Where can i efile my state taxes for free If you hold stock as a personal investment separately from your business activity, the dividends from the stock are nonbusiness income. Where can i efile my state taxes for free   If you receive dividends from business insurance premiums you deducted in an earlier year, you must report all or part of the dividend as business income on your return. Where can i efile my state taxes for free To find out how much you have to report, see   Recovery of items previously deducted under Other Income, later. Where can i efile my state taxes for free Canceled Debt The following explains the general rule for including canceled debt in income and the exceptions to the general rule. Where can i efile my state taxes for free General Rule Generally, if your debt is canceled or forgiven, other than as a gift or bequest to you, you must include the canceled amount in your gross income for tax purposes. Where can i efile my state taxes for free Report the canceled amount on line 6 of Schedule C if you incurred the debt in your business. Where can i efile my state taxes for free If the debt is a nonbusiness debt, report the canceled amount on line 21 of Form 1040. Where can i efile my state taxes for free Exceptions The following discussion covers some exceptions to the general rule for canceled debt. Where can i efile my state taxes for free Price reduced after purchase. Where can i efile my state taxes for free   If you owe a debt to the seller for property you bought and the seller reduces the amount you owe, you generally do not have income from the reduction. Where can i efile my state taxes for free Unless you are bankrupt or insolvent, treat the amount of the reduction as a purchase price adjustment and reduce your basis in the property. Where can i efile my state taxes for free Deductible debt. Where can i efile my state taxes for free   You do not realize income from a canceled debt to the extent the payment of the debt would have led to a deduction. Where can i efile my state taxes for free Example. Where can i efile my state taxes for free You get accounting services for your business on credit. Where can i efile my state taxes for free Later, you have trouble paying your business debts, but you are not bankrupt or insolvent. Where can i efile my state taxes for free Your accountant forgives part of the amount you owe for the accounting services. Where can i efile my state taxes for free How you treat the canceled debt depends on your method of accounting. Where can i efile my state taxes for free Cash method — You do not include the canceled debt in income because payment of the debt would have been deductible as a business expense. Where can i efile my state taxes for free Accrual method — You include the canceled debt in income because the expense was deductible when you incurred the debt. Where can i efile my state taxes for free   For information on the cash and accrual methods of accounting, see chapter 2. Where can i efile my state taxes for free Exclusions Do not include canceled debt in income in the following situations. Where can i efile my state taxes for free However, you may be required to file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness. Where can i efile my state taxes for free For more information, see Form 982. Where can i efile my state taxes for free The cancellation takes place in a bankruptcy case under title 11 of the U. Where can i efile my state taxes for free S. Where can i efile my state taxes for free Code (relating to bankruptcy). Where can i efile my state taxes for free See Publication 908, Bankruptcy Tax Guide. Where can i efile my state taxes for free The cancellation takes place when you are insolvent. Where can i efile my state taxes for free You can exclude the canceled debt to the extent you are insolvent. Where can i efile my state taxes for free See Publication 908. Where can i efile my state taxes for free The canceled debt is a qualified farm debt owed to a qualified person. Where can i efile my state taxes for free See chapter 3 in Publication 225, Farmer's Tax Guide. Where can i efile my state taxes for free The canceled debt is a qualified real property business debt. Where can i efile my state taxes for free This situation is explained later. Where can i efile my state taxes for free The canceled debt is qualified principal residence indebtedness which is discharged after 2006. Where can i efile my state taxes for free See Form 982. Where can i efile my state taxes for free If a canceled debt is excluded from income because it takes place in a bankruptcy case, the exclusions in situations 2 through 5 do not apply. Where can i efile my state taxes for free If it takes place when you are insolvent, the exclusions in situations 3 and 4 do not apply to the extent you are insolvent. Where can i efile my state taxes for free Debt. Where can i efile my state taxes for free   For purposes of this discussion, debt includes any debt for which you are liable or which attaches to property you hold. Where can i efile my state taxes for free Qualified real property business debt. Where can i efile my state taxes for free   You can elect to exclude (up to certain limits) the cancellation of qualified real property business debt. Where can i efile my state taxes for free If you make the election, you must reduce the basis of your depreciable real property by the amount excluded. Where can i efile my state taxes for free Make this reduction at the beginning of your tax year following the tax year in which the cancellation occurs. Where can i efile my state taxes for free However, if you dispose of the property before that time, you must reduce its basis immediately before the disposition. Where can i efile my state taxes for free Cancellation of qualified real property business debt. Where can i efile my state taxes for free   Qualified real property business debt is debt (other than qualified farm debt) that meets all the following conditions. Where can i efile my state taxes for free It was incurred or assumed in connection with real property used in a trade or business. Where can i efile my state taxes for free It was secured by such real property. Where can i efile my state taxes for free It was incurred or assumed at either of the following times. Where can i efile my state taxes for free Before January 1, 1993. Where can i efile my state taxes for free After December 31, 1992, if incurred or assumed to acquire, construct, or substantially improve the real property. Where can i efile my state taxes for free It is debt to which you choose to apply these rules. Where can i efile my state taxes for free   Qualified real property business debt includes refinancing of debt described in (3) earlier, but only to the extent it does not exceed the debt being refinanced. Where can i efile my state taxes for free   You cannot exclude more than either of the following amounts. Where can i efile my state taxes for free The excess (if any) of: The outstanding principal of qualified real property business debt (immediately before the cancellation), over The fair market value (immediately before the cancellation) of the business real property that is security for the debt, reduced by the outstanding principal amount of any other qualified real property business debt secured by this property immediately before the cancellation. Where can i efile my state taxes for free The total adjusted bases of depreciable real property held by you immediately before the cancellation. Where can i efile my state taxes for free These adjusted bases are determined after any basis reduction due to a cancellation in bankruptcy, insolvency, or of qualified farm debt. Where can i efile my state taxes for free Do not take into account depreciable real property acquired in contemplation of the cancellation. Where can i efile my state taxes for free Election. Where can i efile my state taxes for free   To make this election, complete Form 982 and attach it to your income tax return for the tax year in which the cancellation occurs. Where can i efile my state taxes for free You must file your return by the due date (including extensions). Where can i efile my state taxes for free If you timely filed your return for the year without making the election, you can still make the election by filing an amended return within 6 months of the due date of the return (excluding extensions). Where can i efile my state taxes for free For more information, see When To File in the form instructions. Where can i efile my state taxes for free Other Income The following discussion explains how to treat other types of business income you may receive. Where can i efile my state taxes for free Restricted property. Where can i efile my state taxes for free   Restricted property is property that has certain restrictions that affect its value. Where can i efile my state taxes for free If you receive restricted stock or other property for services performed, the fair market value of the property in excess of your cost is included in your income on Schedule C or C-EZ when the restriction is lifted. Where can i efile my state taxes for free However, you can choose to be taxed in the year you receive the property. Where can i efile my state taxes for free For more information on including restricted property in income, see Publication 525, Taxable and Nontaxable Income. Where can i efile my state taxes for free Gains and losses. Where can i efile my state taxes for free   Do not report on Schedule C or C-EZ a gain or loss from the disposition of property that is neither stock in trade nor held primarily for sale to customers. Where can i efile my state taxes for free Instead, you must report these gains and losses on other forms. Where can i efile my state taxes for free For more information, see chapter 3. Where can i efile my state taxes for free Promissory notes. Where can i efile my state taxes for free   Report promissory notes and other evidences of debt issued to you in a sale or exchange of property that is stock in trade or held primarily for sale to customers on Schedule C or C-EZ. Where can i efile my state taxes for free In general, you report them at their stated principal amount (minus any unstated interest) when you receive them. Where can i efile my state taxes for free Lost income payments. Where can i efile my state taxes for free   If you reduce or stop your business activities, report on Schedule C or C-EZ any payment you receive for the lost income of your business from insurance or other sources. Where can i efile my state taxes for free Report it on Schedule C or C-EZ even if your business is inactive when you receive the payment. Where can i efile my state taxes for free Damages. Where can i efile my state taxes for free   You must include in gross income compensation you receive during the tax year as a result of any of the following injuries connected with your business. Where can i efile my state taxes for free Patent infringement. Where can i efile my state taxes for free Breach of contract or fiduciary duty. Where can i efile my state taxes for free Antitrust injury. Where can i efile my state taxes for free Economic injury. Where can i efile my state taxes for free   You may be entitled to a deduction against the income if it compensates you for actual economic injury. Where can i efile my state taxes for free Your deduction is the smaller of the following amounts. Where can i efile my state taxes for free The amount you receive or accrue for damages in the tax year reduced by the amount you pay or incur in the tax year to recover that amount. Where can i efile my state taxes for free Your loss from the injury that you have not yet deducted. Where can i efile my state taxes for free Punitive damages. Where can i efile my state taxes for free   You must also include punitive damages in income. Where can i efile my state taxes for free Kickbacks. Where can i efile my state taxes for free   If you receive any kickbacks, include them in your income on Schedule C or C-EZ. Where can i efile my state taxes for free However, do not include them if you properly treat them as a reduction of a related expense item, a capital expenditure, or cost of goods sold. Where can i efile my state taxes for free Recovery of items previously deducted. Where can i efile my state taxes for free   If you recover a bad debt or any other item deducted in a previous year, include the recovery in income on Schedule C or C-EZ. Where can i efile my state taxes for free However, if all or part of the deduction in earlier years did not reduce your tax, you can exclude the part that did not reduce your tax. Where can i efile my state taxes for free If you exclude part of the recovery from income, you must include with your return a computation showing how you figured the exclusion. Where can i efile my state taxes for free Example. Where can i efile my state taxes for free Joe Smith, a sole proprietor, had gross income of $8,000, a bad debt deduction of $300, and other allowable deductions of $7,700. Where can i efile my state taxes for free He also had 2 personal exemptions for a total of $7,800. Where can i efile my state taxes for free He would not pay income tax even if he did not deduct the bad debt. Where can i efile my state taxes for free Therefore, he will not report as income any part of the $300 he may recover in any future year. Where can i efile my state taxes for free Exception for depreciation. Where can i efile my state taxes for free   This rule does not apply to depreciation. Where can i efile my state taxes for free You recover depreciation using the rules explained next. Where can i efile my state taxes for free Recapture of depreciation. Where can i efile my state taxes for free   In the following situations, you have to recapture the depreciation deduction. Where can i efile my state taxes for free This means you include in income part or all of the depreciation you deducted in previous years. Where can i efile my state taxes for free Listed property. Where can i efile my state taxes for free   If your business use of listed property (explained in chapter 8 under Depreciation ) falls to 50% or less in a tax year after the tax year you placed the property in service, you may have to recapture part of the depreciation deduction. Where can i efile my state taxes for free You do this by including in income on Schedule C part of the depreciation you deducted in previous years. Where can i efile my state taxes for free Use Part IV of Form 4797, Sales of Business Property, to figure the amount to include on Schedule C. Where can i efile my state taxes for free For more information, see What is the Business-Use Requirement? in chapter 5 of Publication 946, How To Depreciate Property. Where can i efile my state taxes for free That chapter explains how to determine whether property is used more than 50% in your business. Where can i efile my state taxes for free Section 179 property. Where can i efile my state taxes for free   If you take a section 179 deduction (explained in chapter 8 under Depreciation ) for an asset and before the end of the asset's recovery period the percentage of business use drops to 50% or less, you must recapture part of the section 179 deduction. Where can i efile my state taxes for free You do this by including in income on Schedule C part of the deduction you took. Where can i efile my state taxes for free Use Part IV of Form 4797 to figure the amount to include on Schedule C. Where can i efile my state taxes for free See chapter 2 in Publication 946 to find out when you recapture the deduction. Where can i efile my state taxes for free Sale or exchange of depreciable property. Where can i efile my state taxes for free   If you sell or exchange depreciable property at a gain, you may have to treat all or part of the gain due to depreciation as ordinary income. Where can i efile my state taxes for free You figure the income due to depreciation recapture in Part III of Form 4797. Where can i efile my state taxes for free For more information, see chapter 4 in Publication 544, Sales and Other Dispositions of Assets. Where can i efile my state taxes for free Items That Are Not Income In some cases the property or money you receive is not income. Where can i efile my state taxes for free Appreciation. Where can i efile my state taxes for free   Increases in value of your property are not income until you realize the increases through a sale or other taxable disposition. Where can i efile my state taxes for free Consignments. Where can i efile my state taxes for free   Consignments of merchandise to others to sell for you are not sales. Where can i efile my state taxes for free The title of merchandise remains with you, the consignor, even after the consignee possesses the merchandise. Where can i efile my state taxes for free Therefore, if you ship goods on consignment, you have no profit or loss until the consignee sells the merchandise. Where can i efile my state taxes for free Merchandise you have shipped out on consignment is included in your inventory until it is sold. Where can i efile my state taxes for free   Do not include merchandise you receive on consignment in your inventory. Where can i efile my state taxes for free Include your profit or commission on merchandise consigned to you in your income when you sell the merchandise or when you receive your profit or commission, depending upon the method of accounting you use. Where can i efile my state taxes for free Construction allowances. Where can i efile my state taxes for free   If you enter into a lease after August 5, 1997, you can exclude from income the construction allowance you receive (in cash or as a rent reduction) from your landlord if you receive it under both the following conditions. Where can i efile my state taxes for free Under a short-term lease of retail space. Where can i efile my state taxes for free For the purpose of constructing or improving qualified long-term real property for use in your business at that retail space. Where can i efile my state taxes for free Amount you can exclude. Where can i efile my state taxes for free   You can exclude the construction allowance to the extent it does not exceed the amount you spent for construction or improvements. Where can i efile my state taxes for free Short-term lease. Where can i efile my state taxes for free   A short-term lease is a lease (or other agreement for occupancy or use) of retail space for 15 years or less. Where can i efile my state taxes for free The following rules apply in determining whether the lease is for 15 years or less. Where can i efile my state taxes for free Take into account options to renew when figuring whether the lease is for 15 years or less. Where can i efile my state taxes for free But do not take into account any option to renew at fair market value determined at the time of renewal. Where can i efile my state taxes for free Two or more successive leases that are part of the same transaction (or a series of related transactions) for the same or substantially similar retail space are treated as one lease. Where can i efile my state taxes for free Retail space. Where can i efile my state taxes for free   Retail space is real property leased, occupied, or otherwise used by you as a tenant in your business of selling tangible personal property or services to the general public. Where can i efile my state taxes for free Qualified long-term real property. Where can i efile my state taxes for free   Qualified long-term real property is nonresidential real property that is part of, or otherwise present at, your retail space and that reverts to the landlord when the lease ends. Where can i efile my state taxes for free Exchange of like-kind property. Where can i efile my state taxes for free   If you exchange your business property or property you hold for investment solely for property of a like kind to be used in your business or to be held for investment, no gain or loss is recognized. Where can i efile my state taxes for free This means that the gain is not taxable and the loss is not deductible. Where can i efile my state taxes for free A common type of nontaxable exchange is the trade-in of a business automobile for another business automobile. Where can i efile my state taxes for free For more information, see Form 8824. Where can i efile my state taxes for free Leasehold improvements. Where can i efile my state taxes for free   If a tenant erects buildings or makes improvements to your property, the increase in the value of the property due to the improvements is not income to you. Where can i efile my state taxes for free However, if the facts indicate that the improvements are a payment of rent to you, then the increase in value would be income. Where can i efile my state taxes for free Loans. Where can i efile my state taxes for free   Money borrowed through a bona fide loan is not income. Where can i efile my state taxes for free Sales tax. Where can i efile my state taxes for free   State and local sales taxes imposed on the buyer, which you were required to collect and pay over to state or local governments, are not income. Where can i efile my state taxes for free Guidelines for Selected Occupations This section provides information to determine whether your earnings should be reported on Schedule C (Form 1040) or C-EZ (Form 1040). Where can i efile my state taxes for free Direct seller. Where can i efile my state taxes for free   You must report all income you receive as a direct seller on Schedule C or C-EZ. Where can i efile my state taxes for free This includes any of the following. Where can i efile my state taxes for free Income from sales—payments you receive from customers for products they buy from you. Where can i efile my state taxes for free Commissions, bonuses, or percentages you receive for sales and the sales of others who work under you. Where can i efile my state taxes for free Prizes, awards, and gifts you receive from your selling business. Where can i efile my state taxes for free You must report this income regardless of whether it is reported to you on an information return. Where can i efile my state taxes for free   You are a direct seller if you meet all the following conditions. Where can i efile my state taxes for free You are engaged in one of the following trades or businesses. Where can i efile my state taxes for free Selling or soliciting the sale of consumer products either in a home or other place that is not a permanent retail establishment, or to any buyer on a buy-sell basis or a deposit-commission basis for resale in a home or other place of business that is not a permanent retail establishment. Where can i efile my state taxes for free Delivering or distributing newspapers or shopping news (including any services directly related to that trade or business). Where can i efile my state taxes for free Substantially all your pay (whether paid in cash or not) for services described above is directly related to sales or other output (including performance of services) rather than to the number of hours worked. Where can i efile my state taxes for free Your services are performed under a written contract between you and the person for whom you perform the services, and the contract provides that you will not be treated as an employee for federal tax purposes. Where can i efile my state taxes for free Executor or administrator. Where can i efile my state taxes for free   If you administer a deceased person's estate, your fees are reported on Schedule C or C-EZ if you are one of the following: A professional fiduciary. Where can i efile my state taxes for free A nonprofessional fiduciary (personal representative) and both of the following apply. Where can i efile my state taxes for free The estate includes an active trade or business in which you actively participate. Where can i efile my state taxes for free Your fees are related to the operation of that trade or business. Where can i efile my state taxes for free A nonprofessional fiduciary of a single estate that requires extensive managerial activities on your part for a long period of time, provided these activities are enough to be considered a trade or business. Where can i efile my state taxes for free    If the fees do not meet the above requirements, report them on line 21 of Form 1040. Where can i efile my state taxes for free Fishing crew member. Where can i efile my state taxes for free    If you are a member of the crew that catches fish or other water life, your earnings are reported on Schedule C or C-EZ if you meet all the requirements shown in chapter 10 under Fishing crew member . Where can i efile my state taxes for free Insurance agent, former. Where can i efile my state taxes for free   Termination payments you receive as a former self-employed insurance agent from an insurance company because of services you performed for that company are not reported on Schedule C or C-EZ if all the following conditions are met. Where can i efile my state taxes for free You received payments after your agreement to perform services for the company ended. Where can i efile my state taxes for free You did not perform any services for the company after your service agreement ended and before the end of the year in which you received the payment. Where can i efile my state taxes for free You entered into a covenant not to compete against the company for at least a 1-year period beginning on the date your service agreement ended. Where can i efile my state taxes for free The amount of the payments depended primarily on policies sold by you or credited to your account during the last year of your service agreement or the extent to which those policies remain in force for some period after your service agreement ended, or both. Where can i efile my state taxes for free The amount of the payment did not depend to any extent on length of service or overall earnings from services performed for the company (regardless of whether eligibility for the payments depended on length of service). Where can i efile my state taxes for free Insurance agent, retired. Where can i efile my state taxes for free   Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is reported on Schedule C or C-EZ. Where can i efile my state taxes for free Also, renewal commissions and deferred commissions for sales made before retirement are generally reported on Schedule C or C-EZ. Where can i efile my state taxes for free   However, renewal commissions paid to the survivor of an insurance agent are not reported on Schedule C or C-EZ. Where can i efile my state taxes for free Newspaper carrier or distributor. Where can i efile my state taxes for free   You are a direct seller and your earnings are reported on Schedule C or C-EZ if all the following conditions apply. Where can i efile my state taxes for free You are in the business of delivering or distributing newspapers or shopping news (including directly related services such as soliciting customers and collecting receipts). Where can i efile my state taxes for free Substantially all your pay for these services directly relates to your sales or other output rather than to the number of hours you work. Where can i efile my state taxes for free You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. Where can i efile my state taxes for free   This rule applies whether or not you hire others to help you make deliveries. Where can i efile my state taxes for free It also applies whether you buy the papers from the publisher or are paid based on the number of papers you deliver. Where can i efile my state taxes for free Newspaper or magazine vendor. Where can i efile my state taxes for free   If you are 18 or older and you sell newspapers or magazines, your earnings are reported on Schedule C or C-EZ if all the following conditions apply. Where can i efile my state taxes for free You sell newspapers or magazines to ultimate consumers. Where can i efile my state taxes for free You sell them at a fixed price. Where can i efile my state taxes for free Your earnings are based on the difference between the sales price and your cost of goods sold. Where can i efile my state taxes for free   This rule applies whether or not you are guaranteed a minimum amount of earnings. Where can i efile my state taxes for free It also applies whether or not you receive credit for unsold newspapers or magazines you return to your supplier. Where can i efile my state taxes for free Notary public. Where can i efile my state taxes for free   Fees you receive for services you perform as a notary public are reported on Schedule C or C-EZ. Where can i efile my state taxes for free These payments are not subject to self-employment tax (see the instructions for Schedule SE (Form 1040)). Where can i efile my state taxes for free Public official. Where can i efile my state taxes for free   Public officials generally do not report what they earn for serving in public office on Schedule C or C-EZ. Where can i efile my state taxes for free This rule applies to payments received by an elected tax collector from state funds on the basis of a fixed percentage of the taxes collected. Where can i efile my state taxes for free Public office includes any elective or appointive office of the United States or its possessions, the District of Columbia, a state or its political subdivisions, or a wholly owned instrumentality of any of these. Where can i efile my state taxes for free   Public officials of state or local governments report their fees on Schedule C or C-EZ if they are paid solely on a fee basis and if their services are eligible for, but not covered by, social security under a federal-state agreement. Where can i efile my state taxes for free Real estate agent or direct seller. Where can i efile my state taxes for free   If you are a licensed real estate agent or a direct seller, your earnings are reported on Schedule C or C-EZ if both the following apply. Where can i efile my state taxes for free Substantially all your pay for services as a real estate agent or direct seller directly relates to your sales or other output rather than to the number of hours you work. Where can i efile my state taxes for free You perform the services under a written contract that says you will not be treated as an employee for federal tax purposes. Where can i efile my state taxes for free Securities dealer. Where can i efile my state taxes for free   If you are a dealer in options or commodities, your gains and losses from dealing or trading in section 1256 contracts (regulated futures contracts, foreign currency contracts, nonequity options, dealer equity options, and dealer securities futures contracts) or property related to those contracts (such as stock used to hedge options) are reported on Schedule C or C-EZ. Where can i efile my state taxes for free For more information, see sections 1256 and 1402(i). Where can i efile my state taxes for free Securities trader. Where can i efile my state taxes for free   You are a trader in securities if you are engaged in the business of buying and selling securities for your own account. Where can i efile my state taxes for free As a trader in securities, your gain or loss from the disposition of securities is not reported on Schedule C or C-EZ. Where can i efile my state taxes for free However, see Securities dealer , earlier, for an exception that applies to section 1256 contracts. Where can i efile my state taxes for free For more information about securities traders, see Publication 550, Investment Income and Expenses. Where can i efile my state taxes for free Accounting for Your Income Accounting for your income for income tax purposes differs at times from accounting for financial purposes. Where can i efile my state taxes for free This section discusses some of the more common differences that may affect business transactions. Where can i efile my state taxes for free Figure your business income on the basis of a tax year and according to your regular method of accounting (see chapter 2). Where can i efile my state taxes for free If the sale of a product is an income-producing factor in your business, you usually have to use inventories to clearly show your income. Where can i efile my state taxes for free Dealers in real estate are not allowed to use inventories. Where can i efile my state taxes for free For more information on inventories, see chapter 2. Where can i efile my state taxes for free Income paid to a third party. Where can i efile my state taxes for free   All income you earn is taxable to you. Where can i efile my state taxes for free You cannot avoid tax by having the income paid to a third party. Where can i efile my state taxes for free Example. Where can i efile my state taxes for free You rent out your property and the rental agreement directs the lessee to pay the rent to your son. Where can i efile my state taxes for free The amount paid to your son is gross income to you. Where can i efile my state taxes for free Cash discounts. Where can i efile my state taxes for free   These are amounts the seller permits you to deduct from the invoice price for prompt payment. Where can i efile my state taxes for free For income tax purposes, you can use either of the following two methods to account for cash discounts. Where can i efile my state taxes for free Deduct the cash discount from purchases (see Line 36, Purchases Less Cost of Items Withdrawn for Personal Use in chapter 6). Where can i efile my state taxes for free Credit the cash discount to a discount income account. Where can i efile my state taxes for free You must use the chosen method every year for all your purchase discounts. Where can i efile my state taxes for free   If you use the second method, the credit balance in the account at the end of your tax year is business income. Where can i efile my state taxes for free Under this method, you do not reduce the cost of goods sold by the cash discounts you received. Where can i efile my state taxes for free When valuing your closing inventory, you cannot reduce the invoice price of merchandise on hand at the close of the tax year by the average or estimated discounts received on the merchandise. Where can i efile my state taxes for free Trade discounts. Where can i efile my state taxes for free   These are reductions from list or catalog prices and usually are not written into the invoice or charged to the customer. Where can i efile my state taxes for free Do not enter these discounts on your books of account. Where can i efile my state taxes for free Instead, use only the net amount as the cost of the merchandise purchased. Where can i efile my state taxes for free For more information, see Trade discounts in chapter 6. Where can i efile my state taxes for free Payment placed in escrow. Where can i efile my state taxes for free   If the buyer of your property places part or all of the purchase price in escrow, you do not include any part of it in gross sales until you actually or constructively receive it. Where can i efile my state taxes for free However, upon completion of the terms of the contract and the escrow agreement, you will have taxable income, even if you do not accept the money until the next year. Where can i efile my state taxes for free Sales returns and allowances. Where can i efile my state taxes for free   Credits you allow customers for returned merchandise and any other allowances you make on sales are deductions from gross sales in figuring net sales. Where can i efile my state taxes for free Advance payments. Where can i efile my state taxes for free   Special rules dealing with an accrual method of accounting for payments received in advance are discussed in chapter 2 under Accrual Method. Where can i efile my state taxes for free Insurance proceeds. Where can i efile my state taxes for free   If you receive insurance or another type of reimbursement for a casualty or theft loss, you must subtract it from the loss when you figure your deduction. Where can i efile my state taxes for free You cannot deduct the reimbursed part of a casualty or theft loss. Where can i efile my state taxes for free   For information on casualty or theft losses, see Publication 547, Casualties, Disasters, and Thefts. Where can i efile my state taxes for free Prev  Up  Next   Home   More Online Publications